57 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The increase was due mainly to growth in the higher yielding commercial loan portfolio.
−Removed: 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.
+Added: The Company recognized net income of $64.0 million, or $0.51 per share, for the current year nine-month period compared to net income of $49.2 million, or $0.38 per share, for the prior year nine-month period.
+Added: The increase in net income was due mainly to higher net interest income, partially offset by higher non-interest expense and income tax expense.
+Added: The net interest margin increased 33 basis points, from 1.92% for the prior year nine-month period to 2.25% for the current year nine-month period.
+Added: The increase was due mainly to growth in the higher yielding commercial loan portfolio, along with a decrease in the average cost of certificates of deposit and the average balance of borrowings, partially offset by an increase in the average balance of deposits, mainly high yield savings accounts.
+Added: As a full-service consumer and commercial bank we are strategically investing in technology, products and employees, allowing us to deliver new products and services and deliver first-in-class service to our customers.
For additional discussion, see the "Strategic Banking Initiatives" section below.
−Removed: 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.
+Added: The Company's efficiency ratio was 52.72% for the current year nine-month period compared to 58.89% for the prior year nine-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.
−Removed: 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.
+Added: The Company's operating expense ratio (annualized) for the current year nine-month period was 1.25% compared to 1.20% for the prior year nine-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.
−Removed: 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.
−Removed: The growth in the
−Removed: commercial loan portfolio was primarily in commercial real estate loans.
−Removed: 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%.
−Removed: 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.
+Added: The loan portfolio totaled $8.17 billion at June 30, 2026, a $54.8 million increase from September 30, 2025, which was attributable to a $357.0 million increase in commercial loans, mainly in the commercial real estate portfolio, partially offset by a $302.4 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.
+Added: Maintaining strong credit quality remains a top priority as we expand our commercial loan portfolio.
+Added: The weighted average DSCR for commercial loan originations and new participations during the nine months ended June 30, 2026 was 2.22x and the weighted average LTV for commercial real estate and construction loans originated and new participations was 70%.
+Added: The weighted average DSCR and LTV for our commercial real estate and construction loan portfolio was 1.77x and 63%, respectively, at June 30, 2026.
The Bank's asset quality remains strong, reflected in the continued low level of loan delinquency and charge-off ratios.
−Removed: 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.
+Added: At June 30, 2026, loans 30 to 89 days delinquent were 0.17% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.13% 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.
−Removed: During the current year six-month period, the Bank had net charge-offs ("NCOs") of $156 thousand.
−Removed: Total deposits were $6.92 billion at March 31, 2026, an increase of $333.0 million compared to September 30, 2025.
−Removed: The increase was due mainly to growth in the Bank's non-maturity deposit portfolio.
+Added: During the current year nine-month period, the Bank had net charge-offs ("NCOs") of $304 thousand.
+Added: Total deposits were $6.85 billion at June 30, 2026, an increase of $259.3 million compared to September 30, 2025.
+Added: The increase was mainly in retail non-maturity deposits, partially offset by a decrease in certificates of deposit.
Management continues to focus on growing commercial relationships and deposits.
−Removed: During the six months ended March 31, 2026, commercial non-interest-bearing deposits increased $36.1 million, or 18.9%.
−Removed: 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.
+Added: During the nine months ended June 30, 2026, commercial non-interest-bearing deposits increased $34.5 million, or 18.0%.
+Added: Total borrowings were $1.64 billion at June 30, 2026, a decrease of $314.5 million compared to September 30, 2025, due primarily to the maturity of $250.0 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: As of March 31, 2026, the Bank's capital ratios exceeded the well-capitalized requirements.
−Removed: The Bank's community bank leverage ratio ("CBLR") as of March 31, 2026 was 9.5%.
−Removed: 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.
+Added: Management estimated that the Bank had $4.22 billion in liquidity available at June 30, 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.
+Added: Stockholders' equity totaled $1.02 billion at June 30, 2026, a decrease of $26.4 million from September 30, 2025, due to share repurchases and dividend payments, continuing our efforts to enhance stockholder value.
+Added: During the nine months ended June 30, 2026, the Company repurchased 6,369,946 shares of common stock at an average price of $7.21 per share, or $45.9 million in total, and paid cash dividends totaling $37.5 million, or $0.295 per share which consisted of a $0.040 per share special cash dividend in January 2026 and three regular quarterly cash dividends totaling $0.255 per share.
+Added: As of June 30, 2026, the Bank's capital ratios exceeded the well-capitalized requirements.
+Added: The Bank's community bank leverage ratio ("CBLR") as of June 30, 2026 was 9.6%.
+Added: At June 30, 2026, the gap between the Bank's interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(1.13) billion or (11.7%) 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.
−Removed: 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.
+Added: Quantitative and Qualitative Disclosures About Market Risk." As of June 30, 2026, the Bank was in compliance with its internal policy thresholds for sensitivity to changes in interest rates.
Strategic Banking Initiatives
−Removed: Our strategic banking initiatives keep us focused on the progression towards becoming a full-service consumer and commercial bank.
−Removed: These initiatives have resulted in investments in technology, allowing us to launch new services and products.
−Removed: Our seasoned and well-connected commercial bankers and trust and wealth advisors deliver access to new customer groups.
+Added: As a full-service consumer and commercial bank, we remain focused on strategic initiatives that broaden our product and service offerings, expand our customer base, and enhance the overall customer experience.
+Added: These initiatives require investments in technology, tactical talent acquisitions, effective marketing and disciplined execution as we launch new services and products.
+Added: Our experienced and well-connected commercial bankers and trust and wealth advisors continue to reach new customer groups.
Our treasury management product suite enables us to deliver first-in-class service to new and existing customers.
−Removed: Our marketing and business development efforts continue to increase, deepen and broaden our customer relationships.
−Removed: The focus on our strategic banking initiatives continues to bear fruit and we expect that progress to continue.
+Added: Our marketing and business development efforts continue to strengthen and expand our customer relationships.
Strategic Actions.
−Removed: 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.
+Added: The long-term success of the 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.
2 unchanged sentences
Commercial Lending.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: This enhances our ability to profitably compete with other financial institutions both inside and outside our market areas.
+Added: Commercial loans continue to grow as a percentage of our total loan portfolio, comprising 30% of the portfolio at June 30, 2026, compared to 29% and 26% at March 31, 2026 and September 30, 2025, respectively.
+Added: We maintain strong credit quality through disciplined underwriting, ongoing credit administration and close monitoring of concentration levels by collateral type, geographic location and borrowing relationship.
+Added: During the current fiscal year, our commercial lenders began utilizing loan pricing and profitability software that provides insights on lending opportunities based on the full customer banking relationship and market intelligence regarding competitor pricing.
+Added: As a result, we are profitably competing with other financial institutions both inside and outside our market areas, leading, in part, to the growth in our commercial lending portfolio.
Treasury Management.
−Removed: The Bank offers a competitive suite of treasury management products to commercial customers who are supported by an experienced team of treasury management officers.
−Removed: 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.
−Removed: 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.
−Removed: Our treasury management officers and business development officers often create depository relationships with new customers independent of a lending relationship.
−Removed: 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.
−Removed: 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.
−Removed: We are evaluating additional technology in order to capture a larger share of this business with even more products and services.
−Removed: Within calendar year 2026, we expect to implement new technology for lockbox services and integrated accounts receivables.
−Removed: The Bank implemented new purchase cards and corporate cards in March 2026.
−Removed: Revenue stream projections have not yet been determined as customer acceptance rates are still being evaluated.
+Added: The Bank's competitive suite of treasury management products is supported by an experienced team of treasury management officers.
+Added: This team focuses on serving the deposit and cash management needs of commercial customers, growing this line of business through the acquisition of new customers located in our local market areas, and those we lend to outside those areas.
+Added: Our team of business development officers is tasked with growing the deposit base within the small business customer segment and providing product lines specifically designed for these customers.
+Added: Treasury management officers and business development officers often create depository relationships with new customers independent of a lending relationship.
+Added: This is a focus area for our sales teams as the Bank diversifies funding sources and seeks to increase fee revenue tied to depository accounts.
+Added: During the current quarter, we (1) introduced digital deposit account onboarding for small business customers using industry-leading risk management and screening tools to eliminate manual screening processes and (2) implemented new technology for lockbox services, which our Treasury Management Officers are currently utilizing to work with prospective customers.
+Added: We continue to evaluate additional technology in an effort to capture a larger share of this business with even more products and services.
Digital Banking.
−Removed: We are advancing towards a seamless digital banking experience for all customers, enhancing the Bank's ability to attract and retain deposits and lower the cost to service our customers.
−Removed: 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.
−Removed: During the current quarter, the Bank successfully ran live pilots for this technology and published the mobile app to the app store.
−Removed: We are preparing for general release to our customers in the third quarter of fiscal year 2026.
−Removed: 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.
−Removed: Wealth Management.
−Removed: We have continued to implement enhanced private wealth management products and services, which is a new line of business for the Bank.
−Removed: 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.
−Removed: We are adding experienced advisors to our staff to meet the growing client demand in all the markets we serve.
−Removed: We continue to expand our extensive suite of private banking products and services and grow our client base in this area.
−Removed: 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.
+Added: Our digital banking 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.
+Added: The Bank is deploying fintech plug-in technology that integrates into digital banking to improve customer experience, extend product offerings and deepen our share of wallet for consumers, small businesses, and commercial customers.
+Added: During the current quarter, we (1) started development to bring both self-directed and automated investing capabilities into True Blue Online®, providing customers with an investment experience directly connected to their checking or savings account and (2) initiated development for new debit card management software for True Blue Online®, continuing to improve self-service debit card management capabilities.
+Added: In late July 2026, we launched an instant digital issuance application.
+Added: Wealth Management and Private Banking.
+Added: Building on our strategic investments in Wealth Management and Private Banking, we made meaningful progress during the quarter that advances our long-term growth objectives.
+Added: We successfully continued the implementation of enhancements to our trust and financial advisory platform, including improvements to processes, technology, and service delivery that are expected to strengthen both the client and advisor experience.
+Added: This transformation is expected to continue through the remainder of the current fiscal year.
+Added: In Private Banking, we continued to deepen relationships with high-net-worth households, business owners, and commercial clients through the onboarding of new relationships that included a combination of wealth management assets, deposits, and lending opportunities.
+Added: Our focus on delivering coordinated banking, lending, and wealth management solutions has enhanced client engagement and expanded opportunities across multiple lines of business.
+Added: We also continued to strengthen referral activity between Wealth Management, Retail Banking, and Commercial Banking teams.
+Added: These collaborative efforts have increased the identification of opportunities to serve clients more comprehensively and support the Bank's strategy of growing fee-based revenue while deepening core customer relationships.
+Added: These factors contributed to strong new client acquisition and asset growth, resulting in record assets under management at quarter-end.
+Added: The progress achieved this quarter demonstrates continued momentum in building a scalable wealth management and private banking platform that we believe will generate sustainable revenue growth, improve operating efficiency, and enhance stockholder value over time.
Stockholder Value.
−Removed: Delivering long-term sustainable stockholder value continues to be our North Star while maintaining a strong capital position.
+Added: The intended result of our strategic initiatives is to deliver long-term sustainable stockholder value.
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.
−Removed: At March 31, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank.
−Removed: 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.
−Removed: Total dividends paid during the second quarter of fiscal year 2026 were $15.9 million, or $0.125 per share.
−Removed: 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.
−Removed: Subsequent to March 31, 2026, the Company repurchased an additional 1,002,964 shares for $7.6 million through May 6, 2026.
−Removed: 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.
−Removed: 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.
+Added: At June 30, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank.
+Added: The Bank anticipates moving at least $34.0 million to the holding company during the quarter-ending September 30, 2026, to fund the payment of dividends and share repurchases.
+Added: Total dividends paid during the third quarter of fiscal year 2026 were $10.6 million, or $0.085 per share.
+Added: During the nine months ended June 30, 2026, the Company paid dividends totaling $37.5 million, or $0.295 per share.
+Added: We repurchased 6,369,946 shares for $45.9 million during the first nine months of the current fiscal year.
+Added: Subsequent to June 30, 2026, the Company repurchased an additional 187,476 shares for $1.6 million through August 3, 2026.
+Added: Since converting to a fully public company in December 2010 through June 30, 2026, we have returned $2.09 billion to stockholders through $1.60 billion in cash dividends and $485.8 million in share repurchases.
+Added: For the remainder of fiscal year
+Added: 2026, it is the intention of the Board of Directors to continue the regular quarterly cash dividend of $0.085 per share and to seek further opportunities for value-enhancing share repurchases.
Financial Condition
1 unchanged sentence
Annualized Annualized
−Removed: March 31, December 31, Percent September 30, Percent
+Added: June 30, March 31, Percent September 30, Percent
2026 2026 Change 2025 Change
10 unchanged sentences
shares outstanding $ 124,009 $ 126,631 (8.3) 129,874 (6.0)
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Total loans receivable, net is anticipated to increase by approximately 1% for the full fiscal year.
−Removed: 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.
+Added: The loan portfolio increased $52.6 million during the current quarter due to commercial loan growth of $155.2 million, or a 27% annualized increase, mainly in the commercial real estate portfolio, partially offset by a decrease of $105.6 million in the one- to four-family loan portfolio.
+Added: The near-term outlook for net commercial loan balances is growth of approximately 3% for the quarter ending September 30, 2026, with overall net commercial loan growth of approximately 20% for the fiscal year.
+Added: Total loans receivable, net is anticipated to increase by approximately 1% for the current fiscal year.
+Added: It is expected that a significant portion of repayments from our one- to four-family loan portfolio will continue to be directed toward supporting commercial loan growth.
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 1.96x and the weighted average LTV for commercial real estate and construction loans originated was 71%.
−Removed: Deposits increased $165.9 million during the current quarter, due mainly to the Bank's retail non-maturity deposits.
−Removed: 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.
−Removed: Cash flows from the deposit portfolio were primarily used to pay down the borrowings during the current quarter.
−Removed: Stockholders' equity decreased $15.6 million during the current quarter, due primarily to strategic share repurchases and dividend payments.
+Added: Deposits decreased $73.8 million during the current quarter due mainly to a decrease in certificates of deposit and, to a lesser extent, decreases in money market and checking accounts, partially offset by an increase in high yield savings accounts.
+Added: Borrowings decreased $70.8 million from March 31, 2026, due to the maturity of $50.0 million in borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances.
+Added: Stockholders' equity decreased $4.4 million during the current quarter, due primarily to share repurchases and dividend payments.
Loans Receivable.
1 unchanged sentence
One- to four-family purchased loans in the following tables include correspondent purchased loans and bulk purchased loans.
−Removed: March 31, 2026 December 31, 2025 September 30, 2025
+Added: June 30, 2026 March 31, 2026 September 30, 2025
Amount Rate Amount Rate Amount Rate
20 unchanged sentences
Loans that were paid off as a result of refinances are included in repayments.
−Removed: Loan endorsements are not included in the activity in the following table because a new loan is not generated at the time of the endorsement.
−Removed: The endorsed balance and rate are included in the ending loan portfolio balance and rate.
Commercial loan renewals are not included in the activity presented in the following table unless new funds are disbursed at the time of renewal.
The renewal balance and rate are included in the ending loan portfolio balance and rate.
−Removed: For the Three Months Ended For the Six Months Ended
−Removed: March 31, 2026 March 31, 2026 March 31, 2025
+Added: For the Three Months Ended For the Nine Months Ended
+Added: June 30, 2026 June 30, 2026 June 30, 2025
Amount Rate Amount Rate Amount Rate
11 unchanged sentences
Loan originations, participations, and refinances are reported together.
−Removed: For the Six Months Ended
−Removed: March 31, 2026 March 31, 2025
+Added: For the Nine Months Ended
+Added: June 30, 2026 June 30, 2025
Amount Rate % of Total Amount Rate % of Total
36 unchanged sentences
$ 104,021 6.38 $ 92,479 7.13
−Removed: 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 March 31, 2026.
+Added: 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 June 30, 2026.
Credit scores were updated in September 2025 from a nationally recognized consumer rating agency.
9 unchanged sentences
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 time periods indicated.
−Removed: 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%.
−Removed: For the Three Months Ended For the Six Months Ended
−Removed: March 31, 2026 March 31, 2026
+Added: As of June 30, 2026, the Bank had one- to four-family loan and refinance commitments totaling $39.9 million at a weighted average rate of 6.19%.
+Added: For the Three Months Ended For the Nine Months Ended
+Added: June 30, 2026 June 30, 2026
Credit Credit
7 unchanged sentences
The DSCR is calculated based on historical borrower performance, or projected borrower performance for newly formed entities with no performance history.
−Removed: For the Three Months Ended March 31, 2026
+Added: For the Three Months Ended June 30, 2026
Originated Participation Total Weighted Weighted
5 unchanged sentences
$ 212,114 6.29 $ 20,501 6.41 $ 232,615 6.30 71 1.96
−Removed: For the Six Months Ended March 31, 2026
+Added: For the Nine Months Ended June 30, 2026
Originated Participation Total Weighted Weighted
6 unchanged sentences
The following table presents commercial loan disbursements, excluding lines of credit, during the periods indicated.
−Removed: For the Three Months Ended For the Six Months Ended
−Removed: March 31, 2026 December 31, 2025 March 31, 2026 March 31, 2025
+Added: For the Three Months Ended For the Nine Months Ended
+Added: June 30, 2026 March 31, 2026 June 30, 2026 June 30, 2025
Amount Rate Amount Rate Amount Rate Amount Rate
6 unchanged sentences
Management anticipates fully funding the majority of the undisbursed amounts, as most are not cancellable by the Bank.
−Removed: December 31, September 30,
−Removed: March 31, 2026 2025 2025
+Added: March 31, September 30,
+Added: June 30, 2026 2026 2025
Unpaid Undisbursed Gross Loan Gross Loan Gross Loan
8 unchanged sentences
Warehouse/manufacturing 52 66,445 602 67,047 65,804 58,853
−Removed: Land 24 39,334 413 39,747 34,601 35,605
Single use building 26 52,928 2,372 55,300 32,715 33,718
+Added: Land 25 47,537 651 48,188 39,747 35,605
Other 28 25,781 540 26,321 23,727 28,192
1 unchanged sentence
Weighted average rate 5.89 % 6.54 % 5.97 % 5.98 % 5.99 %
−Removed: 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.
+Added: 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 June 30, 2026.
Non-owner Occupied Owner Occupied
10 unchanged sentences
175 $ 1,408,215 62 1.65 182 $ 174,378 59 3.16
−Removed: 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.
+Added: 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 June 30, 2026.
+Added: Of the amounts included in the September 30, 2026 projected disbursement amount, $76.2 million was funded through August 3, 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.
2 unchanged sentences
2026 December 31,
+Added: 2026 March 31,
2027 Thereafter Revolving Lines of Credit Total
5 unchanged sentences
The following table summarizes the Bank's commercial real estate and commercial construction loans by the state in which the collateral is located, as of the dates indicated.
−Removed: December 31, September 30,
−Removed: March 31, 2026 2025 2025
+Added: March 31, September 30,
+Added: June 30, 2026 2026 2025
Unpaid Undisbursed Gross Loan Gross Loan Gross Loan
9 unchanged sentences
728 $ 2,199,121 $ 311,060 $ 2,510,181 $ 2,391,751 $ 2,149,910
−Removed: 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 March 31, 2026.
−Removed: 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.
+Added: The following table presents the Bank's commercial real estate and commercial construction loans by unpaid principal balance, aggregated by type of primary collateral and state, along with weighted average LTV and weighted average DSCR as of June 30, 2026.
+Added: The LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of June 30, 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.
2 unchanged sentences
In general, commercial borrowers with total loans of $2.5 million or more are reviewed at least annually to monitor financial performance.
−Removed: Kansas Missouri Texas Arizona New York California Other Total
+Added: Kansas Missouri Texas Arizona California New York Other Total
(Dollars in thousands)
3 unchanged sentences
Retail building 100,176 47,500 38,666 22,065 — — 73,200 281,607
−Removed: Office building 62,523 7,336 447 131 3,117 — 26,930 100,484
One- to four-family property 67,867 4,273 — 1,553 1,620 — 42,772 118,085
+Added: Office building 67,644 10,236 1,896 — — 3,098 27,421 110,295
Warehouse/manufacturing 41,992 18,324 — — — — 6,129 66,445
−Removed: Land 7,258 78 — — — — 31,998 39,334
Single use building 11,544 17,638 — 374 23,372 — — 52,928
+Added: Land 5,252 77 — — — — 42,208 47,537
Other 12,834 4,265 — — — — 8,682 25,781
2 unchanged sentences
Weighted DSCR 2.16x 1.47x 1.27x 1.48x 1.46x 1.83x 1.63x 1.77x
−Removed: 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 March 31, 2026.
+Added: The following table presents the unpaid principal balance of the Bank's commercial real estate and commercial construction loans aggregated by type of primary collateral, along with weighted average rate, LTV, and DSCR as of June 30, 2026.
Unpaid Weighted Weighted Weighted
5 unchanged sentences
Retail building 126 281,607 6.06 62 1.87
−Removed: Office building 75 100,484 6.41 65 3.68
One- to four-family property 276 118,085 5.93 63 2.00
+Added: Office building 78 110,295 6.42 66 3.65
Warehouse/manufacturing 52 66,445 6.41 65 2.33
−Removed: Land 24 39,334 6.27 68 3.89
Single use building 26 52,928 6.20 64 1.51
+Added: Land 25 47,537 6.25 73 3.96
Other 28 25,781 6.37 56 1.80
728 $ 2,199,121 5.89 63 1.77
−Removed: 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.
+Added: 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 June 30, 2026, aggregated by type of primary collateral, as well as the weighted average rate, LTV, and DSCR.
+Added: The DSCR presented in the table below is based on projected stabilized cash flows and the contractual loan payments when the project stabilizes.
+Added: The weighted average DSCR for the office building line is below 1.15x due primarily to one $20.5 million construction loan for a leased medical office building that was originated during the current quarter with an anticipated LTV of 71% based upon the as completed appraised value.
+Added: The Bank has a long-term relationship with the borrower and the borrower has extensive development experience.
Unpaid Undisbursed Gross Loan Commitment Total Weighted
5 unchanged sentences
Senior housing 3 33,571 26,363 59,934 — 59,934 6.36 77 1.31
−Removed: Warehouse/manufacturing 1 9,360 — 9,360 — 9,360 7.25 80 1.56
Office building 3 8,003 19,048 27,051 — 27,051 6.58 75 1.13
−Removed: Single use building 1 — — — 6,112 6,112 7.00 62 1.22
One- to four-family property 5 1,355 8,121 9,476 — 9,476 6.54 78 1.28
4 unchanged sentences
Weighted DSCR 1.28x 1.27x 1.27x 1.24x 1.26x
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Included in the >$20 to $30 million category are five loans with DSCRs below 1.15x.
−Removed: 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.
−Removed: 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.
−Removed: All of these loans were current as of March 31, 2026 and are being actively monitored by management.
−Removed: The weighted average LTV for these four loans was 68% as of March 31, 2026.
−Removed: The fifth loan, with an unpaid principal balance of $24.3 million, was on nonaccrual and classified as substandard as of March 31, 2026.
−Removed: A specific valuation allowance was established related to this loan as of March 31, 2026.
−Removed: 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.
+Added: 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 June 30, 2026, categorized by aggregate gross loan and commitment amount, as well as average loan amount and weighted average rate, LTV, and DSCR.
+Added: For amounts over $60.0 million, there were $151.4 million for loans related to hotels in Arizona and California, $142.9 million for loans related to multi-family properties in Kansas, and $69.6 million related to a loan secured by a senior housing facility in Kansas.
+Added: The largest loan included in the table below was $86.0 million, which was fully disbursed as of June 30, 2026, and is collateralized by a hotel in Arizona.
+Added: At the prior quarter end, there were five loans in the >$20 to $30 million category with DSCRs below 1.15x.
+Added: During the current quarter the DSCR on one of those loans increased to above 1.15x and new commitments above 1.15x resulted in the overall DSCR for this category being over 1.15x at June 30, 2026.
+Added: Three of the four loans in this category with DSCRs below 1.15x are each with one of our largest borrowing groups.
+Added: We have over 20 years of experience with these borrowing groups and the guarantors have expertise in the operation of the properties secured by the loans.
+Added: All of these loans were current as of June 30, 2026 and are being actively monitored by management.
+Added: The weighted average LTV for these three loans was 67% as of June 30, 2026.
+Added: The fourth loan, with an unpaid principal balance of $24.0 million, was on nonaccrual and classified as substandard as of June 30, 2026.
+Added: A specific valuation allowance was established related to this loan as of June 30, 2026.
and Commitment Average Weighted Weighted Weighted
11 unchanged sentences
742 $ 2,811,403 3,789 6.01 63 1.69
−Removed: 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.
−Removed: 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.
+Added: 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 June 30, 2026.
+Added: As of June 30, 2026, 69% of the Bank's commercial and industrial gross loan balance were to borrowers located in Kansas.
+Added: The Bank had five commercial and industrial loan commitments totaling $13.8 million, with a weighted average rate of 6.59%, at June 30, 2026.
Management anticipates growth in the commercial and industrial loan portfolio as the Bank advances its strategy to grow all aspects of commercial banking.
However, given the inherent characteristics of these loans, balances will likely fluctuate over time.
−Removed: December 31, September 30,
−Removed: March 31, 2026 2025 2025
+Added: March 31, September 30,
+Added: June 30, 2026 2026 2025
Unpaid Undisbursed Gross Loan Weighted Gross Loan Gross Loan
8 unchanged sentences
Weighted average rate 6.69 % 6.61 % 6.68 % 6.74 % 6.97 %
−Removed: 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.
−Removed: Unpaid Undisbursed Gross Loan
−Removed: Principal Amount Amount
−Removed: (Dollars in thousands)
−Removed: Kansas $ 172,271 $ 55,192 $ 227,463
−Removed: Arizona 11,798 — 11,798
−Removed: Missouri 10,722 690 11,412
−Removed: Other 37,391 1,215 38,606
−Removed: $ 232,182 $ 57,097 $ 289,279
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: The following table presents the Bank's commercial and industrial loan portfolio, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of June 30, 2026, categorized by aggregate gross loan and commitment amounts, as well as average loan amount, and weighted average DSCR.
+Added: The largest loan included in the table below was a working capital loan with a gross balance of $36.0 million, of which $7.3 million remained undisbursed as of June 30, 2026.
+Added: This loan is part of the Bank's largest commercial and industrial lending relationship, which had a total gross loan balance of $84.4 million as of June 30, 2026, representing approximately 26% of the gross commercial and industrial loan portfolio at that date.
+Added: The borrower is located in Kansas and, as of June 30, 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.
+Added: These two loans were current and performing as of June 30, 2026.
and Commitment Average Weighted
12 unchanged sentences
The amounts in the table represent the unpaid principal balance of the loans less related charge-offs, if any.
−Removed: Of the loans 30 to 89 days delinquent at March 31, 2026, approximately 60% were 59 days or less delinquent.
−Removed: March 31, December 31, September 30,
+Added: Of the loans 30 to 89 days delinquent at June 30, 2026, approximately 81% were 59 days or less delinquent.
+Added: June 30, March 31, December 31,
2026 2026 2025
15 unchanged sentences
At all dates presented, there were no loans 90 or more days delinquent that were still accruing interest.
−Removed: March 31, December 31, September 30,
+Added: June 30, March 31, December 31,
2026 2026 2025
27 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.
−Removed: 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 March 31, 2026.
+Added: 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 June 30, 2026.
The amounts in the table represent the unpaid principal balance of the loans, less related charge-offs, if any.
8 unchanged sentences
$ 5,602,256 100.0 % $ 9,272 100.0 % $ 7,674 100.0 % 53
−Removed: 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 March 31, 2026.
+Added: 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 June 30, 2026.
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.
8 unchanged sentences
The following table presents the amortized cost of loans classified as special mention or substandard at the dates presented.
−Removed: 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.
−Removed: The majority of the substandard commercial real estate loan balance at the dates presented in the table below relates to one borrowing relationship.
−Removed: During the current quarter, an updated appraisal was received related to the collateral securing this lending relationship.
−Removed: 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.
+Added: The decrease in commercial real estate special mention loans at June 30, 2026 compared to September 30, 2025 was due mainly to a hotel participation loan being upgraded to a "pass" classification as a result of an improvement in the hotel's financial results.
+Added: The majority of the substandard commercial real estate loan balance for the periods presented in the table below relates to one borrowing relationship.
+Added: During the March 31, 2026 quarter, an updated appraisal was received related to the collateral securing the lending relationship.
+Added: The updated appraisal was lower than the appraisal received in the prior year and as a result, a $4.0 million specific valuation allowance was recorded as of March 31, 2026 related to this lending relationship which was still in place at June 30, 2026.
The loans associated with this lending relationship were on nonaccrual at all dates presented in the table below.
−Removed: March 31, 2026 December 31, 2025 September 30, 2025
+Added: June 30, 2026 March 31, 2026 September 30, 2025
Special Mention Substandard Special Mention Substandard Special Mention Substandard
8 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.
−Removed: 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.
+Added: At June 30, 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.
−Removed: 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.
+Added: The decrease in the ACL to loans receivable ratio as of June 30, 2026 compared to March 31, 2026, was due primarily to an update to the ACL model's regression analyses.
+Added: The update entailed incorporating additional historical loss time periods for all loan categories within the ACL model and resulted in a decrease in the ACL of approximately $800 thousand, mainly within the commercial construction loan category.
+Added: The historical loss experience for commercial construction loans continued to show lower historical losses resulting in a lower loss rate for this loan category.
+Added: The increase in the ACL to loans receivable ratio as of June 30, 2026 compared to September 30, 2025, was due primarily to establishing a $4.0 million specific valuation related to a commercial real estate lending relationship during the March 31, 2026 quarter which continued to be in place at June 30, 2026, partially offset by improvement between periods in some of the commercial-related forecasted economic indices and an update to the ACL model's regression analyses (as 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
−Removed: March 31, December 31, September 30, March 31, December 31, September 30,
+Added: June 30, March 31, September 30, June 30, March 31, September 30,
2026 2026 2025 2026 2026 2025
11 unchanged sentences
Total $ 26,103 $ 26,599 $ 24,039 0.32 0.33 0.30
−Removed: Historically, the Bank has maintained very low delinquency ratios and net charge-off rates.
+Added: Historically, the Bank has maintained very low delinquency ratios and NCO 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 originated and correspondent loans, combined, was 0.17%.
−Removed: During the 10-year period ended March 31, 2026, the Bank recognized total NCOs of $904 thousand.
−Removed: 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.
+Added: During the 10-year period ended June 30, 2026, the Bank recognized total NCOs of $1.2 million.
+Added: As of June 30, 2026, the ACL balance was $26.1 million and the reserve for off-balance sheet credit exposures totaled $6.2 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.
−Removed: At or For the Six Months Ended
−Removed: March 31, 2026 March 31, 2025
+Added: At or For the Nine Months Ended
+Added: June 30, 2026 June 30, 2025
(Dollars in thousands)
11 unchanged sentences
during the period (annualized) 65x 129x
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: See Part II, Item 7.
−Removed: 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.
+Added: The ratio of NCOs during the period to average non-performing assets was higher in the current year period compared to the prior year period due to an increase in NCOs during the current year period.
+Added: The ratio of ACL to nonaccrual loans was higher at the end of the current year period compared to the prior year period due to a higher ACL balance at June 30, 2026.
+Added: The increase in the ratio of the ACL to total loans as of June 30, 2026 from June 30, 2025 was due primarily to an increase in the commercial loan portfolio which has a higher ACL to loans receivable ratio than one- to four-family loans and establishing a $4.0 million specific valuation related to a commercial real estate lending relationship during the current year period, partially offset by improvement between periods in some of the commercial-related forecasted economic indices and an update to the ACL model's regression analyses.
+Added: ACL at the end of the period to NCOs during the current year period (annualized) was lower compared to the prior year period due primarily to higher NCOs in the current year period.
Additional information related to ACL activity by specific loan categories for the current year period can be found in "Part I, Item 1.
1 unchanged sentence
Loans Receivable and Allowance for Credit Losses" within this Quarterly Report on Form 10-Q.
−Removed: 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.
−Removed: For the Six Months Ended
−Removed: March 31, 2026 March 31, 2025
+Added: For the Nine Months Ended
+Added: June 30, 2026 June 30, 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.
−Removed: Overall, fixed-rate securities comprised 91% of our securities portfolio at March 31, 2026.
+Added: Overall, fixed-rate securities comprised 91% of our securities portfolio at June 30, 2026.
The WAL is the estimated remaining maturity (in years) after three-month historical prepayment speeds and projected call option assumptions have been applied.
−Removed: Weighted average yields on tax-exempt securities are not calculated on a fully tax-equivalent basis.
−Removed: March 31, 2026 December 31, 2025 September 30, 2025
+Added: During the current fiscal year, the Bank reinvested cash flows from the securities portfolio into commercial loan growth and to pay down maturing FHLB borrowings.
+Added: June 30, 2026 March 31, 2026 September 30, 2025
Amount Yield WAL Amount Yield WAL Amount Yield WAL
6 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.
−Removed: For the Six Months Ended
−Removed: March 31, 2026 March 31, 2025
+Added: For the Nine Months Ended
+Added: June 30, 2026 June 30, 2025
Amount Yield WAL Amount Yield WAL
6 unchanged sentences
Ending balance - carrying value $ 783,559 5.42 3.4 $ 956,229 5.47 4.6
−Removed: Total liabilities were $8.80 billion at March 31, 2026, compared to $8.73 billion at September 30, 2025.
−Removed: 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.
+Added: Total liabilities were $8.64 billion at June 30, 2026, compared to $8.73 billion at September 30, 2025.
+Added: The $90.2 million decrease was due primarily to a $314.5 million decrease in borrowings, partially offset by a $259.3 million increase in deposits.
The following table presents the amount, weighted average rate and percent of total for the components of our deposit portfolio at the dates presented.
−Removed: 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.
−Removed: 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.
−Removed: March 31, 2026 December 31, 2025 September 30, 2025
+Added: The decrease in the weighted average deposit portfolio rate as of June 30, 2026 compared to March 31, 2026 was due primarily to both a reduction in the rate and a decrease in the balance of certificates of deposit, partially offset by an increase in high yield savings account balances.
+Added: The decrease in the weighted average 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.
+Added: June 30, 2026 March 31, 2026 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.
−Removed: March 31, 2026 December 31, 2025 September 30, 2025
+Added: June 30, 2026 March 31, 2026 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.
−Removed: March 31, 2026 December 31, 2025 September 30, 2025
+Added: June 30, 2026 March 31, 2026 September 30, 2025
% of % of % of
5 unchanged sentences
$ 6,850,705 2.09 100.0 % $ 6,924,491 2.13 100.0 % $ 6,591,448 2.26 100.0 %
−Removed: 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.
+Added: As of June 30, 2026, approximately $771.4 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.
−Removed: 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.
+Added: Total borrowings at June 30, 2026 were $1.64 billion, which was comprised of $1.54 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 $314.5 million from September 30, 2025 due primarily to the maturity of $250.0 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.
−Removed: Management will continue to monitor opportunities for wholesale funding and may pay down FHLB advances in future periods.
−Removed: 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.
−Removed: 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.
+Added: 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 June 30, 2026.
Amortizing FHLB advances totaling $212.5 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.
−Removed: For the Three Months Ended For the Six Months Ended
−Removed: March 31, 2026 March 31, 2026 March 31, 2025
+Added: For the Three Months Ended For the Nine Months Ended
+Added: June 30, 2026 June 30, 2026 June 30, 2025
Effective Effective Effective
5 unchanged sentences
Ending balance $ 1,637,480 3.72 1.4 $ 1,637,480 3.72 1.4 $ 2,072,152 3.52 1.7
−Removed: 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.
+Added: The $425.0 million of new FHLB borrowings reflected in the table above in the current year nine-month period was used to prepay $425.0 million of existing advances which are included in maturities and repayments.
+Added: During the March 31, 2026 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.
1 unchanged sentence
This transaction resulted in prepayment fees of $11 thousand, which will be recognized in interest expense over the life of the new FHLB advance.
−Removed: These prepayment activities are reflected through the effective rates in the table above.
+Added: These prepayment activities are reflected in the table above.
Management will continue to monitor opportunities for wholesale funding and may pay down FHLB advances in future periods.
+Added: 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.
Maturities of Interest-Bearing Liabilities.
−Removed: 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 March 31, 2026.
−Removed: June 30, September 30, December 31, March 31,
+Added: The following table presents the maturity and weighted average repricing rate, which is also the weighted average effective rate, of certificates of deposit, split between retail/commercial and public unit amounts, and non-amortizing FHLB advances for the next four quarters as of June 30, 2026.
+Added: September 30, December 31, March 31, June 30,
2026 2026 2027 2027 Total
11 unchanged sentences
Repricing Rate 3.64 % 3.55 % 2.86 % 3.42 % 3.43 %
−Removed: The following table sets forth the WAM information for our certificates of deposit, in years, as of March 31, 2026.
+Added: The following table sets forth the WAM information for our certificates of deposit, in years, as of June 30, 2026.
Retail certificates of deposit 0.7
3 unchanged sentences
Stockholders' Equity.
−Removed: Stockholders' equity totaled $1.03 billion at March 31, 2026.
+Added: Stockholders' equity totaled $1.02 billion at June 30, 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.
−Removed: 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.
−Removed: As of March 31, 2026, the Bank's community bank leverage ratio was 9.5%.
−Removed: 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.
+Added: As of June 30, 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.
+Added: As of June 30, 2026, the Bank's CBLR was 9.6%.
+Added: 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 9.9% as of June 30, 2026.
See "Liquidity and Capital Resources" below for additional information regarding the Bank's regulatory capital requirements.
−Removed: 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.
−Removed: 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.
−Removed: As of May 6, 2026, total shares outstanding was 126,694,827.
+Added: During the nine months ended June 30, 2026, the Company repurchased 6,369,946 shares of common stock at an average price of $7.21 per share, or $45.9 million in total.
+Added: Subsequent to June 30, 2026 through August 3, 2026, the Company repurchased an additional 187,476 shares of common stock at an average price of $8.54 per share, or $1.6 million in total, bringing total share repurchases during fiscal year 2026 through August 3, 2026 to 6,557,422 shares for $47.5 million.
+Added: As of August 3, 2026, total shares outstanding were 125,698,283.
The Company intends to opportunistically repurchase stock from time to time depending upon market conditions, available liquidity, and other factors.
1 unchanged sentence
The FRB's current non-objection for the Company to repurchase up to $75 million of stock expires in February 2027.
−Removed: As of May 6, 2026 the Company had $31.8 million remaining authorized under its existing stock repurchase plan.
−Removed: 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.
−Removed: 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.
+Added: As of August 3, 2026 the Company had $23.6 million remaining authorized under its existing stock repurchase plan.
+Added: During the nine months ended June 30, 2026, the Company paid cash dividends totaling $37.5 million, or $0.295 per share, which consisted of a $0.040 per share special cash dividend paid in January 2026 and three regular quarterly cash dividends of $0.085 per share, totaling $0.255 per share for the quarterly cash dividends.
+Added: On July 29, 2026, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $10.5 million, payable on August 21, 2026 to stockholders of record as of the close of business on August 7, 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.
−Removed: 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.
−Removed: Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital compliance, regulatory limitations on the Bank's ability to
−Removed: make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.
+Added: Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital compliance, regulatory limitations on the Bank's ability to make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.
The Board of Directors continues to evaluate various alternatives for capital allocation to enhance stockholder value, including the repurchase of stock, the payment of additional cash dividends, or retaining earnings to support future growth.
−Removed: 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.
+Added: Since converting to a fully public company in December 2010 through June 30, 2026, we have returned $2.09 billion in capital to stockholders through dividends totaling $1.60 billion and stock repurchases totaling $485.8 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.
−Removed: At March 31, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank.
−Removed: During the six months ended March 31, 2026, the Bank distributed $53.0 million from the Bank to the Company.
−Removed: 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.
+Added: At June 30, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank.
+Added: During the nine months ended June 30, 2026, the Bank distributed $78.0 million from the Bank to the Company.
+Added: Subsequent to June 30, 2026 through August 3, 2026, the Bank distributed $29.0 million from the Bank to the holding company to fund the payment of dividends and share repurchases during the quarter-ending September 30, 2026.
+Added: The Bank intends to distribute up to an additional $5.0 million to the holding company by September 30, 2026.
The Bank is expected to stay in a positive tax accumulated earnings and profit balance during the remainder of fiscal year 2026.
1 unchanged sentence
The amounts represent cash dividends paid during each period shown.
−Removed: 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.
+Added: For the quarter ending September 30, 2026, the amount presented represents the estimated dividend payable on August 21, 2026 to stockholders of record as of the close of business on August 7, 2026.
Calendar Year
12 unchanged sentences
For the Three Months Ended
−Removed: March 31, December 31, September 30, June 30, March 31,
+Added: June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
23 unchanged sentences
Diluted EPS 0.19 0.16 0.16 0.14 0.14
−Removed: Comparison of Operating Results for the Three Months Ended March 31, 2026 and December 31, 2025
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Comparison of Operating Results for the Three Months Ended June 30, 2026 and March 31, 2026
+Added: For the quarter ended June 30, 2026, the Company recognized net income of $23.6 million, or $0.19 per share, compared to net income of $20.1 million, or $0.16 per share, for the quarter ended March 31, 2026.
+Added: The increase in net income was due primarily to a release of provision for credit losses compared to a provision expense in the prior quarter, along with increases in net interest income and non-interest income, partially offset by higher non-interest expense.
+Added: The net interest margin increased seven basis points, from 2.24% for the prior quarter to 2.31% for the current quarter, due primarily to a decrease in the average balance of borrowings and growth in the higher yielding commercial loan portfolio.
Interest and Dividend Income
−Removed: The following table presents the components of interest and dividend income for the periods presented, along with the change measured in dollars and percent.
+Added: The following table presents the components of interest and dividend income for the time periods presented, along with the change measured in dollars and percent.
For the Three Months Ended
−Removed: March 31, December 31, Change Expressed in:
+Added: June 30, March 31, Change Expressed in:
2026 2026 Dollars Percent
7 unchanged sentences
Total interest and dividend income $ 105,119 $ 104,560 $ 559 0.5
−Removed: 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.
−Removed: The average balance of the commercial loan portfolio increased during the current quarter, which partially offset the impact of the items noted above.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: The increase in interest income on loans receivable was due to growth in the commercial loan portfolio, as a significant portion of the cash flows from the one- to four-family loan portfolio continued to be redirected into the higher yielding commercial loan portfolio, along with an increase in the yield on the commercial and one-to four-family loan portfolios.
+Added: The decrease in interest income on cash and cash equivalents was due to a decrease in the average balance compared to the prior quarter as excess operating cash was used, in part, to pay off borrowings that matured during the current quarter.
Interest Expense
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, December 31, Change Expressed in:
+Added: June 30, March 31, Change Expressed in:
2026 2026 Dollars Percent
4 unchanged sentences
Total interest expense $ 51,636 $ 52,294 $ (658) (1.3)
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Deposit growth, along with cash flows from the securities portfolio, were used to repay these borrowings.
+Added: The decrease in interest expense on deposits was due primarily to a decrease in the average cost and average balance of retail certificates of deposit, which was almost entirely offset by an increase in the average balance of high yield savings accounts.
+Added: The reduction in the cost of retail certificates of deposit was due to existing higher rate certificates of deposit renewing at lower rates.
+Added: Interest expense on borrowings was lower compared to the prior quarter due to the full quarter impact of $100.0 million of FHLB borrowings that matured and were not replaced late in the prior quarter and the full quarter impact of prepaying $375.0 million of FHLB borrowings, along with $50.0 million of FHLB borrowings that matured during the current quarter that were not replaced.
Provision for Credit Losses
−Removed: 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.
−Removed: 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.
+Added: The Company recorded a release of provision for credit losses of $433 thousand during the current quarter compared to a provision for credit losses of $2.4 million for the prior quarter.
+Added: The release of provision for credit losses in the current quarter was due primarily to an update to the ACL model's regression analyses which mainly impacted the commercial construction loan category, partially offset by commercial loan and commitment growth during the current quarter.
Non-Interest Income
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, December 31, Change Expressed in:
+Added: June 30, March 31, Change Expressed in:
2026 2026 Dollars Percent
6 unchanged sentences
Total non-interest income $ 6,668 $ 5,459 $ 1,209 22.1
−Removed: 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.
−Removed: 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.
−Removed: The increase in other non-interest income was due mainly to prepayment fees related to commercial loan payoffs during the current quarter.
+Added: The increase in deposit service fees was due primarily to an increase in debit card usage, which generated additional interchange and service charge income in the current quarter.
+Added: The increase in BOLI income was due primarily to the receipt of death benefits in the current quarter with no such benefits received in the prior quarter, along with a full quarter impact of the purchase of $45.0 million of BOLI policies during the prior quarter.
+Added: Insurance commissions were higher compared to the prior quarter due primarily to the receipt of lower than accrued contingent commissions in the prior quarter, along with improved sales during the current quarter.
+Added: The decrease in other non-interest income was due mainly to higher commercial loan prepayment fees in the prior quarter.
Non-Interest Expense
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, December 31, Change Expressed in:
+Added: June 30, March 31, Change Expressed in:
2026 2026 Dollars Percent
11 unchanged sentences
Total non-interest expense $ 31,342 $ 30,274 $ 1,068 3.5
−Removed: The decrease in professional and other services was due primarily to nonrecurring services in the prior quarter.
−Removed: The decrease in advertising and promotional expense was due primarily to the timing of marketing campaigns compared to the prior quarter.
+Added: 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, and an increase in commissions for increased loan activity.
+Added: The decrease in information technology and related expense was driven primarily by credits and reimbursements from a vendor related to contractual and service fulfillment matters.
+Added: The increase in advertising and promotional was due mainly to the timing of campaigns.
+Added: The decrease in deposit and loan transaction costs was due primarily to calendar year end statement processing activities in the prior quarter.
The Company's efficiency ratio was 52.10% for the current quarter compared to 52.45% for the prior quarter.
1 unchanged sentence
A lower value generally indicates that it is costing the financial institution less money to generate revenue.
−Removed: The Company's operating expense ratio (annualized) for the current quarter was 1.24%, unchanged from the prior quarter.
−Removed: The operating expense ratio is a measure of a financial institution's total non-interest expense as a percentage of average assets,
−Removed: 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.
+Added: The Company's operating expense ratio (annualized) for the current quarter was 1.29%, compared to 1.24% for the prior quarter.
+Added: 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.
+Added: The operating expense ratio was higher in the current quarter due to higher non-interest expense.
Income Tax Expense
−Removed: 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.
+Added: 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 the effective tax rate.
For the Three Months Ended
−Removed: March 31, December 31, Change Expressed in:
+Added: June 30, March 31, Change Expressed in:
2026 2026 Dollars Percent
11 unchanged sentences
For the Three Months Ended
−Removed: March 31, 2026 December 31, 2025
+Added: June 30, 2026 March 31, 2026
Average Interest Average Interest
69 unchanged sentences
Rate/Volume Analysis.
−Removed: The table below presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities, comparing the three months ended March 31, 2026 to the three months ended December 31, 2025.
+Added: The table below presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities, comparing the three months ended June 30, 2026 to the three months ended March 31, 2026.
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.
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, 2026 vs.
−Removed: December 31, 2025
+Added: June 30, 2026 vs.
+Added: March 31, 2026
Increase (Decrease) Due to
16 unchanged sentences
Net change in net interest income $ 632 $ 585 $ 1,217
−Removed: Comparison of Operating Results for the Six Months Ended March 31, 2026 and 2025
+Added: Comparison of Operating Results for the Nine Months Ended June 30, 2026 and 2025
The Company recognized net income of $64.0 million, or $0.51 per share, for the current year period, compared to net income of $49.2 million, or $0.38 per share, for the prior year period.
−Removed: 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.
+Added: 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 1.92% for the prior year period to 2.25% for the current year period.
−Removed: The increase was due mainly to growth in the higher yielding commercial loan portfolio.
−Removed: 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.
+Added: The increase was due mainly to growth in the higher yielding commercial loan portfolio, along with a decrease in the average cost of certificates of deposit and the average balance of borrowings, partially offset by an increase in the average balance of deposits, mainly high yield savings accounts.
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.
−Removed: For the Six Months Ended
−Removed: March 31, Change Expressed in:
+Added: For the Nine Months Ended
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
9 unchanged sentences
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.
−Removed: 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.
+Added: The increase in the average balance of cash and cash equivalents was driven primarily by carrying more cash during the current year period to support anticipated commercial loan activities, pay off maturing borrowings, and meet 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.
2 unchanged sentences
The following table presents the components of interest expense for the periods presented, along with the change measured in dollars and percent.
−Removed: For the Six Months Ended
−Removed: March 31, Change Expressed in:
+Added: For the Nine Months Ended
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
4 unchanged sentences
Total interest expense $ 158,602 $ 163,947 $ (5,345) (3.3)
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings and repay amortizing FHLB advances.
−Removed: 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.
+Added: Interest expense on deposits was higher during the current year period due primarily to an increase in the average balance of the Bank's high yield savings accounts, partially offset by a decrease in the cost of retail certificates of deposit.
+Added: The decrease in interest expense on borrowings was due primarily to a decrease in the average balance of borrowings due to FHLB borrowings that matured between periods that were not renewed, along with continued repayments on amortizing FHLB advances.
+Added: Cash flows from the increase in the deposit portfolio and excess operating cash were used to pay off maturing FHLB borrowings and repay amortizing FHLB advances.
Provision for Credit Losses
The Company recorded a provision for credit losses of $3.0 million during the current year period compared to a provision for credit losses of $226 thousand for the prior year period.
−Removed: 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.
+Added: 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 and commitment growth, partially offset by improvement between periods in some of the commercial-related forecasted economic indices and an update to the ACL model's regression analyses.
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.
−Removed: For the Six Months Ended
−Removed: March 31, Change Expressed in:
+Added: For the Nine Months Ended
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
6 unchanged sentences
Total non-interest income $ 17,606 $ 14,934 $ 2,672 17.9
−Removed: 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.
−Removed: 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.
−Removed: Recently, several carriers began to ease their restrictions in our market areas, which should improve our income opportunities.
−Removed: Other non-interest income was higher in the current year period due mainly to higher commercial loan fee activity.
+Added: Income from BOLI was higher in the current year period due mainly to 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 and the receipt of higher death benefits in the current year period compared to the prior year period.
+Added: 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 period compared to the prior year period.
+Added: Other non-interest income was higher in the current year period due mainly to increased 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.
−Removed: For the Six Months Ended
−Removed: March 31, Change Expressed in:
+Added: For the Nine Months Ended
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
11 unchanged sentences
Total non-interest expense $ 92,092 $ 86,252 $ 5,840 6.8
−Removed: 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.
−Removed: The increase in information technology and related expense was due mainly to an increase in software licensing expense related to new agreements and applications.
−Removed: 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.
+Added: 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, as well as incentive compensation.
+Added: The increase in information technology and related expense was due mainly to an increase in software licensing expense related to new agreements and applications, along with an increase in costs of existing agreements, partially offset by a vendor credit discussed above in the "Comparison of Operating Results for the Three Months Ended June 30, 2026 and March 31, 2026 - Non-Interest Expense".
+Added: The increase in professional and other services was due primarily to new relationships with outside service providers and additional services provided by current providers, of which approximately $425 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.
5 unchanged sentences
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.
−Removed: For the Six Months Ended
−Removed: March 31, Change Expressed in:
+Added: For the Nine Months Ended
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
4 unchanged sentences
Effective tax rate 19.5 % 18.0 %
−Removed: Income tax expense was higher in the current year period due to higher pretax income.
+Added: Income tax expense was higher in the current year period due primarily to higher pretax income.
+Added: The effective tax rate was higher in the current year period due primarily to the prior year period including a reduction in net state income tax expense due to the remeasurement of the Bank's state deferred tax assets and liabilities to account for the enactment of a Kansas tax law that changes the way taxable income is attributed to the state.
Average Balance Sheets.
4 unchanged sentences
The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates.
−Removed: For the Six Months Ended
−Removed: March 31, 2026 March 31, 2025
+Added: For the Nine Months Ended
+Added: June 30, 2026 June 30, 2025
Average Interest Average Interest
69 unchanged sentences
Rate/Volume Analysis.
−Removed: 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 six months ended March 31, 2026 to the six months ended March 31, 2025.
+Added: 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 nine months ended June 30, 2026 to the nine months ended June 30, 2025.
For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in volume, which are changes in the average balance multiplied by the previous period's average rate, and (2) changes in rate, which are changes in the average rate multiplied by the average balance from the previous period.
The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate.
−Removed: For the Six Months Ended
−Removed: March 31, 2026 vs.
−Removed: March 31, 2025
+Added: For the Nine Months Ended
+Added: June 30, 2026 vs.
+Added: June 30, 2025
Increase (Decrease) Due to
16 unchanged sentences
Net change in net interest income $ 15,603 $ 9,935 $ 25,538
−Removed: Comparison of Operating Results for the Three Months Ended March 31, 2026 and 2025
−Removed: 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.
−Removed: 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.
+Added: Comparison of Operating Results for the Three Months Ended June 30, 2026 and 2025
+Added: The Company recognized net income of $23.6 million, or $0.19 per share, for the quarter ended June 30, 2026, compared to net income of $18.4 million, or $0.14 per share, for the quarter ended June 30, 2025.
+Added: The increase in net income was due mainly to higher net interest income and other non-interest income, partially offset by higher income tax expense and non-interest expense.
The net interest margin increased 33 basis points, from 1.98% for the prior year quarter to 2.31% for the current year quarter.
−Removed: 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.
+Added: The increase was due mainly to growth in the higher yielding commercial loan portfolio, along with decreases in the average balance of borrowings and the cost of certificates of deposit, partially offset by an increase in the average balance of deposits, mainly high yield savings accounts.
Interest and Dividend Income
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, Change Expressed in:
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
8 unchanged sentences
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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: The decrease in interest income on MBS was due primarily 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.
+Added: The increase in interest income on cash and cash equivalents was due to an increase in the average balance during the current year quarter driven primarily by carrying more cash to support commercial loan fundings and other operational needs, partially offset by a decrease in the weighted average yield.
+Added: The decrease in FHLB stock dividend income was due to a reduction in the balance of FHLB stock after paying off maturing FHLB borrowings between periods and repayments on amortizing FHLB borrowings, which reduced the Bank's required FHLB stock holdings.
+Added: The decrease in interest income on investment securities was attributable 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.
+Added: Cash flows from the MBS and investment securities portfolios that were not reinvested back into the respective portfolios were used to fund commercial loan growth and pay off maturing FHLB borrowings.
Interest Expense
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, Change Expressed in:
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
4 unchanged sentences
Total interest expense $ 51,636 $ 54,220 $ (2,584) (4.8)
−Removed: 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.
−Removed: 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.
+Added: Interest expense on deposits was higher during the current year period due primarily to an increase in the Bank's high yield savings accounts, largely offset by a decrease in the cost of retail certificates of deposit.
+Added: The decrease in interest expense on borrowings was attributable 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
−Removed: The Company recorded a provision for credit losses of $2.4 million during the current year quarter.
−Removed: 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.
−Removed: 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.
+Added: The Company recorded a release of provision for credit losses of $433 thousand during the current year quarter, compared to a release of provision for credit losses of $451 thousand during the prior year quarter.
+Added: See "Comparison of Operating Results for the Three Months Ended June 30, 2026 and March 31, 2026" above for additional discussion regarding the release of provision for credit losses during the current year quarter.
Non-Interest Income
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, Change Expressed in:
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
6 unchanged sentences
Total non-interest income $ 6,668 $ 5,288 $ 1,380 26.1
−Removed: 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.
−Removed: 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 quarter compared to the prior year quarter.
−Removed: The increase in other non-interest income was due mainly to prepayment fees related to commercial loan payoffs during the current quarter.
+Added: Income from BOLI was higher in the current year quarter due mainly to $45.0 million in new BOLI policies being purchased during the current year period and the receipt of higher death benefits in the current year quarter compared to the prior year quarter.
+Added: The increase in other non-interest income was due mainly to higher trust and brokerage income in the current year quarter.
Non-Interest Expense
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, Change Expressed in:
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
11 unchanged sentences
Total non-interest expense $ 31,342 $ 29,564 $ 1,778 6.0
−Removed: The increase in salaries and employee benefits was mainly attributable to a net increase in full-time equivalent employees between periods.
−Removed: The increase in information technology and related expense was due primarily to an increase in software licensing expense.
−Removed: 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.
+Added: 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, as well as incentive compensation.
+Added: The decrease in information technology and related expense was driven primarily by credits and reimbursements from a vendor related to contractual and service fulfillment matters.
+Added: The increase in professional and other services was due primarily to an increase in services provided by current providers.
+Added: The increase in other non-interest expense was due mainly to operating expenses in the current quarter that are not anticipated to recur in future periods.
The Company's efficiency ratio was 52.10% for the current year quarter compared to 58.26% for the prior year quarter.
−Removed: The improvement in the efficiency ratio was due primarily to higher net interest income during the current year quarter.
+Added: The improvement in the efficiency ratio was due primarily to higher net interest income during the current year quarter, partially offset by higher non-interest expense.
The Company's operating expense ratio (annualized) for the current year quarter was 1.29% compared to 1.23% for the prior year quarter.
+Added: The operating expense ratio was higher in the current year period due to higher non-interest expense.
Income Tax Expense
1 unchanged sentence
For the Three Months Ended
−Removed: March 31, Change Expressed in:
+Added: June 30, Change Expressed in:
2026 2025 Dollars Percent
4 unchanged sentences
Effective tax rate 19.4 % 15.0 %
−Removed: Income tax expense was higher in the current year quarter due to higher pretax income.
+Added: Income tax expense was higher in the current year quarter due primarily to higher pretax income and partially to a higher effective tax rate.
+Added: The effective tax rate was higher in the current year quarter due primarily to the prior year quarter including a reduction in net state income tax expense due to the remeasurement of the Bank's state deferred tax assets and liabilities to account for the enactment of a Kansas tax law that changes the way taxable income is attributed to the state.
Average Balance Sheets .
5 unchanged sentences
For the Three Months Ended
−Removed: March 31, 2026 March 31, 2025
+Added: June 30, 2026 June 30, 2025
Average Interest Average Interest
69 unchanged sentences
Rate/Volume Analysis.
−Removed: The table below presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities, comparing the three months ended March 31, 2026 to the three months ended March 31, 2025.
+Added: The table below presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities, comparing the three months ended June 30, 2026 to the three months ended June 30, 2025.
For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in volume, which are changes in the average balance multiplied by the previous year's average rate and (2) changes in rate, which are changes in the average rate multiplied by the average balance from the previous year period.
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.
−Removed: For the Three Months Ended March 31,
+Added: For the Three Months Ended June 30,
Increase (Decrease) Due to
29 unchanged sentences
Per FHLB's lending guidelines, total FHLB borrowings cannot exceed 40% of Bank Call Report total assets without the pre-approval of FHLB senior management.
−Removed: The Bank's FHLB borrowing limit was 44% of Bank Call Report total assets as of March 31, 2026, as approved by FHLB senior management.
+Added: The Bank's FHLB borrowing limit was 44% of Bank Call Report total assets as of June 30, 2026, as approved by FHLB senior management.
The Bank's internal policy limits total borrowings to 55% of total assets.
−Removed: At March 31, 2026, the Bank had total borrowings, at par, of $1.71 billion, or approximately 17% of the Bank's Call Report total assets.
+Added: At June 30, 2026, the Bank had total borrowings, at par, of $1.64 billion, or approximately 17% of the Bank's Call Report total assets.
The borrowings balance was comprised of FHLB advances, of which $459.7 million is scheduled to be repaid (amortizing advances) or mature in the next 12 months.
1 unchanged sentence
The amount that can be borrowed from the FRB of Kansas City's discount window is based upon the fair value of securities pledged as collateral.
−Removed: At March 31, 2026, the amount of securities pledged for the discount window was $103.8 million.
−Removed: At March 31, 2026, there were no borrowings from the FRB of Kansas City's discount window.
+Added: At June 30, 2026, the amount of securities pledged for the discount window was $97.9 million.
+Added: At June 30, 2026, there were no borrowings from the FRB of Kansas City's discount window.
Management tests the Bank's access to the FRB of Kansas City's discount window at least annually with a nominal overnight borrowing.
1 unchanged sentence
The availability of funds changes daily.
−Removed: At March 31, 2026, the Bank did not have any such borrowings outstanding through the AFX.
+Added: At June 30, 2026, the Bank did not have any such borrowings outstanding through the AFX.
If management observes unusual trends in the amount and frequency of line of credit utilization and/or short-term borrowings that are not in conjunction with a planned strategy, the Bank will likely utilize term wholesale borrowing sources such as FHLB advances to provide term funding.
2 unchanged sentences
This type of advance enables the Bank to start repricing its liability cash flows sooner in a down-rate environment and generally provides for favorable pricing when compared to similar long-term bullet advances with comparable average lives as a result of the current term structure of interest rates.
−Removed: At March 31, 2026, the Bank had no repurchase agreements.
+Added: At June 30, 2026, the Bank had no repurchase agreements.
The Bank may enter into repurchase agreements as management deems appropriate, not to exceed 15% of total assets, and subject to the total borrowings internal policy limit of 55% as discussed above.
The Bank has the ability to utilize the repayment and maturity of outstanding loans, MBS, and other investments for liquidity needs rather than reinvesting such funds into the related portfolios.
−Removed: At March 31, 2026, the Bank had $707.4 million of securities that were eligible but unused as collateral for borrowing or other liquidity needs.
+Added: At June 30, 2026, the Bank had $687.6 million of securities that were eligible but unused as collateral for borrowing or other liquidity needs.
The Bank also has access to other sources of funds for liquidity purposes, such as brokered and public unit certificates of deposit.
−Removed: As of March 31, 2026, the Bank's policy allowed for combined brokered and public unit certificates of deposit up to 15% of total deposits.
−Removed: At March 31, 2026, the Bank did not have any brokered certificates of deposit, and public unit certificates of deposit were approximately 1% of total deposits.
−Removed: The Bank had pledged securities with an estimated fair value of $99.0 million as collateral for public unit certificates of deposit at March 31, 2026.
+Added: As of June 30, 2026, the Bank's policy allowed for combined brokered and public unit certificates of deposit up to 15% of total deposits.
+Added: At June 30, 2026, the Bank did not have any brokered certificates of deposit, and public unit certificates of deposit were approximately 1% of total deposits.
+Added: The Bank had pledged securities with an estimated fair value of $93.1 million as collateral for public unit certificates of deposit at June 30, 2026.
The securities pledged as collateral for public unit certificates of deposit are held under joint custody with FHLB and generally will be released upon deposit maturity.
−Removed: 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.
−Removed: At March 31, 2026, $2.30 billion of the Bank's certificate of deposit portfolio was scheduled to mature within the next 12 months, including $63.1 million of public unit certificates of deposit and $58.9 million of commercial certificates of deposit.
+Added: Management estimated that the Bank had $4.22 billion in liquidity available at June 30, 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.
+Added: At June 30, 2026, $2.37 billion of the Bank's certificate of deposit portfolio was scheduled to mature within the next 12 months, including $66.3 million of public unit certificates of deposit and $45.0 million of commercial certificates of deposit.
Based on our deposit retention experience and our current pricing strategy, we anticipate the majority of the maturing retail certificates of deposit will renew or transfer to other deposit products of the Bank at prevailing rates, although no assurance can be given in this regard.
14 unchanged sentences
Consistent with our goal to operate a sound and profitable financial organization, we actively seek to maintain a well-capitalized status for the Bank per the regulatory framework for prompt corrective action ("PCA").
−Removed: Qualifying institutions that elect to use the CBLR framework, such as the Bank and the Company, that maintain the required minimum leverage ratio of 9.0% will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the regulatory agencies' capital rules, and to have met the capital requirements for the well-capitalized category under the agencies' PCA framework.
−Removed: As of March 31, 2026, the Bank's CBLR was 9.5% and the Company's CBLR was 10.0%, which exceeded the minimum requirements.
−Removed: The Bank's risk-based tier 1 capital ratio at March 31, 2026 was 16.1%.
+Added: As of June 30, 2026, the Bank's CBLR was 9.6% and the Company's CBLR was 10.0%, which exceeded the requirements for the well-capitalized category under the PCA framework.
+Added: The Bank's risk-based tier 1 capital ratio at June 30, 2026 was 15.8%.
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.