CFFN 10-K & 10-Q changes, risk factors and insider trading

Our results of operations are primarily dependent on net interest income, which is the difference between the interest earned on loans, securities, cash at the Federal Reserve BankFRB and dividends received on FHLB stock, and the interest paid on deposits and borrowings. Changes in interest rates could have an adverse impact on our results of operations and financial condition because the majority of our interest-earning assets are long-term, fixed-rate loans, while the majority of our interest-bearing liabilities are shorter term, and therefore subject to a greater degree of interest rate fluctuations. This type of risk is known as interest rate risk and is affected by prevailing economic and competitive conditions that are beyond the Company's control, including general economic conditions, inflationary trends and/or monetary policies of the FRB and fiscal policies of the United States federal government.

The impact of changes in interest rates is generally observed on the income statement. The magnitude of the impact will be determined by the difference between the amount of interest-earning assets and interest-bearing liabilities, both of which either reprice or mature within a given period of time, in addition to the yields earned on interest-earning assets and rates paid on interest-bearing liabilities. This difference provides an indication of the extent to which our net interest rate spread will be impacted by changes in interest rates. In addition, changes in interest rates will impact the expected level of repricing of the Bank's mortgage-related assets and callable debt securities. Generally, as interest rates decline, the amount of interest-earning assets expected to reprice will increase as borrowers have an economic incentive to reduce the cost of their mortgage or debt, which would negatively impact the Bank's interest income.income to the extent deposits are not repriced lower at a faster pace. Conversely, as interest rates rise, the amount of interest-earning assets expected to reprice will decline as the economic incentive to refinance the mortgage or debt is diminished. As this occurs, the amount of interest-earning assets repricing could diminish to the point where interest-bearing liabilities reprice to a higher interest rate at a faster pace than interest-earning assets, thus negatively impacting the Bank's net interest income. For additional information about the interest-rate risk we face, see "Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk."

Changes in interest rates can also have an adverse effect on our financial condition, as available-for-sale ("AFS") securities are reported at estimated fair value. Stockholders' equity, specificallyspecifically, accumulated other comprehensive income (loss) ("AOCI"), is increased or decreased by the amount of change in the estimated fair value of our AFS securities, net of deferred income taxes. Increases in interest rates generally decrease the fair value of AFS securities, which adversely impacts stockholders' equity. For additional information, see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Strategic Securities Transaction," "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Stockholders' Equity" and "Part II, Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 15. Accumulated Other Comprehensive Income."

In addition to general changes in interest rates, changes that affect the shape of the yield curve could negatively impact the Bank. The Bank's interest-bearing liabilities are generally priced based on short-term interest rates while the majority of the Bank's interest-earning assets are priced based on long-term interest rates. Income for the Bank is primarily driven by the spread between these rates. As a result, a steeper yield curve, meaning long-term interest rates are significantly higher than short-term interest rates, would provide the Bank with a better opportunity to increase net interest income. When the yield curve is flat, meaning long-term interest rates and short-term interest rates are essentially the same, or when the yield curve is inverted, meaning long-term interest rates are lower than short-term interest rates, the net yield between interest-earning assets and interest-bearing liabilities that reprice is compressed or diminished and would likely negatively impact the Bank's net interest income. See "Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk" for additional information about the Bank's interest rate risk management.

An economic downturn, including a decline in real estate values, especially affecting our geographic market areas and certain regions of the country where we have commercial real estate loans or correspondentpurchased loans secured by one- to four-family properties, could have an adverse impact on our business and financial results.

As we havestrategically growngrow our commercial real estate lending portfolio, we have continued to prospect for new relationships and maintain existing relationships not only in our local markets but in geographically diverse markets. As a result, we are particularly exposed to downturns in regional housing and commercial real estate markets and, to a lesser extent, housing and commercial real estate markets nationwide, along with changes in the levels of unemployment or underemployment. We monitor the current status and trends of local and national employment levels and trends and current conditions in the real estate and housing markets, as well as commercial real estate markets, in our local market areas and certain areas where we have commercial real estate loans and correspondentpurchased one- to four-family loans. Decreases in local real estate values could adversely affect the value of the property used as collateral for our commercial real estate and one- to four-family loans, which could cause us to realize a loss in the event of a foreclosure. Additionally, if insurance obtained by our borrowers is insufficient to cover any losses sustained to the collateral, the decreases in the value of collateral securing our loans as a result of natural disasters or other related events could adversely impact our financial condition and results of operations. If insurance coverage is unavailable to our borrowers due to the reluctance of insurance companies to renew policies covering the collateral or due to other factors, the resulting increase in cost of home ownership could affect the ability of borrowers to repay loans. In addition, a decline in commercial real estate values would likewise adversely affect the value of collateral securing commercial real estate loans. Adverse conditions in our local economies and in certain areas where we have commercial real estate loans and correspondentpurchased one-to four-family loans, such as inflation, unemployment, supply chain disruptions, recession, natural disasters or pandemics, or other factors beyond our control, could adversely impact the ability of our borrowers to repay their loans. Declines in collateral values and adverse economic conditions could result in increased delinquencies, non-performing assets, loan losses, and future loan loss provisions.

ACommercial growingloans portiontypically ofhave ourlarger loan portfolio consists of commercial loans. These loan types tend to be larger than and in different geographic regions from most of our existing loan portfolio and are generally considered to have different and greater risksbalances than one- to four-family residential real estate loans and may involve multiple loans to groups of related borrowers. A growing commercial loan portfolio also subjects us to greater regulatory scrutiny. Furthermore, these loan types can expose us to a greater riskRepayment of delinquencies, non-performing assets, loan losses, and future loan loss provisions than one- to four-family residential real estate loans because repayment of suchcommercial loans often depends on the successful operation of a business or of the underlying property.property Repayment of such loanswhich may be affected by factors outside the borrower's control, such as adverse conditions in the real estate market, the economy, the implementation of tariffs, environmental factors, natural disasters or pandemics, and/or changes in government regulation. Also, there are risks inherent in commercial real estate construction lending as the value of the project is uncertain prior to the completion of construction and subsequent lease-up. A sudden downturn in the economy, labor and/or supply chain issues, or other unforeseen events could result in stalled projects or collateral shortfalls, thus exposing us to increased credit risk. Additionally, if we foreclose on these loans, our holding period for the collateral may be longer than for a one- to-four family residential property as there are generally fewer potential purchasers of this type of collateral.

Commercial and industrial loans are primarily made based on the identified cash flow of the borrower and secondarily on the collateral underlying the loans. TheA borrowers'borrower's cash flow may prove to be unpredictable, and collateral securing these loans may fluctuate in value. Most often, this collateral consists of accounts receivable, inventory and equipment. Significant adverse changes in a borrower's industries and businesses could cause rapid declines in values of, and collectability associated with, those business assets, which could result in inadequate collateral coverage for our commercial and industrial loans and expose us to future losses. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its clients. Inventory and equipment may depreciate over time, may be difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business. If the cash flow from business operations is reduced, the borrower's ability to repay the loan may be impaired. An increase in valuation allowances and charge-offs related to our commercial and industrial loan portfolio could have an adverse effect on our business, financial condition, results of operations and future prospects.

Furthermore, there continues to be heightened legislative and regulatory focus on privacy, data protection and information security. New or revised laws and regulations may significantly impact our current and planned privacy, data protection and information security-related practices, the collection, use, sharing, retention and safeguarding of consumer and employee information, and current or planned business activities. Compliance with current or future privacy, data protection and information security laws could result in higher compliance and technology costs and could restrict our ability to provide certain products and services, which could have an adverse effect on our business, financial condition and results of operations.

Third-party vendors subject the Bank and the Company to potential business, reputation and financial risks.

Third-party vendors are sources of operational and information security risk to the Bank and the Company, including risks associated with operationsoperation errors, information system interruptions or breaches, and unauthorized disclosures of sensitive or confidential customer information. The Bank and the Company requiresrequire third-party vendors to maintain certain levels of information security; however, vendors may remain vulnerable to breaches, unauthorized access, misuse, computer viruses, and/or other malicious attacks that could ultimately compromise sensitive information. We have developed procedures and processes for selecting and monitoring third-party vendors, but ultimately are dependent on these third-party vendors to secure their information. If these vendors encounter any of these types of issues, or if we have difficulty communicating with them, we could be exposed to disruption of operations, loss of service or connectivity to customers, reputational damage, and litigation risk that could have an adverse effect on our business, financial condition and results of operations.

Like most financial institutions, the Bank significantly depends on technology to deliver its products and services and to otherwise conduct business. To remain technologically competitive and operationally efficient, theThe Bank investscontinues to invest in system upgrades, new technological solutions, system upgrades, and other technology initiatives.initiatives, which allows us to offer new and competitive products and services to our customers. Many of these solutions and initiatives have a significant duration, are tied to critical information systems, and require substantial resources. Although the Bank takes steps to mitigate the risks and uncertainties associated with these solutions and initiatives, there is no guarantee that they will be implemented on time, within budget, or without negative operational or customer impact. The Company and its third-party vendors may develop or incorporate artificial intelligence technology into certain business processes, services or products. The use of artificial intelligence presents several risks, including an uncertain and evolving legal and regulatory environment, along with the reliability of information generated and the complexity and rapid pace of change in artificial intelligence models. The Bank also may not succeed in anticipating its future technology needs, the technology demands of its customers, or the competitive landscape for technology. If the Bank were to falter in any of these areas, it could have an adverse effect on our business, financial condition and results of operations.

Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation, interpretation or application, could have an adverse impact on our operations. Moreover, bank regulatory agencies have been active in responding to concerns and trends identified in examinations and have issued formal enforcement orders requiring capital ratios in excess of regulatory requirements and/or assessing monetary penalties. Bank regulatory agencies, such as the OCC, the FRB and the FDIC, govern the activities in which we may engage, primarily for the protection of depositors' funds, the DIF and the safety and soundness of the banking system as a whole, and not for the protection or benefit of investors. The CFPB enforces consumer protection laws and regulations for the benefit of consumers and not the protection or benefit of investors. In addition, newchanges in laws and regulations, includingor thosethe relatedapplication toof environmental,these social,laws and governance initiatives,regulations, may continue to increaseimpact our costs of regulatory compliance and of doing business, and otherwise affect our operations. New Presidential Executive Orders, laws and regulations may significantly affect the markets in which we do business, the markets for and value of our loans and securities, the products we offer, the fees we can charge and our ongoing operations, costs, and profitability.

The Company's failure to comply with laws, regulations or policiespolicies, including Presidential Executive Orders, could result in civil or criminal sanctions and money penalties by state and federal agencies, and/or reputational damage, which could have an adverse effect on the Company's business, financial condition and results of operations. See "Part I, Item 1. Business - Regulation and Supervision" for more information about the regulations to which the Company is subject.

The Bank will reportreported a net loss foron tax purposes forits fiscal year 2024 federal tax return due to the sale of securities in October 2023 associated with the securities strategy andwhich willresulted therefore havein negative current and accumulated earnings and profits for fiscal year 2024. As a result of the negative current and accumulated earnings and profits, capital distributions from the Bank to the holding company during fiscal year 2024 were deemed to be drawn out of the Bank's pre-1988 bad debt reserves and resulted in the recognition of income tax expense based on the amount of the capital distribution multiplied by the then-current Bank income tax rate. This additional tax expense reduced the amount of Bank earnings available to be distributed to the holding company during fiscal year 2024. TheDuring the fourth quarter of fiscal year 2025, the Bank hadreached $75.9a millionpoint inwhere there was sufficient taxable income to replenish the Bank's tax accumulated earnings and profits to a positive level, allowing the Bank to make distributions to the holding company and not have that distribution subject to the pre-1988 bad debt reservesrecapture attax. SeptemberDue 30,to 2024,the Bank's expected continuing positive tax accumulated and earnings profit balance, it is anticipated that the Bank will be in a position to distribute earnings to the holding company during fiscal year 2026. Earnings distributions from the Bank to the holding company will be limited to the extent necessary to prevent the Bank from re-entering a negative accumulated earnings and profit position which equateswould require the payment of the pre-1988 bad debt recapture tax on earnings moved from the Bank to anthe unrecordedholding deferredcompany. taxSee liabilityadditional ofdiscussion $15.9regarding million.the Bank's pre-1988 bad debt recapture in "Part I, Item 1. Business - Taxation" and "Part II, Item 8. Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 9. Income Taxes".

We maintain an enterprise risk management program that is designed to identify, quantify, monitor, report, and control the risks that we face. These risks include: interest-rate, credit, liquidity, operations, reputation, compliance and litigation. We also maintain a compliance program to identify, measure, assess, and report on our adherence to applicable laws, policies and procedures. While we assess and improve these programs on an ongoing basis, there can be no assurance that our risk management or compliance programs, along with other related controls, will effectively mitigate all risk and limit losses in our business. If conditions or circumstances arise that expose flaws or gaps in our risk management or compliance programs, or if our controls do not function as designed, the performance and value of our business could be adversely affected.

The Bank and the Company may be adversely affected by an increasing prevalence of fraud and other financial crimes.

Reported instances of fraud and related financial crimes are rising nationwide. Like all financial institutions, the Bank and the Company isare vulnerable to increasing fraud losses as fraud schemes perpetrated against the CompanyBank, the Company, and itsour customers continue to evolve and become more sophisticated. While the Bank and the Company hashave procedures and systems in place to detect, prevent, and mitigate fraud losses, fraud losses may still occur and could be material to the Bank and the Company's results of operations.

The net interest margin increased 3419 basis points, from 1.43%1.77% for the prior fiscal year to 1.77%1.96% for the current fiscal year. The leverage strategy negatively impacted the net interest margin for the prior year by 12 basis points. The remaining improvement in the net interest margin absent the leverage strategyincrease was due mainly to higher yields on securitiesthe andloan loans,portfolio due to the continued shift of loan balances from the one- to four-family loan portfolio to the higher yielding commercial loan portfolio, which outpaced the increase in the cost of deposits, largely in retail certificates of deposit.deposits.

The Company's efficiency ratio was 66.91%58.33% for the current fiscal year compared to (626.63)%66.91% for the prior fiscal year. Excluding the net losses from the securities strategy, the efficiency ratio would have been 61.97% for the currentprior year and 65.31% for the priorfiscal year. The improvement in the efficiency ratio, excluding the net losses from the securities strategy, was due primarily to higher net interest income and lower non-interest expense in the current year compared to the prior fiscal year, partially offset by higher non-interest expense. The Company's operating expense ratio for the current fiscal year was 1.22% compared to 1.17% for the prior fiscal year. The operating expense ratio was higher in the current fiscal year due mainly to higher non-interest expense.

The Bank's asset quality remains strong, reflected in the continued low level of loan delinquency and charge-off ratios. At September 30, 2024,2025, loans 30 to 89 days delinquent were 0.20%0.15% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.12%0.09% of total loans receivable, net. TheSee ratio"Management's Discussion and Analysis of Financial Condition and Results of Operation - Asset Quality - Delinquent and nonaccrual loans and other real estate owned ("OREO")" below for additional discussion. During the current fiscal year, net charge-offs (recoveries) ("NCOs") during the current year to average loans outstanding during the current year was 0% as there were only$198 $111 thousand of NCOs during the current year.thousand.

At September 30, 2024,2025, the Bank's gap between the amount ofBank's interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(983.6) million, or (10.1)% of total assets, compared to $(1.51) billion, or (15.8)% of total assets, meaningat September 30, 2024. As of September 30, 2025, the amount of interest-bearing liabilitiesBank exceeded theinternal amountpolicy ofthresholds interest-earningfor assets maturing or expectedsensitivity to repricechanges duringin theinterest same period.rates. See additional discussion in "Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk."

Allowance for Credit Losses and Reserve for Off-Balance Sheet Credit Exposures. The ACL is a valuation amount that is deducted from the amortized cost basis of loans and represents management's estimate of lifetimetotal expected credit losses expected onfor the Company's loanloans portfolioover their remaining contractual lives, as of the balance sheet date. The reserve for off-balance sheet credit exposures represents expected credit losses on unfunded portions of existing loans and commitments to originate or purchase loans that are not unconditionally cancellable by the Company.Company, as of the balance sheet date.

Management estimates the ACL utilizing a discounted cash flow model by projecting future loss rates which are dependent upon forecasted economic indices and applying qualitative factors when deemed appropriate by management. The key assumptions used in projecting future loss rates include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions. The assumptions are used to calculate and aggregate estimated cash flows for the time period that remains in each loan's contractual life. The cash flows are discounted back to the balance sheet date using each loan's effective yield, to arrive at a present value of futureexpected cash flows, which is compared to the amortized cost basis of the loan pool to determine the amount of ACL required by the calculation. Management then considers qualitative factors when assessing the overall level of ACL. See "Allowance for Credit Losses on Loans Receivable" and "Reserve for Off-Balance Sheet Credit Exposures" within "Part II, Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies" for additional information.

One of the most significant judgments used in projecting loss rates when estimating the ACL and reserves for off-balance sheet credit exposures is the macroeconomic forecast provided by a third party. The economic indices sourced from the macroeconomic forecast and used in projecting loss rates are the national unemployment rate, changes in commercial real estate prices, changes in home values, changes in the United States consumer price index, and changes in the United States gross domestic product. The economic index used in the calculation to which the calculation is most sensitive is the national unemployment rate. Each reporting period, several macroeconomic forecast scenarios are considered by management. Management selects the macroeconomic forecast(s) that is/are most reflective of expectations at that point in time. Changes in the macroeconomic forecast, especially for the national unemployment rate,forecast could significantly impact the calculated estimated credit losses between reporting periods.

Other key assumptions used in the calculationdiscounted ofcash theflow ACL and reserve for off-balance sheet credit exposures estimatesmodel include the forecast and reversion to mean time periods and prepayment and curtailment assumptions. The calculation is less sensitive to these assumptions than the macroeconomic forecasts. The macroeconomic forecast is applied for a reasonable and supportable time period before reverting to long-term historical averages for each economic index. The forecast and reversion to mean time period used for each economic index at September 30, 20242025 was four quarters. Prepayment and curtailment assumptions are generally based on the Company's historical experience and are adjusted by management as deemed necessary. The prepayment and curtailment assumptions vary basedfor oneach respective loan productpool type.in the model.

The ACL and reserve for off-balance sheet credit exposures may be materially affected by qualitative factors, for items not reflected in the economic forecast and/or discounted cash flow model, but which are deemed appropriate by management's current assessment of the risks related to the loan portfolio and/or external factors. Such qualitative factors may include changes in the Bank'sCompany's loan portfolio composition and credit concentrations, changes in the balances and/or trends in asset quality and/or loan credit performance, changes in lending underwriting standards, the effect of other external factors such as significant unique events or conditions, and actual and/or expected changes in economic conditions, real estate values, and/or other economic developments. Management applied qualitative factors at September 30, 20242025 to account for large dollar commercial real estate loan concentrations and potential downsiderisk of loss in market riskvalue withfor the recent housing price appreciation related tonewer one- to four-family loans. The qualitative factors applied at September 30, 2024,2025, and the importance and levels of the qualitative factors applied, may change in future periods depending on the level of changes to items such as the uncertainty of economic conditions and management's assessment of the level of credit risk within the loan portfolio as a result of such changes, compared to the amount of ACL calculated by the model. The evaluation of qualitative factors is inherently imprecise and requires significant management judgment. See "Part II, Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 4. Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses" for additional information regarding the qualitative factors applied at September 30, 2024.2025.

As a result of continued high interest rates and a lack of housing inventoryinventory, which has reduced the volume of housing market transactions, our single-familyone- to four-family origination and refinance activity has slowed which hasslowed, directly impactedimpacting the Bank's one- to four-family loan portfolio. OriginationManagement andexpects refinancethe activity has slowed considerably, andBank's one- to four-family loan balances have been reduced through scheduled repayments andoriginated loan payoffs. During the June 30, 2024 quarter, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future. Management expects that the balance of one- to four-family loansportfolio will continue to decrease as athe percentageaffordability of thehousing Bank'sremains loanchallenging, portfoliothere asis a limited supply of homes for sale and we compete with nationwide online mortgage originators. It is expected that cash flows generated from the repayments of our one- to four-family loansportfolio arewill continue to be used to fund commercial loan growth.

As noted above, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future during the current year. The Bank previously purchased one- to four-family loans, on a loan-by-loan basis, from a select group of correspondent lenders ("correspondent purchased"). Loan purchases enabled the Bank to attain geographic diversification in theits one- to four-family loan portfolio. We generally paid a premium of 0.50% to 1.00% of the loan balance to purchase these loans, and 1.00% of the loan balance to purchase the servicing of these loans. The premium paid is amortized against the interest earned over the life of the loan, which reduces the loan yield. If a loan pays off before the scheduled maturity date, the remaining premium is recognized as a reduction inof interest income. At September 30, 2025 the balance of one- to four-family correspondent purchased loans was $2.00 billion, or 34% of the Bank's one- to four-family loan portfolio, and is included in the one- to four-family purchased amount in the tables below. As noted above, the Bank suspended its one- to four-family correspondent lending channels during fiscal year 2024.

In the past, theThe Bank hasalso alsopreviously purchased one- to four-family loans from correspondent and nationwide lenders in bulk loan packages ("bulk purchased").packages. The majority of the Bank's bulk purchased loans wereas of September 30, 2025 are guaranteed by one seller. The Bank has not experienced any losses with this group of loans since the loan package was purchased in August 2012. At September 30, 2025 the balance of one- to four-family bulk purchased loans was $114.2 million and is included in the one- to four-family purchased amount in the tables below.

The Bank originates owner-occupied construction-to-permanent loans secured by one- to four-family residential real estate. The majority of these loans are secured by propertyproperties located within the Bank'sin Kansas Cityand market area.Missouri. The Bank's owner-occupied construction-to-permanent loan program combines the construction loan and the permanent loan into one loan, allowing the borrower to secure the same interest rate structure throughout the construction period and the permanent loan term.

The Bank's commercial loan portfolio is composed of commercial real estate loans, commercial construction loans and commercial and industrial loans. Our commercial real estate loans include a variety of property types, including multi-family dwellings,hotels, senior housing facilities, hotels,multi-family dwellings, retail buildings, and office buildings located in Kansas, Missouri, Texas, and Missouri, and 1519 other states.states as of September 30, 2025. The Bank's commercial and industrial loan portfolio consists largely of loans secured by accounts receivable, inventory and equipment. These loans are generally made to borrowers located in Kansas and securedMissouri. byThe assetsBank locatedregularly monitors the level of risk in the Bank'sentire marketcommercial area.loan portfolio, including concentrations in such factors as geographic location, collateral type, tenant profile, borrowing relationship, and lending relationship in the case of participation loans, among other factors.

Commercial borrowers are generally required to provide financial information annually, including borrower financial statements, subject property rental rates and income, maintenance costs, updated real estate property tax and insurance payments, and personal financial information for the guarantor(s). This allows the Bank to monitor compliance with loan covenants and review the borrower's performance, including cash flows from operations, debt service coverage, and comparison of performance to projections and year-over-year performance trending. Additionally, the Bank monitors and performs site visits, or in the case of participation loans, obtains updates from the lead bank as needed to determine the condition of the collateral securing the loan. Depending on the financial strength of the project and/or the complexity of the borrower's financials, the Bank may also perform a global analysis of cash flows to account for all other properties owned by the borrower or guarantor. If signs of weakness are identified, the Bank may begin performing more frequent financial and/or collateral reviews or initiate contact with the borrower, or the lead bank will contact the borrower if the loan is a participation loan, to ensure cash flows from operations are maintained at a satisfactory level to meet the debt requirements. The Bank mitigates the risk of commercial real estate construction lending during the construction period by monitoring inspection reports from an independent third-party, project budget, percentage of completion, on-site inspections and percentage of advanced funds. Commercial and industrial loans are monitored through a review of borrower performance as indicated by borrower financial statements, borrowing base reports, accounts receivable aging reports, and inventory aging reports. These reports are required to be provided by the borrowers monthly, quarterly, or annually depending on the nature of the borrowing relationship. The Bank regularly monitors the level of risk in the entire commercial loan portfolio, including concentrations in such factors as geographic locations, collateral types, tenant brand name, borrowing relationships, and lending relationships in the case of participation loans, among other factors.

The following table presents loan origination, refinance, and purchase/participation activity for the periods indicated, excluding endorsement activity, along with associated weighted average rates and percent of total. Commercial loan renewals are not included in the activity in the following table except to the extent new funds are disbursed at the time of renewal. Loan originations, purchases/participations, and refinances are reported together.

One- to Four-Family Loans - The following table presents, for our portfolio of one- to four-family loans, the amount, percent of total, weighted average rate, weighted average credit score, weighted average loan-to-value ("LTV") ratio,LTV, and average balance per loan as of September 30, 2024.2025. Credit scores were updated in September 2024,2025 from a nationally recognized consumer rating agency. The LTV ratiosLTVs were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available. In most cases, the most recent appraisal was obtained at the time of origination.

The following table presents originatedorigination and correspondent purchasedrefinance activity infor our one- to four-family loan portfolio, excluding endorsement activity, along with associatedthe weighted average rates,rate, weighted average LTV ratios and weighted average credit scoresscore for the current fiscal year. As of September 30, 2025, the Bank had one- to four-family loan and refinance commitments totaling $42.0 million at a weighted average rate of 6.29%.

The Company recognized net income of $40.5$64.0 million, or $0.32$0.51 per share, for the current year six-monthnine-month period compared to net income of $30.8$49.2 million, or $0.24$0.38 per share, for the prior year six-monthnine-month period. The increase in net income was due mainly to higher net interest income, partially offset by higher non-interest expense and aincome highertax provision for credit losses.expense. The net interest margin increased 33 basis points, from 1.89%1.92% for the prior year six-monthnine-month period to 2.22%2.25% for the current year six-monthnine-month period. The increase was due mainly to growth in the higher yielding commercial loan portfolio.portfolio, along with a decrease in the average cost of certificates of deposit and the average balance of borrowings, partially offset by an increase in the average balance of deposits, mainly high yield savings accounts.

The Bank continues its progression from a primarily retail oriented financial institution toAs a full-service consumer and commercial bank bywe are strategically investing in technology, products and employees, allowing us to offerdeliver new products and services and deliver first-in-class service to our customers. For additional discussion, see the "Strategic Banking Initiatives" section below.

The Company's efficiency ratio was 53.05%52.72% for the current year six-monthnine-month period compared to 59.23%58.89% for the prior year six-monthnine-month period. The improvement in the efficiency ratio was due primarily to higher net interest income compared to the prior year period, partially offset by higher non-interest expense. The Company's operating expense ratio (annualized) for the current year six-monthnine-month period was 1.24%1.25% compared to 1.18%1.20% for the prior year six-monthnine-month period. The operating expense ratio was higher in the current year period due mainly to higher non-interest expense, partially offset by higher average assets compared to the prior year period.

The loan portfolio totaled $8.11$8.17 billion at MarchJune 31,30, 2026, a $2.2$54.8 million increase from September 30, 2025, which was attributable to $201.8a $357.0 million increase in commercial loans, mainly in the commercial real estate portfolio, partially offset by a $196.8$302.4 million decrease in one- to four-family loans, as the Bank continued to redirect cash flows received from the one- to four-family loan portfolio to the commercial loan portfolio. TheMaintaining growthstrong incredit thequality remains a top priority as we expand our commercial loan portfolio was primarily in commercial real estate loans.portfolio. The weighted average DSCR for commercial loan originations and new participations during the sixnine months ended MarchJune 31,30, 2026 was 2.35x2.22x and the weighted average LTV for commercial real estate and construction loans originated and new participations was 70%. The weighted average DSCR and LTV for our commercial real estate and construction loan portfolio was 1.76x1.77x and 63%, respectively, at MarchJune 31,30, 2026.

The Bank's asset quality remains strong, reflected in the continued low level of loan delinquency and charge-off ratios. At MarchJune 31,30, 2026, loans 30 to 89 days delinquent were 0.15%0.17% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.17%0.13% of total loans receivable, net. See "Management's Discussion and Analysis of Financial Condition and Results of Operation - Asset Quality - Delinquent and nonaccrual loans and OREO" below for additional discussion. During the current year six-monthnine-month period, the Bank had net charge-offs ("NCOs") of $156$304 thousand.

Total deposits were $6.92$6.85 billion at MarchJune 31,30, 2026, an increase of $333.0$259.3 million compared to September 30, 2025. The increase was due mainly to growth in the Bank'sretail non-maturity depositdeposits, portfolio.partially offset by a decrease in certificates of deposit. Management continues to focus on growing commercial relationships and deposits. During the sixnine months ended MarchJune 31,30, 2026, commercial non-interest-bearing deposits increased $36.1$34.5 million, or 18.9%.18.0%.

Total borrowings were $1.71$1.64 billion at MarchJune 31,30, 2026, a decrease of $243.7$314.5 million compared to September 30, 2025, due primarily to the maturity of $200.0$250.0 million of borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances. Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings and repay amortizing FHLB advances. Management estimated that the Bank had $4.35$4.22 billion in liquidity available at MarchJune 31,30, 2026, based on the Bank's blanket collateral agreement with the FHLB, available brokered and public unit deposit capacity, unencumbered securities, and cash and cash equivalent balances.

Stockholders' equity totaled $1.03$1.02 billion at MarchJune 31,30, 2026, a decrease of $22.0$26.4 million from September 30, 2025, due to strategic share repurchases and dividend payments, continuing our efforts to enhance stockholder value. During the sixnine months ended MarchJune 31,30, 2026, the Company repurchased 4,532,1146,369,946 shares of common stock at an average price of $7.00$7.21 per share, or $31.7$45.9 million in total, and paid cash dividends totaling $26.9$37.5 million, or $0.210$0.295 per share which consisted of a $0.040 per share special cash dividend in January 2026 and twothree regular quarterly cash dividends totaling $0.170$0.255 per share. As of MarchJune 31,30, 2026, the Bank's capital ratios exceeded the well-capitalized requirements. The Bank's community bank leverage ratio ("CBLR") as of MarchJune 31,30, 2026 was 9.5%.9.6%.

At MarchJune 31,30, 2026, the gap between the Bank's interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(792.41.13) millionbillion or (8.1%11.7%) of total assets, compared to $(983.6) million, or (10.1%) of total assets, at September 30, 2025. See additional discussion in "Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk." As of MarchJune 31,30, 2026, the Bank was in compliance with its internal policy thresholds for sensitivity to changes in interest rates.

Our strategic banking initiatives keep us focused on the progression towards becomingAs a full-service consumer and commercial bank.bank, we remain focused on strategic initiatives that broaden our product and service offerings, expand our customer base, and enhance the overall customer experience. These initiatives have resulted inrequire investments in technology, allowingtactical ustalent toacquisitions, effective marketing and disciplined execution as we launch new services and products. Our seasonedexperienced and well-connected commercial bankers and trust and wealth advisors deliver accesscontinue to reach new customer groups. Our treasury management product suite enables us to deliver first-in-class service to new and existing customers. Our marketing and business development efforts continue to increase, deepenstrengthen and broadenexpand our customer relationships. The focus on our strategic banking initiatives continues to bear fruit and we expect that progress to continue.

Strategic Actions. The long-term success of ourthe transition to a full-service consumer and commercial bankBank is predicated on strengthening relationships with consumer and commercial customers. Management and the Board are utilizing committed resources to implement our strategic objectives, as well as enhancing internal monitoring of performance metrics intended to ensure we are on the right path. Through our experienced relationship managers, we deliver customized solutions using advanced digital platforms and sophisticated cash management tools. We are leveraging our centralized organizational structure to respond quickly to our customers' needs and desires.

Commercial Lending. Commercial loans continue to grow as a percentage of our total loan portfolio, comprising 29%30% of the portfolio at MarchJune 31,30, 2026, compared to 28%29% and 26% at DecemberMarch 31, 20252026 and September 30, 2025, respectively. OurWe maintain strong credit quality through disciplined underwriting, ongoing credit administration and close monitoring of concentration levels by collateral type, geographic location and borrowing relationship allow us to maintain strong credit quality. Commercial lending utilizes loan pricing and profitability software that provides insights into lending opportunities based on the full customer banking relationship and market intelligence regarding competitor pricing. This enhances our ability to profitably compete with other financial institutions both inside and outside our market areas.relationship.

Digital Banking. We are advancing towards a seamlessOur digital banking experience for all customers, enhancing the Bank's ability to attract and retain deposits and lower the cost to service our customers. This strategy includes a new deposit account onboarding platform and digital banking enhancements for debit cardholders, which will allow customers to begin using their card immediately online and in digital wallets without waiting for the delivery of a physical card. During the current quarter, the Bank successfully ran live pilots for this technology and published the mobile app to the app store. We are preparing for general release to our customers in the third quarter of fiscal year 2026. The Bank is taking advantage ofdeploying fintech plug-in technologiestechnology that we expect will integrateintegrates into our digital banking experienceto improve customer experience, extend product offerings and deepen our share of wallet for consumers, small businesses, and commercial customers.

Stockholder Value. DeliveringThe intended result of our strategic initiatives is to deliver long-term sustainable stockholder value continues to be our North Star while maintaining a strong capital position.value. As part of our historically robust and disciplined approach to capital management, we continue to generate returns to stockholders through dividend payments and share repurchases. At MarchJune 31,30, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank. Subsequent to March 31, 2026 through May 6, 2026, theThe Bank distributedanticipates $25.0moving at least $34.0 million from the Bank to the holding company during the quarter-ending September 30, 2026, to fund the payment of dividends and share repurchases during the quarter-ending June 30, 2026.repurchases. Total dividends paid during the secondthird quarter of fiscal year 2026 were $15.9$10.6 million, or $0.125$0.085 per share. During the sixnine months ended MarchJune 31,30, 2026, the Company paid dividends oftotaling $26.9$37.5 million, or $0.210$0.295 per share,share. andWe repurchased 4,532,1146,369,946 shares for $31.7$45.9 million.million during the first nine months of the current fiscal year. Subsequent to MarchJune 31,30, 2026, the Company repurchased an additional 1,002,964187,476 shares for $7.6$1.6 million through MayAugust 6,3, 2026. Since completingconverting ourto second-stepa conversionfully public company in December 2010 through MarchJune 31,30, 2026, we have returned $2.06$2.09 billion to stockholders through $1.59$1.60 billion in cash dividends and $471.6$485.8 million in share repurchases. For the remainder of fiscal year 2026, it is the intention of the Board of Directors to continue the regular quarterly cash dividend of $0.085 per share and to seek further opportunities for value-enhancing share repurchases.

The loan portfolio decreasedincreased $62.5$52.6 million during the current quarter as the one-due to four-family loan portfolio decreased $98.2 million from the prior quarter end, partially offset by commercial loan growth of $39.1$155.2 million, or a 1.7%27% annualized increase, mainly in the commercial real estate portfolio.portfolio, Thepartially Bankoffset expectsby a decrease of $105.6 million in the one- to fundfour-family approximatelyloan $60.0 million of undisbursed amounts on existing commercial real estate and commercial construction loans and approximately $84.4 million of commercial real estate and commercial construction commitments during the June 30, 2026 quarter.portfolio. The near-term outlook for net commercial loan balances is growth of approximately 6%3% for the quarter-endingquarter Juneending September 30, 2026, with overall net commercial loan growth of approximately 20% for the full fiscal year. Total loans receivable, net is anticipated to increase by approximately 1% for the fullcurrent fiscal year. It is expected that a significant portion of repayments from our one- to four-family loan portfolio will continue to be directed toward supporting commercial loan growth, aligning with our ongoing commitment to expand commercial banking services.growth. Maintaining strong credit quality remains a top priority as we expand our commercial loan portfolio. The weighted average DSCR for commercial loan originations during the current quarter was 1.86x1.96x and the weighted average LTV for commercial real estate and construction loans originated was 63%.71%.

Deposits increaseddecreased $165.9$73.8 million during the current quarter,quarter due mainly to thea Bank'sdecrease retailin non-maturitycertificates deposits.of deposit and, to a lesser extent, decreases in money market and checking accounts, partially offset by an increase in high yield savings accounts. Borrowings decreased $122.9$70.8 million from DecemberMarch 31, 2025,2026, due to the maturity of $100.0$50.0 million in borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances. Cash flows from the deposit portfolio were primarily used to pay down the borrowings during the current quarter. Stockholders' equity decreased $15.6$4.4 million during the current quarter, due primarily to strategic share repurchases and dividend payments.

Loan Activity - The following table summarizes activity in the loan portfolio, along with weighted average rates where applicable, for the periods indicated, excluding changes in ACL, deferred loan fees/discounts, and premiums/deferred costs. Loans that were paid off as a result of refinances are included in repayments. Loan endorsements are not included in the activity in the following table because a new loan is not generated at the time of the endorsement. The endorsed balance and rate are included in the ending loan portfolio balance and rate. Commercial loan renewals are not included in the activity presented in the following table unless new funds are disbursed at the time of renewal. The renewal balance and rate are included in the ending loan portfolio balance and rate.

One- to Four-Family Loans - The following table presents, for our portfolio of one- to four-family loans, the amount, percent of total, weighted average rate, weighted average credit score, weighted average LTV, and average balance per loan as of MarchJune 31,30, 2026. Credit scores were updated in September 2025 from a nationally recognized consumer rating agency. The LTVs were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available. In most cases, the most recent appraisal was obtained at the time of origination.

The following table presents origination and refinance activity for our one- to four-family loan portfolio, excluding endorsement activity, along with the weighted average rate, weighted average LTV and weighted average credit score for the time periods indicated. As of MarchJune 31,30, 2026, the Bank had one- to four-family loan and refinance commitments totaling $37.5$39.9 million at a weighted average rate of 5.89%.6.19%.

The following table summarizes the unpaid principal balance of non-owner occupied and owner occupied loans within the Bank's commercial real estate loan portfolio, aggregated by primary collateral, along with weighted LTV and weighted DSCR, as of MarchJune 31,30, 2026.

The following table outlines management's funding expectations for the Bank's commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of MarchJune 31,30, 2026. Of the amounts included in the September 30, 2026 projected disbursement amount, $76.2 million was funded through August 3, 2026. Due to the nature of a revolving line of credit, management is unable to project funding expectations for those balances, so those amounts are presented separately.

The following table presents the Bank's commercial real estate and commercial construction loans by unpaid principal balance, aggregated by type of primary collateral and state, along with weighted average LTV and weighted average DSCR as of MarchJune 31,30, 2026. The LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of MarchJune 31,30, 2026 and the most current collateral value available, which is most often the value at origination/purchase. The DSCR is calculated at the time of origination and is updated at the time of subsequent loan renewals, financial reviews (for applicable loans and lending relationships), and any other time management is aware of changes that may impact the DSCR. The DSCR presented in the table below is based on the DSCR at the time of origination unless an updated DSCR has been calculated or the loan has reached the end of its stabilization period. For construction loans, the DSCR is based on projected stabilized cash flows and the contractual loan payments when the project stabilizes. In general, commercial borrowers with total loans of $2.5 million or more are reviewed at least annually to monitor financial performance.

The following table presents the unpaid principal balance of the Bank's commercial real estate and commercial construction loans aggregated by type of primary collateral, along with weighted average rate, LTV, and DSCR as of MarchJune 31,30, 2026.

The following table presents the Bank's commercial construction loans, including unpaid principal and undisbursed amounts, along with outstanding commercial construction loan commitments as of MarchJune 31,30, 2026, aggregated by type of primary collateral, alongas withwell as the weighted average rate, LTV, and DSCR. The DSCR presented in the table below is based on projected stabilized cash flows and the contractual loan payments when the project stabilizes. The weighted average DSCR for the office building line is below 1.15x due primarily to one $20.5 million construction loan for a leased medical office building that was originated during the current quarter with an anticipated LTV of 71% based upon the as completed appraised value. The Bank has a long-term relationship with the borrower and the borrower has extensive development experience.

The following table presents the Bank's commercial real estate and construction loans, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of MarchJune 31,30, 2026, categorized by aggregate gross loan and commitment amount, alongas withwell as average loan amount,amount and weighted average rate, LTV, and DSCR. For amounts over $60.0 million, there waswere $151.8$151.4 million securedfor byloans related to hotels in Arizona and California, $143.1$142.9 million securedfor byloans related to multi-family properties in Kansas, and $69.6 million related to a loan secured by a senior housing facility in Kansas. The largest loan included in the table below was $86.0 million, which was fully disbursed as of MarchJune 31,30, 2026, and is collateralized by a hotel in Arizona. IncludedAt the prior quarter end, there were five loans in the >$20 to $30 million category are five loans with DSCRs below 1.15x. OfDuring the current quarter the DSCR on one of those fiveloans loans,increased fourto above 1.15x and new commitments above 1.15x resulted in the overall DSCR for this category being over 1.15x at June 30, 2026. Three of the loans,four loans in this category with aDSCRs grossbelow loan amount of $99.3 million,1.15x are each with threeone of our largest borrowing groups. We have over 20 years of experience with these borrowing groups and the guarantors have expertise in the operation of the properties securingsecured by the loans. All of these loans were current as of MarchJune 31,30, 2026 and are being actively monitored by management. The weighted average LTV for these fourthree loans was 68%67% as of MarchJune 31,30, 2026. The fifthfourth loan, with an unpaid principal balance of $24.3$24.0 million, was on nonaccrual and classified as substandard as of MarchJune 31,30, 2026. A specific valuation allowance was established related to this loan as of MarchJune 31,30, 2026. See additional discussion regarding the specific valuation allowance in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Asset Quality" section below.

The following table summarizes the Bank's commercial and industrial loans by loan purpose as of the dates indicated, along with DSCR weighted by gross loan amount at MarchJune 31,30, 2026. As of June 30, 2026, 69% of the Bank's commercial and industrial gross loan balance were to borrowers located in Kansas. The Bank had fourfive commercial and industrial loan commitments totaling $36.6$13.8 million, with a weighted average rate of 6.83%,6.59%, at MarchJune 31,30, 2026. Management anticipates growth in the commercial and industrial loan portfolio as the Bank advances its strategy to grow all aspects of commercial banking. However, given the inherent characteristics of these loans, balances will likely fluctuate over time.

The following table presents the Bank's commercial and industrial loan portfolio, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of MarchJune 31,30, 2026, categorized by aggregate gross loan and commitment amounts, alongas withwell as average loan amount, and weighted average DSCR. The largest loan included in the table below was a working capital loan with a gross balance of $36.0 million, of which $11.8$7.3 million remained undisbursed as of MarchJune 31,30, 2026. This loan is part of the Bank's largest commercial and industrial lending relationship, which had a total gross loan balance of $84.7$84.4 million,million as of June 30, 2026, representing 29%approximately 26% of the gross commercial and industrial loan portfolio at Marchthat 31, 2026.date. The borrower is located in Kansas and, as of MarchJune 31,30, 2026, also maintained an additional working capital loan with a gross loan balance greater than $15 million, for a total of two loans with a gross loan amount greater than $15 million. AlsoThese includedtwo inloans thewere gross loancurrent and commitment amounts greater than $15 millionperforming as of MarchJune 31,30, 2026 was a loan commitment to a borrower located in Georgia for the purchase and refinancing of business assets.2026.

Delinquent and nonaccrual loans and OREO. The following table presents the Bank's 30 to 89 day delinquent loans at the dates indicated. The amounts in the table represent the unpaid principal balance of the loans less related charge-offs, if any. Of the loans 30 to 89 days delinquent at MarchJune 31,30, 2026, approximately 60%81% were 59 days or less delinquent.

The following table presents the states where the properties securing ten percent or more of the total amount of the Bank's one- to four-family loans, excluding construction loans, are located and the corresponding balance of loans 30 to 89 days delinquent, 90 or more days delinquent or in foreclosure, and weighted average LTV for loans 90 or more days delinquent or in foreclosure at MarchJune 31,30, 2026. The amounts in the table represent the unpaid principal balance of the loans, less related charge-offs, if any. The LTVs were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available.

The following table presents the unpaid principal balance of commercial real estate loans, aggregated by state, that were 30 to 89 days delinquent or 90 or more days delinquent or in foreclosure, and the weighted average LTV and weighted average DSCR for loans 90 or more days delinquent or in foreclosure at MarchJune 31,30, 2026. See additional discussion regarding the Bank's commercial real estate loan DSCRs and LTVs in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Loans Receivable - Commercial Loans" section above.

Classified Loans. The following table presents the amortized cost of loans classified as special mention or substandard at the dates presented. The decrease in commercial real estate special mention loans at MarchJune 31,30, 2026 compared to September 30, 2025 was due mainly to a hotel participation loan being upgraded to a "pass" dueclassification toas a result of an improvement in the hotel's financial results. The majority of the substandard commercial real estate loan balance atfor the datesperiods presented in the table below relates to one borrowing relationship. During the currentMarch 31, 2026 quarter, an updated appraisal was received related to the collateral securing thisthe lending relationship. The updated appraisal was lower than the appraisal received approximatelyin onethe prior year ago and as a result, a $4.0 million specific valuation allowance was recorded as of March 31, 2026 related to this lending relationship.relationship which was still in place at June 30, 2026. The loans associated with this lending relationship were on nonaccrual at all dates presented in the table below.

Allowance for Credit Losses. The Bank utilizes a discounted cash flow model for estimating expected credit losses for pooled loans and loan commitments. Expected credit losses are determined by calculating projected future loss rates, which are dependent upon forecasted economic indices, and applying qualitative factors when deemed appropriate by management. At MarchJune 31,30, 2026, management applied qualitative factors to account for large dollar commercial real estate loan concentrations and potential risk of loss in market value for newer one- to four-family loans. These qualitative factors were applied to account for credit risks not fully reflected in the discounted cash flow model.

The distribution of our ACL and the ratio of ACL to loans receivable, by loan type, at the dates indicated is summarized below. The decrease in the ACL to loans receivable ratio as of June 30, 2026 compared to March 31, 2026, was due primarily to an update to the ACL model's regression analyses. The update entailed incorporating additional historical loss time periods for all loan categories within the ACL model and resulted in a decrease in the ACL of approximately $800 thousand, mainly within the commercial construction loan category. The historical loss experience for commercial construction loans continued to show lower historical losses resulting in a lower loss rate for this loan category. The increase in the ACL to loans receivable ratio as of MarchJune 31,30, 2026,2026 compared to December 31, 2025 and September 30, 2025, was due primarily to establishing a $4.0 million specific valuation allowance related to thea commercial real estate lending relationship during the March 31, 2026 quarter which continued to be in place at June 30, 2026, partially offset by improvement between periods in some of the commercial-related forecasted economic indices and an update to the ACL model's regression analyses (as discussed above.above). Based on management's evaluation of the credit risk within the Bank's commercial loan portfolio, taking into consideration DSCRs and LTVs, management believes the Bank's ACL ratio for commercial loans is appropriate for the credit risk. See additional discussion regarding the Bank's commercial real estate loan DSCRs and LTVs in the "Financial Condition - Loans Receivable - Commercial Loans" section above.

Historically, the Bank has maintained very low delinquency ratios and net charge-offNCO rates. Over the past two years, the Bank's highest ratio of commercial loans 90 days or more delinquent to total commercial loans at a quarter end was 0.22%. The highest such ratio for one- to four-family originated and correspondent loans, combined, was 0.17%. During the 10-year period ended MarchJune 31,30, 2026, the Bank recognized total NCOs of $904$1.2 thousand.million. As of MarchJune 31,30, 2026, the ACL balance was $26.6$26.1 million and the reserve for off-balance sheet credit exposures totaled $6.3$6.2 million, which management believes is adequate for the credit risk characteristics in our loan portfolio.

The ratio of NCOs during the period to average non-performing assets was lowerhigher in the current year period compared to the prior year period due to an increase in NCOs during the current year period. The ratio of ACL to nonaccrual loans was higher at the end of the current year period compared to the prior year period due to a higher averageACL balance of non-performing assets during the six months ended March 31, 2026. The ratio of ACL to nonaccrual loans was lower at theJune end of the current year six-month period compared to the prior year six-month period due to a higher balance of nonaccrual loans at March 31,30, 2026. The increase in the ratio of the ACL to total loans as of MarchJune 31,30, 2026 from MarchJune 31,30, 2025 was due primarily to an increase in the commercial loan portfolio which has a higher ACL to loans receivable ratio than one- to four-family loans and establishing a $4.0 million specific valuation allowance related to a nonaccrualcommercial commercialreal estate lending relationship during the current year period.period, Seepartially Partoffset II,by Itemimprovement 7.between Management'speriods Discussionin some of the commercial-related forecasted economic indices and Analysisan update to the ACL model's regression analyses. ACL at the end of Financialthe Conditionperiod andto ResultsNCOs ofduring Operationsthe -current Criticalyear Accountingperiod Estimates"(annualized) was lower compared to the prior year period due primarily to higher NCOs in the Company's Annual Report on Form 10-K for the fiscalcurrent year ended September 30, 2025 for additional information on the regression analysis update that occurred in the prior fiscal year.period. Additional information related to ACL activity by specific loan categories for the current year period can be found in "Part I, Item 1. Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 4. Loans Receivable and Allowance for Credit Losses" within this Quarterly Report on Form 10-Q. ACL at the end of the period to NCOs during the period (annualized) was lower compared to the prior year six-month period, due primarily to higher NCOs in the current year six-month period.

Securities. The following table presents the distribution of our securities portfolio, at amortized cost, at the dates indicated. The majority of our securities are government guaranteed or issued by GSEs. Overall, fixed-rate securities comprised 91% of our securities portfolio at MarchJune 31,30, 2026. The WAL is the estimated remaining maturity (in years) after three-month historical prepayment speeds and projected call option assumptions have been applied. WeightedDuring averagethe yieldscurrent onfiscal tax-exemptyear, the Bank reinvested cash flows from the securities areportfolio notinto calculatedcommercial onloan agrowth fullyand tax-equivalentto basis.pay down maturing FHLB borrowings.

Liabilities. Total liabilities were $8.80$8.64 billion at MarchJune 31,30, 2026, compared to $8.73 billion at September 30, 2025. The $72.3$90.2 million increasedecrease was due primarily to a $333.0$314.5 million increasedecrease in deposits,borrowings, partially offset by a $243.7$259.3 million decreaseincrease in borrowings.deposits.

Deposits. The following table presents the amount, weighted average rate and percent of total for the components of our deposit portfolio at the dates presented. The decrease in the weighted average deposit portfolio rate as of MarchJune 31,30, 2026 compared to DecemberMarch 31, 20252026 was due primarily to an increase in retail checking account balances,both a reduction in the rate on retail money market accounts, and a decrease in the retail certificatebalance of depositcertificates portfolioof rate.deposit, partially offset by an increase in high yield savings account balances. The decrease in the weighted average deposit portfolio rate as of March 31, 2026 compared to September 30, 2025 was due mainly to a decrease in the rate paid on retail certificates of deposit and retail money market accounts, along with an increase in the balance of retail checking accounts and commercial non-interest bearing checking account.

As of MarchJune 31,30, 2026, approximately $779.2$771.4 million (or approximately 11%) of the Bank's Call Report deposit balance was uninsured, of which approximately $645.8 million (or approximately 9% of the Bank's Call Report deposit balance) related to commercial and retail deposit accounts, with the remainder mainly comprised of fully collateralized public unit deposits and intercompany accounts. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

Borrowings. Total borrowings at MarchJune 31,30, 2026 were $1.71$1.64 billion, which was comprised of $1.61$1.54 billion in fixed-rate FHLB advances, $100.0 million in variable-rate FHLB advances tied to an interest rate swap, and $1.2 million in finance leases. Borrowings decreased $243.7$314.5 million from September 30, 2025 due primarily to the maturity of $200.0$250.0 million of borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances. Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings and repay amortizing FHLB advances. Management will continue to monitor opportunities for wholesale funding and may pay down FHLB advances in future periods. The Bank may also renew certain fixed-rate advances in the future using adjustable-rate advances in order to better match the repricing characteristics of its increasing commercial loan portfolio.

The following table presents the maturity of term borrowings, which consist of FHLB advances, along with the associated weighted average contractual and effective rates as of MarchJune 31,30, 2026. Amortizing FHLB advances totaling $233.6$212.5 million are presented based on their maturity dates versus their quarterly scheduled repayment dates.

The $425.0 million of new FHLB borrowings reflected in the table above in the current year nine-month period was used to prepay $425.0 million of existing advances which are included in maturities and repayments. During the currentMarch 31, 2026 quarter, the Bank prepaid $375.0 million of fixed-rate advances with a weighted average effective rate of 4.36% and a WAM of 0.9 years and replaced them with $375.0 million of fixed-rate advances with a weighted average effective rate of 3.81% and a WAM of 2.4 years. This transaction resulted in prepayment fees of $2.1 million, which will be recognized in interest expense over the life of the new FHLB advances. During the quarter ended December 31, 2025, the Bank prepaid a $50.0 million fixed-rate advance with a weighted average effective rate of 4.03% and a WAM of 0.5 years and replaced it with a $50.0 million fixed-rate advance with a weighted average effective rate of 3.64% and a WAM of 2.0 years. This transaction resulted in prepayment fees of $11 thousand, which will be recognized in interest expense over the life of the new FHLB advance. These prepayment activities are reflected through the effective rates in the table above. Management will continue to monitor opportunities for wholesale funding and may pay down FHLB advances in future periods.

Maturities of Interest-Bearing Liabilities. The following table presents the maturity and weighted average repricing rate, which is also the weighted average effective rate, of certificates of deposit, split between retail/commercial and public unit amounts, and non-amortizing FHLB advances for the next four quarters as of MarchJune 31,30, 2026.

The following table sets forth the WAM information for our certificates of deposit, in years, as of MarchJune 31,30, 2026.

Stockholders' Equity. Stockholders' equity totaled $1.03$1.02 billion at MarchJune 31,30, 2026. Consistent with our goal to operate a sound and profitable financial organization that delivers long-term stockholder value, we actively seek to maintain a well-capitalized status for the Bank in accordance with regulatory standards. As of MarchJune 31,30, 2026, all of the Bank's capital ratios exceeded the well-capitalized requirements, and the Bank exceeded internal policy thresholds for sensitivity to changes in interest rates. As of MarchJune 31,30, 2026, the Bank's community bank leverage ratioCBLR was 9.5%.9.6%. Excluding the impact of deferred tax assets related to the Bank's net operating loss carryforward and federal tax credits, the Bank's CBLR was 9.8%9.9% as of MarchJune 31,30, 2026. See "Liquidity and Capital Resources" below for additional information regarding the Bank's regulatory capital requirements.

During the sixnine months ended MarchJune 31,30, 2026, the Company repurchased 4,532,1146,369,946 shares of common stock at an average price of $7.00$7.21 per share, or $31.7$45.9 million in total. Subsequent to MarchJune 31,30, 2026 through MayAugust 6,3, 2026, the Company repurchased an additional 1,002,964187,476 shares of common stock at an average price of $7.56$8.54 per share, or $7.6$1.6 million in total, bringing total share repurchases during fiscal year 2026 through MayAugust 6,3, 2026 to 5,535,0786,557,422 shares for $39.3$47.5 million. As of MayAugust 6,3, 2026, total shares outstanding waswere 126,694,827.125,698,283. The Company intends to opportunistically repurchase stock from time to time depending upon market conditions, available liquidity, and other factors. Although our existing repurchase plan has no expiration date, we are required to annually seek the FRB of Kansas City's non-objection for the buyback amount. The FRB's current non-objection for the Company to repurchase up to $75 million of stock expires in February 2027. As of MayAugust 6,3, 2026 the Company had $31.8$23.6 million remaining authorized under its existing stock repurchase plan.