What changed in this filing

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Item 1. Financial Statements

2025-05-08 compared with 2025-02-06 · 304 added, 172 removed, 927 unchanged (34% of the section changed)

35 unchanged sentences

332,318,750 shares issued;

280,799,401 and 280,710,854 outstanding at December 31, 2024 and September 30, 2024, respectively

280,836,948 and 280,710,854 outstanding at March 31, 2025 and September 30, 2024, respectively

Paid-in capital 1,755,054 1,754,365

Treasury stock, at cost;

51,519,349 and 51,607,896 shares at December 31, 2024 and September 30, 2024, respectively

51,481,802 and 51,607,896 shares at March 31, 2025 and September 30, 2024, respectively

( 771,123 ) ( 772,195 )

9 unchanged sentences

(In thousands, except share and per share data)

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

INTEREST AND DIVIDEND INCOME:

14 unchanged sentences

Net gain on the sale of loans

1,187 442 2,302 923

Increase in and death benefits from bank owned life insurance contracts 2,680 2,193 5,362 5,384

20 unchanged sentences

(In thousands)

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

Net income $ 21,021 $ 20,713 $ 43,447 $ 41,420

12 unchanged sentences

(In thousands, except share and per share data)

For the Three Months Ended December 31, 2023

For the Three Months Ended March 31, 2024

Paid-in capital

Treasury stock

Unallocated common stock held by ESOP

Retained earnings

Accumulated other comprehensive income (loss)

Total shareholders' equity

Balance at December 31, 2023 $ 3,323 $ 1,750,440 $ ( 772,195 ) $ ( 26,000 ) $ 900,973 $ 10,186 $ 1,866,727

— — — — 20,713 — $ 20,713

Other comprehensive income, net of tax

— — — — — 32,232 $ 32,232

ESOP shares allocated or committed to be released

— 349 — 1,083 — — $ 1,432

Compensation costs for equity incentive plans

— 1,171 — — — — $ 1,171

Dividends declared to common shareholders ($ 0.2825 per common share)

— — — — ( 14,778 ) — $ ( 14,778 )

Balance at March 31, 2024 $ 3,323 $ 1,751,960 $ ( 772,195 ) $ ( 24,917 ) $ 906,908 $ 42,418 $ 1,907,497

For the Three Months Ended March 31, 2025

Common Stock Paid-in capital Treasury stock Unallocated common stock held by ESOP Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity

Balance at December 31, 2024 $ 3,323 $ 1,754,241 $ ( 771,572 ) $ ( 21,667 ) $ 923,139 $ 26,813 $ 1,914,277

Net Income — — — — 21,021 — 21,021

Other comprehensive income (loss), net of tax

— — — — — ( 26,021 ) ( 26,021 )

ESOP shares allocated or committed to be released — 312 — 1,083 — — 1,395

Compensation costs for equity incentive plans — 950 — — — — 950

Treasury stock allocated to equity incentive plans — ( 449 ) 449 — — — —

Dividends declared to common shareholders ($ 0.2825 per common share)

— — — — ( 14,965 ) — ( 14,965 )

Balance at March 31, 2025 $ 3,323 $ 1,755,054 $ ( 771,123 ) $ ( 20,584 ) $ 929,195 $ 792 $ 1,896,657

For the Six Months Ended March 31, 2024

stock Paid-in

17 unchanged sentences

— — — — ( 29,394 ) — ( 29,394 )

Balance at December 31, 2023 $ 3,323 $ 1,750,440 $ ( 772,195 ) $ ( 26,000 ) $ 900,973 $ 10,186 $ 1,866,727

For the Three Months Ended December 31, 2024

Balance at March 31, 2024 $ 3,323 $ 1,751,960 $ ( 772,195 ) $ ( 24,917 ) $ 906,908 $ 42,418 $ 1,907,497

For the Six Months Ended March 31, 2025

stock Paid-in

15 unchanged sentences

— — — — ( 29,741 ) — ( 29,741 )

Balance at December 31, 2024 $ 3,323 $ 1,754,241 $ ( 771,572 ) $ ( 21,667 ) $ 923,139 $ 26,813 $ 1,914,277

Balance at March 31, 2025 $ 3,323 $ 1,755,054 $ ( 771,123 ) $ ( 20,584 ) $ 929,195 $ 792 $ 1,896,657

1 Related to ASU 2022-02 adopted November 2, 2023, based on September 30, 2023 data.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)

For the Three Months Ended December 31,

For the Six Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

27 unchanged sentences

Other 1,896 3,295

Net cash used in investing activities ( 2,725 ) ( 41,837 )

Net cash (used in) provided by investing activities ( 46,325 ) 30,133

CASH FLOWS FROM FINANCING ACTIVITIES:

Net increase in deposits 206,636 475,297

Net increase (decrease) in borrowers' advances for insurance and taxes 26,374 ( 15,324 )

Net increase (decrease) in principal and interest owed on loans serviced 10,665 ( 607 )

Net decrease in borrowers' advances for insurance and taxes ( 13,374 ) ( 24,925 )

Net decrease in principal and interest owed on loans serviced ( 1,504 ) ( 3,865 )

Net increase (decrease) in short-term borrowed funds 74,000 ( 642,000 )

5 unchanged sentences

Net cash (used in) provided by financing activities ( 20,580 ) 46,918

NET INCREASE IN CASH AND CASH EQUIVALENTS 2,213 85,022

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 135 ) 127,588

CASH AND CASH EQUIVALENTS—Beginning of period 463,718 466,746

16 unchanged sentences

The principal line of business of the Company is retail consumer banking, including mortgage lending, deposit gathering, and other financial services.

As of December 31, 2024, approximately 80.9 % of the Company’s outstanding shares were owned by the federally chartered mutual holding company, Third Federal Savings and Loan Association of Cleveland, MHC.

As of March 31, 2025, approximately 80.9 % of the Company’s outstanding shares were owned by the federally chartered mutual holding company, Third Federal Savings and Loan Association of Cleveland, MHC.

The thrift subsidiary of TFS Financial Corporation is Third Federal Savings and Loan Association of Cleveland.

5 unchanged sentences

The allowance for credit losses, the valuation of deferred tax assets, and the determination of pension obligations are particularly subject to change.

The unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial condition of the Company at December 31, 2024, and its consolidated results of operations and cash flows for the periods presented.

The unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial condition of the Company at March 31, 2025, and its consolidated results of operations and cash flows for the periods presented.

Such adjustments are the only adjustments reflected in the unaudited interim financial statements.

13 unchanged sentences

Performance share units, determined to be contingently issuable and not participating securities, are excluded from the calculation of basic EPS.

At December 31, 2024 and 2023, the ESOP held 2,166,696 and 2,600,036 shares, respectively, that were neither allocated to participants nor committed to be released to participants.

At March 31, 2025 and 2024, the ESOP held 2,058,361 and 2,491,701 shares, respectively, that were neither allocated to participants nor committed to be released to participants.

The following is a summary of the Company's earnings per share calculations.

For the Three Months Ended December 31,

For the Three Months Ended March 31,

Income Shares Per share

8 unchanged sentences

Income available to common shareholders $ 20,661 279,719,382 $ 0.07 $ 20,371 279,046,837 $ 0.07

For the Six Months Ended March 31,

Income Shares Per share

amount Income Shares Per share

(Dollars in thousands, except per share data)

Net income $ 43,447 $ 41,420

income allocated to restricted stock units 713 747

Basic earnings per share:

Income available to common shareholders 42,734 278,632,698 $ 0.15 40,673 278,011,351 $ 0.15

Diluted earnings per share:

Effect of dilutive potential common shares 1,011,609 1,008,117

Income available to common shareholders $ 42,734 279,644,307 $ 0.15 $ 40,673 279,019,468 $ 0.15

The following is a summary of outstanding stock options and restricted and performance share units that are excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive.

For the Three Months Ended December 31,

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

2025 2024 2025 2024

Options to purchase shares 1,447,975 2,231,475 1,432,975 2,231,475

2 unchanged sentences

Investments available for sale are summarized in the tables below.

December 31, 2024

March 31, 2025

Unrealized Fair

11 unchanged sentences

Total $ 553,559 $ 1,368 $ ( 28,676 ) $ 526,251

At December 31, 2024 and September 30, 2024, investment securities included $ 50,304 and $ 68,932 , respectively, of U.S.

government obligations pledged as collateral on our open swap positions to meet margin requirements established by the

clearing organization.

Accrued interest on investment securities is $ 1,875 and $ 2,399 at December 31, 2024 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION .

The following is a summary of our securities portfolio by the period remaining until contractual maturity and by weighted average yield at December 31, 2024 and September 30, 2024.

At March 31, 2025 and September 30, 2024, investment securities included $ 50,236 and $ 68,932 , respectively, of U.S.

government obligations pledged as collateral on our open swap positions to meet margin requirements established by the clearing organization.

Accrued interest on investment securities is $ 2,599 and $ 2,399 at March 31, 2025 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION .

The following is a summary of our securities portfolio by the period remaining until contractual maturity and by weighted average yield at March 31, 2025 and September 30, 2024.

Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur.

Weighted average yields are not presented on a tax-equivalent basis and are calculated by multiplying each carry value by its yield and dividing the sum of these results by the total carry values.

We did not hold any tax-exempt securities at December 31, 2024 or September 30, 2024.

December 31, 2024 September 30, 2024

We did not hold any tax-exempt securities at March 31, 2025 or September 30, 2024.

March 31, 2025 September 30, 2024

Amortized Cost Fair Value Weighted Average Yield Amortized Cost Fair Value Weighted Average Yield

4 unchanged sentences

Total $ 561,535 $ 533,923 3.52 % $ 553,559 $ 526,251 3.40 %

Gross unrealized losses on available for sale securities and the estimated fair value of the related securities, aggregated by the length of time the securities have been in a continuous loss position, at December 31, 2024 and September 30, 2024, were as follows:

December 31, 2024

Gross unrealized losses on available for sale securities and the estimated fair value of the related securities, aggregated by the length of time the securities have been in a continuous loss position, at March 31, 2025 and September 30, 2024, were as follows:

March 31, 2025

Less Than 12 Months 12 Months or More Total

24 unchanged sentences

Treasury Department has established financing agreements to ensure Fannie Mae and Freddie Mac meet their obligations to holders of mortgage-backed securities that they have issued or guaranteed.

Since the decline in value is primarily attributable to an increase in market interest rates and not credit quality deterioration, and because the Company has neither the intent to sell the securities nor is it more likely than not the Company

will be required to sell the securities prior to recovery of the amortized cost, the Company did not record an allowance for credit losses on investment securities as of December 31, 2024 or September 30, 2024 .

Since the decline in value is primarily attributable to an increase in market interest rates and not credit quality deterioration, and because there is no intent to sell the securities and it is unlikely that the Company will be required to sell the securities prior to recovery of the amortized cost, the Company did not record an allowance for credit losses on investment securities as of March 31, 2025 or September 30, 2024 .

LOANS AND ALLOWANCE FOR CREDIT LOSSES

17 unchanged sentences

Loans held for investment, net $ 15,360,143 $ 15,322,059

(1) For the three months ending December 31, 2024, balances of home equity lines of credit and home equity loans are reported as separate line items.

(1) At and for the six months ended March 31, 2025, balances of and activity related to home equity lines of credit and home equity loans are reported as separate line items.

Prior periods have been reclassified to conform to the current presentation.

Loans held for investment are carried at amortized cost, which includes outstanding principal balance adjusted for any unamortized premiums or discounts, net of deferred fees and expenses and any applicable loans-in-process.

Accrued interest is $ 55,628 and $ 56,982 as of December 31, 2024 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION.

Accrued interest is $ 55,433 and $ 56,982 as of March 31, 2025 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION.

A large concentration of the Company’s lending is in Ohio and Florida.

At December 31, 2024 and September 30, 2024, the percentage of aggregate Residential Core, Residential Home Today and Construction loans secured by properties in Ohio was 58 % at both dates, and the percentage of those loans secured by properties in Florida was 17 % at both dates.

As of December 31, 2024 and September 30, 2024, home equity lines of credit were concentrated in Ohio ( 23 % at both dates), Florida ( 22 % at both dates), and California ( 17 % and 16 %, respectively).

As of December 31, 2024 and September 30, 2024, home equity loans were concentrated in Ohio ( 25 % and 26 %, respectively), Florida ( 24 % and 25 %, respectively), and California ( 19 % as of both dates).

At March 31, 2025 and September 30, 2024, the percentage of aggregate Residential Core, Residential Home Today and Construction loans secured by properties in Ohio was 58 % at both dates, and the percentage of those loans secured by properties in Florida was 17 % at both dates.

As of March 31,

2025 and September 30, 2024, home equity lines of credit were concentrated in Ohio ( 22 % and 23 %, respectively), Florida ( 22 % at both dates), and California ( 17 % and 16 %, respectively), and home equity loans were concentrated in Ohio ( 24 % and 26 %, respectively), Florida ( 23 % and 25 %, respectively), and California ( 19 % at both dates).

Residential Core mortgage loans represent the largest portion of the residential real estate portfolio.

The Company believes overall credit risk is low based on the nature, composition, collateral, products, lien position and performance of the portfolio.

The Company believes overall credit risk is low based on the nature, composition, collateral, products, lien position and historical performance of the portfolio.

The portfolio does not include loan types or structures that have experienced severe performance problems at other financial institutions (sub-prime, no documentation or pay-option adjustable-rate mortgages).

2 unchanged sentences

With limited historical loss experience compared to other types of loans in the portfolio, judgment is required by management in assessing the allowance required on adjustable-rate mortgage loans.

The principal amount of adjustable-rate mortgage loans included in the Residential Core portfolio was $ 4,278,412 and $ 4,379,132 at December 31, 2024 and September 30, 2024, respectively.

The principal amount of adjustable-rate mortgage loans included in the Residential Core portfolio was $ 4,164,902 and $ 4,379,132 at March 31, 2025 and September 30, 2024, respectively.

Home Today was an affordable housing program targeted to benefit low- and moderate-income home buyers.

9 unchanged sentences

The Company records a liability for the down payment assistance loans which are forgiven in equal increments over a pre-determined term, subject to residency requirements.

Loans held for sale include loans originated or purchased with the intent to sell which are generally priced in alignment with secondary market pricing and may be subject to loan level pricing adjustments.

Additionally, loans originated or purchased for the held for investment portfolio may later be identified for sale and transferred to the held for sale portfolio, which may include loans originated or purchased within the parameters of programs established by Fannie Mae.

During the three months ended December 31, 2024 and December 31, 2023, reclassifications to the held for sale portfolio included loans that were sold during the period, including those in contracts pending settlement at the end of the period, and loans originated for the held for investment portfolio that were later identified for sale.

At December 31, 2024 and September 30, 2024, mortgage loans held for sale totaled $ 829 and $ 17,775 , respectively.

During the three months ended December 31, 2024, the principal balance of loans sold, according to trade date, was $ 72,031 (including loans in contracts pending settlement) compared to $ 87,843 (including no contracts pending settlement) during the three months ended December 31, 2023.

During the three months ended December 31, 2024, the amortized cost of loans originated as held for sale that were subsequently transferred to the held for investment portfolio was $ 1,327 , compared to $ 0 during the three months ended December 31, 2023.

Loans held for sale include loans originated or acquired with the intent to sell which are generally priced in alignment with secondary market pricing and may be subject to loan level pricing adjustments.

Additionally, loans originated or acquired for the held for investment portfolio may later be identified for sale and transferred to the held for sale portfolio, which may include loans originated or acquired within the parameters of programs established by Fannie Mae.

During the three and six months ended March 31, 2025 and March 31, 2024, reclassifications to the held for sale portfolio included loans that were sold during the period, including those in contracts pending settlement at the end of the period, and loans originated for the held for investment portfolio that were later identified for sale.

At March 31, 2025 and September 30, 2024, mortgage loans held for sale totaled $ 5,803 and $ 17,775 , respectively.

During the three and six months ended March 31, 2025, the principal balance of loans sold, according to trade date, was $ 75,159 and $ 147,190 (including loans in contracts pending settlement) compared to $ 33,477 and $ 121,320 (including loans in contracts pending settlement) during the three and six months ended March 31, 2024.

During the three and six months ended March 31, 2025, the amortized cost of loans originated as held for sale that were subsequently transferred to the held for investment portfolio was $ 0 and $ 1,327 , respectively, compared to none during the three and six months ended March 31, 2024.

DELINQUENCY and NON-ACCRUAL

An aging analysis of the amortized cost in loan receivables that are past due at December 31, 2024 and September 30, 2024, is summarized in the following tables.

An aging analysis of the amortized cost in loan receivables that are past due at March 31, 2025 and September 30, 2024, is summarized in the following tables.

When a loan is more than one month past due on its scheduled payments, the loan is considered 30 days or more past due, regardless of the number of days in each month.

3 unchanged sentences

Due Current Total

December 31, 2024

March 31, 2025

Real estate loans:

33 unchanged sentences

Non-accrual with no ACL describes non-accrual loans which have no quantitative allowance, primarily because they have already been subject to collateral review and any required charge-offs have been taken, but may be included in consideration of qualitative allowance factors.

There are no loans 90 or more days past due and still accruing at December 31, 2024 or September 30, 2024.

December 31, 2024 September 30, 2024

There are no loans 90 or more days past due and still accruing at March 31, 2025 or September 30, 2024.

March 31, 2025 September 30, 2024

Non-accrual with No ACL

8 unchanged sentences

Total non-accrual loans $ 31,423 $ 37,011 $ 30,513 $ 33,610

At December 31, 2024 and September 30, 2024, respectively, the amortized cost in non-accrual loans includes $ 20,860 and $ 19,704 which are performing according to the terms of their agreement, of which $ 12,648 and $ 11,532 are loans in Chapter 7 bankruptcy status, primarily where all borrowers have filed, and have not reaffirmed or been dismissed.

At December 31, 2024 and September 30, 2024, real estate loans include $ 10,835 and $ 10,527 , respectively, of loans that were in the process of foreclosure.

At March 31, 2025 and September 30, 2024, the amortized cost in non-accrual loans includes $ 22,148 and $ 19,704 , respectively, which are performing according to the terms of their agreement, of which $ 13,253 and $ 11,532 , respectively, are loans in Chapter 7 bankruptcy status, primarily where all borrowers have filed, and have not reaffirmed or been dismissed.

At March 31, 2025 and September 30, 2024, real estate loans include $ 11,183 and $ 10,527 , respectively, of loans that were in the process of foreclosure.

Interest on loans in accrual status is recognized in interest income as it accrues on a daily basis.

2 unchanged sentences

Cash payments on loans in non-accrual status are applied to the oldest scheduled, unpaid payment first.

The amount of interest income recognized on non-accrual loans was $ 236 for the three months ended December 31, 2024, and $ 162 for the three months ended December 31, 2023, respectively.

The amount of interest income recognized on non-accrual loans was $ 243 and $ 479 for the three and six months ended March 31, 2025, and $ 162 and $ 324 for the three and six months ended March 31, 2024, respectively.

Cash payments on loans with a partial charge-off are applied fully to principal, then to recovery of the charged off amount prior to interest income being recognized, except cash payments may be applied to interest capitalized in a modification when collection of remaining amounts due is considered probable.

A non-accrual loan is generally returned to accrual status when contractual payments are less than 90 days past due.

credit with a delinquent first mortgage greater than 90 days past due, or a loan in Chapter 7 bankruptcy status where all borrowers have filed, and have not reaffirmed or been dismissed.

However, a loan may remain in non-accrual status when collectability is uncertain, such as a modification that has not met minimum payment requirements, a loan with a partial charge-off, a home equity loan or line of credit with a delinquent first mortgage greater than 90 days past due, or a loan in Chapter 7 bankruptcy status where all borrowers have filed, and have not reaffirmed or been dismissed.

ALLOWANCE FOR CREDIT LOSSES

5 unchanged sentences

Qualitative adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency status or likely recovery of previous loan charge-offs.

Qualitative adjustments for expected changes in environmental conditions, such as changes in unemployment rates, property values or other relevant factors, are recognized when forecasted economic data used in the model differs from management's view or contains significant unobservable changes within a short period.

Identifiable model limitations may also lead to qualitative adjustments, such as those made to reflect the expected recovery of loan amounts previously charged-off, beyond what the model is able to project.

The qualitative adjustments resulted in a negative ending balance on the allowance for credit losses for the Home Today portfolio, where recoveries are expected to exceed charge-offs over the remaining life of that portfolio.

The net qualitative adjustment at December 31, 2024, was a reduction to the allowance for credit losses of $ 4,499 , compared to a reduction of $ 5,519 at September 30, 2024.

The net qualitative adjustment at March 31, 2025, was a reduction to the allowance for credit losses of $ 3,122 , compared to a reduction of $ 5,519 at September 30, 2024.

Qualitative adjustments are evaluated quarterly, at a minimum, based on current facts and circumstances.

19 unchanged sentences

LOAN COMMITMENTS AND CONTINGENT LIABILITIES for further details on the allowance for unfunded commitments.

For the Three Months Ended December 31, 2024

For the Three Months Ended March 31, 2025

Balance Provisions (Releases) Charge-offs Recoveries Ending

3 unchanged sentences

Home equity lines of credit 18,194 1,083 ( 238 ) 423 19,462

Home equity loans 12,375 464 ( 17 ) 10 12,832

Construction 43 ( 16 ) — — 27

Total real estate loans $ 70,559 $ ( 678 ) $ ( 280 ) $ 945 $ 70,546

Total Unfunded Loan Commitments (1)

$ 27,202 $ 2,178 $ — $ — $ 29,380

Total Allowance for Credit Losses $ 97,761 $ 1,500 $ ( 280 ) $ 945 $ 99,926

(1) For all periods presented, the total allowance for unfunded loan commitments is recognized in accrued expenses and other liabilities on the CONSOLIDATED STATEMENTS OF CONDITION and primarily relates to undrawn home equity lines of credit.

For the Three Months Ended March 31, 2024

Balance Provisions (Releases) Charge-offs Recoveries Ending

Real estate loans:

Residential Core $ 49,389 $ ( 1,851 ) $ ( 37 ) $ 213 $ 47,714

Residential Home Today ( 2,814 ) ( 303 ) — 493 ( 2,624 )

Home equity lines of credit 14,082 ( 290 ) ( 188 ) 772 14,376

Home equity loans 8,354 270 ( 16 ) 14 8,622

Construction 73 8 — — 81

Total real estate loans $ 69,084 $ ( 2,166 ) $ ( 241 ) $ 1,492 $ 68,169

Total Unfunded Loan Commitments (1)

$ 25,491 $ 1,166 $ — $ — $ 26,657

Total Allowance for Credit Losses $ 94,575 $ ( 1,000 ) $ ( 241 ) $ 1,492 $ 94,826

For the Six Months Ended March 31, 2025

Balance Provisions (Releases) Charge-offs Recoveries Ending

Real estate loans:

Residential Core $ 44,402 $ ( 4,370 ) $ ( 18 ) $ 651 $ 40,665

Residential Home Today ( 2,672 ) ( 619 ) ( 8 ) 859 ( 2,440 )

Home equity lines of credit

16,590 2,245 ( 554 ) 1,181 19,462

Home equity loans

11,642 1,188 ( 17 ) 19 12,832

Construction 40 ( 13 ) — — 27

4 unchanged sentences

For the Three Months Ended December 31, 2023

For the Six Months Ended March 31, 2024

Balance Adoption of ASU 2022-02 2

25 unchanged sentences

2025 2024 2023 2022 2021 Prior Total

December 31, 2024

March 31, 2025

Real estate loans:

63 unchanged sentences

The following table presents gross charge-offs of residential loan receivables recorded during the fiscal year-to-date periods presented.

There were no gross charge-offs in the equity loan or construction loan portfolios for the periods presented.

There were no gross charge-offs in the non-revolving portfolios with origination years between 2020 and 2024 for the periods presented.

For the Three Months Ended December 31, 2024

Origination years prior to fiscal 2020

There were no gross charge-offs in the construction loan portfolios for the periods presented.

For the Six Months Ended March 31, 2025

By fiscal year of origination

Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term

2025 2024 2023 2022 2021 Prior

Real estate loans:

2 unchanged sentences

Home equity lines of credit — — — — — — 273 281 554

— 157 159 316

Home equity loans — — — — 17 — — — 17

Total real estate loans $ — $ — $ — $ — $ 17 $ 26 $ 273 $ 281 $ 597

For the Three Months Ended December 31, 2023

Origination years prior to fiscal 2020

For the Six Months Ended March 31, 2024

By fiscal year of origination

Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term

2024 2023 2022 2021 2020 Prior

Real estate loans:

2 unchanged sentences

Home equity lines of credit — — — — — — 333 185 518

Home equity loans — — 16 — — — — — 16

Total real estate loans $ — $ — $ 26 $ — $ — $ 207 $ 333 $ 185 $ 751

The home equity lines of credit that converted from revolving to term loans during the three months ended December 31, 2024, totaled $ 3,347 , and during the three months ended December 31, 2023, totaled $ 1,135 .

The home equity lines of credit that converted from revolving to term loans during the three and six months ended March 31, 2025, totaled $ 3,872 and $ 6,814 , respectively, and during the three and six months ended March 31, 2024, totaled $ 1,208 and $ 2,294 , respectively.

The amount of conversions to term loans is expected to remain relatively low for several years since the length of the draw period on new originations changed from five to 10 years in 2016.

7 unchanged sentences

Other loans are internally assigned a grade of non-performing when they become 90 days or more past due.

At December 31, 2024 and September 30, 2024, no other loans were graded as non-performing.

At March 31, 2025 and September 30, 2024, no other loans were graded as non-performing.

MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

9 unchanged sentences

The following tables present the amortized cost of modifications by type executed during the periods presented for borrowers experiencing financial difficulty.

For the three months ended December 31, 2024 and December 31, 2023, there were no modifications made on construction loans.

For the Three Months Ended December 31, 2024

For the three and six months ended March 31, 2025 and March 31, 2024, there were no modifications made on construction loans.

For the Three Months Ended March 31, 2025

Interest Rate Reduction

10 unchanged sentences

Total $ — $ 478 $ 514 $ 419 $ 341 $ 1,752 0.01 %

For the Three Months Ended December 31, 2023

For the Three Months Ended March 31, 2024

Interest Rate Reduction

10 unchanged sentences

Total $ — $ 253 $ 2,785 $ 807 $ 502 $ 4,347 0.03 %

For the Six Months Ended March 31, 2025

Interest Rate Reduction

Term Extension

Significant Payment Delay

Combination-Rate Reduction & Term Extension

% of Total Class

Residential Core $ — $ 688 $ 1,113 $ 572 $ 337 $ 2,710 0.02 %

Residential Home Today — 27 321 — 4 352 0.92

Home equity lines of credit

— 46 237 171 — 454 0.01

Home equity loans

— — — — — — —

Total $ — $ 761 $ 1,671 $ 743 $ 341 $ 3,516 0.02 %

For the Six Months Ended March 31, 2024

Interest Rate Reduction

Term Extension

Significant Payment Delay

Combination-Rate Reduction & Term Extension

% of Total Class

Residential Core $ — $ 349 $ 2,390 $ 826 $ 477 $ 4,042 0.03 %

Residential Home Today — 48 196 187 — 431 1.00

Home equity lines of credit

— — 683 135 25 843 0.03

Home equity loans

— 18 48 — — 66 0.02

Total $ — $ 415 $ 3,317 $ 1,148 $ 502 $ 5,382 0.04 %

The following tables present the financial effects of the loan modifications presented above based on the type of modification.

For the Three Months Ended December 31, 2024 For the Three Months Ended December 31, 2023

For the Three Months Ended March 31, 2025 For the Three Months Ended March 31, 2024

Interest Rate Reduction

Term Extension

Interest Rate Reduction Term Extension

Interest Rate Reduction

Term Extension

Weighted-Average Contractual

2 unchanged sentences

Weighted-Average Contractual

Interest Rate Weighted-Average Years Added to Life

Interest Rate

Weighted-Average Years Added to Life

Residential Core 5.43 % 3.50 % 12.5 3.61 % 2.08 % 11.3

4 unchanged sentences

— % — % 0.0 — % — % 2.5

The performance of loans modified for borrowers experiencing financial difficulty is closely monitored by the Company to understand the effectiveness of modification efforts.

Modifications made to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under the modified terms are considered subsequently defaulted.

The following table provides information, by type of modification, about loans that were modified within the last 12 months and subsequently defaulted during the three months ended December 31, 2024.

There were no modifications that had subsequently defaulted for the three months ended December 31, 2023.

For the Three Months Ended December 31, 2024

For the Six Months Ended March 31, 2025 For the Six Months Ended March 31, 2024

Interest Rate Reduction

Term Extension

Significant Payment Delay

Combination-Rate Reduction & Term Extension Other Total

Interest Rate Reduction Term Extension

Weighted-Average Contractual

Interest Rate

Weighted-Average Years Added to Life

Weighted-Average Contractual

Interest Rate Weighted-Average Years Added to Life

Residential Core 5.52 % 3.50 % 12.9 3.97 % 2.07 % 11.7

3 unchanged sentences

Home equity loans

— % — % 0.0 — % — % 2.5

The performance of loans modified for borrowers experiencing financial difficulty is closely monitored by the Company to evaluate the effectiveness of modification efforts.

Modifications made to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under the modified terms are considered subsequently defaulted.

The following table provides information, by type of modification, about loans that were modified within the last 12 months and subsequently defaulted during the three and six months ended March 31, 2025 and March 31, 2024.

There were no home equity loans that subsequently defaulted for the three and six months ended March 31, 2025 and March 31, 2024.

For the Three Months Ended March 31, 2025

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

Residential Core $ — $ — $ 257 $ — $ — $ 257

Residential Home Today — — 115 — — 115

Home equity lines of credit

— — 30 98 — 128

Total $ — $ — $ 402 $ 98 $ — $ 500

The following tables present performance by loan type as of December 31, 2024 and December 31, 2023, on loans modified during the previous 12 months for borrowers experiencing financial difficulty.

For the Three Months Ended March 31, 2024

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

Residential Core $ — $ — $ — $ — $ — $ —

Residential Home Today — — — — — —

Home equity lines of credit

— — 208 — — 208

$ — $ — $ 208 $ — $ — $ 208

(1) The Company adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the March 31, 2024 presentation only includes loans modified since adoption.

For the Six Months Ended March 31, 2025

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

Residential Core $ — $ — $ 257 $ — $ — $ 257

Residential Home Today — — 153 — — 153

Home equity lines of credit — — 230 98 — 328

Total $ — $ — $ 640 $ 98 $ — $ 738

For the Six Months Ended March 31, 2024

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

Residential Core $ — $ — $ — $ — $ — $ —

Residential Home Today — — — — — —

Home equity lines of credit — — 208 — — 208

$ — $ — $ 208 $ — $ — $ 208

(1) The Company adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the March 31, 2024 presentation only includes loans modified since adoption.

The following tables present performance by loan type as of March 31, 2025 and March 31, 2024, on loans modified during the previous 12 months for borrowers experiencing financial difficulty.

The loans in delinquency status primarily consisted of loans with significant payment delays prior to modification, which continue to be reported delinquent based on their original contractual terms.

December 31, 2024 30-59

March 31, 2025 30-59

Past Due 60-89

8 unchanged sentences

Total $ 324 $ 301 $ 1,803 $ 2,428 $ 3,412 $ 5,840

December 31, 2023 30-59

March 31, 2024 30-59

Past Due 60-89

9 unchanged sentences

(1) The Company adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the December 31, 2023 presentation only includes loans modified since adoption.

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the March 31, 2024 presentation only includes loans modified since adoption.

Deposit account balances are summarized as follows:

7 unchanged sentences

Total deposits $ 10,397,645 $ 10,195,079

The aggregate amount of CDs in denominations of more than $250 was $ 1,347,643 and $ 1,283,719 at December 31, 2024 and September 30, 2024, respectively.

The aggregate amount of CDs in denominations of more than $250 was $ 1,448,876 and $ 1,283,719 at March 31, 2025 and September 30, 2024, respectively.

In accordance with the DFA, the maximum amount of federal deposit insurance is $250 per depositor for each account ownership category.

Brokered CDs (exclusive of acquisition costs and subsequent amortization), which are used as a cost effective funding alternative, totaled $ 1,097,499 and $ 1,217,303 at December 31, 2024 and September 30, 2024, respectively, of which $725,000 for both periods were aligned with interest rate swaps as discussed in Note 13.

Brokered CDs (exclusive of acquisition costs and subsequent amortization), which are used as a cost effective funding alternative, totaled $ 1,031,999 and $ 1,217,303 at March 31, 2025 and September 30, 2024, respectively, of which $675,000 and $725,000 were aligned with interest rate swaps as discussed in Note 13.

DERIVATIVE INSTRUMENTS .

The FDIC places restrictions on banks with regard to issuing brokered deposits based on the bank's capital classification.

As a well capitalized institution at December 31, 2024 and September 30, 2024, the Association may accept brokered deposits without FDIC restrictions.

As a well-capitalized institution at March 31, 2025 and September 30, 2024, the Association may accept brokered deposits without FDIC restrictions.

BORROWED FUNDS

At December 31, 2024, the Association had a maximum borrowing capacity of $7,756,668, of which $4,656,323 was outstanding.

At March 31, 2025, the Association had a maximum borrowing capacity of $7,633,810, of which $4,587,327 was outstanding.

Borrowings from the FHLB of Cincinnati are secured by the Association’s investment in the common stock of the FHLB of Cincinnati, as well as by a blanket pledge of its mortgage portfolio not otherwise pledged.

1 unchanged sentence

Additionally, the ability to borrow from the FRB-Cleveland Discount Window is available to the Association and is secured by a pledge of specific loans in the Association’s mortgage portfolio.

Total borrowings at December 31, 2024 are summarized in the table below:

Total borrowings at March 31, 2025 are summarized in the table below:

Borrowing Capacity Borrowings Available Borrowings Outstanding

5 unchanged sentences

Total Borrowings $ 4,587,327

Maturities of borrowings at December 31, 2024 are summarized in the table below:

Maturities of borrowings at March 31, 2025 are summarized in the table below:

Amount Weighted Average Rate

4 unchanged sentences

49 to 60 months

1,001,151 3.46

Over 60 months 126,824 3.31

5 unchanged sentences

Interest is payable monthly for long-term FHLB advances and generally at maturity for FHLB advances with terms of three months or less.

For the three months ended December 31, 2024, and December 31, 2023, net interest expense related to short-term borrowings was $ 25,199 and $ 32,973 , respectively.

For the three and six months ended March 31, 2025, and March 31, 2024, net interest expense related to short-term borrowings was $ 24,227 and $ 49,426 , and $ 23,067 and $ 56,040 , respectively.

OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

For the Three Months Ended For the Three Months Ended

December 31, 2024 December 31, 2023

March 31, 2025 March 31, 2024

Unrealized Gains (Losses) on Securities Available for Sale Cash Flow Hedges Defined Benefit Plan Total Unrealized Gains (Losses) on Securities Available for Sale Cash Flow Hedges Defined Benefit Plan Total

1 unchanged sentence

Other comprehensive income (loss) before reclassifications 5,271 ( 22,686 ) — ( 17,415 ) ( 2,589 ) 52,786 — 50,197

( 5,503 ) 59,344 — 53,841 11,655 ( 69,974 ) 418 ( 57,901 )

Amounts reclassified — ( 8,606 ) — ( 8,606 ) — ( 18,069 ) 104 ( 17,965 )

— ( 11,420 ) — ( 11,420 ) — ( 17,231 ) 106 ( 17,125 )

Other comprehensive income (loss), net of tax 5,271 ( 31,292 ) — ( 26,021 ) ( 2,589 ) 34,717 104 32,232

Balance at end of period $ ( 21,291 ) $ 25,518 $ ( 3,435 ) $ 792 $ ( 32,107 ) $ 83,044 $ ( 8,519 ) $ 42,418

Tax expense (benefit) netted in other comprehensive income or loss

$ 1,563 $ ( 9,292 ) $ — $ ( 7,729 ) $ ( 769 ) $ 10,310 $ 33 $ 9,574

For the Six Months Ended For the Six Months Ended

March 31, 2025 March 31, 2024

Balance at beginning of period $ ( 21,059 ) $ 8,886 $ ( 3,435 ) $ ( 15,608 ) $ ( 41,173 ) $ 135,532 $ ( 9,147 ) $ 85,212

Other comprehensive income (loss) before reclassifications ( 232 ) 36,658 — 36,426 9,066 ( 17,188 ) 418 ( 7,704 )

Amounts reclassified — ( 20,026 ) — ( 20,026 ) — ( 35,300 ) 210 ( 35,090 )

Other comprehensive income (loss), net of tax ( 232 ) 16,632 — 16,400 9,066 ( 52,488 ) 628 ( 42,794 )

Balance at end of period $ ( 21,291 ) $ 25,518 $ ( 3,435 ) $ 792 $ ( 32,107 ) $ 83,044 $ ( 8,519 ) $ 42,418

Tax expense (benefit) netted in other comprehensive income

Tax expense (benefit) netted in other comprehensive income or loss

$ ( 71 ) $ 4,939 $ — $ 4,868 $ 2,691 $ ( 15,586 ) $ 190 $ ( 12,705 )

1 unchanged sentence

Amounts Reclassified from Accumulated

Other Comprehensive Income Amounts Reclassified from Accumulated

Other Comprehensive Income

Details about Accumulated Other Comprehensive Income Components For the Three Months Ended December 31, Line Item in the Consolidated Statements of Income

Details about Accumulated Other Comprehensive Income Components For the Three Months Ended March 31, For the Six Months Ended March 31, Line Item in the Consolidated Statements of Income

2025 2024 2025 2024

Cash flow hedges:

11 unchanged sentences

federal jurisdiction and in various state and city jurisdictions.

The Company’s combined federal and state effective income tax rate was 21.0 % and 20.8 % for the three months ended December 31, 2024 and December 31, 2023, respectively.

The Company’s combined federal and state effective income tax rate was 20.9 % and 20.4 % for the six months ended March 31, 2025 and March 31, 2024, respectively.

The Company is no longer subject to income tax examinations in its major jurisdictions for tax years ended prior to 2021.

The Company recognizes interest and penalties on income tax assessments or income tax refunds, where applicable, in the consolidated financial statements as a component of its provision for income taxes.

The Company makes certain investments in limited partnerships, which invest in affordable housing projects that qualify for the Low Income Housing Tax Credit.

The Company makes certain investments in limited partnerships, which invest in affordable housing projects that qualify for the LIHTC.

The Company acts as a limited partner in these investments and does not exert control over the operating or financial policies of the partnership.

The Company accounts for its interests in LIHTCs using the proportional amortization method.

The impact of the Company's investments in tax credit entities on the provision for income taxes was not material during the three months ended December 31, 2024 and December 31, 2023.

The impact of the Company's investments in tax credit entities on the provision for income taxes was not material during the six months ended March 31, 2025 and March 31, 2024.

DEFINED BENEFIT PLAN

7 unchanged sentences

The components of net periodic cost recognized in other non-interest expense in the CONSOLIDATED STATEMENTS OF INCOME are as follows:

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

Interest cost $ 740 $ 826 $ 1,480 $ 1,653

3 unchanged sentences

$ ( 457 ) $ ( 32 ) $ ( 913 ) $ ( 64 )

There were no required minimum employer contributions during the three months ended December 31, 2024.

There were no required minimum employer contributions during the six months ended March 31, 2025.

There are no required minimum employer contributions expected during the remainder of the fiscal year ending September 30, 2025.

EQUITY INCENTIVE PLAN

In December 2024, 174,700 restricted stock units and 135,300 performance share units were granted to directors, executive officers and certain managers of the Company.

During the three months ended December 31, 2024, performance share units granted in December 2022 were reduced by 10,200 units, according to the targeted performance formula.

During the six months ended March 31, 2025, 178,700 restricted stock units, 135,300 performance share units, and 12,000 stock options were granted to directors, executive officers and certain managers of the Company.

During the six months ended March 31, 2025, performance share units granted in December 2022 were reduced by 10,200 units, according to the targeted performance formula.

The awards were made pursuant to the Amended and Restated 2008 Equity Incentive Plan, which was approved at the annual meeting of shareholders held on February 22, 2018.

The following table presents share-based compensation expense recognized during the periods presented:

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

Stock option expense $ 29 $ 23 $ 56 $ 23

2 unchanged sentences

Total stock-based compensation expense $ 950 $ 1,171 $ 1,855 $ 2,086

At December 31, 2024, 1,528,175 shares were subject to options, with a weighted average exercise price of $ 15.62 per share and a weighted average grant date fair value of $ 2.05 per share.

Expected future expense, relating to the 247,200 non-vested options outstanding as of December 31, 2024, is $ 192 over a weighted average period of 1.9 years.

At December 31, 2024, 455,485 restricted stock units and 288,100 performance share units with a weighted average grant date fair value of $ 13.12 and $ 13.01 per unit, respectively, are unvested.

Expected future compensation expense, relating to the 1,221,233

restricted stock units and 288,100 performance share units outstanding as of December 31, 2024, is $ 4,353 over a weighted average period of 2.2 years and $ 2,042 over a weighted average period of 2.3 years, respectively.

At March 31, 2025, 1,447,975 shares were subject to options, with a weighted average exercise price of $ 15.66 per share and a weighted average grant date fair value of $ 2.10 per share.

Expected future expense, relating to the 259,200 non-vested options outstanding as of March 31, 2025, is $ 183 over a weighted average period of 1.6 years.

At March 31, 2025, 422,435 restricted stock units and 288,100 performance share units with a weighted average grant date fair value of $ 13.13 and $ 13.01 per unit, respectively, are unvested.

Expected future compensation expense, relating to the 1,188,183 restricted stock units and 288,100 performance share units outstanding as of March 31, 2025, is $ 3,746 over a weighted average period of 2.0 years and $ 1,780 over a weighted average period of 2.1 years, respectively.

Each unit is equivalent to one share of common stock.

1 unchanged sentence

In the normal course of business, the Company enters into commitments with off-balance sheet risk to meet the financing needs of its customers.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.

Commitments to originate or purchase loans generally have fixed expiration dates of 60 to 360 days or other termination clauses and may require payment of a fee.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of

any condition established in the contract.

Commitments to originate or acquire loans generally have fixed expiration dates of 60 to 360 days or other termination clauses and may require payment of a fee.

Unfunded commitments related to home equity lines of credit generally expire 10 years following the date that the line of credit was established, subject to various conditions, including compliance with payment obligations, adequacy of collateral securing the line and maintenance of a satisfactory credit profile by the borrower.

7 unchanged sentences

Interest rate risk on commitments to extend credit results from the possibility that interest rates may move unfavorably from the position of the Company since the time the commitment was made.

At December 31, 2024, the Company had commitments to originate or purchase loans and related allowances as follows:

At March 31, 2025, the Company had commitments to originate or acquire loans and related allowances as follows:

Commitment Allowance

1 unchanged sentence

Adjustable-rate mortgage loans 12,457 65

Home equity loans and lines of credit 172,946 2,004

Home equity lines of credit

168,122 1,703

Home equity loans

Total $ 375,064 $ 3,872

At December 31, 2024, the Company had unfunded commitments outstanding and related allowances as follows:

At March 31, 2025, the Company had unfunded commitments outstanding and related allowances as follows:

Commitment Allowance

2 unchanged sentences

Total $ 5,438,883 $ 25,508

At December 31, 2024, the unfunded commitment on home equity lines of credit, including commitments for accounts suspended as a result of material default or a decline in equity, was $ 5,301,084 .

At December 31, 2024 and September 30, 2024, the Company had $ 1,600 and $ 17,411 , respectively, in commitments to sell mortgage loans.

At December 31, 2024 and September 30, 2024, the Company had $ 54,512 and $ 15,891 , respectively, in commitments to purchase mortgage loans, which are included in mortgage loan commitments above.

At March 31, 2025, the unfunded commitment on home equity lines of credit, including commitments for accounts suspended as a result of material default or a decline in equity, was $ 5,470,889 .

At March 31, 2025 and September 30, 2024, the Company had $ 15,721 and $ 17,411 , respectively, in commitments to sell mortgage loans.

At March 31, 2025 and September 30, 2024, the Company had $ 79,990 and $ 15,891 , respectively, in commitments to acquire mortgage loans, which are included in mortgage loan commitments above.

The above commitments are expected to be funded through normal operations.

The Company is undergoing an escheat audit covering the states of Ohio, Kentucky and Florida.

Any potential loss, or range of loss, that may result from this matter is not reasonably estimable at December 31, 2024.

Any potential loss, or range of potential loss, that may result from this matter is not reasonably estimable at March 31, 2025.

The Company and its subsidiaries are subject to various legal actions arising in the normal course of business.

4 unchanged sentences

Investment Securities Available for Sale— Investment securities available for sale are recorded at fair value on a recurring basis.

At December 31, 2024 and September 30, 2024, this includes $ 507,710 and $ 526,251 , respectively, of investments in U.S.

At March 31, 2025 and September 30, 2024, this includes $ 533,923 and $ 526,251 , respectively, of investments in U.S.

government and agency obligations including U.S.

6 unchanged sentences

This election is expected to reduce volatility in earnings related to market fluctuations between the contract trade and settlement dates.

At December 31, 2024 and September 30, 2024, there were $ 829 and $ 10,713 of loans held for sale subject to pending agency contracts measured at fair value, respectively, with unpaid principal balances of $ 810 and $ 10,336 .

For the three months ended December 31, 2024 and December 31, 2023, net gain (loss) on the sale of loans includes $( 57 ) and $ 0 , respectively, related to unrealized gains or losses during the period due to changes in the fair value of loans held for sale subject to pending agency contracts.

At December 31, 2024 and September 30, 2024, there were $ 0 and $ 7,061 of loans held for sale carried at cost.

At March 31, 2025 and September 30, 2024, there were $ 4,745 and $ 10,713 of loans held for sale subject to pending agency contracts measured at fair value, respectively, with unpaid principal balances of $ 4,634 and $ 10,336 .

For the three and six months ended March 31, 2025, net gain (loss) on the sale of loans included $ 60 and $( 267 ), respectively, compared to $ 68 for the three and six months ended March 31, 2024, related to gains or losses during the period due to changes in the fair value of loans held for sale subject to pending agency contracts.

At March 31, 2025 and September 30, 2024, there were $ 1,059 and $ 7,061 of loans held for sale carried at cost, respectively.

Loans held for sale are included in Level 2 of the hierarchy.

12 unchanged sentences

Real Estate Owned— Real estate owned includes real estate acquired as a result of foreclosure or by deed in lieu of foreclosure and is carried at the lower of the cost basis or fair value, less estimated costs to dispose.

The carrying amounts of real estate owned at December 31, 2024 and September 30, 2024, were $ 0 and $ 174 , respectively.

The carrying amounts of real estate owned at March 31, 2025 and September 30, 2024, were $ 0 and $ 174 , respectively.

Fair value is estimated under the market approach using independent third party appraisals.

As these properties are actively marketed, estimated fair values may be adjusted by management to reflect current economic and market conditions.

At December 31, 2024 and September 30, 2024, these adjustments were not significant to reported fair values.

At December 31, 2024 and September 30, 2024, $ 0 and $ 220 , respectively, of real estate owned is included in Level 3 of the hierarchy with assets measured at fair value on a non-recurring basis, where the cost basis equals or exceeds the estimated fair values, less estimated costs to dispose, of $ 0 and $ 46 , respectively.

There were no real estate owned carried at their original or adjusted cost basis at December 31, 2024 and September 30, 2024.

Derivatives— Derivative instruments include interest rate lock commitments on loans being originated or purchased for the held for sale portfolio, forward commitments on contracts to deliver mortgage loans and interest rate swaps designated as cash flow hedges.

At March 31, 2025 and September 30, 2024, these adjustments were not significant to reported fair values.

At March 31, 2025 and September 30, 2024, $ 0 and $ 220 , respectively, of real estate owned is included in Level 3 of the hierarchy with assets measured at fair value on a non-recurring basis, where the cost basis equals or exceeds the estimated fair values, less estimated costs to dispose, of $ 0 and $ 46 , respectively.

There were no real estate owned carried at their original or adjusted cost basis at March 31, 2025 and September 30, 2024.

Derivatives— Derivative instruments include interest rate lock commitments on loans being originated or acquired for the held for sale portfolio, forward commitments on contracts to deliver mortgage loans and interest rate swaps designated as cash flow hedges.

Derivatives not designated as cash flow hedges are reported at fair value in Other assets or Other liabilities on the CONSOLIDATED STATEMENTS OF CONDITION with changes in value recorded in current earnings.

5 unchanged sentences

The range and weighted average impact of the closure rate is included in quantitative information about significant unobservable inputs later in this note.

A significant change in the closure rate may result in a significant change in the ending fair value measurement of these derivatives relative to their total fair value.

significant change in the closure rate may result in a significant change in the ending fair value measurement of these derivatives relative to their total fair value.

Because the closure rate is a significantly unobservable assumption, interest rate lock commitments are included in Level 3 of the hierarchy.

Forward commitments on contracts to deliver mortgage loans are included in Level 2 of the hierarchy.

Assets and liabilities carried at fair value on a recurring basis in the CONSOLIDATED STATEMENTS OF CONDITION at December 31, 2024 and September 30, 2024, are summarized below.

Assets and liabilities carried at fair value on a recurring basis in the CONSOLIDATED STATEMENTS OF CONDITION at March 31, 2025 and September 30, 2024, are summarized below.

Recurring Fair Value Measurements at Reporting Date Using

5 unchanged sentences

Investment securities available for sale:

$ 449,714 $ — $ 449,714 $ —

REMICs $ 468,587 $ — $ 468,587 $ —

Fannie Mae certificates 2,786 — 2,786 —

2,784 — 2,784 —

Freddie Mac securities 8,446 — 8,446 —

1,079 — 1,079 —

government and agency obligations 54,104 — 54,104 —

54,133 — 54,133 —

Mortgage loans held for sale 4,745 — 4,745 —

Interest rate lock commitments 318 — — 318

$ 508,565 $ — $ 508,539 $ 26

Total $ 538,986 $ — $ 538,668 $ 318

Forward commitments for the sale of mortgage loans $ 21 $ — $ 21 $ —

$ 2 $ — $ 2 $ —

Total $ 21 $ — $ 21 $ —

Recurring Fair Value Measurements at Reporting Date Using

9 unchanged sentences

Freddie Mac certificates 1,129 — 1,129 —

1,129 — 1,129 —

government and agency obligations 72,776 — 72,776 —

5 unchanged sentences

The table below presents a reconciliation of the beginning and ending balances and the location within the CONSOLIDATED STATEMENTS OF INCOME where gains (losses) due to changes in fair value are recognized on interest rate lock commitments which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

Beginning balance $ 26 $ 55 $ 395 $ ( 1 )

24 unchanged sentences

The following provides quantitative information about significant unobservable inputs categorized within Level 3 of the Fair Value Hierarchy.

December 31, 2024 Valuation Technique(s) Unobservable Input Range Weighted Average

March 31, 2025 Valuation Technique(s) Unobservable Input Range Weighted Average

Collateral-dependent loans, net of allowance $ 42,047 Market comparables of collateral discounted to estimated net proceeds Discount appraised value to estimated net proceeds based on historical experience:

6 unchanged sentences

The following tables present the estimated fair value of the Company’s financial instruments and their carrying amounts as reported in the CONSOLIDATED STATEMENTS OF CONDITION .

December 31, 2024

March 31, 2025

Carrying Fair Level 1 Level 2 Level 3

Cash and due from banks $ 36,429 $ 36,429 $ 36,429 $ — $ —

$ 32,582 $ 32,582 $ 32,582 $ — $ —

Interest-earning cash equivalents 427,154 427,154 427,154 — —

433,349 433,349 433,349 — —

Investment securities available for sale 533,923 533,923 — 533,923 —

Mortgage loans held for sale 5,803 5,816 — 5,816 —

829 829 — 829 —

Mortgage loans held for investment 15,353,151 13,956,412 — — 13,956,412

Other loans 6,992 6,992 — — 6,992

Federal Home Loan Bank stock

223,972 223,972 N/A — —

Federal Home Loan Bank stock 219,231 219,231 N/A — —

Accrued interest receivable 58,050 58,050 — 58,050 —

57,521 57,521 — 57,521 —

Cash collateral received from or held by counterparty 9,060 9,060 9,060 — —

Derivatives 318 318 — — 318

Checking and passbook accounts

Checking and savings accounts

$ 2,127,178 $ 2,127,178 $ — $ 2,127,178 $ —

Certificates of deposit 8,270,467 8,262,851 — 8,262,851 —

8,044,547 8,014,276 — 8,014,276 —

Borrowed funds 4,587,327 4,602,252 — 4,602,252 —

4,656,323 4,666,774 — 4,666,774 —

Borrowers’ advances for insurance and taxes 100,263 100,263 — 100,263 —

140,011 140,011 — 140,011 —

Principal, interest and escrow owed on loans serviced 27,249 27,249 — 27,249 —

3 unchanged sentences

Cash and due from banks $ 26,287 $ 26,287 $ 26,287 $ — $ —

$ 26,287 $ 26,287 $ 26,287 $ — $ —

Interest-earning cash equivalents 437,431 437,431 437,431 — —

437,431 437,431 437,431 — —

Investment securities available for sale 526,251 526,251 — 526,251 —

Mortgage loans held for sale 17,775 17,986 — 17,986 —

17,775 17,986 — 17,986 —

Mortgage loans held for investment 15,316,354 13,922,944 — — 13,922,944

Other loans 5,705 5,705 — — 5,705

Federal Home Loan Bank stock

228,494 228,494 N/A — —

Federal Home Loan Bank stock 228,494 228,494 N/A — —

Accrued interest receivable 59,398 59,398 — 59,398 —

59,398 59,398 — 59,398 —

Cash collateral received from or held by counterparty 7,844 7,844 7,844 — —

Derivatives 395 395 — — 395

Checking and passbook accounts

Checking and savings accounts

$ 2,150,770 $ 2,150,770 $ — $ 2,150,770 $ —

Certificates of deposit 8,044,309 7,989,992 — 7,989,992 —

8,044,309 7,989,992 — 7,989,992 —

Borrowed funds 4,792,847 4,819,873 — 4,819,873 —

4,792,847 4,819,873 — 4,819,873 —

Borrowers’ advances for insurance and taxes 113,637 113,637 — 113,637 —

113,637 113,637 — 113,637 —

Principal, interest and escrow owed on loans serviced 28,753 28,753 — 28,753 —

2 unchanged sentences

The Company enters into interest rate swaps to add stability to interest expense and manage exposure to interest rate movements as part of an overall risk management strategy.

For hedges of the Company's borrowing and deposits program, interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed payments.

For hedges of the Company's borrowing and deposit program, interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed payments.

These derivatives are used to hedge the forecasted cash outflows associated with the Company's FHLB borrowings and brokered certificates of deposit.

7 unchanged sentences

Quarterly, a quantitative analysis is performed to monitor the ongoing effectiveness of the hedging instrument.

All derivative positions were initially, and continue to be, highly effective at December 31, 2024.

All derivative positions continue to be highly effective as of March 31, 2025.

The Company enters into forward commitments for the sale of mortgage loans primarily to protect against the risk of lost revenue from adverse interest rate movements on net income.

2 unchanged sentences

therefore, gains and losses are recognized immediately in the CONSOLIDATED STATEMENTS OF INCOME .

In addition, the Company is party to derivative instruments when it enters into interest rate lock commitments to originate or purchase a portion of its loans, which when funded, are classified as held for sale.

In addition, the Company is party to derivative instruments when it enters into interest rate lock commitments to originate or acquire a portion of its loans, which when funded, are classified as held for sale.

Such commitments are not designated in a hedging relationship;

1 unchanged sentence

The following tables provide the locations within the CONSOLIDATED STATEMENTS OF CONDITION for fair values of derivative instruments at the reporting dates and their related notional values.

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Weighted Average Weighted Average

8 unchanged sentences

$ 3,550,000 2.8 3.20 % $ 3,650,000 3.1 3.10 %

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Notional Value Fair Value Notional Value Fair Value

6 unchanged sentences

The following tables present the net gains and losses recorded within the CONSOLIDATED STATEMENTS OF INCOME and the CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME relating to derivative instruments.

Three Months Ended

Location of Gain or (Loss) December 31,

Three Months Ended Six Months Ended

Location of Gain or (Loss) March 31, March 31,

Recognized in Income 2025 2024 2025 2024

1 unchanged sentence

Amount of gain/(loss) recognized Other comprehensive income $ ( 29,423 ) $ 68,462 $ 47,544 $ ( 22,291 )

Amount of gain/(loss) reclassified from AOCI Interest expense:

Amount of gain reclassified from AOCI

Interest expense:

Borrowed funds and Deposits

3 unchanged sentences

Forward commitments for the sale of mortgage loans Net gain/(loss) on the sale of loans ( 19 ) ( 25 ) 51 ( 151 )

The Company estimates that $ 31,812 of the amounts reported in AOCI will be reclassified as a reduction to interest expense during the twelve months ending December 31, 2025.

The Company estimates that $ 22,789 of the amounts reported in AOCI will be reclassified as a reduction to interest expense during the twelve months ending March 31, 2026.

Derivatives contain an element of credit risk which arises from the possibility that the Company will incur a loss because a counterparty fails to meet its contractual obligations.

4 unchanged sentences

This process shifts the risk away from the counterparty, since the clearing organization acts as an intermediary on each cleared transaction.

At December 31, 2024 and September 30, 2024, there was $ 11,739 and $ 7,844 , respectively, of cash collateral included in other assets, and $ 50,304 and $ 68,932 , respectively, included in investment securities related to initial margin requirements that are held by the central clearing organization.

For derivative transactions cleared through certain clearing parties, variation margin payments are recognized as settlements on a daily basis.

At March 31, 2025 and September 30, 2024, there was $ 9,060 and $ 7,844 , respectively, of cash collateral included in other assets, and $ 50,236 and $ 68,932 , respectively, included in investment securities related to initial margin requirements that are held by the central clearing organization.

For derivative transactions cleared through certain clearing parties, variation margin payments are recognized as settlements on a

The fair value of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements.

RECENT ACCOUNTING PRONOUNCEMENTS

Adopted during the three months ended December 31, 2024

Adopted during the six months ended March 31, 2025

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures.” The amendments in this update improve disclosures about a public entity's reportable segments and addresses requests from investors and other allocators of capital for additional information about a reportable segment's expenses.

2 unchanged sentences

Retrospective application is required for all prior periods presented in the financial statements.

The Company does not expect the adoption to have a material effect on the consolidated financial statements or disclosures.

Issued but not yet adopted as of December 31, 2024

The adoption does not have a material effect on the Company's consolidated financial statements or disclosures.

Issued but not yet adopted as of March 31, 2025

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures".

10 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements