What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2026-02-04 · 257 added, 114 removed, 1221 unchanged (23% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

(In thousands, except share data)

48 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31,

(In thousands, except share data)

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

2026 2025 2026 2025

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

INTEREST INCOME

40 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended December 31,

Three Months Ended March 31,

(In thousands)

4 unchanged sentences

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

Net unrealized gain (loss) from investment securities, net of reclassification adjustment ( 13,357 ) 18,760

Net unrealized gain (loss) during the period on borrowings cash flow hedges, net of tax of $( 864 ) and $ 4,312

2,798 ( 13,958 )

Reclassification adjustment of net (gain) loss included in net income during the period from mortgage backed securities fair value hedges, net of tax of $( 1,155 ) and $ 2,085

3,740 ( 6,751 )

Net unrealized gain (loss) in cash flow hedging instruments, net of reclassification adjustment 6,538 ( 20,709 )

Other comprehensive income (loss) ( 6,819 ) ( 1,949 )

Comprehensive income $ 58,729 $ 54,303

Six Months Ended March 31,

(In thousands)

Net income $ 129,744 $ 103,519

Other comprehensive income (loss) net of tax:

Net unrealized gain (loss) during the period on available-for-sale investment securities, net of tax of $ 1,784 and $( 2 )

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 ( 5,790 ) ( 240 )

2 unchanged sentences

Reclassification adjustment of net (gain) loss included in net income during the period from hedging derivatives, net of tax of $( 1,649 ) and $ 2,084

5,340 ( 6,747 )

Net unrealized gain (loss) in cash flow hedging instruments, net of reclassification adjustment 3,925 ( 4,207 )

5 unchanged sentences

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

Balance at January 1, 2026 $ 300,000 $ 154,616 $ 2,165,709 $ 2,145,880 $ 61,904 $ ( 1,798,702 ) $ 3,029,407

Net income — — — 65,548 — — 65,548

Other comprehensive loss — — — — ( 6,819 ) — ( 6,819 )

Dividends on common stock

($ 0.27 per share)

— — — ( 20,157 ) — — ( 20,157 )

Dividends on preferred stock ($ 12.1875 per share)

— — — ( 3,657 ) — — ( 3,657 )

Proceeds from stock issuances — 25 701 — — — 726

Stock-based compensation expense — 118 3,243 — — 81 3,442

Treasury stock purchased — — — — — ( 87,207 ) ( 87,207 )

Balance at March 31, 2026 $ 300,000 $ 154,759 $ 2,169,653 $ 2,187,614 $ 55,085 $ ( 1,885,828 ) $ 2,981,283

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

Balance at January 1, 2025 $ 300,000 $ 154,248 $ 2,154,929 $ 2,001,586 $ 53,353 $ ( 1,642,480 ) $ 3,021,636

Net income — — — 56,252 — — 56,252

Other comprehensive income — — — — ( 1,949 ) — ( 1,949 )

Dividends on common stock

($ 0.27 per share)

— — — ( 21,619 ) — — ( 21,619 )

Dividends on preferred stock ($ 12.1875 per share)

— — — ( 3,656 ) — — ( 3,656 )

Proceeds from stock issuances — 26 692 — — — 718

Stock-based compensation expense — 81 2,416 — — 82 2,579

Treasury stock purchased — — — — — ( 21,341 ) ( 21,341 )

Balance at March 31, 2025 $ 300,000 $ 154,355 $ 2,158,037 $ 2,032,563 $ 51,404 $ ( 1,663,739 ) $ 3,032,620

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 — — — — — ( 145,224 ) ( 145,224 )

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

Balance at March 31, 2026 $ 300,000 $ 154,759 $ 2,169,653 $ 2,187,614 $ 55,085 $ ( 1,885,828 ) $ 2,981,283

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

10 unchanged sentences

Treasury stock purchased — — — — — ( 24,751 ) ( 24,751 )

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

Balance at March 31, 2025 $ 300,000 $ 154,355 $ 2,158,037 $ 2,032,563 $ 51,404 $ ( 1,663,739 ) $ 3,032,620

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended December 31,

Six Months Ended March 31,

(In thousands)

48 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended December 31,

Six Months Ended March 31,

(In thousands)

2 unchanged sentences

Real estate acquired through foreclosure $ 20,562 $ 5,095

Accounts payable related to subsidiary assets and intangibles acquired 2,050 —

Non-cash financing activities

39 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 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.

Restricted Cash Balances - The Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of March 31, 2026.

As of March 31, 2026 and September 30, 2025, the Company held counterparty cash collateral of $ 128,650,000 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 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 .

At March 31, 2026, equity investments held by the Company and recorded at NAV had a carrying amount of $ 35,420,940 and a remaining unfunded commitment of $ 11,169,741 .

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

104 unchanged sentences

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

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

Additions 2,200 2,200 4,400

Amortization — ( 1,974 ) ( 1,974 )

Balance at March 31, 2026 $ 418,447 $ 27,064 $ 445,511

The table below presents the estimated future amortization expense of other intangibles for the next five years as of March 31, 2026.

Fiscal Year Expected Expense

11 unchanged sentences

This accounting standards update will require public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period.

As clarified by the FASB in ASU 2025-01, the amendments of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for quarterly reporting beginning after December 15, 2027.

Early adoption is permitted.

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

As clarified by the FASB in ASU 2025-01, the amendments of ASU

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2024-03 are effective for fiscal years beginning after December 15, 2026, and for quarterly reporting beginning after December 15, 2027.

Early adoption is permitted.

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

NOTE C – Dividends and Share Repurchases

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 .

On February 27, 2026, the Company paid a regular dividend on its common stock of $ 0.27 per share, which represented the 172nd consecutive quarterly cash dividend.

Dividends per share were $ 0.27 and $ 0.27 for the quarters ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026, the Company repurchased 2,738,096 shares of its common stock at an average per share price of $ 31.85 .

For the six months ended March 31, 2026, the Company repurchased 4,688,109 shares of its common stock at an average per share price of $ 30.98 .

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.

In February 2026, the Board increased the number of shares authorized under the program to 10 million shares.

As of March 31, 2026, there are 7,992,669 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.

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

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

19 unchanged sentences

Net loans $ 19,966,983 $ 20,088,618

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 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.

Accrued interest receivable ("AIR") is excluded from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses.

As of March 31, 2026 and September 30, 2025, AIR for loans totaled $ 82,142,000 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 March 31, 2026, loans in the amount of $ 13,440,000,000 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.

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

(In thousands, except ratio data)

5 unchanged sentences

Construction — — — 3,400 — —

Land - acquisition & development — — — — — —

Total commercial loans 93,795 — — 103,540 — —

8 unchanged sentences

% of total loans 0.61 % 0.63 %

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.

The Company recognized interest income on non-accrual loans of approximately $ 844,000 in the six months ended March 31, 2026 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 $ 3,916,000 for the six months ended March 31, 2026.

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.

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

March 31, 2026 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 December 31, 2025.

The following table presents the amortized basis of collateral-dependent loans by loan class and collateral type as of March 31, 2026.

Loan type Residential Real Estate Commercial Real Estate General Business Assets

4 unchanged sentences

Commercial & Industrial — 200 54,369

Construction — 3,400 —

Land - Acquisition & Development — — —

Total commercial loans — 39,267 54,369

17 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 month period ending December 31, 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 and six month period ending March 31, 2026 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 December 31, 2025

Three Months Ended March 31, 2026

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

4 unchanged sentences

Commercial & industrial 877 — 0.03 9 —

Construction — — — 0

Total commercial loans 2,577 3,006 0.05 5 167

2 unchanged sentences

Total Loans $ 2,577 $ 12,559 0.07 %

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025

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

Term Extension Deferral Amount

( in thousands) (in months)

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

Multi-family $ 1,098 $ — 0.02 % 3 $ —

Commercial real estate 5,393 — 0.15 24 —

Commercial & industrial 49,446 — 2.07 9 —

Construction — — — 0

Total commercial loans 55,937 — 0.46 10 —

2 unchanged sentences

Total Loans $ 55,937 $ — 0.26 %

Six Months Ended March 31, 2026

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

Term Extension Deferral Amount

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

Multi-family $ — $ — — % 0 $ —

Commercial real estate 33,190 3,006 0.99 8 167

Commercial & industrial 29,876 — 1.07 11 —

Total commercial loans 63,066 3,006 0.54 10 167

Single-Family Residential — 10,589 0.14 0 306

Total consumer loans — 10,589 0.13 0 $ 306

Total Loans $ 63,066 $ 13,595 0.38 %

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended March 31, 2025

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

Term Extension Deferral Amount

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

Multi-family $ 1,098 $ — 0.02 % 3 $ —

Commercial real estate 5,393 — 0.15 24 —

Commercial & industrial 51,306 — 2.15 9 —

Total commercial loans 57,797 — 0.47 10 —

Single-Family Residential 453 — 0.01 6 —

Total consumer loans 453 — 0.01 6 $ —

Total Loans $ 58,250 $ — 0.28 %

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

The following table presents the performance of such loans that have been modified for the twelve months ended March 31, 2026 and March 31, 2025, respectively.

March 31, 2026 Days Delinquent

Current 30 60 90+ Total

9 unchanged sentences

Total Loans $ 113,984 $ 913 $ 2,547 $ — $ 117,444

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 Days Delinquent

March 31, 2025 Days Delinquent

Current 30 60 90+ Total

Commercial loans

Multi-family $ 1,099 $ — $ — $ — $ 1,099

Commercial real estate 28,607 — — — 28,607

6 unchanged sentences

Total Loans $ 93,799 $ — $ — $ — $ 93,799

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.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

One single-family loan modified for borrowers experiencing financial difficulties defaulted in the twelve months ended March 31, 2026 but it was paid in full by period end.

No loans modified for borrowers experiencing financial difficulties defaulted after modification in the twelve months ended March 31, 2025.

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

19 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.

3 unchanged sentences

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.

The following tables present by primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of March 31, 2026 and September 30, 2025.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

March 31, 2026 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

6 unchanged sentences

Total $ 244,246 $ 72,186 $ 100,865 $ 418,318 $ 1,627,371 $ 2,177,092 $ 32,521 $ — $ 4,672,599

Gross Charge-offs — — — — — 81 — — 81

Commercial real estate

6 unchanged sentences

Pass $ 295,169 $ 243,291 $ 61,720 $ 108,190 $ 132,161 $ 429,499 $ 1,150,795 $ 16,967 $ 2,437,792

Watch 1,901 — — 3,704 19,059 1,062 87,660 — 113,386

Special Mention — — — — 2,560 — 34,895 5 37,460

3 unchanged sentences

Pass $ 74,275 $ 261,479 $ 141,241 $ 112,700 $ 175,829 $ 173 $ 118,960 $ — $ 884,657

Watch 3,073 6,296 — — 645 — — — 10,014

Special Mention — — — — 56,898 — — — 56,898

3 unchanged sentences

Pass $ 41,483 $ 51,606 $ 7,479 $ 5,206 $ 18,157 $ 34,709 $ — $ — $ 158,640

Watch 1,757 1,363 5,943 638 — — — — 9,701

Substandard — — — — — 225 — — 225

10 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

March 31, 2026 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

10 unchanged sentences

30 days past due — — — 132 — — — — 132

90+ days past due — — — — 760 — — — 760

Total $ — $ 27,470 $ 7,335 $ 132 $ 3,930 $ — $ — $ — $ 38,867

2 unchanged sentences

90+ days past due — — — 60 — 265 — — 325

60 days past due — — — — — 56 — — 56

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

Total $ — $ 5,757 $ 10,669 $ 7,679 $ 16,902 $ 35,756 $ — $ — $ 76,763

103 unchanged sentences

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

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

Transfers Ending Allowance

Three Months Ended March 31, 2026 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

(In thousands)

14 unchanged sentences

Total ACL - loans $ 199,539 $ ( 805 ) $ 216 $ 3,000 $ 201,950

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

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

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

Ending Allowance

18 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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.

Six Months Ended March 31, 2026 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

(In thousands)

Commercial loans

Multi-family $ 25,953 $ ( 81 ) $ — $ 51 $ 25,923

Commercial real estate 41,988 — 655 ( 1,140 ) 41,503

Commercial & industrial 59,163 ( 4,458 ) 143 13,814 68,662

Construction 18,136 — — ( 1,424 ) 16,712

Land - acquisition & development 6,894 — 116 682 7,692

Total commercial loans 152,134 ( 4,539 ) 914 11,983 160,492

Consumer loans

Single-family residential 38,880 ( 82 ) 12 ( 5,131 ) 33,679

Construction - custom 610 — 4 ( 312 ) 302

Land - consumer lot loans 2,104 — — ( 283 ) 1,821

HELOC 3,069 — 1 ( 220 ) 2,850

Consumer 2,923 ( 704 ) 124 463 2,806

Total consumer loans 47,586 ( 786 ) 141 ( 5,483 ) 41,458

Total ACL - loans $ 199,720 $ ( 5,325 ) $ 1,055 $ 6,500 $ 201,950

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

Six Months Ended March 31, 2025 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

(In thousands)

Commercial loans

Multi-family $ 25,248 $ — $ — $ 1,308 $ 26,556

Commercial real estate 39,210 ( 4,555 ) 169 3,645 38,469

Commercial & industrial 58,748 ( 593 ) 42 1,950 60,147

Construction 22,267 — — ( 2,861 ) 19,406

Land - acquisition & development 7,900 — 19 ( 1,216 ) 6,703

Total commercial loans 153,373 ( 5,148 ) 230 2,826 151,281

Consumer loans

Single-family residential 40,523 ( 338 ) 463 315 40,963

Construction - custom 1,427 — — ( 351 ) 1,076

Land - consumer lot loans 2,564 — — ( 149 ) 2,415

HELOC 3,049 — 2 206 3,257

Consumer 2,817 ( 742 ) 239 1,403 3,717

Total consumer loans 50,380 ( 1,080 ) 704 1,424 51,428

Total ACL - Loans $ 203,753 $ ( 6,228 ) $ 934 $ 4,250 $ 202,709

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

The Company recorded a $ 4,000,000 provision for credit losses for the three months ended March 31, 2026, compared with $ 2,750,000 provision for the three months ended March 31, 2025.

The provision in the three months ended March 31, 2026 was primarily the result of increased commercial loan originations.

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

The Company recorded a $ 7,500,000 provision for credit losses for the six months ended March 31, 2026 compared to $ 2,750,000 for the six months ended March 31, 2025.

The current fiscal year to date period also reflects changes to credit quality and increased charge-offs observed in the first quarter.

Net charge-offs totaled $ 589,000 for the three months ended March 31, 2026, compared to $ 5,063,000 of net charge-offs during the three months ended March 31,

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Net charge-offs totaled $ 4,270,000 for the six months ended March 31, 2026, compared to $ 5,294,000 during the six months ended March 31, 2025.

Non-performing assets were $ 131,984,000 , or 0.48 % of total assets, at March 31, 2026, compared to $ 143,022,000 , or 0.54 % of total assets, at September 30, 2025.

Non-accrual loans were $ 123,859,000 , or 0.61 % of total loans at amortized cost, at March 31, 2026, compared to $ 128,628,000 , or 0.63 %, at September 30, 2025.

Delinquencies, as a percent of total loans, were 0.78 % at March 31, 2026, 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.

December 31, 2025 Internally Assigned Grade

March 31, 2026 Internally Assigned Grade

Pass Watch Special Mention Substandard Doubtful Total

38 unchanged sentences

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

December 31, 2025 Performing Loans Non-Performing Loans

March 31, 2026 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).

December 31, 2025

March 31, 2026

Level 1 Level 2 Level 3 Total

10 unchanged sentences

Client swap program hedges — 34,461 — 34,461

Commercial loan fair value hedges — 1,607 — 1,607

Mortgage loan fair value hedges — 10,638 — 10,638

Mortgage backed securities fair value hedges — 294 — 294

Borrowings cash flow hedges — 97,378 — 97,378

4 unchanged sentences

Mortgage backed securities fair value hedges — 8,468 — 8,468

Borrowings cash flow hedges — 813 — 813

Total financial liabilities $ — $ 54,160 $ — $ 54,160

30 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 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.

Level 3 assets recorded at fair value on a nonrecurring basis at March 31, 2026 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 March 31, 2026 and March 31, 2025, 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.

December 31, 2025 Three Months Ended December 31, 2025

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

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

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Balance at end of period $ — $ — $ 12,066 $ 12,066 $ ( 771 ) $ ( 5,212 )

December 31, 2024 Three Months Ended December 31, 2024

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

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

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Balance at end of period $ — $ — $ 9,338 $ 9,338 $ ( 5,092 ) $ ( 5,363 )

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

At March 31, 2026, there was $ 523,000 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 $ 5,252,000 .

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Level in Fair Value Hierarchy Carrying

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Other assets - mortgage loan fair value hedges 2 10,638 10,638 13,082 13,082

Other assets - mortgage backed securities fair value

hedges 2 294 294 — —

Other assets - borrowings cash flow hedges 2 97,378 97,378 99,231 99,231

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Other liabilities - mortgage backed securities fair value hedges 2 8,468 8,468 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:

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

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

Mortgage backed securities ("MBS")

For residential mortgages and

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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.

multi-family loans, the Company 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 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.

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

December 31, 2025

March 31, 2026

Cost Gross Unrealized Fair

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

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.

The Company purchased $ 1,067,724,000 of AFS investment securities during the six months ended March 31, 2026 and purchased $ 809,552,000 of AFS securities during the six months ended March 31, 2025.

There were no sales of AFS securities during the six months ended March 31, 2026 compared to $ 797,000 during the prior year's same period.

For HTM investment securities, there were $ 141,063,000 in purchases during the six months ended March 31, 2026 and $ 114,182,000 in purchases during the six months ended March 31, 2025.

There were no sales of HTM investment securities during the six months ended March 31, 2026 or March 31, 2025.

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 $ 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.

Accrued interest receivable ("AIR") is excluded from the amortized cost basis of debt securities disclosed throughout this note.

For AFS securities, AIR totaled $ 14,185,000 and $ 11,057,000 as of March 31, 2026 and September 30, 2025, respectively.

For HTM debt securities, AIR totaled $ 2,529,000 and $ 2,089,000 as of March 31, 2026 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.

The following tables show the gross unrealized losses and fair value of securities as of March 31, 2026 and September 30, 2025, by length of time that individual securities in each category have been in a continuous loss position.

There were 274 and 213 securities with an unrealized loss as of March 31, 2026 and September 30, 2025, respectively.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

March 31, 2026 Less than 12 months 12 months or more Total

Gross Losses Fair

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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 December 31, 2025 or September 30, 2025.

Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2026 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 December 31, 2025 or September 30, 2025.

The Company does not believe that the AFS debt securities that were in an unrealized loss position have any credit loss impairment as of March 31, 2026 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.

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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 December 31, 2025 and September 30, 2025.

December 31, 2025 Derivative Assets Derivative Liabilities

The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at March 31, 2026 and September 30, 2025.

March 31, 2026 Derivative Assets Derivative Liabilities

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

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Client swap program hedges Other assets $ 875,810 $ 34,461 Other liabilities $ 875,810 $ 34,527

Commercial loan fair value hedges Other assets 31,562 1,607 Other liabilities — —

Mortgage loan fair value hedges Other assets 670,000 10,638 Other liabilities 700,000 11,165

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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 December 31, 2025 and September 30, 2025.

(In thousands) December 31, 2025

The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at March 31, 2026 and September 30, 2025.

(In thousands) March 31, 2026

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

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(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.

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 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 ).

At March 31, 2026, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 5,145,220,000 , the cumulative basis adjustment associated with the hedging relationships was $ 1,305,000 , and the amount of the designated hedged items was $ 1,370,000,000 .

(2) During the quarter, hedge accounting was discontinued on a $ 31,562,000 commercial loan hedge.

A basis adjustment of $( 1,502,681 ) associated with the terminated portion of the hedge was deferred and is being amortized over the remaining life of the related loan.

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

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 .

At March 31, 2026, the fair value of the hedged mortgage backed securities was $ 906,982,000 , the cumulative basis adjustment associated with the hedging relationships was $ 8,464,000 , and the amount of the designated hedged items was $ 610,000,000 .

(In thousands) September 30, 2025

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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 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.

As of March 31, 2026, the maturities for hedges of adjustable rate borrowings ranged from one year to seven years , with the weighted average being 3.9 years.

AND SUBSIDIARIES

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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 December 31,

(In thousands) Three Months Ended March 31,

Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2026 2025

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Total pre-tax gain/(loss) recognized in AOCI $ 3,662 $ ( 18,205 )

(In thousands) Six Months Ended March 31,

Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2026 2025

Interest rate contracts:

Pay fixed/receive floating swaps on borrowings cash flow hedges $ ( 1,852 ) $ 3,325

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

Total pre-tax gain/(loss) recognized in AOCI $ ( 1,852 ) $ 3,395

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.

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

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

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

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

(In thousands) (In thousands)

Interest income/(expense), including the effects of fair value and cash flow hedges $ 526,355 $ 83,243 $ ( 36,336 ) $ 568,674 $ 42,263 $ ( 50,762 )

Gain/(loss) on fair value hedging relationships:

Interest rate contracts

Amounts related to interest settlements on derivatives $ 4,610 $ ( 332 ) $ 12,981 $ 116

Recognized on derivatives 6,864 6,912 16,820 ( 8,682 )

Recognized on hedged items ( 6,992 ) ( 6,989 ) ( 23,802 ) 8,901

Net income/(expense) recognized on fair value hedges $ 4,482 $ ( 409 ) $ 5,999 $ 335

Gain/(loss) on cash flow hedging relationships:

Interest rate contracts

Amounts related to interest settlements on derivatives $ 15,605 $ 18,053

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

Net income/(expense) recognized on cash flow hedges $ 15,605 $ 18,053

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.

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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 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 impact to the statement of operations for the six months ended March 31, 2026 was an increase in other income of $ 404,000 and an increase of $ 70,000 for the six months ended March 31, 2025.

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 December 31,

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) Three Months Ended March 31,

Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2026 2025

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Receive fixed/pay floating swap Other noninterest income ( 838 ) 11,561

(In thousands) Six Months Ended March 31,

Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2026 2025

Interest rate contracts:

Pay fixed/receive floating swap Other noninterest income $ ( 716 ) $ 8,689

Receive fixed/pay floating swap Other noninterest income 1,120 ( 8,619 )

NOTE H – Revenue from Contracts with Customers

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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 three months ended December 31, 2025, compared to 3.2 % for the three months ended December 31, 2024.

In scope revenue streams represented approximately 4.0 % of Company total revenue for the six months ended March 31, 2026, compared to 3.4 % for the six months ended March 31, 2025.

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.

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

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.

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 number of high-quality insurance carriers.

WAFD Insurance Group, Inc.

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may also receive contingent incentive fees based on the volume of business generated for the insurance carrier and based on policy renewal rates.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE I – Commitments and Contingencies

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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 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 $ 21,500,000 as of December 31, 2025, which is unchanged from September 30, 2025.

As of March 31, 2026, the Bank was obligated on FHLB letters of credit totaling $ 30,500,000 and unfunded loan commitments had a balance of $ 3,066,873,000 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 $ 22,500,000 as of March 31, 2026, which is unchanged from September 30, 2025.

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

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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.

The Company records the investments in affordable housing partnerships of $ 149,253,000 and $ 157,249,000 as of March 31, 2026 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 $ 63,128,000 and $ 73,123,000 as of March 31, 2026 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 Consolidated Statements of Operations.

AND SUBSIDIARIES

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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 1. Financial Statements