What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-02-04 compared with 2025-08-05 · 162 added, 298 removed, 1173 unchanged (28% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

(In thousands, except share data)

13 unchanged sentences

443,085 442,093

Federal and state income tax assets, net 120,104 119,248

Federal and state income tax assets 102,377 112,784

Other assets 477,853 485,720

8 unchanged sentences

Advance payments by borrowers for taxes and insurance 20,688 59,845

Federal and state income tax liabilities 5,124 —

Accrued expenses and other liabilities 325,144 345,394

21 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

(In thousands, except share data) (In thousands, except share data)

Three Months Ended December 31,

(In thousands, except share data)

INTEREST INCOME

5 unchanged sentences

Customer accounts 136,214 162,150

Borrowings, senior debt and junior subordinated debentures 16,991 60,396 67,753 142,399

Borrowings and junior subordinated debentures 15,171 27,536

151,385 189,686

32 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended June 30,

Three Months Ended December 31,

(In thousands)

2 unchanged sentences

Net unrealized gain (loss) during the period on available-for-sale investment securities, net of tax of $( 2,342 ) and $ 5,793

Reclassification adjustment of net (gain) loss from sale of available-for-sale securities included in net income, net of tax of $ 0 and $( 20 )

Net unrealized gain (loss) from investment securities, net of reclassification adjustment 4,672 4,850

Net unrealized gain (loss) during the period on borrowings cash flow hedges, net of tax of $ 3,313 and $ 1,387

7,582 ( 18,754 )

Reclassification adjustment of net (gain) loss included in net income during the period from hedging derivatives, net of tax of $ 1,179 and $ 0

Net unrealized gain (loss) in cash flow hedging instruments, net of reclassification adjustment ( 14,545 ) ( 1,869 )

Other comprehensive income (loss) ( 9,873 ) 2,981

Comprehensive income $ 52,079 $ 67,541

Nine Months Ended June 30,

(In thousands)

Net income $ 165,471 $ 138,901

Other comprehensive income (loss) net of tax:

Net unrealized gain (loss) during the period on available-for-sale investment securities, net of tax of $( 1,445 ) and $( 9,476 )

Reclassification adjustment of net (gain) loss from sale of available-for-sale securities included in net income, net of tax of $ 5 and $ 76

( 15 ) ( 246 )

Net unrealized gain (loss) from investment securities, net of reclassification adjustment 7,567 ( 19,000 )

9 unchanged sentences

(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

Balance at April 1, 2025 $ 300,000 $ 154,355 $ 2,158,037 $ 2,032,563 $ 51,404 $ ( 1,663,739 ) $ 3,032,620

Net income — — — 61,952 — — 61,952

Other comprehensive loss — — — — ( 9,873 ) — ( 9,873 )

Dividends on common stock

($ 0.27 per share)

— — — ( 21,244 ) — — ( 21,244 )

Dividends on preferred stock ($ 12.1875 per share)

— — — ( 3,656 ) — — ( 3,656 )

Proceeds from stock issuances — 30 776 — — — 806

Stock-based compensation expense — — 1,980 — — 81 2,061

Treasury stock purchased — — — — — ( 48,341 ) ( 48,341 )

Balance at June 30, 2025 $ 300,000 $ 154,385 $ 2,160,793 $ 2,069,615 $ 41,531 $ ( 1,711,999 ) $ 3,014,325

(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

Balance at April 1, 2024 $ 300,000 $ 153,835 $ 2,143,343 $ 1,902,305 $ 51,935 $ ( 1,629,512 ) $ 2,921,906

Net income — — — 64,560 — — 64,560

Other comprehensive income — — — — 2,981 — 2,981

Dividends on common stock

($ 0.26 per share)

— — — ( 20,932 ) — — ( 20,932 )

Dividends on preferred stock ($ 12.1875 per share)

— — — ( 3,656 ) — — ( 3,656 )

Proceeds from stock issuances — 27 711 — — — 738

Stock-based compensation expense — 78 2,095 — — 84 2,257

Treasury stock purchased — — — — — ( 9,515 ) ( 9,515 )

Balance at June 30, 2024 $ 300,000 $ 153,940 $ 2,146,149 $ 1,942,277 $ 54,916 $ ( 1,638,943 ) $ 2,958,339

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

Balance at October 1, 2025 $ 300,000 $ 154,408 $ 2,163,276 $ 2,105,702 $ 56,950 $ ( 1,740,761 ) $ 3,039,575

9 unchanged sentences

Treasury stock purchased — — — — — ( 58,017 ) ( 58,017 )

Balance at June 30, 2025 $ 300,000 $ 154,385 $ 2,160,793 $ 2,069,615 $ 41,531 $ ( 1,711,999 ) $ 3,014,325

Balance at December 31, 2025 $ 300,000 $ 154,616 $ 2,165,709 $ 2,145,880 $ 61,904 $ ( 1,798,702 ) $ 3,029,407

(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

7 unchanged sentences

— — — ( 3,656 ) — — ( 3,656 )

Stock issued in merger — 17,089 448,415 — 465,504

Proceeds from stock issuances — 89 2,616 — — — 2,705

1 unchanged sentence

Treasury stock purchased — — — — — ( 3,410 ) ( 3,410 )

Balance at June 30, 2024 $ 300,000 $ 153,940 $ 2,146,149 $ 1,942,277 $ 54,916 $ ( 1,638,943 ) $ 2,958,339

Balance at December 31, 2024 $ 300,000 $ 154,248 $ 2,154,929 $ 2,001,586 $ 53,353 $ ( 1,642,480 ) $ 3,021,636

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended June 30,

Three Months Ended December 31,

(In thousands)

12 unchanged sentences

Decrease (increase) in other assets 8,127 ( 25,136 )

Increase (decrease) in federal and state income tax liabilities 5,124 —

Increase (decrease) in accrued expenses and other liabilities ( 24,980 ) ( 24,512 )

13 unchanged sentences

Net cash received (paid) in business combinations ( 2,000 ) ( 360 )

Proceeds from sales of loans — 2,564,791

Proceeds from sales of premises and equipment 6 1,689

8 unchanged sentences

Dividends paid on preferred stock ( 3,656 ) ( 3,656 )

Proceeds from employee stock purchase 658 780

Proceeds from employee stock purchases 184 195

Treasury stock purchased ( 58,017 ) ( 3,410 )

7 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended June 30,

Three Months Ended December 31,

(In thousands)

7 unchanged sentences

Income tax 125 200

The following summarizes the non-cash activities related to acquisitions

Fair value of assets and intangibles acquired, including goodwill $ — $ 7,676,486

Fair value of liabilities assumed — ( 7,316,542 )

Net fair value of assets (liabilities) $ — $ 359,944

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2 unchanged sentences

NOTE A – Summary of Significant Accounting Policies

Company and Nature of Operations - Washington Federal Bank, a federally-insured Washington state chartered commercial bank dba WaFd Bank (the “Bank” or “WaFd Bank”), was founded on April 24, 1917 in Ballard, Washington and is engaged primarily in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate.

Washington Federal, Inc., a Washington corporation, was formed as the Bank’s holding company in November, 1994.

Company and Nature of Operations - WaFd Bank, a federally-insured Washington state chartered commercial bank (the “Bank”), was founded on April 24, 1917 in Ballard, Washington and is engaged primarily in providing lending, depository, insurance and other banking services to consumers, small, mid-sized and large businesses, and owners and developers of commercial real estate.

The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, and business loans, including U.S.

Small Business Administration (“SBA”) loans.

In January 2025, the Bank announced it will no longer originate consumer single family home loans and home equity lines of credit.

Our existing consumer home loans still make up a significant portion of our loan portfolio.

The Bank also invests in certain United States government and agency obligations and other investments permitted by applicable laws and regulations.

Effective September 25, 2025, the Bank formally changed its name from Washington Federal Bank to WaFd Bank by filing its Second Amended and Restated Articles of Incorporation with the Washington Secretary of State.

WaFd, Inc., a Washington corporation, was formed as the Bank’s holding company in November, 1994.

On September 27, 2023, Articles of Amendment were filed with the Washington Secretary of State to change the name of Washington Federal, Inc.

2 unchanged sentences

As used throughout this document, the terms “WaFd” or the “Company” or “we” or “us” and “our” refer to WaFd, Inc.

and its consolidated subsidiaries, and the term “Bank” refers to the operating subsidiary, Washington Federal Bank dba WaFd Bank.

and its consolidated subsidiaries, and the term “Bank” refers to the operating subsidiary, WaFd Bank.

The Company is headquartered in Seattle, Washington.

5 unchanged sentences

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation are reflected in the interim financial statements.

On February 29, 2024, WaFd, Inc.

closed its previously announced merger with Luther Burbank Corporation ("Luther Burbank" or "LBC"), a California corporation, on March 1, 2024 (the "Merger Date").

Pursuant to the Merger Agreement, Luther Burbank merged with and into WaFd, Inc.

(the “Corporate Merger”), with WaFd surviving the Corporate Merger.

Promptly following the Corporate Merger, Luther Burbank’s wholly-owned bank subsidiary, Luther Burbank Savings, merged with and into WaFd Bank with WaFd Bank as the surviving institution (the “Bank Merger”).

The Corporate Merger and the Bank Merger are collectively referred to in this Quarterly Report on Form 10-Q as the “Merger.” As a result of the Merger, the Company's financial results for the nine months ended June 30, 2025 are not directly comparable to the prior year results.

The information included in this Form 10-Q should be read in conjunction with the financial statements and related notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025 filed with the Securities and Exchange Commission ("SEC") on November 18, 2025 ("2025 Annual Financial Statements").

10 unchanged sentences

Fair values are subject to refinement over the measurement period, not to exceed one year after the closing date.

Restricted Cash Balances - The Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of June 30, 2025.

As of June 30, 2025 and September 30, 2024, the Company held counterparty cash collateral of $ 138,100,000 and $ 168,200,000 , respectively, related to derivative contracts.

Restricted Cash Balances - The Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of December 31, 2025.

As of December 31, 2025 and September 30, 2025, the Company held counterparty cash collateral of $ 109,750,000 and $ 118,400,000 , respectively, related to derivative contracts.

AND SUBSIDIARIES

15 unchanged sentences

Under this method, the NAV is determined by the fund as fair value for the investment.

At June 30, 2025, equity investments held by the Company and recorded at NAV had a carrying amount of $ 35,743,134 and a remaining unfunded commitment of $ 13,632,376 .

At December 31, 2025, equity investments held by the Company and recorded at NAV had a carrying amount of $ 36,477,638 and a remaining unfunded commitment of $ 11,585,741 .

These NAV based investments cannot be transferred without consent and we do not have redemption rights.

94 unchanged sentences

The Company performs a goodwill impairment assessment annually and continuously monitors for triggering events and circumstances that could negatively impact the key assumptions in determining the fair value of goodwill.

As a result of the Merger, the Company recorded $ 107,890,000 in goodwill and $ 37,022,000 in core deposit intangible assets.

Additional information on the Merger and purchase price allocation is provided in Note B "Business Combination".

The core deposit intangible asset value was determined by an analysis of the cost differential between the core deposits acquired, inclusive of estimated servicing costs, and alternative funding sources for those deposits.

The core deposit intangible asset recorded is amortized on an accelerated basis over 6 years.

Apart from the impacts of the Merger, the Company might experience minor increases in intangibles due to acquisitions carried out by its subsidiary, WAFD Insurance Group, Inc.

Apart from the impacts of larger transactions, the Company might experience minor increases in intangibles due to acquisitions carried out by its subsidiary, WAFD Insurance Group, Inc.

AND SUBSIDIARIES

7 unchanged sentences

Balance at December 31, 2025 $ 416,247 $ 26,838 $ 443,085

Additions — — —

Amortization — ( 2,553 ) ( 2,553 )

Balance at March 31, 2025 414,723 31,937 446,660

Additions — — —

Amortization — ( 2,369 ) ( 2,369 )

Balance at June 30, 2025 $ 414,723 $ 29,568 $ 444,291

The table below presents the estimated future amortization expense of other intangibles for the next five years as of June 30, 2025.

The table below presents the estimated future amortization expense of other intangibles for the next five years as of December 31, 2025.

Fiscal Year Expected Expense

3 unchanged sentences

Subsequent Events - The Company has evaluated events and transactions through the date the consolidated financial statements were issued for potential recognition or disclosure and determined that there have been no events or transactions that have occurred that would require disclosure.

New Accounting Pronouncements - In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updated ("ASU") 2023-06 Disclosure Improvements:

NOTE B – New Accounting Pronouncements

In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06 Disclosure Improvements:

Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative to clarify or improve disclosure and presentation requirements on a variety of topics and align the requirements in the FASB accounting standard codification with the Securities and Exchange Commission regulations.

2 unchanged sentences

The Company does not expect the amendments in this update to have a material impact on our consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (Topic 280) to improve reportable segment disclosure requirements through enhanced disclosures about significant segment

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The ASU applies to all public entities that are required to report segment information in accordance with Accounting Standards Codification ("ASC") 280.

For public companies, amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted.

The Company does not expect this ASU to have a material effect on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Tax - Improvements to Income Tax Disclosures (Topic 740) which requires reporting companies to break out their income tax expense and tax rate reconciliation in more detail.

For public companies, the requirements will become effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company does not expect this ASU to have a material effect on our consolidated financial statements.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements .

This accounting standards update removes references to various FASB Concept Statements in the codified accounting standards in order to avoid reliance or interpretations based on such Concept Statements, which are not authoritative.

For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company does not expect this ASU to have a material effect on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses .

3 unchanged sentences

The Company does not expect this ASU to have a material effect on our consolidated financial statements.

NOTE B – Business Combination

On March 1, 2024 ("the Merger Date"), WaFd, Inc.

acquired Luther Burbank Corporation, headquartered in Santa Rosa, California.

The Merger was effectively an all-stock transaction and has been accounted for as a business combination.

See Note A "Summary of Significant Accounting Policies" for more information regarding the Merger and our policies pertaining to business combinations.

As of March 31, 2025, the Company had finalized its valuation of all assets acquired and liabilities assumed in connection with the Merger.

Of the approximate $ 465,504,000 purchase price, the Company recorded approximately $ 107,890,000 of goodwill and $ 37,022,000 of other intangibles.

Goodwill represents the excess of the purchase price over the fair value of the assets acquired net of fair value of liabilities assumed.

Information regarding goodwill and the carrying amount and amortization of intangible assets are provided in Note A.

During the three and nine months ended June 30, 2025, there were $ 0 and $ 239,000 in merger-related expenses, respectively, compared to $ 2,285,000 and $ 27,921,000 during the three months and nine months ended June 30, 2024, respectively.

Merger related expenses are recognized in the periods in which they were incurred.

The following table presents unaudited pro forma information as if the Merger had occurred on October 1, 2022.

The pro forma adjustments give effect to any change in interest income due to the accretion of the discount (premium) associated with the fair value adjustments to acquired loans, any change in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustment to acquired interest-bearing deposits, borrowings and long-term debt and the amortization of the core deposit intangible that would have resulted had the deposits been acquired as of October 1, 2022.

The pro forma information is not indicative of what would have occurred had the Merger occurred as of the beginning of the fiscal year prior to the Merger Date.

The pro forma amounts below do not reflect the Company's expectations as of the date of the pro forma information of further operating cost savings and other business synergies expected to be achieved, including revenue growth as a result of the Merger.

As a result, actual amounts differed from the unaudited pro forma information presented.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Unaudited Pro Forma for the

Nine Months Ended

June 30, 2024

(in thousands)

Net-interest income

Non-interest income

NOTE C – Dividends and Share Repurchases

On June 6, 2025, the Company paid a regular dividend on its common stock of $ 0.27 per share, which represented the 169 th consecutive quarterly cash dividend.

Dividends per share were $ 0.27 and $ 0.26 for the quarters ended June 30, 2025 and 2024, respectively.

For the three months ended June 30, 2025, the Company repurchased 1,662,508 shares of its common stock at an average per share price of $ 29.08 .

For the nine months ended June 30, 2025, the Company repurchased 2,478,118 shares of its common stock at an average per share price of $ 29.49 .

As of June 30, 2025, there are 9,129,488 remaining shares authorized to be repurchased under the current Board of Directors ("Board") approved share repurchase program.

On December 5, 2025, the Company paid a regular dividend on its common stock of $ 0.27 per share, which represented the 171st consecutive quarterly cash dividend.

Dividends per share were $ 0.27 and $ 0.26 for the quarters ended December 31, 2025 and 2024, respectively.

For the three months ended December 31, 2025, the Company repurchased 1,950,013 shares of its common stock at an average per share price of $ 29.75 .

Purchases were made both under the Company's Board of Directors (“Board”) approved publicly announced stock repurchase program, and outside the repurchase program, primarily consisting of the forfeiture and cancellation of shares upon vesting of restricted stock awards to pay required tax withholding obligations, and shares underlying stock options surrendered in payment of the exercise price and to pay required tax withholding obligations.

As of December 31, 2025, there are 6,256,136 remaining shares authorized to be repurchased under the current Board approved stock repurchase program.

The Company pays a cash dividend, if declared by the Board, of $ 12.1875 per share on its Series A Preferred Stock quarterly on January 15, April 15, July 15 and October 15.

6 unchanged sentences

The following table is a summary of loans receivable by loan portfolio segment and class.

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Gross loans by category (In thousands) (In thousands)

20 unchanged sentences

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses.

As of June 30, 2025 and September 30, 2024, AIR for loans totaled $ 85,812,000 and $ 92,362,000 , respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

As of June 30, 2025, loans in the amount of $ 14,078,000,000 were pledged to secure borrowings and available lines of credit.

As of December 31, 2025 and September 30, 2025, AIR for loans totaled $ 80,736,000 and $ 85,444,000 , respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

As of December 31, 2025, loans in the amount of $ 13,699,000,000 were pledged to secure borrowings and available lines of credit.

None of the agencies to which we have pledged loans have the right to sell or re-pledge them.

2 unchanged sentences

The following table sets forth the amortized cost basis of non-accrual loans and loans 90 days or more past due and accruing.

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

(In thousands, except ratio data)

16 unchanged sentences

% of total loans 0.95 % 0.63 %

The Company recognized interest income on non-accrual loans of approximately $ 2,694,000 in the nine months ended June 30, 2025 as a result of the collection of past due amounts.

If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $ 2,834,000 for the nine months ended June 30, 2025.

The Company recognized interest income on non-accrual loans of approximately $ 540,000 in the three months ended December 31, 2025 as a result of the collection of past due amounts.

If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $ 2,124,000 for the three months ended December 31, 2025.

Interest cash flows collected on non-accrual loans vary from period to period as those loans are brought current or are paid off.

2 unchanged sentences

The following tables provide details regarding loan delinquencies by loan portfolio and class.

June 30, 2025 Days Delinquent Based on $ Amount of Loans % based

December 31, 2025 Days Delinquent Based on $ Amount of Loans % based

Type of Loan Loans Receivable (Amortized Cost) Current 30 60 90+ Total Delinquent

38 unchanged sentences

Loans are considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral.

The following table presents the amortized basis of collateral-dependent loans by loan class and collateral type as of June 30, 2025.

Loan type Residential Real Estate Commercial Real Estate

The following table presents the amortized basis of collateral-dependent loans by loan class and collateral type as of December 31, 2025.

Loan type Residential Real Estate Commercial Real Estate General Business Assets

($ in thousands)

10 unchanged sentences

Land - Consumer Lot Loans 16 — —

HELOC 324 — —

Consumer — — —

Total consumer loans 5,579 — —

10 unchanged sentences

For consumer loans, modifications typically consist of minor payment delays or deferrals and may include a modification of the existing contractual rate or extension of the maturity date, or both, when it is determined the borrowers are likely to successfully maintain compliance with these modified loan terms.

The following tables present the amortized basis of loans that were modified to borrowers experiencing financial difficulty during the three and nine month periods ending June 30, 2025 by loan class and modification type.

The following tables present the amortized basis of loans that were modified to borrowers experiencing financial difficulty during the three month period ending December 31, 2025 by loan class and modification type.

Modifications during the periods presented were term extensions or payment deferrals.

1 unchanged sentence

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended June 30, 2025

Three Months Ended December 31, 2025

Loan Class Term Extension Payment Deferral % of Total Loan Class Balance Wtd.

9 unchanged sentences

Total Loans $ 60,928 $ 1,040 0.31 %

Three Months Ended June 30, 2024

Three Months Ended December 31, 2024

Loan Class Term Extension Payment Deferral % of Total Loan Class Balance Wtd.

8 unchanged sentences

Total Loans $ 9,851 $ — 0.05 %

Nine Months Ended June 30, 2025

Loan Class Term Extension Payment Deferral % of Total Loan Class Balance Wtd.

Term Extension Deferral Amount

( in thousands) (in months) (in thousands)

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts.

Loans are considered to be in default at 90 or more days past due.

The following table presents the performance of such loans that have been modified for the twelve months ended December 31, 2025 and December 31, 2024, respectively.

December 31, 2025 Days Delinquent

Current 30 60 90+ Total

Commercial loans

Multi-family $ 21,235 $ — $ — $ — $ 21,235

3 unchanged sentences

Total commercial loans 120,603 2,855 — 50,824 174,282

Consumer loans

Single-family residential 9,313 — — — 9,313

3 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended June 30, 2024

Loan Class Term Extension Payment Deferral % of Total Loan Class Balance Wtd.

Term Extension Deferral Amount

( in thousands) (in months)

December 31, 2024 Days Delinquent

Current 30 60 90+ Total

Commercial loans

Commercial real estate $ 23,329 $ — $ — $ — $ 23,329

2 unchanged sentences

Total commercial loans 92,103 — — 992 93,095

Consumer loans

Single-family residential 776 557 — — 1,333

1 unchanged sentence

Total Loans $ 92,879 $ 557 $ — $ 992 $ 94,428

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts.

None of the loans modified in the twelve months ended June 30, 2025 have defaulted after modification as of June 30, 2025 and only one commercial and industrial loan with a balance of $ 349,963 was past due 30 days.

Of those loans modified in the twelve months ended December 31, 2025 for borrowers experiencing financial difficulties, $ 29,864,000 of Commercial & Industrial loans, $ 17,560,000 of Commercial Real Estate loans and $ 3,400,000 of Construction loans experienced subsequent default during the three months ended December 31, 2025.

These loans were provided term extensions prior to default.

None of the other loans modified for borrowers experiencing financial difficulties in the twelve months ended December 31, 2024 experienced subsequent default after modification.

The Company evaluates the credit quality of its loans based on regulatory risk ratings and also considers other factors.

1 unchanged sentence

• Pass – the credit does not meet one of the definitions below.

• Watch – A watch designation is one that deserves a higher level of scrutiny and monitoring due to either an event that has occurred or is expected to occur in the near future that will likely lead to further change in risk rating (either favorably or unfavorably).

Watch loans possess some credit deficiency or potential weakness that deserve close attention but which do not yet appear to jeopardize repayment.

The key distinctions of a watch designation are that the credit is performing normally, but there is an uncertain level of risk due to such factors as (1) lack of or slow generation/receipt of financial information, (2) a documentation defect that could jeopardize repayment in the future, (3) construction delays or delays in lease up / stabilization, (4) declining market trends, (5) global cash flow deficiency of guarantors, or (6) management deficiencies/turnover.

A loan designated as a “watch” is not considered criticized.

• Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak.

12 unchanged sentences

Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

• Loss – Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted.

2 unchanged sentences

Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection.

The following tables present by primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of June 30, 2025 and September 30, 2024.

There were no commercial loans classified as Loss as of either date.

The watch rating was implemented by the bank for fiscal 2026 on a prospective basis.

The following tables present by primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of December 31, 2025 and September 30, 2025.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 Term Loans Amortized Cost Basis by Origination Year

December 31, 2025 Term Loans Amortized Cost Basis by Origination Year

YTD 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving to Term Loans Total Loans

1 unchanged sentence

Pass $ 91,165 $ 65,273 $ 91,009 $ 478,105 $ 1,419,433 $ 2,005,070 $ 26,262 $ — $ 4,176,317

Watch — — 1,329 3,019 67,325 28,537 — — 100,210

Special Mention — — — 12,985 44,659 118,637 — — 176,281

2 unchanged sentences

Total $ 91,165 $ 67,466 $ 92,338 $ 503,276 $ 1,592,693 $ 2,242,883 $ 27,264 $ — $ 4,617,085

Gross Charge-offs — — — — 271 102 — — 373

Commercial real estate

Pass $ 121,554 $ 314,253 $ 226,323 $ 217,383 $ 940,426 $ 1,460,458 $ 15,317 $ 17,829 $ 3,313,543

Watch — — — — — 32,395 — — 32,395

Special Mention — — — 317 20,569 10,147 — — 31,033

Substandard — — — 15,487 10,341 144,827 — — 170,655

Doubtful — — — — — 2,813 — — 2,813

Total $ 121,554 $ 314,253 $ 226,323 $ 233,187 $ 971,336 $ 1,647,827 $ 15,317 $ 17,829 $ 3,547,626

Gross Charge-offs — — — 163 — 9,489 — 9,652

Commercial & industrial

14 unchanged sentences

Pass $ 426,392 $ 906,274 $ 564,781 $ 989,872 $ 2,772,452 $ 3,980,715 $ 1,205,390 $ 18,153 $ 10,864,029

Watch — — 1,329 3,019 67,325 60,932 — — 132,605

Special Mention — 266 — 13,302 129,118 128,784 57,583 — 329,053

5 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 Term Loans Amortized Cost Basis by Origination Year

December 31, 2025 Term Loans Amortized Cost Basis by Origination Year

YTD 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving to Term Loans Total Loans

15 unchanged sentences

60 days past due — — — — — 56 — — 56

90+ days past due — — — 60 — 210 — — 270

Total $ — $ 6,124 $ 12,137 $ 8,146 $ 18,277 $ 37,806 $ — $ — $ 82,490

25 unchanged sentences

Substandard 2,334 — 9,166 51,486 12,661 78,158 1,002 — 154,807

Doubtful — — — — — 2,350 — — 2,350

Total $ 54,113 $ 91,285 $ 448,792 $ 1,616,985 $ 1,180,536 $ 1,217,560 $ 22,050 $ — $ 4,631,321

Gross Charge-offs 182 — — — 271 102 — — 555

Commercial real estate

2 unchanged sentences

Substandard — — 15,484 15,035 83,665 71,343 — — 185,527

Doubtful — — — — — 2,781 — — 2,781

Total $ 311,687 $ 226,269 $ 246,616 $ 1,040,282 $ 655,827 $ 1,073,483 $ 33,688 $ 1,098 $ 3,588,950

4 unchanged sentences

Substandard 35,490 3,042 21,527 24,733 1,725 32,281 130,613 5,180 254,591

Loss — — 10 — — 3 — 11 24

Total $ 299,127 $ 51,834 $ 135,361 $ 188,651 $ 228,768 $ 232,785 $ 1,207,596 $ 42,241 $ 2,386,363

8 unchanged sentences

Total $ 48,379 $ 18,650 $ 11,026 $ 27,172 $ 33,060 $ 1,635 $ — $ — $ 139,922

Gross Charge-offs — — — — — 149 — — 149

Total commercial loans

2 unchanged sentences

Substandard 37,824 3,246 46,177 96,634 101,451 182,041 131,615 5,180 604,168

Doubtful — — — — — 5,131 — — 5,131

Loss — — 10 — — 3 — 11 24

Total $ 883,049 $ 559,800 $ 1,063,002 $ 3,228,956 $ 2,168,469 $ 2,525,463 $ 1,379,579 $ 43,339 $ 11,851,657

18 unchanged sentences

Current $ 6,175 $ 14,686 $ 9,091 $ 19,489 $ 20,373 $ 18,550 $ — $ — $ 88,364

30 days past due — — — 55 194 — — — 249

60 days past due — — 60 — — — — — 60

90+ days past due — — — — — 23 — — 23

Total $ 6,175 $ 14,686 $ 9,151 $ 19,544 $ 20,567 $ 18,573 $ — $ — $ 88,696

22 unchanged sentences

The following tables summarize the activity in the allowance for loan losses by loan portfolio segment and class.

Three Months Ended June 30, 2025 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

Three Months Ended December 31, 2025 Beginning Allowance Charge-offs Recoveries Provision &

Transfers Ending Allowance

(In thousands)

14 unchanged sentences

Total ACL - loans $ 199,720 $ ( 4,520 ) $ 839 $ 3,500 $ 199,539

1 Provision & transfer amounts within the table do not include provision for unfunded commitments of $ 500,000 .

Three Months Ended June 30, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Three Months Ended December 31, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

18 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended June 30, 2025 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

(In thousands)

Commercial loans

Multi-family $ 25,248 $ ( 373 ) $ — $ 1,931 $ 26,806

Commercial real estate 39,210 ( 9,652 ) 169 12,548 42,275

Commercial & industrial 58,748 ( 705 ) 243 ( 1,513 ) 56,773

Construction 22,267 — — ( 5,154 ) 17,113

Land - acquisition & development 7,900 — 25 ( 1,518 ) 6,407

Total commercial loans 153,373 ( 10,730 ) 437 6,294 149,374

Consumer loans

Single-family residential 40,523 ( 338 ) 568 ( 755 ) 39,998

Construction - custom 1,427 — 2 ( 683 ) 746

Land - consumer lot loans 2,564 — 1 ( 288 ) 2,277

HELOC 3,049 — 2 71 3,122

Consumer 2,817 ( 957 ) 280 1,111 3,251

Total consumer loans 50,380 ( 1,295 ) 853 ( 544 ) 49,394

Total ACL - loans $ 203,753 $ ( 12,025 ) $ 1,290 $ 5,750 $ 198,768

1 Provision & transfer amounts within the table do not include provision recapture from unfunded commitments of $ 1,000,000 .

Nine Months Ended June 30, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

(In thousands)

Commercial loans

Multi-family $ 13,155 $ — $ — $ 12,044 $ 25,199

Commercial real estate 28,842 ( 203 ) 4 11,113 39,756

Commercial & industrial 58,773 ( 2,473 ) 1,067 466 57,833

Construction 29,408 — — ( 6,701 ) 22,707

Land - acquisition & development 7,016 ( 18 ) 88 614 7,700

Total commercial loans 137,194 ( 2,694 ) 1,159 17,536 153,195

Consumer loans

Single-family residential 28,029 ( 144 ) 293 12,138 40,316

Construction - custom 2,781 — — ( 1,287 ) 1,494

Land - consumer lot loans 3,512 — 57 ( 921 ) 2,648

HELOC 2,859 — 3 62 2,924

Consumer 2,832 ( 513 ) 553 375 3,247

Total consumer loans 40,013 ( 657 ) 906 10,367 50,629

Total ACL - Loans $ 177,207 $ ( 3,351 ) $ 2,065 $ 27,903 $ 203,824

1 Provision & transfer amounts within the table include the $ 16,000,000 initial provision related to the non-PCD loans acquired during the quarter and the $ 7,403,000 PCD ACL amount included in the Merger purchase price allocation but do not include the provision recapture from unfunded commitments of $ 3,000,000 .

The Company recorded a $ 2,000,000 provision for credit losses for the three months ended June 30, 2025, compared with a provision of $ 1,500,000 for the three months ended June 30, 2024.

The provision in the three months ended June 30, 2025 was the result of mixed credit metrics, including the increasing trends in negative migration of criticized and nonperforming loans, and net charge-offs taken during the quarter, partially offset by decreased loan balances.

The increase in the overall provision included an increase in the reserve for unfunded commitments.

The Company recorded a $ 4,750,000 provision for credit losses for the nine months ended June 30, 2025 compared to $ 17,500,000 for the nine months ended June 30, 2024.

The current fiscal

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

year to date period also reflects changes to credit quality and increased charge-offs, partially offset by balance decreases while the prior year period reflects the initial provision recorded for the loans acquired in the Merger.

Net charge-offs totaled $ 5,441,000 for the three months ended June 30, 2025, compared to $ 1,253,000 of net charge-offs during the three months ended June 30, 2024.

Net charge-offs totaled $ 10,735,000 for the nine months ended June 30, 2025, compared to $ 1,286,000 during the nine months ended June 30, 2024.

Non-performing assets were $ 97,160,000 , or 0.36 % of total assets, at June 30, 2025, compared to $ 77,418,000 , or 0.28 % of total assets, at September 30, 2024.

Non-accrual loans were $ 82,696,000 , or 0.40 % of total loans at amortized cost, at June 30, 2025, compared to $ 69,541,000 , or 0.33 %, at September 30, 2024.

Delinquencies, as a percent of total loans, were 0.26 % at June 30, 2025, compared to 0.25 % at September 30, 2024.

The Company recorded a $ 3,500,000 provision for credit losses for the three months ended December 31, 2025, compared with no provision for the three months ended December 31, 2024.

The provision in the three months ended December 31, 2025 was the result of mixed credit metrics, including the increasing trends in negative migration of criticized and nonperforming loans, and net charge-offs taken during the quarter, partially offset by decreased loan balances.

Net charge-offs totaled $ 3,681,000 for the three months ended December 31, 2025, compared to $ 231,000 of net charge-offs during the three months ended December 31, 2024.

Non-performing assets were $ 203,396,000 , or 0.75 % of total assets, at December 31, 2025, compared to $ 143,022,000 , or 0.54 % of total assets, at September 30, 2025.

Non-accrual loans were $ 191,348,000 , or 0.95 % of total loans at amortized cost, at December 31, 2025, compared to $ 128,628,000 , or 0.63 %, at September 30, 2025.

Delinquencies, as a percent of total loans, were 1.07 % at December 31, 2025, compared to 0.60 % at September 30, 2025.

The Company has an asset quality review function that analyzes its loan portfolio and reports the results of the review to its Board of Directors on a quarterly basis.

3 unchanged sentences

The following tables provide the amortized cost of loans receivable based on risk rating categories as previously defined.

June 30, 2025 Internally Assigned Grade

Pass Special Mention Substandard Doubtful Loss Total

December 31, 2025 Internally Assigned Grade

Pass Watch Special Mention Substandard Doubtful Total

(In thousands, except ratio data)

37 unchanged sentences

The following tables provide information on the amortized cost of loans receivable based on borrower payment activity.

June 30, 2025 Performing Loans Non-Performing Loans

December 31, 2025 Performing Loans Non-Performing Loans

Amount % of Total

61 unchanged sentences

The following tables present the balance and level in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (with the exception of those measured using the NAV practical expedient).

June 30, 2025

December 31, 2025

Level 1 Level 2 Level 3 Total

16 unchanged sentences

Client swap program hedges $ — $ 35,128 $ — $ 35,128

Mortgage loan fair value hedges — 17,910 — 17,910

Mortgage backed securities fair value hedges — 13,024 — 13,024

Borrowings cash flow hedges — 813 — 813

Total financial liabilities $ — $ 66,875 $ — $ 66,875

20 unchanged sentences

Client swap program hedges $ — $ 37,818 $ — $ 37,818

Mortgage backed securities fair value hedges — 15,086 — 15,086

Mortgage loan fair value hedges — 20,426 — 20,426

7 unchanged sentences

When management determines that the fair value of the collateral or the REO requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the collateral dependent loan or real estate owned as Level 3.

Level 3 assets recorded at fair value on a nonrecurring basis at June 30, 2025 included loans for which an allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at June 30, 2025 and June 30, 2024, and the total gains (losses) resulting from those fair value adjustments during the respective periods.

Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2025 included loans for which an allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at December 31, 2025 and December 31, 2024, and the total gains (losses) resulting from those fair value adjustments during the respective periods.

The estimated fair value measurements are shown gross of estimated selling costs.

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

December 31, 2025 Three Months Ended December 31, 2025

Level 1 Level 2 Level 3 Total Total Gains (Losses)

(In thousands) (In thousands)

$ — $ — $ 32,132 $ 32,132 $ ( 5,750 ) $ ( 11,113 )

Collateral Dependent Loans $ — $ — $ 9,059 $ 9,059 $ ( 4,510 )

Real estate owned — — 390 390 69

Balance at end of period $ — $ — $ 9,449 $ 9,449 $ ( 4,441 )

1 The gains (losses) represent re-measurements of collateral-dependent loans.

June 30, 2024 Three Months Ended June 30, 2024 Nine Months Ended June 30, 2024

December 31, 2024 Three Months Ended December 31, 2024

Level 1 Level 2 Level 3 Total Total Gains (Losses)

(In thousands) (In thousands)

$ — $ — $ 4,345 $ 4,345 $ ( 2,679 ) $ ( 3,004 )

Collateral Dependent Loans $ — $ — $ 596 $ 596 $ ( 271 )

Real estate owned — — — — —

Balance at end of period $ — $ — $ 596 $ 596 $ ( 271 )

1 The gains (losses) represent re-measurements of collateral-dependent loans.

At June 30, 2025, there was $ 488,000 in foreclosed residential real estate properties held as REO.

At December 31, 2025, there was $ 854,000 in foreclosed residential real estate properties held as REO.

The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $ 5,620,000 .

6 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Level in Fair Value Hierarchy Carrying

30 unchanged sentences

Other liabilities - mortgage backed securities fair value hedges 2 13,024 13,024 15,086 15,086

Other liabilities - borrowings cash flow hedges 2 813 813 — —

The following methods and assumptions were used to estimate the fair value of financial instruments:

5 unchanged sentences

Each loan category is further segmented into fixed- and adjustable-rate interest terms.

For residential mortgages and multi-family loans, the bank determined that its best exit price was by securitization.

Mortgage backed securities ("MBS") benchmark prices are used as a base price, with further loan level pricing adjustments made based on individual loan

For residential mortgages and multi-family loans, the Company determined that its best exit price was by securitization.

Mortgage backed securities ("MBS")

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

characteristics such as FICO score, loan to value ratio, Property Type and occupancy.

benchmark prices are used as a base price, with further loan level pricing adjustments made based on individual loan characteristics such as FICO score, loan to value ratio, property type and occupancy.

For all other loan categories an estimate of fair value is then calculated based on discounted cash flows using a discount rate offered and observed in the market on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as an annual loss rate based on historical losses to arrive at an estimated exit price fair value.

16 unchanged sentences

The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities.

June 30, 2025

December 31, 2025

Cost Gross Unrealized Fair

2 unchanged sentences

government and agency securities due

Within 1 year $ 1,687 $ — $ ( 24 ) $ 1,663 2.05 %

1 to 5 years 504 — — 504 4.75

6 unchanged sentences

Corporate debt securities due

Within 1 year 19,999 — ( 82 ) 19,917 6.00

1 to 5 years 32,664 — ( 1,895 ) 30,769 4.95

2 unchanged sentences

1 to 5 years 5,651 — ( 150 ) 5,501 3.00

5 to 10 years 20,000 73 — 20,073 6.45

Over 10 years 9,745 — ( 215 ) 9,530 4.57

18 unchanged sentences

Asset-backed securities

1 to 5 years 11,466 — ( 284 ) 11,182 6.04

Within 1 year 10,492 — ( 163 ) 10,329 5.12

5 to 10 years 3,945 7 — 3,952 5.27

1 unchanged sentence

Corporate debt securities due

Within 1 year 45,024 — ( 367 ) 44,657 4.61

1 to 5 years 32,821 — ( 2,047 ) 30,774 4.95

5 to 10 years 128,015 314 ( 6,566 ) 121,763 4.37

Over 10 years 50,000 — — 50,000 6.85

Municipal bonds due

8 unchanged sentences

$ 4,188,240 $ 45,070 $ ( 87,370 ) $ 4,145,940 4.12 %

The Company purchased $ 1,218,796,000 of AFS investment securities during the nine months ended June 30, 2025 and purchased $ 321,308,000 of AFS securities during the nine months ended June 30, 2024.

Sales of AFS securities totaled $ 797,000 during the nine months ended June 30, 2025 compared to $ 179,215,000 during the prior year's same period.

The Company sold approximately $ 171,000,000 of AFS securities obtained in the Merger during the nine months ended June 30, 2024 to rebalance the overall portfolio.

Realized gains and losses from the sales were included in purchase accounting adjustments to reflect the acquisition date fair value as they took place close to the Merger date.

For HTM investment securities, there were $ 114,182,000 in purchases during the nine months ended June 30, 2025 and $ 47,092,000 in purchases during the nine months ended June 30, 2024.

There were no sales of HTM investment securities during the nine months ended June 30, 2025 or June 30, 2024.

The Company purchased $ 724,749,000 of AFS investment securities during the three months ended December 31, 2025 and purchased $ 310,999,000 of AFS securities during the three months ended December 31, 2024.

There were no sales of AFS securities during the three months ended December 31, 2025 compared to $ 797,000 during the prior year's same period.

For HTM investment securities, there were $ 141,283,000 in purchases during the three months ended December 31, 2025 and $ 114,182,000 in purchases during the three months ended December 31, 2024.

There were no sales of HTM investment securities during the three months ended December 31, 2025 or December 31, 2024.

Substantially all of the agency mortgage-backed securities have contractual maturity dates that exceed 25 years.

The Company elected to exclude AIR from the amortized cost basis of debt securities disclosed throughout this note.

For AFS securities, AIR totaled $ 11,881,000 and $ 9,311,000 as of June 30, 2025 and September 30, 2024, respectively.

For HTM debt securities, AIR totaled $ 1,531,000 and $ 1,154,000 as of June 30, 2025 and September 30, 2024, respectively.

For AFS securities, AIR totaled $ 14,316,000 and $ 11,057,000 as of December 31, 2025 and September 30, 2025, respectively.

For HTM debt securities, AIR totaled $ 2,598,000 and $ 2,089,000 as of December 31, 2025 and September 30, 2025, respectively.

AIR for securities is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

The following tables show the gross unrealized losses and fair value of securities as of December 31, 2025 and September 30, 2025, by length of time that individual securities in each category have been in a continuous loss position.

There were 224 and 213 securities with an unrealized loss as of December 31, 2025 and September 30, 2025, respectively.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following tables show the gross unrealized losses and fair value of securities as of June 30, 2025 and September 30, 2024, by length of time that individual securities in each category have been in a continuous loss position.

There were 223 and 209 securities with an unrealized loss as of June 30, 2025 and September 30, 2024, respectively.

June 30, 2025 Less than 12 months 12 months or more Total

December 31, 2025 Less than 12 months 12 months or more Total

Gross Losses Fair

7 unchanged sentences

Municipal bonds — — ( 365 ) 15,031 ( 365 ) 15,031

government and agency securities ( 519 ) 161,123 ( 215 ) 20,981 ( 734 ) 182,104

Asset-backed securities ( 195 ) 51,135 ( 1,537 ) 151,951 ( 1,732 ) 203,086

14 unchanged sentences

Municipal bonds due — — ( 405 ) 15,008 ( 405 ) 15,008

government and agency securities ( 483 ) 143,444 ( 127 ) 35,211 ( 610 ) 178,655

Asset-backed securities ( 62 ) 34,932 ( 1,424 ) 135,315 ( 1,486 ) 170,247

9 unchanged sentences

government and have a long history of zero credit loss.

Therefore, the Company did not record an allowance for credit losses for these securities as of June 30, 2025 or September 30, 2024.

Therefore, the Company did not record an allowance for credit losses for these securities as of December 31, 2025 or September 30, 2025.

The Company does not consider HTM investments to have any credit impairment.

The Company does not believe that the AFS debt securities that were in an unrealized loss position have any credit loss impairment as of June 30, 2025 or September 30, 2024.

The Company does not believe that the AFS debt securities that were in an unrealized loss position have any credit loss impairment as of December 31, 2025 or September 30, 2025.

The Company does not intend to sell the investment securities that were in an unrealized loss position and it is more likely than not that the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

9 unchanged sentences

NOTE G – Derivatives and Hedging Activities

The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at June 30, 2025 and September 30, 2024.

June 30, 2025 Derivative Assets Derivative Liabilities

The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at December 31, 2025 and September 30, 2025.

December 31, 2025 Derivative Assets Derivative Liabilities

Interest rate contract purpose Balance Sheet Location Notional Fair Value Balance Sheet Location Notional Fair Value

11 unchanged sentences

Commercial loan fair value hedges Other assets 34,341 1,611 Other liabilities — —

Mortgage backed securities fair value hedges Other assets — — Other liabilities 610,000 15,086

Mortgage loan fair value hedges Other assets 470,000 13,082 Other liabilities 1,100,000 20,426

7 unchanged sentences

The hedge basis adjustment remains with the hedged item until the hedged item is de-recognized from the balance sheet.

The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at June 30, 2025 and September 30, 2024.

(In thousands) June 30, 2025

The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at December 31, 2025 and September 30, 2025.

(In thousands) December 31, 2025

Balance sheet line item in which hedged item is recorded Carrying value of hedged items Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items

3 unchanged sentences

$ 6,208,282 $ 19,608

(1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are a portfolio layer expected to be remaining at the end of the hedging relationships.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 5,519,772,000 , the cumulative basis adjustment associated with the hedging relationships was $ 4,594,000 , and the amount of the designated hedged items was $ 470,000,000 .

At December 31, 2025, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 5,250,782,000 , the cumulative basis adjustment associated with the hedging relationships was $ 7,705,000 , and the amount of the designated hedged items was $ 270,000,000 .

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships.

At June 30, 2025, the amortized cost basis of the hedged commercial loans was $ 32,688,000 and the cumulative basis adjustment associated with the hedging relationships was $( 1,608,000 ).

At December 31, 2025, the amortized cost basis of the hedged commercial loans was $ 30,062,000 and the cumulative basis adjustment associated with the hedging relationships was $( 1,456,000 ).

(3) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships.

At June 30, 2025, the fair value of the hedged mortgage based securities was $ 747,269,000 , the cumulative basis adjustment associated with the hedging relationships was $ 13,828,000 , and the amount of the designated hedged items was $ 520,000,000 .

At December 31, 2025, the fair value of the hedged mortgage based securities was $ 927,438,000 , the cumulative basis adjustment associated with the hedging relationships was $ 13,359,000 , and the amount of the designated hedged items was $ 610,000,000 .

(In thousands) September 30, 2025

1 unchanged sentence

Loans receivable (1) (2) $ 5,426,086 $ 6,794

Available-for-sale securities, at fair value (3)

940,110 15,452

$ 6,366,196 $ 22,246

(1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are the last layer expected to be remaining at the end of the hedging relationships.

1 unchanged sentence

During fiscal 2025, hedge accounting was discontinued on a $ 1,600,000,000 last of layer hedge.

A basis adjustment of $ 1,232,211 associated with the terminated portion of the hedge was deferred and is being accreted over the remaining life of the associated pool of loans.

A basis adjustment of $ 4,016,668 associated with the terminated portion of the hedge was deferred and is being amortized over the remaining life of the associated pool of loans.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships.

At September 30, 2025, the amortized cost basis of the hedged commercial loans was $ 32,829,000 and the cumulative basis adjustment associated with the hedging relationships was $( 1,468,000 ).

(3) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships.

At September 30, 2025, the fair value of the hedged mortgage backed securities was $ 940,110,000 , the cumulative basis adjustment associated with the hedging relationships was $ 15,452,000 , and the amount of the designated hedged items was $ 610,000,000 .

The Company has entered into interest rate swaps to convert certain short-term borrowings to fixed rate payments.

1 unchanged sentence

For qualifying cash flow hedges under ASC 815, gains and losses on the interest rate swaps are recorded in accumulated other comprehensive income ("AOCI") and then reclassified into earnings in the same period the hedged cash flows affect earnings and within the same income statement line item as the hedged cash flows.

As of June 30, 2025, the maturities for hedges of adjustable rate borrowings ranged from one year to five years , with the weighted average being 4.3 years.

As of December 31, 2025, the maturities for hedges of adjustable rate borrowings ranged from one year to seven years , with the weighted average being 3.8 years.

AND SUBSIDIARIES

1 unchanged sentence

The following tables present the impact of derivative instruments (cash flow hedges on borrowings) on AOCI for the periods presented.

(In thousands) Three Months Ended June 30,

Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2025 2024

Interest rate contracts:

Pay fixed/receive floating swaps on borrowings cash flow hedges $ ( 14,040 ) $ ( 3,256 )

Reclassification adjustment of net (gain)/loss included in net income ( 70 ) —

Total pre-tax gain/(loss) recognized in AOCI $ ( 14,110 ) $ ( 3,256 )

(In thousands) Nine Months Ended June 30,

(In thousands) Three Months Ended December 31,

Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2025 2024

4 unchanged sentences

The following tables present the gain (loss) on derivative instruments in fair value and cash flow accounting hedging relationships under ASC 815 for the periods presented.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

Three Months Ended December 31, 2025 Three Months Ended December 31, 2024

Interest income on loans receivable Interest on Mortgage-backed securities Interest expense on FHLB advances Interest income on loans receivable Interest on Mortgage-backed securities Interest expense on FHLB advances

14 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended June 30, 2025 Nine Months Ended June 30, 2024

(In thousands) (In thousands)

Interest income/(expense), including the effects of fair value and cash flow hedges $ 848,150 $ 70,118 $ ( 67,753 ) $ 857,251 $ 41,694 $ ( 142,399 )

Gain/(loss) on fair value hedging relationships:

Interest rate contracts

Amounts related to interest settlements on derivatives $ 16,762 $ 430 $ 27,123 $ —

Recognized on derivatives 6,031 ( 13,504 ) ( 6,937 ) —

Recognized on hedged items ( 13,002 ) 13,828 7,254 —

Net income/(expense) recognized on fair value hedges $ 9,791 $ 754 $ 27,440 $ —

Gain/(loss) on cash flow hedging relationships:

Interest rate contracts

Amounts related to interest settlements on derivatives $ 26,702 $ 35,279

Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense — —

Net income/(expense) recognized on cash flow hedges $ 26,702 $ 35,279

The Company periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Company retains a variable rate loan.

3 unchanged sentences

The interest rate swaps are derivatives under ASC 815, with changes in fair value recorded in earnings.

The impact to the statement of operations for the nine months ended June 30, 2025 was an increase in other income of $ 126,000 and an increase of $ 169,000 for the nine months ended June 30, 2024.

The impact to the statement of operations for the three months ended December 31, 2025 was an increase in other income of $ 24,000 and an increase of $ 5,000 for the three months ended December 31, 2024.

The following tables present the impact of derivative instruments (client swap program) that are not designated in accounting hedges under ASC 815 for the periods presented.

(In thousands) Three Months Ended June 30,

Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2025 2024

Interest rate contracts:

Pay fixed/receive floating swap Other noninterest income $ ( 7,677 ) $ ( 715 )

Receive fixed/pay floating swap Other noninterest income 7,733 770

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) Nine Months Ended June 30,

(In thousands) Three Months Ended December 31,

Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2025 2024

8 unchanged sentences

These sources of revenue include depositor and other consumer and business banking fees, commission income, as well as debit and credit card interchange fees.

In scope revenue streams represented approximately 3.6 % of Company total revenue for the nine months ended June 30, 2025, compared to 3.3 % for the nine months ended June 30, 2024.

In scope revenue streams represented approximately 3.6 % of Company total revenue for the three months ended December 31, 2025, compared to 3.2 % for the three months ended December 31, 2024.

As this standard is immaterial to the consolidated financial statements, the Company has omitted certain disclosures in ASC 606, including the disaggregation of revenue table.

8 unchanged sentences

Insurance Agency Commissions (recognized in Other income) - WAFD Insurance Group, Inc.

is a wholly owned subsidiary of Washington Federal Bank that operates as an insurance agency, selling and marketing property and casualty insurance policies for a small number of high-quality insurance carriers.

is a wholly owned subsidiary of WaFd Bank that operates as an insurance agency, selling and marketing property and casualty insurance policies for a small

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

number of high-quality insurance carriers.

WAFD Insurance Group, Inc.

6 unchanged sentences

Financial Instruments with Off-Balance Sheet Risk - Off-balance-sheet credit exposures for the Company include unfunded loan commitments and letters of credit from the FHLB of Des Moines and the FHLB of San Francisco.

As of June 30, 2025, the

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Bank was obligated on FHLB letters of credit totaling $ 62,606,000 and unfunded loan commitments had a balance of $ 2,535,278,000 .

As of December 31, 2025, the Bank was obligated on FHLB letters of credit totaling $ 62,606,000 and unfunded loan commitments had a balance of $ 2,785,642,000 .

These amounts are decreased compared to September 30, 2025 when the bank was obligated on FHLB letters of credit totaling $ 62,606,000 and had unfunded commitments of $ 2,841,596,000 .

The reserve for unfunded commitments was $ 20,500,000 as of June 30, 2025, which is a decrease from $ 21,500,000 at September 30, 2024.

The reserve for unfunded commitments was $ 21,500,000 as of December 31, 2025, which is unchanged from September 30, 2025.

See Note A "Summary of Significant Accounting Policies" for details regarding the reserve methodology.

1 unchanged sentence

Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company.

LIHTC Investments - The Company has LIHTC investments which are designed to promote qualified affordable housing projects.

LIHTC Investments - The Company has equity investments as limited partners in LIHTC investment funds which are designed to promote qualified affordable housing projects.

These investments provide a return through the generation of income tax credits and other income tax benefits and support the Company's regulatory compliance with the Community Reinvestment Act.

The Company has evaluated its involvement with the low-income housing projects and determined it does not have the ability to exercise significant influence over or participate in the decision-making activities related to the management of the projects, and therefore, is not the primary beneficiary, and does not consolidate these interests.

LIHTC investments are accounted for using the proportional amortization method.

The Company records the investments in affordable housing partnerships of $ 141,272,000 and $ 112,342,000 as of June 30, 2025 and September 30, 2024, respectively, as a component of other assets on the Consolidated Statements of Financial Condition and uses the proportional amortization method to account for the investments.

The Company's unfunded contribution commitments to these investments were $ 62,183,000 and $ 41,702,000 as of June 30, 2025 and September 30, 2024, respectively, which are recorded as a component of other liabilities on the Consolidated Statements of Financial Condition.

The Company has evaluated its LIHTC investments and determined it does not have the ability to exercise significant influence over the operating or financial decisions of the funds.

This lack of significant influence due to the Company's role as a limited partners allows the Company to account for its LIHTC investments using the proportional amortization method.

The Company records the investments in affordable housing partnerships of $ 153,232,000 and $ 157,249,000 as of December 31, 2025 and September 30, 2025, respectively, as a component of other assets on the Consolidated Statements of Financial Condition and uses the proportional amortization method to account for the investments.

The Company's unfunded contribution commitments to these investments were $ 69,443,000 and $ 73,123,000 as of December 31, 2025 and September 30, 2025, respectively, which are recorded as a component of other liabilities on the Consolidated Statements of Financial Condition.

Both the tax benefits and the amortization expense related to these investments are reflected in the provision for income taxes on the Condensed Consolidated Statements of Operations.

2 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