What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 198 added, 194 removed, 755 unchanged (34% of the section changed)

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We intend to continue to adhere to our primary values and to support our customers and the communities in which we operate as we pursue our mission to help people achieve the dream of home ownership and financial security while creating value for our customers, our communities, our associates and our shareholders.

Consumers, businesses, and governments alike are navigating an elevated level of economic uncertainty, as inflation remains elevated, the labor market is showing signs of weakness, and markets continue to deliberate the implications of global trade policies and the conflict in the Middle East.

Consumers, businesses, and governments alike are navigating an elevated level of economic uncertainty, as inflation remains elevated and markets continue to deliberate the implications of global trade policies and the conflict in the Middle East.

The FRS implemented three consecutive 25 basis point rate cuts between September and the end of December 2025.

It is less likely that the easing cycle will continue in 2026;

however, uncertainty can lead to volatility in interest rates and spreads, and create a challenging operating environment.

Current market sentiments have shifted from anticipated policy easing to the possibility of rate hikes.

Uncertainty and volatility in interest rates and spreads, can create a challenging operating environment.

Taking all of this into consideration, we remain committed to our mission, business model, and strategic approach.

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The Company maintains high-quality core deposits distributed primarily across our Ohio and Florida branch network in products tailored toward consumers seeking non-transactional savings.

As of March 31, 2026, 95.8% of our $9.33 billion retail deposit base consists of accounts structured under the FDIC insured limit of $250,000.

As of June 30, 2026, 95.6% of our $9.07 billion retail deposit base consists of accounts structured under the FDIC insured limit of $250,000.

The Company has the ability to fund 100% of all uninsured deposit balances through sources described later in this Item 2 under the heading Liquidity and Capital Resources .

The Company retains ample and diverse sources of liquidity and funding, beyond deposits.

At March 31, 2026, our combined additional borrowing capacity under the Association's blanket pledge arrangements with the FHLB of Cincinnati and the FRB Cleveland along with our ability to purchase Fed Funds through arrangements with other institutions totaled $2.47 billion.

At June 30, 2026, our combined additional borrowing capacity under the Association's blanket pledge arrangements with the FHLB of Cincinnati and the FRB Cleveland along with our ability to purchase Fed Funds through arrangements with other institutions totaled $1.85 billion.

We also hold marketable securities that could be sold and converted to cash.

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Historically, our greatest risk has been our exposure to changes in market interest rates.

When we hold longer-term, fixed-rate assets, funded by liabilities with shorter-term re-pricing characteristics, we are exposed to potentially adverse impacts from changing interest rates, and most notably rising interest rates.

When we hold longer-term, fixed-rate assets, funded by liabilities with shorter-term re-pricing characteristics, we are exposed to potentially adverse impacts from changing interest rates.

Generally, and particularly over extended periods of time that encompass full economic cycles, interest rates associated with longer-term assets, like fixed-rate mortgages, have been higher than interest rates associated with shorter-term funding sources, like deposits.

This difference has been an important component of our net interest income and is fundamental to our operations.

A challenge to our business model occurs when there are rapid and substantial changes in short-term rates or there is an extended inverted yield curve where short-term rates exceed long-term rates.

When short-term rates drop, our home equity line of credit portfolio, indexed to the prime rate, reprices immediately, whereas interest rates on certificate of deposit accounts and borrowings generally reprice at maturity.

A challenge to our business model occurs when there are rapid and substantial changes in short-term rates or there is a prolonged inverted yield curve where short-term rates exceed long-term rates.

When short-term rates change, our home equity line of credit portfolio, indexed to the prime rate, reprices immediately, whereas interest rates on certificate of deposit accounts and borrowings generally reprice at maturity.

An inverted yield curve impacts our balance sheet even after it becomes positive because our assets, originated at historically low yields, pay down at slower rates than our sources of funding, creating the risk that a portion of our liabilities are at costs higher than the yields we earn on a portion of our assets.

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Levels of Regulatory Capital

At March 31, 2026, the Company’s Tier 1 (leverage) capital totaled $1.88 billion, or 10.77%, of net average assets and 17.22% of risk-weighted assets, while the Association’s Tier 1 (leverage) capital totaled $1.73 billion, or 9.94%, of net average assets and 15.89% of risk-weighted assets.

Each of these measures is in excess of the requirements in effect at March 31, 2026, for designation as “well capitalized” under regulatory prompt corrective action provisions.

At June 30, 2026, the Company’s Tier 1 (leverage) capital totaled $1.89 billion, or 10.72%, of net average assets and 16.88% of risk-weighted assets, while the Association’s Tier 1 (leverage) capital totaled $1.76 billion, or 9.99%, of net average assets and 15.73% of risk-weighted assets.

Each of these measures is in excess of the requirements in effect at June 30, 2026, for designation as “well capitalized” under regulatory prompt corrective action provisions.

Refer to the Liquidity and Capital Resources section of this Item 2 for additional discussion regarding regulatory capital requirements.

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The following tables set forth our first mortgage loan production and period end principal balances segregated by loan structure at origination:

For the Six Months Ended March 31, 2026 For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2026 For the Nine Months Ended June 30, 2025

Amount Percent Amount Percent

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Total First Mortgage Loan Originations and Acquired Loans $ 1,183,525 100.0 % $ 760,197 100.0 %

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Amount Percent Amount Percent

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Total First Mortgage Loans Held For Investment $ 10,698,234 100.0 % $ 10,839,746 100.0 %

The following table sets forth the principal balances and yields as of March 31, 2026, for primarily Smart Rate ARM loans segregated by the next scheduled interest rate reset date:

The following table sets forth the principal balances and yields as of June 30, 2026, for primarily Smart Rate ARM loans segregated by the next scheduled interest rate reset date:

Current Balance of ARM Loans Scheduled for Interest Rate Reset Yield

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Total $ 3,615,041 4.21 %

At March 31, 2026 and September 30, 2025, mortgage loans held for sale, all of which were long-term, fixed-rate first mortgage loans and substantially all of which were held for sale to Fannie Mae, totaled $5.1 million and $57.7 million, respectively.

Loan Portfolio Yield

The following tables set forth the principal balance and interest yield as of March 31, 2026, for the portfolio of loans held for investment, by type of loan, structure and geographic location.

Weighted average yields are based on principal balances as of March 31, 2026.

March 31, 2026

Loans Held for Investment by Type and Yield

The following tables set forth the principal balance and interest yield as of June 30, 2026, for the portfolio of loans held for investment, by type of loan, structure and geographic location.

Weighted average yields are based on principal balances as of June 30, 2026.

June 30, 2026

Balance Percent Yield

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Total Loans Receivable $ 16,195,817 100.0 % 4.90 %

March 31, 2026

June 30, 2026

Balance Fixed Rate Balance Fixed Rate Percent Yield

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grow the home equity line of credit portfolio through offering competitive rates, marketing efforts and by utilizing partners to attract more home equity line of credit customers.

At March 31, 2026, the principal balance of home equity lines of credit (including those in repayment) that are structured to reset with each prime rate adjustment totaled $4.36 billion.

At June 30, 2026, the principal balance of home equity lines of credit (including those in repayment) that are structured to reset with each prime rate adjustment totaled $4.49 billion.

Our home equity lending is discussed in the Lending Activities section of this Item 2.

Extending the Duration of Funding Sources

As a complement to our strategies to shorten the duration of our fixed rate interest-earning assets, as described above, we also seek to lengthen the duration of our interest-bearing funding sources.

As a complement to our strategies to shorten the duration of our fixed rate interest-earning assets, as described above, we also seek opportunities to lengthen the duration of our interest-bearing funding sources.

These efforts include monitoring the relative costs of alternative funding sources such as retail certificates of deposit, brokered certificates of deposit, longer-term (e.g.

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Additionally, sales to private investors are dependent upon favorable market conditions, including motivated buyers, and involve more complicated negotiations and longer settlement timelines.

During the six months ended March 31, 2026, $204.1 million of agency-compliant, long-term (15 to 30 years), fixed-rate mortgage loans were sold, or committed to be sold, primarily to Fannie Mae on a servicing retained basis.

During the nine months ended June 30, 2026, $260.3 million of agency-compliant, long-term (15 to 30 years), fixed-rate mortgage loans were sold, or committed to be sold, primarily to Fannie Mae on a servicing retained basis.

Of these sold or committed loans, $196.2 million were originated as agency-compliant first mortgage loans, $37.1 million were acquired through a correspondent lending partnership, and $27.1 million were originated under Fannie Mae's Home Ready initiative.

March 31, 2026, loans classified as held for sale totaled $5.1 million.

At March 31, 2026, we serviced $2.21 billion of loans we originated or acquired and later sold to investors.

June 30, 2026, loans classified as held for sale totaled $14.5 million, compared to $57.7 million at September 30, 2025.

At June 30, 2026, we serviced $2.17 billion of loans we originated or acquired and later sold to investors.

We continue to consider liquidity, interest rate risk and balance sheet management, as well as secondary market pricing, in evaluating the opportunity to sell loans.

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In response to the evolving economic landscape, we continuously revise and update our quarterly analysis and evaluation procedures, as needed, for each category of our lending with the objective of identifying and recognizing all appropriate credit losses.

At March 31, 2026, 90% of our assets consisted of residential real estate loans (both “held for sale” and “held for investment”) and home equity loans and lines of credit.

At June 30, 2026, 90% of our assets consisted of residential real estate loans (both “held for sale” and “held for investment”) and home equity loans and lines of credit.

Our analytic procedures and evaluations include specific reviews of all home equity loans and lines of credit that become 90 or more days past due, as well as specific reviews of all first mortgage loans that are at least 150 days past due, but not later than 180 days past due.

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Our current delinquency levels reflect the higher credit standards to which we subject all new originations.

As of March 31, 2026, loans originated or acquired had a balance of $15.82 billion, of which $38.3 million, or 0.24%, were delinquent.

As of June 30, 2026, loans originated or acquired had a balance of $16.27 billion, of which $43.5 million, or 0.27%, were delinquent.

One aspect of our credit risk concern relates to high concentrations of our loans that are secured by residential real estate in specific states, particularly Ohio and Florida, where a large portion of our historical lending has occurred.

At March 31, 2026, approximately 58.7% and 16.7% of the combined total of our residential Core and construction loans were held for investment in Ohio and Florida, respectively, and approximately 21.6% and 20.8% of our home equity loans and lines of credit were secured by properties in Ohio and Florida, respectively.

At June 30, 2026, approximately 58.8% and 16.3% of the combined total of our residential Core and construction loans were held for investment in Ohio and Florida, respectively, and approximately 21.6% and 20.2% of our home equity loans and lines of credit were secured by properties in Ohio and Florida, respectively.

In an effort to moderate the concentration of our credit risk exposure in individual states, we have utilized direct mail marketing, our internet site and our customer service call center to extend our lending activities to other attractive geographic locations.

Currently, in addition to Ohio and Florida, we are actively lending in 26 other states and the District of Columbia, and as a result of that activity, the concentration ratios of the combined total of our residential Core and construction loans held for investment in Ohio and Florida have trended downward from their September 30, 2010, levels when the concentrations were 79.1% in Ohio and 19.0% in Florida.

Of the total mortgage loans originated in the six months ended March 31, 2026, 22.5% are secured by properties in states other than Ohio or Florida.

Of the total mortgage loans originated in the nine months ended June 30, 2026, 24.7% are secured by properties in states other than Ohio or Florida.

Maintaining Access to Adequate Liquidity and Diverse Funding Sources to Support our Growth.

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We believe that a well capitalized institution is one of the most important factors in nurturing customer and community confidence.

At March 31, 2026, the Association’s ratio of Tier 1 (leverage) capital to net average assets (a basic industry measure that deems 5.00% or above to represent a “well capitalized” status) was 9.94%.

The Association's Tier 1 (leverage) capital ratio at March 31, 2026, included the negative impact of a $65 million cash dividend payment that the Association made to the Company, its sole shareholder, in December 2025.

At June 30, 2026, the Association’s ratio of Tier 1 (leverage) capital to net average assets (a basic industry measure that deems 5.00% or above to represent a “well capitalized” status) was 9.99%.

The Association's Tier 1 (leverage) capital ratio at June 30, 2026, included the negative impact of a $65 million cash dividend payment that the Association made to the Company, its sole shareholder, in December 2025.

Because of its intercompany nature, this dividend payment did not impact the Company's consolidated capital ratios which are reported in the Liquidity and Capital Resources section of this Item 2.

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To attract deposits, we typically offer rates that are competitive with the rates on similar products offered by other financial institutions.

At March 31, 2026, deposits totaled $10.19 billion (including $863.7 million of brokered CDs), while borrowings totaled $5.14 billion and borrowers’ advances and servicing escrows totaled $125.7 million, combined.

At June 30, 2026, deposits totaled $9.99 billion (including $920.5 million of brokered CDs), while borrowings totaled $5.81 billion and borrowers’ advances and servicing escrows totaled $204.4 million, combined.

In evaluating funding sources, we consider many factors, including cost, collateral, duration and optionality, current availability, expected sustainability, impact on operations and capital levels.

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First, we pledge available real estate mortgage loans with the FHLB of Cincinnati and the FRB-Cleveland.

At March 31, 2026, the Association had the ability to borrow a maximum of $6.69 billion from the FHLB of Cincinnati and $451.5 million from the FRB-Cleveland Discount Window.

As of March 31, 2026, our capacity for additional borrowing from the FHLB of Cincinnati was $1.57 billion.

At June 30, 2026, the Association had the ability to borrow a maximum of $6.78 billion from the FHLB of Cincinnati and $423.2 million from the FRB-Cleveland Discount Window.

At June 30, 2026, our capacity for additional borrowing from the FHLB of Cincinnati was $1.13 billion.

Second, we have the ability to purchase overnight Fed Funds up to $445.0 million through various arrangements with other institutions.

At June 30, 2026, our capacity to purchase additional Fed Funds was $295.0 million.

Third, we invest in high quality marketable securities that exhibit limited market price variability and, to the extent that they are not needed as collateral for borrowings, can be sold in the institutional market and converted to cash.

At March 31, 2026, our investment securities portfolio totaled $454.6 million.

At June 30, 2026, our investment securities portfolio totaled $482.4 million.

Fourth, selling loans in the secondary market is a regular source of liquidity.

During the six months ended March 31, 2026, we sold, or committed to sell $204.1 million in loans primarily to Fannie Mae.

During the nine months ended June 30, 2026, we sold, or committed to sell $260.3 million in loans primarily to Fannie Mae.

Finally, cash flows from operating activities have been a regular source of funds.

During the six months ended March 31, 2026 and 2025, cash flows from operations provided $76.4 million and $66.8 million, respectively.

During the nine months ended June 30, 2026 and 2025, cash flows from operations provided $108.9 million and $93.5 million, respectively.

Overall, while customer and community confidence can never be assured, the Company believes that its liquidity is adequate and that it has access to adequate alternative funding sources.

Monitoring and Controlling Our Operating Expenses.

We continue to focus on managing operating expenses.

Our ratio of annualized non-interest expense to average assets was 1.28% for the six months ended March 31, 2026, and 1.16% for the six months ended March 31, 2025.

As of March 31, 2026, our average assets per full-time employee and our average deposits per full-time employee were $17.9 million and $10.6 million, respectively.

We continue to focus on managing operating expenses while balancing those efforts with investments to improve technology and customer experience.

Our ratio of annualized non-interest expense to average assets was 1.26% for the nine months ended June 30, 2026, and 1.19% for the nine months ended June 30, 2025.

As of June 30, 2026, our average assets per full-time employee and our average deposits per full-time employee were $17.6 million and $10.3 million, respectively.

We believe that each of these measures compares favorably with industry averages.

Our relatively high average deposits (exclusive of brokered CDs) held at our branch offices ($262.8 million per branch office as of March 31, 2026) contributes to our expense management efforts by limiting the overhead costs of serving our customers.

Our relatively high average deposits (exclusive of brokered CDs) held at our branch offices ($266.4 million per branch office as of June 30, 2026) contributes to our expense management efforts by limiting the overhead costs of serving our customers.

During the nine months ended June 30, 2026, we capitalized $7.7 million of development costs related to our conversion to a new core operating system, which reduced compensation and technology expenses recognized in the current year.

Following implementation of the core operating system in July 2026, we anticipate compensation and technology expenses will increase.

We will continue our efforts to control operating expenses to help offset the risk of margin compression and to support profitable growth of the business.

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• limitations within our models to predict lifetime net losses on the loan portfolio.

Home equity loans and lines of credit generally have higher credit risk than traditional residential mortgage loans.

Home equity lines of credit and home equity loans generally have higher credit risk than traditional residential mortgage loans.

These loans and credit lines are usually in a second lien position and when combined with the first mortgage, result in generally higher overall loan-to-value ratios.

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We have established an allowance for our unfunded commitments on this portfolio, which is recorded in other liabilities.

Our home equity loans and lines of credit portfolio continues to comprise a significant portion of our gross charge-offs.

At March 31, 2026, we had an amortized cost of $4.40 billion in home equity lines of credit and $883.1 million in home equity loans outstanding, of which $5.5 million, or 0.10%, were delinquent 90 days or more.

At June 30, 2026, we had an amortized cost of $4.53 billion in home equity lines of credit, of which $6.1 million, or 0.13%, and $990.9 million in home equity loans outstanding, of which $1.4 million, or 0.15%, were delinquent 90 days or more.

The allowance for credit losses is evaluated based upon the combined total of the quantitative and qualitative GVAs.

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While we use the best information available to make evaluations, future additions to the allowance may be necessary based on unforeseen changes in loan quality and economic conditions.

The following table sets forth activity for credit losses segregated by geographic location for the periods indicated.

The following table sets forth activity for credit losses segregated by product and geographic location for the periods indicated.

The majority of our Residential Core and Home Today loan portfolios is secured by properties located in Ohio, and therefore were not segregated by state.

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

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

2026 2025 2026 2025

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Net recoveries 693 945 2,183 3,058

Release of allowance for credit losses on loans

(876) (678) (834) (1,569)

Provision (release) of allowance for credit losses on loans (2,077) 1,049 (2,911) (520)

Allowance balance for loans (end of the period) $ 73,516 $ 72,540 $ 73,516 $ 72,540

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Allowance for credit losses on loans to the total amortized cost in loans at end of the period 0.45 % 0.46 % 0.45 % 0.46 %

(1) The Residential Home Today charge-off total for the three months ended March 31, 2026 is a credit due to a reversal of a prior period charge-off..

The following table sets forth additional information with respect to net recoveries by category for the periods indicated rounded to the nearest tenth of a percent.

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

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

2026 2025 2026 2025

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Recoveries are recognized on previously charged-off loans as borrowers perform their repayment obligations or as loans with improved collateral positions reach final resolution.

During the three months ended March 31, 2026 and March 31, 2025, recoveries exceeded loan charge-offs by $0.8 million and $0.7 million, respectively.

During the three months ended March 31, 2026 and March 31, 2025, gross charge-offs were $0.3 million at both dates.

During the three months ended June 30, 2026 and June 30, 2025, recoveries exceeded loan charge-offs by $0.7 million and $0.9 million, respectively.

During the three months ended June 30, 2026 and June 30, 2025, gross charge-offs were $0.5 million and $0.2 million, respectively.

Delinquent loans continue to be evaluated for potential losses and provisions are recorded for the estimate of potential losses of those loans.

During the three months ended March 31, 2026, the total allowance for credit losses increased to $104.9 million, from $104.1 million at December 31, 2025.

During the three months ended June 30, 2026, the total allowance for credit losses decreased to $102.0 million, from $104.9 million at March 31, 2026.

The total allowance for credit losses is comprised of the asset portion, which is applied to the loan portfolio and the liability portion, which is applied to off-balance sheet exposures, primarily related to undrawn equity exposures.

During the three months ended March 31, 2026, the asset and liability portions of the total allowance decreased to $74.9 million from $75.0 million and increased to $30.0 million from $29.1 million, respectively.

We recorded no provision expense for the allowance for credit losses for the period.

During the three months ended June 30, 2026, the asset portion of the total allowance decreased to $73.5 million from $74.9 million and the liability portion of the allowance decreased to $28.5 million from $30.0 million.

These decreases reflect a net $3.5 million release of provision for credit losses, consisting of a $2.1 million release related to loans and a $1.4 million release related to off-balance sheet exposures.

Because many variables are considered in determining the appropriate level of GVAs, directional changes in individual considerations do not always align with the directional change in the balance of a particular component of the GVA.

The slight decrease in the allowance for credit losses applied to the loan portfolio during the three months ended March 31, 2026, was primarily related to a slight decrease in mortgage loan loss dollars, partially offset by a lower net recovery forecast for total qualitative factors and an increase in equity loss forecasts due to growth in these portfolios.

The amortized cost of the residential Core portfolio decreased 1.7%, or $186.3 million, and its total allowance decreased 4.9%, or $1.9 million, as of March 31, 2026, compared to December 31, 2025.

The amortized cost of the home equity lines of credit portfolio increased 2.8%, or $121.4 million, and its total allowance increased 1.5% to $23.4 million, from $23.0 million at December 31, 2025.

The amortized cost of the home equity loans increased 8.3%, or $67.4 million, and its total allowance increased 8.4% to $17.0 million, from $15.7 million at December 31, 2025.

As we are no longer originating loans under our Home Today program, there is an expected net recovery position for this portfolio which was $2.0 million at March 31, 2026 and $2.1 million at December 31, 2025.

During the three months ended June 30, 2026, management refined the quantitative model for certain long-term fixed-rate home equity loan products, which resulted in a reduction in the allowance for credit losses allocated to the home equity loan portfolio despite continued growth in that portfolio.

This reduction was also partially offset by higher growth-related allowance requirements in other loan portfolios.

The amortized cost of the residential Core portfolio increased 1.9%, or $202.8 million, and its total allowance increased 4.7%, or $1.7 million, as of June 30, 2026, compared to March 31, 2026.

The amortized cost of the home equity lines of credit portfolio increased 2.9%, or $128.8 million, and its total allowance increased 6.9% to $25.0 million, from $23.4 million at March 31, 2026.

The amortized cost of the home equity loans increased 12.2%, or $107.9 million, and its total allowance decreased 29.3% to $12.0 million, from $17.0 million at March 31, 2026.

As we are no longer originating loans under our Home Today program, there is an expected net recovery position for this portfolio which was $1.7 million at June 30, 2026 and $2.0 million at March 31, 2026.

Under the CECL methodology, the life of loan concept allows for qualitative adjustments for the expected future recoveries of previously charged-off loans, which is driving the allowance balance for the Home Today loans to be negative.

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The table does not include allowances for credit losses on unfunded loan commitments, which are primarily related to undrawn home equity lines of credit.

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Amount Percent of

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Therefore, neither was segregated by geographic location.

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

Amount Percent Amount Percent

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Total loans receivable, net $ 16,181,577 $ 15,663,312

The following table provides the amortized cost and an analysis of our real estate loans held for investment disaggregated by refreshed FICO score, year of origination and portfolio at March 31, 2026.

The following table provides the amortized cost and an analysis of our real estate loans held for investment disaggregated by refreshed FICO score, year of origination and portfolio at June 30, 2026.

FICO scores are updated quarterly as available.

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(Dollars in thousands)

March 31, 2026

June 30, 2026

Real estate loans:

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(2) No new originations of Home Today loans since fiscal year 2016.

The following table provides amortized cost and an analysis of our real estate loans held for investment by origination LTV, origination year and portfolio at March 31, 2026.

The following table provides amortized cost and an analysis of our real estate loans held for investment by origination LTV, origination year and portfolio at June 30, 2026.

Subsequent to origination, LTVs are only updated for our home equity loans and lines of credit and for collateral-dependent residential mortgage loans.

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(Dollars in thousands)

March 31, 2026

June 30, 2026

Real estate loans:

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>100% — 240 — — 22 824 — — 1,086

27 — — — — — — — 27

Total Home equity loans 392,620 251,334 185,899 102,914 35,833 22,349 — — 990,949

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(3) Mean CLTV percent at origination for all home equity lines of credit is based on the committed amount.

At March 31, 2026, the home equity loan portfolio had an unpaid principal balance of $876.4 million, including $14.0 million in bridge loans, and home equity lines of credit had an unpaid principal balance of $4.36 billion of which $56.2 million were in repayment and no longer eligible to be drawn upon.

The following table sets forth credit exposure, principal balance, percent delinquent 90 days or more, the mean CLTV percent at the time of origination and the current mean CLTV percent of home equity loans, home equity lines of credit and bridge loan portfolios as of March 31, 2026.

At June 30, 2026, the home equity loan portfolio had an unpaid principal balance of $983.7 million, including $20.7 million in bridge loans, and home equity lines of credit had an unpaid principal balance of $4.49 billion of which $57.0 million were in repayment and no longer eligible to be drawn upon.

Home equity lines of credit in the draw period are reported according to geographic distribution.

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(2) Mean CLTV percent at origination for all home equity lines of credit is based on the committed amount.

(3) Current Mean CLTV is based on best available first mortgage and property values as of March 31, 2026.

(3) Current Mean CLTV is based on best available first mortgage and property values as of June 30, 2026.

Property values are estimated using HPI data published by the FHFA.

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Current Mean CLTV on home equity lines of credit in the repayment period is calculated using the principal balance.

The principal balance of home equity lines of credit in the draw period that have a current CLTV over 80% or unknown, based on drawn amount, is $38.5 million, or 0.9% of the total at March 31, 2026 .

The principal balance of home equity lines of credit in the draw period that have a current CLTV over 80% or unknown, based on drawn amount, is $35.0 million, or 0.8% of the total at June 30, 2026 .

In recognition of the past weakness in the housing market, we continue to conduct an expanded loan level evaluation of our home equity lines of credit which are delinquent 90 days or more.

At March 31, 2026, 21.7% of the home equity lending portfolio was either in a first lien position (11.4%), in a subordinate (second) lien position behind a first lien that we held (8.4%) or behind a first lien that was held by a loan that we originated, sold and now serviced for others (1.9%).

At March 31, 2026, 11.6% of the home equity line of credit portfolio in the draw period were making only the minimum payment on the outstanding line balance.

At June 30, 2026, 21.2% of the home equity lending portfolio was either in a first lien position (11.1%), in a subordinate (second) lien position behind a first lien that we held (8.2%) or behind a first lien that was held by a loan that we originated, sold and now serviced for others (1.9%).

At June 30, 2026, 12.0% of the home equity line of credit portfolio in the draw period were making only the minimum payment on the outstanding line balance.

Minimum payments include both a principal and interest component.

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Loans Delinquent for

March 31, 2026 30-89 Days 90 Days or More Total

June 30, 2026 30-89 Days 90 Days or More Total

Real estate loans:

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Total loans seriously delinquent (i.e.

delinquent 90 days or more) were 0.11% of total net loans at March 31, 2026, and September 30, 2025.

The percentage of loans seriously delinquent in the residential Core portfolio remained at 0.07% for both

Serious delinquencies in the home equity lines of credit portfolio remained at 0.03% for both periods.

Serious delinquencies in the Home Today and home equity loan portfolios at March 31, 2026 and September 30, 2025, respectively, are immaterial due to the low level of seriously delinquent loans as compared to the total net loans at each period.

delinquent 90 days or more) were 0.12% of total net loans at June 30, 2026, and 0.11% at September 30, 2025.

The percentage of seriously delinquent residential Core mortgage loans to total net loans

remained at 0.07% for both periods.

Serious delinquencies increased in the home equity lines of credit portfolio to 0.04% of total net loans at June 30, 2026, from 0.03% at September 30, 2025.

Serious delinquencies in the Home Today and home equity loan portfolios as compared to total net loans are not material at June 30, 2026 and September 30, 2025.

Although delinquencies in most portfolios remain at or near historic lows, recent economic trends and elevated interest rates on home equity lines of credit led to an upward trend in delinquencies in that portfolio.

Interest rates on home equity lines of credit are tied to the prime rate of interest which remains elevated, despite the three recent FRS 25 basis point rate cuts, resulting in higher and less affordable monthly payments for some borrowers.

Interest rates on home equity lines of credit are tied to the prime rate of interest which remains moderately elevated, despite the three FRS 25 basis point rate cuts in late 2025, resulting in higher and possibly less affordable monthly payments for some borrowers.

Non-Performing Assets

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There were no construction loans reported as non-accrual at the dates presented.

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

(Dollars in thousands)

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The table below sets forth a reconciliation of the amortized costs and categories between non-accrual loans and collateral-dependent loans at the dates indicated.

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

(Dollars in thousands)

3 unchanged sentences

Total Collateral-Dependent loans $ 47,106 $ 45,275

Comparison of Financial Condition at March 31, 2026 and September 30, 2025

Total assets increased $23.4 million, or less than 1%, to $17.48 billion at March 31, 2026, from $17.46 billion at September 30, 2025.

This change was mainly the result of increases in loans held for investment and prepaid expenses and other assets, offset by a decrease in mortgage loans held for sale.

Cash and cash equivalents increased $7.9 million, or 1.8%, to $437.3 million at March 31, 2026, from $429.4 million at September 30, 2025.

Comparison of Financial Condition at June 30, 2026 and September 30, 2025

Total assets increased $618.7 million, or 3.54%, to $18.08 billion at June 30, 2026, from $17.46 billion at September 30, 2025.

This change was mainly the result of increases in loans held for investment and cash and cash equivalents.

Cash and cash equivalents increased $139.5 million, or 32.5%, to $568.9 million at June 30, 2026, from $429.4 million at September 30, 2025 due to normal fluctuations and liquidity management.

Cash is managed to maintain the level of liquidity described later in the Liquidity and Capital Resources section.

Investment securities, all of which are classified as available for sale, decreased $66.1 million, or 12.69%, to $454.6 million at March 31, 2026, from $520.7 million at September 30, 2025.

The decrease was primarily due to maturities exceeding purchases during the six-month period ended March 31, 2026, including a $50.0 million U.S.

Treasury security that matured and was not replaced.

Mortgage loans held for sale decreased by $52.6 million, or 91.2%, to $5.1 million at March 31, 2026, from $57.7 million at September 30, 2025, due to a decrease in both loans committed to forward sales and loans identified for future sale.

Loans held for investment, net of deferred loan fees and allowance for credit losses, increased $79.0 million, or 0.5%, to $15.74 billion at March 31, 2026, from $15.66 billion at September 30, 2025.

During the six months ended March 31, 2026, the home equity loans and lines of credit portfolio increased $424.4 million and residential core mortgage loans decreased $339.8 million.

Investment securities, all of which are classified as available for sale, decreased $38.3 million, or 7.36%, to $482.4 million at June 30, 2026, from $520.7 million at September 30, 2025.

The decrease was primarily due to cash flows from security repayments and maturities exceeding purchases during the nine-month period ended June 30, 2026.

Mortgage loans held for sale decreased by $43.2 million, or 74.9%, to $14.5 million at June 30, 2026, from $57.7 million at September 30, 2025, due to lower volumes of loans designated for sale and a reduction in loans committed under forward sale agreements.

Loans held for investment, net of deferred loan fees and allowance for credit losses, increased $518.3 million, or 3.3%, to $16.18 billion at June 30, 2026, from $15.66 billion at September 30, 2025.

During the nine months ended June 30, 2026, the home equity loans and lines of credit portfolio increased $660.5 million and residential core mortgage loans decreased $138.4 million.

The changes in loans held for investment were affected by the volume of loans originated, acquired and sold.

During the six months ended March 31, 2026, total first mortgage loan originations were $567.1 million compared to $376.0 million for the six months ended March 31, 2025.

During the nine months ended June 30, 2026, total first mortgage loan originations and acquisitions were $1.18 billion compared to $760.2 million for the nine months ended June 30, 2025.

Of total residential mortgage loans originated and acquired during the current period, $988.7 million (83.5%) were purchase mortgage transactions and $133.5 million (11.3%) were adjustable-rate loans.

Commitments originated for home equity loans and lines of credit were $1.10 billion for the six-month period ended March 31, 2026, compared to $1.20 billion for the six-month period ended March 31, 2025.

Commitments originated for home equity loans and lines of credit were $1.70 billion for the nine-month period ended June 30, 2026, compared to $1.87 billion for the nine-month period ended June 30, 2025.

Refer to Note 4.

LOANS AND ALLOWANCES FOR CREDIT LOSSES of the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS for additional information.

Federal Home Loan Bank stock increased $9.0 million, or 3.82% to $244.4 million at March 31, 2026, from $235.4 million at September 30, 2025.

FHLB stock ownership requirements dictate the amount of stock owned at any given time.

Premises, equipment and software, net increased $3.4 million, or 8.50% to $43.4 million at March 31, 2026 from $40.0 million at September 30, 2025, due to increased software acquisitions.

Other assets, including prepaid expenses, increased $41.2 million, or 36.9%, to $152.9 million at March 31, 2026, from $111.7 million at September 30, 2025.

The increase was primarily the result of a $47.9 million increase in margin requirement on swap contracts after an investment security that had been posted as collateral matured during the six months ended March 31, 2026, partially offset by a $3.5 million decrease in deferred income tax assets and a $4.0 million decrease in interest receivable on swap contracts.

Deposits decreased $259.6 million, or 2.5%, to $10.19 billion at March 31, 2026, from $10.45 billion at September 30, 2025.

The decrease in deposits included a $965.2 million decrease in the CD portfolio and a $19.4 million decrease in money market accounts, partially offset by a $711.2 million increase in savings accounts, and a $8.7 million increase in checking accounts.

Federal Home Loan Bank stock increased $32.7 million, or 13.89% to $268.1 million at June 30, 2026, from $235.4 million at September 30, 2025.

FHLB stock ownership requirements, established by the FHLB, dictate the minimum amount of stock owned at any given time.

Premises, equipment and software, net, increased $5.6 million, or 14.00% to $45.6 million at June 30, 2026 from $40.0 million at September 30, 2025, due to increased software acquisitions.

Other assets decreased $1.5 million, or 1.3%, to $110.2 million at June 30, 2026, from $111.7 million at September 30, 2025.

The decrease was primarily the result of an $8.9 million decrease in the deferred tax asset, partially offset by a $7.4 million increase in prepaid expenses and other assets.

Deposits decreased $454.6 million, or 4.4%, to $9.99 billion at June 30, 2026, from $10.45 billion at September 30, 2025.

The decrease in deposits included a $1.19 billion decrease in the CD portfolio and a $29.7 million decrease in money market accounts, partially offset by a $752.0 million increase in savings accounts, and an $4.8 million increase in checking accounts.

The maturity of CDs that convert to tiered-interest savings accounts at maturity primarily led to the movement between the CD and savings account portfolios between the periods compared.

At March 31, 2026, brokered CDs totaled $863.7 million and included $550.0 million of three-month certificates of deposit accounts aligned with pay-fixed interest rate swap contracts.

Based on FDIC insurance limits by ownership structure, uninsured deposits were $391.2 million and $387.3 million at March 31, 2026 and September 30, 2025, respectively.

Borrowed funds increased $272.2 million, or 5.59%, to $5.14 billion at March 31, 2026, from $4.87 billion at September 30, 2025.

The total balance of borrowed funds at March 31, 2026, consisted of $1.53 billion of long-term advances with a weighted average maturity of approximately 1.5 years, $2.98 billion of one- to three-month advances, aligned with interest rate swap contracts with a remaining weighted average effective maturity of approximately 2.8 years and $624.0 million in overnight borrowings, all from the FHLB.

Borrowers' advances for insurance and taxes decreased $16.7 million to $96.5 million at March 31, 2026, from $113.2 million at September 30, 2025.

In addition, CD balances declined as a result of the competitive deposit pricing environment and the Company's strategic focus on managing funding costs at the risk of increasing customer attrition.

At June 30, 2026, brokered CDs totaled $920.5 million and included $600.0 million of three-month certificates of deposit accounts aligned with pay-fixed interest rate swap contracts.

Based on FDIC insurance limits by ownership structure, uninsured deposits were $398.5 million and $387.3 million at June 30, 2026 and September 30, 2025, respectively.

Borrowed funds increased $940.7 million, or 19.32%, to $5.81 billion at June 30, 2026, from $4.87 billion at September 30, 2025.

The total balance of borrowed funds at June 30, 2026, consisted of $1.25 billion of long-term advances with a weighted average maturity of approximately 1.5 years, $3.05 billion of one- to three-month advances, aligned with interest rate swap contracts with a remaining weighted average effective maturity of approximately 2.6 years, and overnight borrowings of $1.34 billion, all from the FHLB, and $150 million of federal funds purchased.

Borrowers' advances for insurance and taxes increased $46.6 million to $159.7 million at June 30, 2026, from $113.2 million at September 30, 2025.

This change primarily reflects the cyclical nature of real estate tax payments that have been collected from borrowers and are in the process of being remitted to various taxing agencies.

Total shareholders’ equity increased $28.5 million, or 1.5%, to $1.92 billion at March 31, 2026, from $1.89 billion at September 30, 2025.

Servicing escrows increased $14.4 million to $44.7 million at June 30, 2026, from $30.3 million at September 30, 2025.

The change is primarily due to the timing of tax and insurance collections relative to disbursements, resulting in higher escrow funds held at period end.

Total shareholders’ equity increased $63.5 million, or 3.4%, to $1.96 billion at June 30, 2026, from $1.89 billion at September 30, 2025.

The increase reflects $76.1 million of net income, reduced by dividends of $45.2 million.

Other changes include a $29.8 million increase in accumulated other comprehensive income, primarily related to a net increase in unrealized gains on swap contracts, a positive net adjustment of $7.8 million related to stock compensation and employee stock ownership plans and $5.0 million of stock repurchases.

During the six months ended March 31, 2026, a total of 288,196 shares of our common stock were repurchased at an average cost of 13.86 per share.

The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 4,655,890 shares remaining to be repurchased at March 31, 2026.

During the nine months ended June 30, 2026, a total of 355,241 shares of our common stock were repurchased at an average cost of 14.07 per share.

The Company's eighth stock repurchase program allows

for a total of 10,000,000 shares to be repurchased, with 4,588,845 shares remaining to be repurchased at June 30, 2026.

As a result of a mutual member vote, Third Federal Savings, MHC, the mutual holding company that owns approximately 81.0% of the outstanding stock of the Company, was able to waive the receipt of its share of the dividend paid.

1 unchanged sentence

Unregistered Sales of Equity Securities and Use of Proceeds for additional details regarding the repurchase of shares of common stock and the dividend waiver.

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

Comparison of Operating Results for the Three Months Ended June 30, 2026 and 2025

Average Balances and Yields .

5 unchanged sentences

Three Months Ended Three Months Ended

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

Balance Interest

37 unchanged sentences

(5) Net interest margin represents net interest income divided by total interest-earning assets.

Net income increased $2.2 million, or 10.5%, to $23.2 million for the quarter ended March 31, 2026, from $21.0 million for the quarter ended March 31, 2025.

The increase in net income was primarily attributable to an increase in net interest income, offset by an increase in non-interest expense.

Net income increased $9.0 million, or 41.9%, to $30.5 million for the quarter ended June 30, 2026, from $21.5 million for the quarter ended June 30, 2025.

The increase in net income was primarily attributable to an increase in net interest income and a release of provision for credit losses, partially offset by an increase in non-interest expense.

Interest and Dividend Income.

Interest and dividend income increased $10.7 million, or 5.6%, to $202.1 million during the current quarter, compared to $191.4 million during the same quarter of the prior year.

The increase in interest and dividend income was primarily the result of an increase in interest income on loans, offset by decreases in income earned on other interest earning assets and FHLB stock.

The increase in interest and dividend income was primarily the result of an increase in interest income on loans, offset by decreases in income earned on other interest earning assets, mortgage-backed securities available for sale and FHLB stock.

Interest income on loans increased $12.5 million, or 7.0%, to $190.0 million during the current quarter, compared to $177.5 million for the same quarter of the prior year.

This change was primarily attributed to an 18 basis point increase in the average yield on loans for the quarter ended March 31, 2026, to 4.65%, compared to 4.47% for the same quarter of the prior year.

It was also attributed to a 2.9%, or $449.1 million, increase in the average balance of loans to $15.80 billion for the quarter ended March 31, 2026, compared to $15.35 billion during the same quarter of the prior year, as new loan production exceeded principal repayments and loan sales.

This change was primarily attributed to a 16 basis point increase in the average yield on loans for the quarter ended June 30, 2026, to 4.75%, compared to 4.59% for the same quarter of the prior year.

It was also attributed to a 3.5%, or $541.9 million, increase in the average balance of loans to $16.02 billion for the quarter ended June 30, 2026, compared to $15.48 billion during the same quarter of the prior year, as new loan production exceeded principal repayments and loan sales.

Interest Expense .

Interest expense increased $3.8 million, or 3.3%, to $117.7 million during the current quarter, compared to $113.9 million for the quarter ended March 31, 2025.

Interest expense increased $4.3 million, or 3.7%, to $120.7 million during the current quarter, compared to $116.4 million for the quarter ended June 30, 2025.

The increase was mainly due to higher interest expense on savings and borrowed funds, partially offset by lower interest expense on certificates of deposit.

Interest expense on CDs, net of related interest rate swap contracts, decreased $6.1 million, or 8.4%, to $66.5 million during the current quarter, compared to $72.6 million for the quarter ended March 31, 2025.

Interest expense on CDs, net of related interest rate swap contracts, decreased $9.5 million, or 13.0%, to $63.8 million during the current quarter, compared to $73.3 million for the quarter ended June 30, 2025.

The decrease was primarily attributed to a $889.8 million, or 10.7%, decrease in the average balance of CDs to $7.42 billion during the current quarter, from $8.31 billion during the same quarter of the prior year, as well as a 9 basis point decrease in the average rate paid on CDs, to 3.44% for the current quarter, from 3.53% for the same quarter of the prior year.

Interest expense on savings accounts increased by $4.5 million to $7.2 million during the quarter ended March 31, 2026, compared to $2.7 million for the quarter ended March 31, 2025.

The increase was attributed to an 81 basis point increase in the average rate paid on savings accounts, to 1.70% during the current quarter, when compared to the quarter ended March 31, 2025, and a $490.0 million, or 40.2%, increase in the average balance of savings accounts to $1.71 billion for the quarter ended March 31, 2026.

Interest expense on borrowed funds, net of related interest rate swap contracts, increased $5.4 million, or 14.0%, to $43.9 million during the current quarter, compared to $38.5 million for the quarter ended March 31, 2025.

This increase was attributed to an increase in the average balance of borrowed funds of $458.9 million, or 10.1%, to $5.00 billion during the current quarter from an average balance of $4.54 billion during the same quarter of the prior year, as well as a 12 basis point increase in the average rate paid on borrowed funds, to 3.51% during the current quarter, when compared to the quarter ended March 31, 2025.

Interest expense on savings accounts increased by $5.3 million to $8.7 million during the quarter ended June 30, 2026, compared to $3.4 million for the quarter ended June 30, 2025.

The increase was attributed to an 80 basis point increase in the average rate paid on savings accounts, to 1.87% during the current quarter, when compared to the quarter ended June 30, 2025, and a $611.9 million, or 48.6%, increase in the average balance of savings accounts to $1.87 billion for the quarter ended June 30, 2026.

Interest expense on borrowed funds, net of related interest rate swap contracts, increased $8.6 million, or 21.7%, to $48.2 million during the current quarter, compared to $39.6 million for the quarter ended June 30, 2025.

This increase was attributed to an increase in the average balance of borrowed funds of $724.6 million, or 15.8%, to $5.32 billion during the current quarter from an average balance of $4.60 billion during the same quarter of the prior year, as well as a 17 basis point increase in the average rate paid on borrowed funds, to 3.62% during the current quarter, when compared to the quarter ended June 30, 2025.

Refer to the Extending the Duration of Funding Sources section of the Overview and Comparison of Financial Condition for further discussion.

Net Interest Income.

Net interest income increased $5.8 million to $77.8 million during the current quarter, compared to $72.0 million for the quarter ended March 31, 2025.

Net interest income increased $6.4 million to $81.4 million during the current quarter, compared to $75.0 million for the quarter ended June 30, 2025.

The increase was primarily due to an increase in average balance and yield of interest-earning assets, partially offset by an increase in the average balance and weighted average rate paid on interest-bearing liabilities.

Average interest-earning assets during the current quarter increased $379.3 million, or 2.3%, to $16.89 billion, when compared to the quarter ended March 31, 2025.

Average interest-earning assets during the current quarter increased $506.1 million, or 3.0%, to $17.12 billion, when compared to the quarter ended June 30, 2025.

The increase in average interest-earning assets was attributed primarily to an increase in the average balance of loans, offset by a decrease in the average balance of investment securities.

The yield on interest-earning assets increased 11 basis points to 4.72% from 4.61%.

The average balance of interest-bearing liabilities increased $376.8 million, 2.5%, to $15.25 billion, primarily due to increases in the average balances of savings and borrowed funds, offset by a decrease in the average balance of CDs.

The average balance of interest-bearing liabilities increased $423.3 million, or 2.8%, to $15.40 billion, primarily due to increases in the average balances of savings and borrowed funds, offset by a decrease in the average balance of CDs.

The cost on interest-bearing liabilities increased 3 basis points to 3.14% from 3.11%.

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Provision (Release) for Credit Losses.

We recorded no provision to the allowance for credit losses on loans and off-balance sheet exposures during the quarter ended March 31, 2026, compared to a provision of $1.5 million during the quarter ended March 31, 2025.

We recorded a $3.5 million release to the allowance for credit losses on loans and off-balance sheet exposures during the quarter ended June 30, 2026, compared to a provision of $1.5 million during the quarter ended June 30, 2025.

Credit loss provisions (releases) are recorded with the objective of aligning our allowance for credit loss balances with our current estimates of loss in the portfolio.

During the quarter ended March 31, 2026, we recorded net recoveries of $0.8 million compared to net recoveries of $0.7 million for the quarter ended March 31, 2025.

The release of provision was driven by a decrease in reserve

requirement for longer-term, fixed-rate home equity loans.

During the quarter ended June 30, 2026, we recorded net recoveries of $0.7 million compared to net recoveries of $0.9 million for the quarter ended June 30, 2025.

Refer to the Lending Activities section of Item 2.

1 unchanged sentence

Non-Interest Income.

Non-interest income increased $0.3 million, or 4.2%, to $7.4 million during the current quarter, compared to $7.1 million for the quarter ended March 31, 2025, primarily due to increases of $0.5 million in net gain on the sales of loan and $0.3 million in loan fees and service charges, offset by decrease of $0.5 million in other non-interest income.

Non-interest income increased $0.9 million, or 12.8%, to $7.9 million during the current quarter, compared to $7.0 million for the quarter ended June 30, 2025, primarily due to increases of $0.7 million in death benefits from BOLI and $0.3 million in loan fees and service charges.

Non-Interest Expense.

Non-interest expense increased $4.3 million, or 8.4%, to $55.4 million during the current quarter, compared to $51.1 million for the quarter ended March 31, 2025.

The increase primarily consisted of a $2.5 million increase in salaries and employee benefits and a $2.3 million increase in other operating expenses, partially offset by a $0.6 million decrease in marketing expense.

Non-interest expense increased $0.9 million, or 1.7%, to $54.1 million during the current quarter, compared to $53.2 million for the quarter ended June 30, 2025.

The increase primarily consisted of a $0.7 million increase in salaries and employee benefits, a $0.7 million increase in office property and equipment and a $1.3 million increase in other operating expenses, partially offset by a $1.7 million decrease in marketing expense.

Income Tax Expense.

The provision for income taxes increased $1.1 million to $6.6 million during the current quarter, compared to $5.5 million for the quarter ended March 31, 2025, reflecting the higher level of pre-tax income during the more recent period.

The provision for income taxes increased $2.3 million to $8.1 million during the current quarter, compared to $5.8 million for the quarter ended June 30, 2025, reflecting the higher level of pre-tax income during the more recent period.

The provision for the current quarter included $7.3 million of federal income tax provision and $0.8 million of state income tax expense.

The provision for the quarter ended March 31, 2025 included $4.9 million of federal income tax provision and $0.6 million of state income tax expense.

Our effective federal tax rate was 19.6% and 19.0% during the quarters ended March 31, 2026 and March 31, 2025, respectively.

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

The provision for the quarter ended June 30, 2025, included $5.2 million of federal income tax provision and $0.6 million of state income tax expense.

Our effective federal tax rate was 19.2% and 19.6% during the quarters ended June 30, 2026 and June 30, 2025, respectively.

Comparison of Operating Results for the Nine Months Ended June 30, 2026 and 2025

Average balances and yields .

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The yields set forth below include the effect of deferred fees, deferred expenses, discounts and premiums that are amortized or accreted to interest income or interest expense.

Six Months Ended Six Months Ended

March 31, 2026 March 31, 2025

Nine Months Ended Nine Months Ended

June 30, 2026 June 30, 2025

Balance Interest

37 unchanged sentences

(5) Net interest margin represents net interest income divided by total interest-earning assets.

Net income increased $2.1 million to $45.5 million for the six months ended March 31, 2026, compared to $43.4 million for the six months ended March 31, 2025.

The increase in net income was primarily driven by an increase in net interest income and non-interest income along with a decrease in the provision for credit losses, partially offset by an increase in non-interest expense.

Net income increased $11.1 million to $76.1 million for the nine months ended June 30, 2026, compared to $65.0 million for the nine months ended June 30, 2025.

The increase in net income was primarily driven by an increase in net interest income and a decrease in the provision for credit losses, partially offset by an increase in non-interest expense.

Interest and Dividend Income.

Interest and dividend income increased $20.5 million, or 5.5%, to $393.2 million during the six months ended March 31, 2026, compared to $372.7 million during the same six months in the prior year.

Interest and dividend income increased $31.3 million, or 5.5%, to $595.4 million during the nine months ended June 30, 2026, compared to $564.1 million during the same nine months in the prior year.

The increase in interest and dividend income resulted mainly from an increase in interest income on loans, partially offset by decreases in income earned on FHLB stock, investment securities and other interest-bearing cash equivalents.

Interest income on loans increased $24.8 million, or 7.2%, to $368.5 million for the six months ended March 31, 2026, compared to $343.7 million for the six months ended March 31, 2025.

This increase was attributed mainly to a 19 basis point increase in the average yield on loans to 4.67% for the six months ended March 31, 2026, from 4.48% for the same six months in the prior fiscal year.

Adding to the increase was a $458.2 million increase in the average balance of loans to $15.80 billion for the current six months compared to $15.34 billion for the prior fiscal year period as new loan production exceeded repayments and loan sales during the current fiscal year.

Interest income on loans increased $37.3 million, or 7.2%, to $558.5 million for the nine months ended June 30, 2026, compared to $521.2 million for the nine months ended June 30, 2025.

This increase was attributed mainly to a 17 basis point increase in the average yield on loans to 4.69% for the nine months ended June 30, 2026, from 4.52% for the same nine months in the prior fiscal year.

Adding to the increase was a $486.1 million increase in the average balance of loans to $15.87 billion for the current nine months, compared to $15.38 billion for the prior fiscal year period as new loan production exceeded repayments and loan sales during the current fiscal year.

Interest Expense.

Interest expense increased $7.5 million, or 3.2%, to $239.8 million during the current six months compared to $232.3 million during the six months ended March 31, 2025.

Interest expense increased $11.7 million, or 3.4%, to $360.5 million during the current nine months, compared to $348.8 million during the nine months ended June 30, 2025.

This increase mainly resulted from an increase in the average rate paid and balance of borrowed funds and savings accounts, partially offset by a decrease in the average rate paid on CDs and a decrease in CD balances.

Interest expense on CDs, net of related interest rate swap contracts, decreased $5.0 million, or 3.4%, to $142.1 million during the six months ended March 31, 2026, compared to $147.1 million during the six months ended March 31, 2025.

The decrease was attributed primarily to a $120.4 million, or 1.5%, decrease in the average balance of CDs to $8.06 billion, from $8.18 billion during the same six months of the prior fiscal year.

In addition, there was a 7 basis point decrease in the average rate paid on CDs to 3.53% during the current six months from 3.60% during the same six months last fiscal year.

Interest expense on savings accounts increased $4.7 million to $10.8 million during the six months ended March 31, 2026, compared to interest expense of $6.1 million for the six-month period ended March 31, 2025.

Interest expense on CDs, net of related interest rate swap contracts, decreased $14.5 million, or 6.6%, to $205.9 million during the nine months ended June 30, 2026, compared to $220.4 million during the nine months ended June 30, 2025.

The decrease was attributed primarily to a $376.9 million, or 4.6%, decrease in the average balance of CDs to $7.84 billion, from $8.22 billion during the same nine months of the prior fiscal year.

In addition, there was a 7 basis point decrease in the average rate paid on CDs to 3.50% during the current nine months from 3.57% during the same nine months last fiscal year.

Interest expense on savings accounts increased $10.2 million to $19.6 million during the nine months ended June 30, 2026, compared to interest expense of $9.4 million for the nine-month period ended June 30, 2025.

The increase was attributed primarily to a $353.3 million, or 28%, increase in the average balance of savings accounts.

In addition, there was a 49 basis point increase in the average rate paid on savings accounts to 1.46% during the current six months from 0.97% during the prior six months ended March 31, 2025.

Interest expense on borrowed funds, net of related interest rate swap contracts, increased $7.8 million, or 9.9%, to $86.8 million during the six months ended March 31, 2026, from $79.0 million during the six months ended March 31, 2025.

The increase was primarily the result of a increase of $316.4 million in the average balance of borrowed funds to $4.91 billion for the six months ended March 31, 2026 compared to $4.60 billion for the same period of the prior fiscal year.

There was a 9 basis point increase in the average rate paid for these funds to 3.53%, from 3.44% for the six months ended March 31, 2026 and March 31, 2025, respectively.

In addition, there was a 62 basis point increase in the average rate paid on savings accounts to 1.62% during the current nine months, from 1.00% during the prior nine months ended June 30, 2025.

Interest expense on borrowed funds, net of related interest rate swap contracts, increased $16.3 million, or 13.7%, to $134.9 million during the nine months ended June 30, 2026, from $118.6 million during the nine months ended June 30, 2025.

The increase was primarily the result of an increase of $452.5 million in the average balance of borrowed funds to $5.05 billion for the nine months ended June 30, 2026, compared to $4.60 billion for the same period of the prior fiscal year.

There was a 12 basis point increase in the average rate paid for these funds to 3.56%, from 3.44% for the nine months ended June 30, 2026 and June 30, 2025, respectively.

Refer to the Extending the Duration of Funding Sources section of the Overview and Comparison of Financial Condition for further discussion.

Net Interest Income.

Net interest income increased $13.1 million, or 9.3%, to $153.5 million during the six months ended March 31, 2026, from $140.4 million during the six months ended March 31, 2025.

The net increase consisted of a $20.5 million increase in interest income offset by a $7.5 million increase in interest expense.

Average interest-earning assets increased during the current six months by $391.2 million to $16.89 billion when compared to $16.50 billion for the six months ended March 31, 2025.

Net interest income increased $19.5 million, or 9.1%, to $234.9 million during the nine months ended June 30, 2026, from $215.4 million during the nine months ended June 30, 2025.

The yield on interest-earning assets, primarily loans, increased by 13 basis points to 4.68% from 4.55% compared to the prior-year period, as lower-rate residential mortgages were replaced with higher-yielding mortgage loans and home equity products.

The cost of interest-bearing liabilities increased 2 basis points.

As a result, the interest rate spread improved to 1.54% for the nine months ended June 30, 2026, compared to 1.43% for the nine months ended June 30, 2025, and the net interest margin increased to 1.85% from 1.74% over the same period.

Average interest-earning assets increased during the current nine months by $429.5 million to $16.97 billion when compared to $16.54 billion for the nine months ended June 30, 2025.

The increase in average assets was attributed primarily to a $486.1 million increase in the average balance of our loans, along with a $19.1 million increase in the average balance of FHLB stock, partially offset by a $39.4 million decrease in the average balance of investment securities and a $23.8 million decrease in the average balance of interest-bearing cash equivalents.

The yield on average interest-earning assets increased 14 basis points to 4.66% for the six months ended March 31, 2026, from 4.52% for the six months ended March 31, 2025, as lower-rate residential mortgages were replaced with higher-yielding mortgage loans and home equity balances.

Average interest-bearing liabilities increased $387.2 million to $15.24 billion for the six months ended March 31, 2026, compared to $14.85 billion for the six months ended March 31, 2025, and there was a 2 basis point increase in cost for the six months ended March 31, 2026.

The interest rate spread increased 12 basis point to 1.51% when compared to 1.39% during the same six months of the prior fiscal year period.

The net interest margin was 1.82% for the six months ended March 31, 2026, and 1.70% for the six months ended March 31, 2025.

Average interest-bearing liabilities increased $399.3 million to $15.29 billion, compared to $14.89 billion for the prior-year period primarily driven by increased average balances of borrowed funds and savings accounts, partially offset by a decrease in the average balance of CDs.

Provision (Release) for Credit Losses .

We recorded a release for credit losses on loans and off-balance sheet exposures of $1.0 million during the six months ended March 31, 2026, and no provision for credit losses during the six months ended March 31, 2025.

In the current six months, we recorded net recoveries of $1.5 million, as compared to net recoveries of $2.1 million for the six months ended March 31, 2025.

Credit loss provisions (releases) are recorded with the objective of aligning our allowance for credit loss balances with our current estimates of loss in the portfolio.

We recorded a release for credit losses on loans and off-balance sheet exposures of $4.5 million during the nine months ended June 30, 2026, and a $1.5 million provision for credit losses during the nine months ended June 30, 2025.

In the current nine months, we recorded net recoveries of $2.2 million, as compared to net recoveries of $3.1 million for the nine months ended June 30, 2025.

Credit loss provisions (releases) are recorded with the objective of

aligning our allowance for credit loss balances with our current estimates of loss in the portfolio.

As delinquencies in the portfolio have been resolved through pay-off, short sale or foreclosure, or management determines the collateral is not sufficient to satisfy the loan balance, uncollected balances have been charged against the allowance for credit losses previously provided.

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Non-Interest Income.

Non-interest income increased $1.9 million, or 14%, to $15.5 million during the six months ended March 31, 2026, compared to $13.6 million during the six months ended March 31, 2025.

The increase in non-interest income was primarily due to a $1.8 million increase in the net gain on sale of loans.

There were loan sales of $204.1 million during the six months ended March 31, 2026, compared to loan sales of $147.2 million during the six months ended March 31, 2025.

Non-interest income increased $2.8 million, or 14%, to $23.4 million during the nine months ended June 30, 2026, compared to $20.6 million during the nine months ended June 30, 2025.

The increase was primarily due to increases of $0.9 million in loan fees and service charges and $1.9 million in net gain on the sale of loans.

During the nine months ended June 30, 2026 and 2025, there were $260.3 million and $210.6 million of loans sold with net gains on the sale of loans totaling $4.9 million and $3.0 million, respectively.

Non-Interest Expense.

Non-interest expense increased $12.6 million, or 13%, to $111.6 million during the six months ended March 31, 2026, compared to $99.0 million during the six months ended March 31, 2025.

This increase was driven by a $6.4 million increase in salaries and employee benefits, a $3.5 million increase in other operating expenses, a $2.0 million increase in marketing expenses, partially offset by a $0.5 million decrease in federal insurance premiums.

The increase in salaries and benefits was mainly the result of a one-time discretionary bonus provided to all associates in December 2025,

totaling $2.2 million, as well as higher staffing levels and stock-based compensation expenses, partially offset by an increase in

capitalized payroll costs related to the implementation of a new core banking system.

Non-interest expense increased $13.5 million, or 9%, to $165.7 million during the nine months ended June 30, 2026, compared to $152.2 million during the nine months ended June 30, 2025.

This increase was driven by a $7.2 million increase in salaries and employee benefits, a $4.7 million increase in other operating expenses, and a $2.0 million increase in office property and equipment, partially offset by a $0.5 million decrease in federal insurance premiums.

The increase in salaries and benefits was mainly the result of a one-time discretionary bonus provided to all associates in December 2025, totaling $2.2 million, as well as higher staffing levels and stock-based compensation expenses, partially offset by an increase in capitalized payroll costs related to the implementation of a new core banking system.

Income Tax Expense.

The provision for income taxes increased $1.3 million to $12.8 million during the six months ended March 31, 2026, from $11.5 million for the six months ended March 31, 2025, reflecting the higher level of pre-tax income during the more recent periods.

The provision for the current six months included $11.3 million of federal income tax provision and $1.5 million of state income tax provision.

The provision for the six months ended March 31, 2025, included $10.5 million of federal income tax provision and $1.0 million of state income tax provision.

Our effective federal tax rate was 19.9% during the six months ended March 31, 2026, and 19.4% during the six months ended March 31, 2025.

The provision for income taxes increased $3.7 million to $21.0 million during the nine months ended June 30, 2026, from $17.3 million for the nine months ended June 30, 2025, reflecting the higher level of pre-tax income during the more recent periods.

The provision for the current nine months included $18.6 million of federal income tax provision and $2.4 million of state income tax provision.

The provision for the nine months ended June 30, 2025, included $15.7 million of federal income tax provision and $1.6 million of state income tax provision.

Our effective federal tax rate was 19.6% during the nine months ended June 30, 2026, and 19.5% during the nine months ended June 30, 2025.

Liquidity and Capital Resources

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We generally seek to maintain a minimum liquidity ratio of 5% (which we compute as the sum of the average cash and cash equivalents plus unencumbered investment securities for which ready markets exist, divided by total average interest-earning assets).

For the three months ended March 31, 2026, our liquidity ratio averaged 5.36%.

We had sufficient sources of liquidity to satisfy our short- and long-term liquidity needs as of March 31, 2026.

For the three months ended June 30, 2026, our liquidity ratio averaged 5.42%.

We had sufficient sources of liquidity to satisfy our short- and long-term liquidity needs as of June 30, 2026.

We regularly adjust our investments in liquid assets based upon our assessment of expected loan demand, expected deposit flows, yields available on interest-earning deposits and securities, scheduled liability maturities and the objectives of our asset/liability management program.

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The levels of these assets are dependent upon our operating, financing, lending and investing activities during any given period.

At March 31, 2026, cash and cash equivalents totaled $437.3 million, which represented an increase of 1.8% from $429.4 million at September 30, 2025.

Investment securities classified as available-for-sale, all of which are government guaranteed, provide additional sources of liquidity, totaled $454.6 million at March 31, 2026.

During the six-month period ended March 31, 2026, we settled $215.2 million of loan sales to Fannie Mae, with no forward commitments of mortgage loans outstanding as of March 31, 2026.

At June 30, 2026, cash and cash equivalents totaled $568.9 million, which represented an increase of 32.5% from $429.4 million at September 30, 2025.

Investment securities classified as available-for-sale, all of which are government guaranteed, provide additional sources of liquidity, totaled $482.4 million at June 30, 2026.

During the nine-month period ended June 30, 2026, we settled $246.0 million of loan sales and had commitments to sell $22.2 million of mortgage loans to Fannie Mae at June 30, 2026.

Our cash flows are derived from operating activities, investing activities and financing activities as reported in our CONSOLIDATED STATEMENTS OF CASH FLOWS .

At March 31, 2026, we had $377.1 million in outstanding commitments to originate loans.

At June 30, 2026, we had $412.6 million in outstanding commitments to originate loans.

In addition to commitments to originate loans, we had $5.62 billion in unfunded home equity lines of credit to borrowers.

CDs due within one year of March 31, 2026, totaled $5.45 billion, or 53.5% of total deposits.

CDs due within one year of June 30, 2026, totaled $5.56 billion, or 55.6% of total deposits.

If these deposits do not remain with us, we will be required to seek other sources of funds, including loan sales, sales of investment securities, other deposit products, including new CDs, brokered CDs, FHLB advances, borrowings from the FRB-Cleveland Discount Window or other collateralized borrowings.

Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the CDs due on or before March 31, 2027.

Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the CDs due on or before June 30, 2027.

We believe, however, based on past experience, that a significant portion of such deposits will remain with us.

Generally, we have the ability to attract and retain deposits by adjusting the interest rates offered.

Our primary investing activities are originating residential mortgage loans, home equity loans and lines of credit and purchasing investment securities.

During the six months ended March 31, 2026, we originated $567.1 million of residential mortgage loans and $1.10 billion of commitments for home equity loans and lines of credit, while during the six months ended March 31, 2025, we originated $376.0 million of residential mortgage loans and $1.20 billion of commitments for home equity loans and lines of credit.

We purchased $53.5 million of securities during the six months ended March 31, 2026, and $127.2 million during the six months ended March 31, 2025.

Also, during the six months ended March 31, 2026 and March 31, 2025, we acquired $100.2 million and $127.6 million of long-term, residential mortgage loans, respectively.

Our primary investing activities are originating and acquiring residential mortgage loans, originating home equity loans and lines of credit and purchasing investment securities.

During the nine months ended June 30, 2026, we originated $1.18 billion of residential mortgage loans and $1.70 billion of commitments for home equity loans and lines of credit, while during the nine months ended June 30, 2025, we originated $760.2 million of residential mortgage loans and $1.87 billion of commitments for home equity loans and lines of credit.

We purchased $114.7 million of securities during the nine months ended June 30, 2026, and $141.7 million during the nine months ended June 30, 2025.

Also, during the nine months ended June 30, 2026 and June 30, 2025, we acquired $215.1 million and $282.5 million of long-term, residential mortgage loans, respectively.

Financing activities consist primarily of changes in deposit accounts, changes in the balances of principal and interest owed on loans serviced for others, FHLB advances, including any collateral requirements related to interest rate swap agreements and borrowings from the FRB-Cleveland Discount Window.

We experienced a net decrease in total deposits of $259.6 million during the six months ended March 31, 2026, compared to a net increase of $202.6 million during the six months ended March 31, 2025.

We experienced a net decrease in total deposits of $454.6 million during the nine months ended June 30, 2026, compared to a net increase of $146.4 million during the nine months ended June 30, 2025.

Deposit flows are affected by the overall level of interest rates, the interest rates and products offered by us and our local competitors, and by other factors.

During the six months ended March 31, 2026, there was a $38.4 million decrease in the balance of brokered CDs (exclusive of acquisition costs and subsequent amortization), which had a balance of $863.7 million at March 31, 2026.

At March 31, 2025, the balance of brokered CDs was $1.03 billion.

Principal and interest owed on loans serviced for others experienced a net decrease of $1.1 million to $29.2 million during the six months ended March 31, 2026, compared to a net decrease of $1.5 million to $27.2 million during the six months ended March 31, 2025.

During the six months ended March 31, 2026, we increased our total borrowings by $272.2 million primarily to fund loan growth.

During the six months ended March 31, 2025, our total borrowings decreased by $205.5 million.

During the nine months ended June 30, 2026, there was a $18.4 million increase in the balance of brokered CDs (exclusive of acquisition costs and subsequent amortization), which had a balance of $920.5 million at June 30, 2026.

Principal and interest owed on loans serviced for others experienced a net increase of $14.4 million to $44.7 million during the nine months ended June 30, 2026, compared to a net increase of $1.5 million to $30.2 million during the nine months ended June 30, 2025.

During the nine months ended June 30, 2026, we increased our total borrowings by $940.7 million primarily to fund loan growth.

During the nine months ended June 30, 2025, our total borrowings increased by $90.1 million.

Liquidity management is both a daily and long-term function of business management.

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In an effort to manage our available borrowing capacity with the FHLB, the Company has the ability to replace a portion of its 90-day FHLB advances with like-term brokered deposits.

At March 31, 2026, we had $5.13 billion of FHLB of Cincinnati advances, no outstanding borrowings from the FRB-Cleveland Discount Window and no outstanding borrowings in the form of Fed Funds.

During the six months ended March 31, 2026, we had average outstanding advances from the FHLB of Cincinnati of $4.91 billion, as compared to average outstanding advances of $4.60 billion during the six months ended March 31, 2025.

At June 30, 2026, we had $5.65 billion of FHLB of Cincinnati advances, $150.0 million outstanding borrowings in the form of Fed Funds, and no outstanding borrowings from the FRB-Cleveland Discount Window.

During the nine months ended June 30, 2026, we had average outstanding advances from the FHLB of Cincinnati of $5.05 billion, as compared to average outstanding advances of $4.60 billion during the nine months ended June 30, 2025.

Refer to the Extending the Duration of Funding Sources section of the Overview for further discussion.

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The requirement limits capital distributions and certain discretionary bonus payments to management if the institution does not hold a "capital conservation buffer" in addition to the standard minimum capital requirements.

At March 31, 2026, the Association exceeded the regulatory requirement for the "capital conservation buffer".

As of March 31, 2026, the Association exceeded all regulatory requirements to be considered “Well Capitalized” as presented in the table below (dollar amounts in thousands).

At June 30, 2026, the Association exceeded the regulatory requirement for the "capital conservation buffer".

As of June 30, 2026, the Association exceeded all regulatory requirements to be considered “Well Capitalized” as presented in the table below (dollar amounts in thousands).

Capital remains a source of financial strength for the Association and the Company.

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Common Equity Tier 1 Capital to Risk-Weighted Assets 1,760,464 15.73 % 727,298 6.50 %

The capital ratios of the Company as of March 31, 2026, are presented in the table below (dollar amounts in thousands).

The capital ratios of the Company as of June 30, 2026, are presented in the table below (dollar amounts in thousands).

Total Capital to Risk-Weighted Assets $ 1,991,405 17.79 %

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Because of its intercompany nature, this dividend payment had no impact on the Company's capital ratios or its CONSOLIDATED STATEMENTS OF CONDITION but reduced the Association's reported capital ratios.

At March 31, 2026, the Company had, in the form of cash and a demand loan from the Association, $152.0 million of funds readily available to support its stand-alone operations.

At June 30, 2026, the Company had, in the form of cash and a demand loan from the Association, $137.1 million of funds readily available to support its stand-alone operations.

The payment of dividends, support of asset growth and strategic stock repurchases are planned to continue in the future as the focus for future capital deployment activities.

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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 2. Management’s Discussion and Analysis