CAPITOL FEDERAL FINANCIAL, INC.® REPORTS THIRD QUARTER FISCAL YEAR 2026 RESULTS

TOPEKA, Kan., July 29, 2026 /PRNewswire/ -- Capitol Federal Financial, Inc. ® (NASDAQ: CFFN) (the "Company," "we" or "our"), the parent company of Capitol Federal Savings Bank (the "Bank"), announced preliminary results today for the quarter ended June 30, 2026. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com. Additionally, our quarterly investor presentation can also be found on our website at https://ir.capfed.com/events-and-presentations/default.aspx.

The Company ended the current quarter with total assets of $9.66 billion and stockholders' equity of $1.02 billion and had net income for the quarter of $23.6 million. The continued growth in assets and strong earnings performance are the direct result of disciplined execution of our strategic banking initiatives by the Board and management. This marks our eighth consecutive quarter of net interest income growth and net interest margin expansion. Net interest income increased $1.2 million to $53.5 million, and net interest margin increased seven basis points to 2.31%, each due primarily to a reduction in borrowings. In addition, our commitment to share repurchases continued with the purchase of $15.5 million in shares between April 1, 2026 and July 23, 2026.

Executing on our strategic initiatives during the current quarter enabled growth in our commercial loan portfolio of $155.2 million, bringing the total to $2.47 billion at June 30, 2026, up from $2.11 billion at September 30, 2025. We continue to grow our commercial loan portfolio primarily by redeploying funds received from the repayment of single-family loans not utilized to replace originations in our local markets. In keeping with the strategy to remix our loan portfolio, our total single-family loans decreased from $5.90 billion at September 30, 2025 to $5.60 billion at June 30, 2026.

John B. Dicus, Chairman and CEO, stated, "We are seeing the expected results from the successful execution of our strategies of delivering a high‑quality consumer experience while continuing to scale our commercial capabilities. Our technology and product investments are resonating with commercial clients today, with expanded enhancements for trust and wealth customers arriving this summer."

"Our strong financial results and strengthened capital position are the direct result of strategic initiatives that have been and continue to be implemented. This directly benefits our stockholders by enabling the payment of dividends, including a special dividend paid in January 2026, repurchases of our stock and a higher tangible book value per share. We expect that these repurchases will continue to the extent market opportunities present themselves."

Highlights for the current quarter include:

Balance sheet highlights include:

Strategic Banking Initiatives

Capitol Federal is a full-service consumer and commercial bank that is continuing to expand its products and services to further meet the needs of its current customers as well as drive substantial new customer growth. These strategic initiatives require investments in technology, tactical new hires, effective marketing and strong execution allowing us to launch new services and products. Our seasoned and well-connected commercial bankers and trust and wealth advisors continue to deliver access to 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, deepen and broaden our customer relationships. The focus on our strategic banking initiatives continues to bear fruit and we expect that progress to continue as we expand products and services to a broader range of customers.

Strategic Actions. The long-term success of our transition to a full-service consumer and commercial bank 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 30% of the portfolio at June 30, 2026, compared to 29% and 26% at March 31, 2026 and September 30, 2025, respectively. We maintain strong credit quality through disciplined underwriting, ongoing credit administration and close monitoring of concentration levels by collateral type, geographic location and borrowing relationship.

During the current fiscal year, our commercial lenders began utilizing loan pricing and profitability software that provides insights on lending opportunities based on the full customer banking relationship and market intelligence regarding competitor pricing. As a result, we are profitably competing with other financial institutions both inside and outside our market areas leading, in part, to the growth in our commercial lending portfolio.

Treasury Management. The Bank's competitive suite of treasury management products are supported by an experienced team of treasury management officers. This team focuses on serving the deposit and cash management needs of commercial customers, growing this line of business through the acquisition of new customers located in our local market areas, and those we lend to outside those areas.

Our team of business development officers is tasked with growing the deposit base within the small business customer segment and providing product lines specifically designed for these customers. Treasury management officers and business development officers often create depository relationships with new customers independent of a lending relationship. This is a focus area for our sales teams as the Bank diversifies funding sources and seeks to increase fee revenue tied to depository accounts.

During the current quarter, we (1) introduced digital deposit account onboarding for small business customers using industry-leading risk management and screening tools to eliminate manual screening processes and (2) implemented new technology for lockbox services, which our Treasury Management Officers are currently utilizing to work with prospective customers. We continue to evaluate additional technology in order to capture a larger share of this business with even more products and services.

Digital Banking. Our digital banking 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. The Bank is developing fintech plug-in technology that we expect will integrate into digital banking to improve customer experience, extend product offerings and deepen our share of wallet for customers, small businesses, and commercial customers.

During the current quarter, we (1) completed the development of the instant digital issuance application and anticipate launching it in late July 2026, (2) entered into agreements and started development to bring both self-directed and automated investing capabilities into True Blue Online®, providing customers with an investment experience directly connected to their checking or savings account and (3) initiated development for new debit card management software for True Blue Online®, continuing to improve self-service debit card management capabilities.

Wealth Management. Building on our strategic investments in Wealth Management and Private Banking, we made meaningful progress during the quarter that advances our long-term growth objectives. We successfully continued the implementation of enhancements to our trust and financial advisory platform, including improvements to processes, technology, and service delivery that are expected to strengthen both the client and advisor experience. This transformation is expected to continue through the remainder of the current fiscal year.

In Private Banking, we continued to deepen relationships with high-net-worth households, business owners, and commercial clients through the onboarding of new relationships that included a combination of wealth management assets, deposits, and lending opportunities. Our focus on delivering coordinated banking, lending, and wealth management solutions has enhanced client engagement and expanded opportunities across multiple lines of business.

We also continued to strengthen referral activity between Wealth Management, Retail Banking, and Commercial Banking teams. These collaborative efforts have increased the identification of opportunities to serve clients more comprehensively and support the Bank's strategy of growing fee-based revenue while deepening core customer relationships. These factors contributed to strong new client acquisition and asset growth, resulting in record assets under management at quarter-end.

The progress achieved this quarter demonstrates continued momentum in building a scalable wealth management and private banking platform that we believe will generate sustainable revenue growth, improve operating efficiency, and enhance stockholder value over time.

Stockholder Value. The intended result of our strategic initiatives is to deliver long-term sustainable stockholder 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 June 30, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank. The Bank anticipates moving at least $34.0 million to the holding company during the quarter-ending September 30, 2026, to fund the payment of dividends and share repurchases. Total dividends paid during the third quarter of fiscal year 2026 were $10.6 million, or $0.085 per share. During the nine months ended June 30, 2026, the Company paid dividends totaling $37.5 million, or $0.295 per share. We repurchased 6,369,946 shares for $45.9 million during the first nine months of the current fiscal year. Subsequent to June 30, 2026, the Company repurchased 147,476 shares for $1.2 million through July 23, 2026. Since completing our second-step conversion in December 2010 through June 30, 2026, we have returned $2.09 billion to stockholders through $1.60 billion in cash dividends and $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.

Comparison of Operating Results for the Three Months Ended June 30, 2026 and March 31, 2026

For the quarter ended June 30, 2026, the Company recognized net income of $23.6 million, or $0.19 per share, compared to net income of $20.1 million, or $0.16 per share, for the quarter ended March 31, 2026. The increase in net income was due primarily to a release of provision for credit losses compared to a provision expense in the prior quarter, along with increases in net interest income and non-interest income, partially offset by higher non-interest expense. The net interest margin increased seven basis points, from 2.24% for the prior quarter to 2.31% for the current quarter, due primarily to a decrease in the average balance of borrowings and growth in the higher yielding commercial loan portfolio.

Interest and Dividend Income

The following table presents the components of interest and dividend income for the time periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30,

March 31,

Change Expressed in:

2026

Dollars

Percent

(Dollars in thousands)

INTEREST AND DIVIDEND INCOME:

Loans receivable

$ 90,566

$ 89,323

$ 1,243

1.4 %

Mortgage-backed securities ("MBS")

10,747

10,853

(106)

(1.0)

Cash and cash equivalents

1,988

2,474

(486)

(19.6)

Federal Home Loan Bank Topeka ("FHLB") stock

1,767

1,858

(91)

(4.9)

Investment securities

(1)

(1.9)

Total interest and dividend income

$ 105,119

$ 104,560

$ 559

0.5

The increase in interest income on loans receivable was due to growth in the commercial loan portfolio as cash flows from the one- to four-family loan portfolio continue to be redirected into the higher yielding commercial loan portfolio, along with an increase in the yield on the commercial and one-to four-family loan portfolios. The decrease in interest income on cash and cash equivalents was due to a decrease in the average balance compared to the prior quarter as excess operating cash was used, in part, to pay off borrowings that matured during the current quarter.

Interest Expense

The following table presents the components of interest expense for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30,

March 31,

Change Expressed in:

2026

Dollars

Percent

(Dollars in thousands)

INTEREST EXPENSE:

Deposits

$ 36,275

$ 36,299

$ (24)

(0.1 %)

Borrowings

15,361

15,995

(634)

(4.0)

Total interest expense

$ 51,636

$ 52,294

$ (658)

(1.3)

The decrease in interest expense on deposits was due primarily to a decrease in the average cost and average balance of retail certificates of deposit, which was almost entirely offset by an increase in the average balance of high yield savings accounts. The reduction in the cost of retail certificates of deposit was due to existing higher rate certificates of deposit renewing at lower rates. Interest expense on borrowings was lower compared to the prior quarter due to the full quarter impact of $100.0 million of FHLB borrowings that matured and were not replaced late in the prior quarter and the full quarter impact of prepaying $375.0 million of FHLB borrowings with a weighted average effective rate of 4.36% and replacing them with $375.0 million of FHLB borrowings with a weighted average effective rate of 3.81%, along with $50.0 million of FHLB borrowings that matured during the current quarter that were not replaced.

Provision for Credit Losses

The Company recorded a release of provision for credit losses of $433 thousand during the current quarter compared to a provision for credit losses of $2.4 million for the prior quarter. The release of provision for credit losses in the current quarter was due primarily to an update to the allowance for credit losses ("ACL") model's regression analyses which mainly impacted the commercial construction loan category, partially offset by commercial loan and commitment growth during the current quarter.

Non-Interest Income

The following table presents the components of non-interest income for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30,

March 31,

Change Expressed in:

2026

Dollars

Percent

(Dollars in thousands)

NON-INTEREST INCOME:

Deposit service fees

$ 2,987

$ 2,690

$ 297

11.0 %

Income from bank-owned life insurance ("BOLI")

1,856

1,151

705

61.3

Insurance commissions

838

512

326

63.7

Other non-interest income

987

1,106

(119)

(10.8)

Total non-interest income

$ 6,668

$ 5,459

$ 1,209

22.1

The increase in deposit service fees was due primarily to an increase in debit card usage, which generated additional interchange and service charge income in the current quarter. The increase in BOLI income was due primarily to the receipt of death benefits in the current quarter with no such benefits received in the prior quarter, along with a full quarter impact of the purchase of $45.0 million of BOLI policies during the prior quarter. Insurance commissions were higher compared to the prior quarter due primarily to the receipt of lower than accrued contingent commissions, along with improved sales during the current quarter. The decrease in other non-interest income was due mainly to higher commercial loan prepayment fees in the prior quarter.

Non-Interest Expense

The following table presents the components of non-interest expense for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30,

March 31,

Change Expressed in:

2026

Dollars

Percent

(Dollars in thousands)

NON-INTEREST EXPENSE:

Salaries and employee benefits

$ 16,858

$ 15,828

$ 1,030

6.5 %

Information technology and related expense

4,787

5,425

(638)

(11.8)

Occupancy, net

3,372

3,265

107

3.3

Professional and other services

1,501

1,579

(78)

(4.9)

Federal insurance premium

1,103

1,110

(7)

(0.6)

Advertising and promotional

1,365

645

720

111.6

Deposit and loan transaction costs

631

768

(137)

(17.8)

Office supplies and related expense

442

511

(69)

(13.5)

Other non-interest expense

1,283

1,143

140

12.2

Total non-interest expense

$ 31,342

$ 30,274

$ 1,068

3.5

The Company's efficiency ratio was 52.10% for the current quarter compared to 52.45% for the prior quarter. The efficiency ratio is a measure of a financial institution's total non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income. A lower value generally indicates that it is costing the financial institution less money to generate revenue. The Company's operating expense ratio (annualized) for the current quarter was 1.29%, compared to 1.24% for the prior quarter. The operating expense ratio is a measure of a financial institution's total non-interest expense as a percentage of average assets, providing insight into how efficiently the Company is managing its expenses in relation to its assets and does not take into consideration changes in interest rates. The operating expense ratio was higher in the current quarter due to higher non-interest expense.

Income Tax Expense

The following table presents pretax income, income tax expense, and net income for the periods presented, along with the change measured in dollars and percent and the effective tax rate.

For the Three Months Ended

June 30,

March 31,

Change Expressed in:

2026

Dollars

Percent

(Dollars in thousands)

Income before income tax expense

$ 29,242

$ 25,079

$ 4,163

16.6 %

Income tax expense

5,672

4,931

741

15.0

Net income

$ 23,570

$ 20,148

$ 3,422

17.0

Effective tax rate

19.4 %

19.7 %

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

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

Interest and Dividend Income

The following table presents the components of interest and dividend income for the periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30,

Change Expressed in:

2026

2025

Dollars

Percent

(Dollars in thousands)

INTEREST AND DIVIDEND INCOME:

Loans receivable

$ 269,681

$ 245,175

$ 24,506

10.0 %

MBS

32,941

34,451

(1,510)

(4.4)

Cash and cash equivalents

7,235

6,220

1,015

16.3

FHLB stock

5,657

6,834

(1,177)

(17.2)

Investment securities

154

2,795

(2,641)

(94.5)

Total interest and dividend income

$ 315,668

$ 295,475

$ 20,193

6.8

The increase in interest income on loans receivable was due primarily to growth in the commercial loan portfolio, as cash flows from the one-to four-family loan portfolio continued to be redirected into the higher yielding commercial loan portfolio. Interest income on cash and cash equivalents increased due to an increase in the average balance compared to the prior year period, partially offset by a decrease in the weighted average yield. The increase in the average balance was driven primarily by carrying more cash during the current year period to support anticipated commercial loan activities, paying off maturing borrowings, and operational needs. The decrease in FHLB stock dividend income was due primarily to a reduction in the balance of FHLB stock due to paying off maturing FHLB borrowings between periods and repayments on amortizing FHLB borrowings, which reduced the Bank's required FHLB stock holdings. The decrease in interest income on investment securities was due primarily to a lower average balance, due mainly to securities that were called or matured between periods and were not replaced in their entirety.

Interest Expense

The following table presents the components of interest expense for the periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30,

Change Expressed in:

2026

2025

Dollars

Percent

(Dollars in thousands)

INTEREST EXPENSE:

Deposits

$ 110,074

$ 109,058

$ 1,016

0.9 %

Borrowings

48,528

54,889

(6,361)

(11.6)

Total interest expense

$ 158,602

$ 163,947

$ (5,345)

(3.3)

Interest expense on deposits was higher during the current year period due primarily to an increase in the average balance of the Bank's high yield savings accounts, partially offset by a decrease in the cost of retail certificates of deposit. The decrease in interest expense on borrowings was due primarily to a decrease in the average balance of borrowings due to FHLB borrowings that matured between periods that were not renewed, along with continued repayments on amortizing FHLB advances. Cash flows from the increase in the deposit portfolio and excess operating cash were used to pay off maturing FHLB borrowings and repay amortizing FHLB advances.

Provision for Credit Losses

The Company recorded a provision for credit losses of $3.0 million during the current year period compared to a provision for credit losses of $226 thousand for the prior year period. The provision for credit losses in the current year period was due primarily to establishing a $4.0 million specific valuation allowance related to a nonaccrual commercial lending relationship, along with commercial loan and commitment growth, 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.

Non-Interest Income

The following table presents the components of non-interest income for the periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30,

Change Expressed in:

2026

2025

Dollars

Percent

(Dollars in thousands)

NON-INTEREST INCOME:

Deposit service fees

$ 8,549

$ 8,170

$ 379

4.6 %

Income from BOLI

3,972

2,053

1,919

93.5

Insurance commissions

2,139

2,587

(448)

(17.3)

Other non-interest income

2,946

2,124

822

38.7

Total non-interest income

$ 17,606

$ 14,934

$ 2,672

17.9

Income from BOLI was higher in the current year period due mainly to a change in rates and an increase in the crediting rate as a result of updates to certain policies that were executed in the second half of the prior fiscal year, along with $45.0 million in new BOLI policies being purchased during the current year period, and the receipt of higher death benefits in the current year period compared to the prior year period. Insurance commissions were lower compared to the prior year period due primarily to contingent commissions, specifically, contingent commissions received versus accrued in the current year period compared to the prior year period. Other non-interest income was higher in the current year period due mainly to increased commercial loan fee activity.

Non-Interest Expense

The following table presents the components of non-interest expense for the periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30,

Change Expressed in:

2026

2025

Dollars

Percent

(Dollars in thousands)

NON-INTEREST EXPENSE:

Salaries and employee benefits

$ 48,433

$ 44,447

$ 3,986

9.0 %

Information technology and related expense

15,346

14,637

709

4.8

Occupancy, net

10,087

10,105

(18)

(0.2)

Professional and other services

4,869

3,843

1,026

26.7

Federal insurance premium

3,324

3,205

119

3.7

Advertising and promotional

3,066

3,035

1.0

Deposit and loan transaction costs

2,115

2,185

(70)

(3.2)

Office supplies and related expense

1,434

1,206

228

18.9

Other non-interest expense

3,418

3,589

(171)

(4.8)

Total non-interest expense

$ 92,092

$ 86,252

$ 5,840

6.8

The increase in salaries and employee benefits was mainly attributable to an increase in full-time equivalent employees between periods, merit increases and salary adjustments to remain market competitive, as well as incentive compensation. The increase in information technology and related expense was due mainly to an increase in software licensing expense related to new agreements and applications, along with an increase in costs of existing agreements, partially offset by a vendor credit discussed above in the "Comparison of Operating Results for the Three Months Ended June 30, 2026 and March 31, 2026 - Non-Interest Expense". The increase in professional and other services was due primarily to new relationships with outside service providers and additional services provided by current providers, of which approximately $425 thousand is not expected to recur in future periods. The decrease in other non-interest expense was due mainly to higher customer fraud losses in the prior year period.

The Company's efficiency ratio was 52.72% for the current year period compared to 58.89% for the prior year 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 period was 1.25% compared to 1.20% for the prior year 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.

Income Tax Expense

The following table presents pretax income, income tax expense, and net income for the periods presented, along with the change measured in dollars and percent and effective tax rate.

For the Nine Months Ended

June 30,

Change Expressed in:

2026

2025

Dollars

Percent

(Dollars in thousands)

Income before income tax expense

$ 79,535

$ 59,984

$ 19,551

32.6 %

Income tax expense

15,513

10,772

4,741

44.0

Net income

$ 64,022

$ 49,212

$ 14,810

30.1

Effective tax rate

19.5 %

18.0 %

Income tax expense was higher in the current year period due primarily to higher pretax income. The effective tax rate was higher in the current year period due primarily to the prior year period including a reduction in net state income tax expense due to the remeasurement of the Bank's state deferred tax assets and liabilities to account for the enactment of a Kansas tax law that changes the way taxable income is attributed to the state.

Financial Condition as of June 30, 2026

The following table summarizes the Company's financial condition at the dates indicated.

Annualized

June 30,

March 31,

Percent

September 30,

Percent

2026

Change

2025

Change

(Dollars and shares in thousands)

Total assets

$ 9,662,184

$ 9,829,080

(6.8 %)

$ 9,778,701

(1.6 %)

Available-for-sale ("AFS") securities

783,559

809,566

(12.8)

867,216

(12.9)

Loans receivable, net

8,166,762

8,114,205

2.6

8,111,961

0.9

Deposits

6,850,705

6,924,491

(4.3)

6,591,448

5.2

Borrowings

1,636,246

1,707,055

(16.6)

1,950,770

(21.5)

Stockholders' equity

1,021,320

1,025,726

(1.7)

1,047,677

(3.4)

Equity to total assets at end of period

10.6 %

10.4 %

10.7 %

Tangible book value per share

$ 8.04

$ 7.96

4.0

$ 7.85

3.2

Average number of basic and diluted

shares outstanding

124,009

126,631

(8.3)

129,874

(6.0)

The loan portfolio increased $52.6 million during the current quarter due to commercial loan growth of $155.2 million, or a 27% annualized increase, mainly in the commercial real estate portfolio, partially offset by a decrease of $105.6 million in the one- to four-family loan portfolio. The near-term outlook for net commercial loan balances is quarterly growth of approximately 3% for the quarter ending September 30, 2026, with overall net commercial loan growth of approximately 20% for the fiscal year. Total loans receivable, net is anticipated to increase by approximately 1% for the current fiscal year. It is expected that repayments from our one- to four-family loan portfolio will continue to be directed toward supporting commercial loan growth. Maintaining strong credit quality remains a top priority as we expand our commercial loan portfolio. The weighted average debt service coverage ratio ("DSCR") for commercial loan originations during the current quarter was 1.96x and the weighted average loan-to-value ("LTV") for commercial real estate and construction loans originated was 71%. The weighted average DSCR and LTV for our commercial real estate and construction loan portfolios was 1.77x and 63%, respectively, at June 30, 2026.

Deposits decreased $73.8 million during the current quarter due mainly to a decrease in certificates 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 $70.8 million from March 31, 2026, due to the maturity of $50.0 million in borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances. Management estimates that the Bank had $4.22 billion in liquidity available at June 30, 2026, based on the Bank's blanket collateral agreement with FHLB, available brokered and public unit deposit capacity, unencumbered securities, and cash and cash equivalent balances.

The loan portfolio increased $54.8 million from September 30, 2025, which was attributable to a $357.0 million increase in commercial loans, offset by a $302.4 million decrease in one- to four-family loans, as the Bank continued to redirect cash flows from the one- to four-family loan portfolio to the commercial loan portfolio. The growth in the commercial loan portfolio was primarily in commercial real estate loans. The weighted average DSCR for commercial loan originations/participations during the nine months ended June 30, 2026 was 2.22x and the weighted average LTV for commercial real estate and construction loan originations/participations was 70%.

Deposits increased $259.3 million from September 30, 2025, due mainly to an increase in retail non-maturity deposits, partially offset by a decrease in certificates of deposit. Management continues to focus on growing commercial relationships and deposits. During the nine months ended June 30, 2026, commercial non-interest-bearing deposits increased $34.5 million, or 18.0%. Borrowings decreased $314.5 million during the current year period due primarily to the maturity of $250.0 million of borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances.

The following table summarizes loan originations and participations, deposit activity, and borrowing activity, along with certain related weighted average rates, during the periods indicated. The borrowings presented in the table have original contractual terms of one year or longer. The new borrowings during the periods presented related to the prepayment of existing borrowings to lower rates, which are also reflected in the maturities and repayments line as well.

For the Three Months Ended

For the Nine Months Ended

June 30, 2026

Amount

Rate

Amount

Rate

(Dollars in thousands)

Loan activity

Originations and participations

One- to four-family and consumer

Originated

$ 121,452

6.32 %

$ 292,698

6.24 %

Purchased

—

Commercial

Originated

212,114

6.29

617,023

6.41

Participations

20,501

6.41

104,021

6.38

$ 354,067

6.30

$ 1,013,742

6.36

Repayments

One- to four-family and consumer

(217,620)

(586,383)

Commercial

(77,396)

(336,490)

$ (295,016)

$ (922,873)

Deposit activity

Retail non-maturity deposits

$ 51,367

$ 348,443

Commercial non-maturity deposits

(520)

34,002

Retail/Commercial certificates of deposit

(117,412)

(68,391)

Borrowing activity

Maturities and repayments

(71,168)

1.96

(738,504)

3.28

New borrowings

—

425,000

3.79

Stockholders' Equity

Stockholders' equity totaled $1.02 billion at June 30, 2026, a decrease of $26.4 million from September 30, 2025. 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 June 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 June 30, 2026, the Bank's community bank leverage ratio was 9.6%.

During the nine months ended June 30, 2026, the Company repurchased 6,369,946 shares of common stock at an average price of $7.21 per share, or $45.9 million in total. Subsequent to June 30, 2026 through July 23, 2026, the Company repurchased 147,476 shares of common stock at an average price of $8.45 per share, or $1.2 million in total, bringing total share repurchases during fiscal year 2026 through July 23, 2026 to 6,517,422 shares for $47.2 million. 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 Federal Reserve Bank of Kansas City's ("FRB") 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 July 23, 2026, the Company had $24.0 million remaining authorized under its existing stock repurchase plan.

During the nine months ended June 30, 2026, the Company paid cash dividends totaling $37.5 million, or $0.295 per share, which consisted of a $0.040 per share special cash dividend and three regular quarterly cash dividends of $0.085 each, totaling $0.255 per share. On July 28, 2026, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $10.5 million, payable on August 21, 2026 to stockholders of record as of the close of business on August 7, 2026. The special cash dividend paid in January 2026, in addition to the Company's history of regular quarterly dividends and opportunistic share repurchases, demonstrates the Company's multi-channel focus on delivering stockholder value through disciplined capital allocation which balances investments in the future of the Company with incremental opportunities to return capital to stockholders. Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital compliance, regulatory limitations on the Bank's ability to make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.

The Board of Directors continues to evaluate various alternatives for capital allocation to enhance stockholder value, including the repurchase of stock, the payment of additional cash dividends, or retaining earnings to support future growth. Since our second-step conversion in December 2010 through June 30, 2026, we have returned $2.09 billion in capital to stockholders through dividends totaling $1.60 billion and stock repurchases totaling $485.8 million. This is supported by our holistic approach to managing the balance sheet through continuous modeling of the Bank's performance, risk management, our commitment to credit quality and periodic stress testing.

At June 30, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank. During the nine months ended June 30, 2026, the Bank distributed $78.0 million from the Bank to the Company. It is the intention of the Bank to move at least $34.0 million of cash from the Bank to the holding company during the September 2026 quarter. The Bank is expected to remain in a positive tax accumulated earnings and profit balance during the remainder of fiscal year 2026. Earnings distributions from the Bank to the Company will be limited to the extent necessary to prevent the Bank from re-entering a negative accumulated earnings and profit position and having to pay the pre-1988 bad debt recapture tax on earnings moved from the Bank to the Company.

The following table presents a reconciliation of total to net shares outstanding as of June 30, 2026. As of July 23, 2026, total shares outstanding were 125,708,883.

Total shares outstanding

125,857,559

Less unallocated Employee Stock Ownership Plan ("ESOP") shares and unvested restricted stock

(2,495,259)

Net shares outstanding

123,362,300

Capitol Federal Financial, Inc. is the holding company for the Bank. News and other information about the Company can be found at the Bank's website, http://www.capfed.com.

Forward-Looking Statements

Except for the historical information contained in this press release, the matters discussed herein may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties, including: changes in policies or the application or interpretation of laws and regulations by regulatory agencies and tax authorities; other governmental initiatives affecting the financial services industry; changes in accounting principles, policies or guidelines; fluctuations in interest rates and the effects of inflation or a potential recession, whether caused by Federal Reserve action or otherwise; changes to existing trade policies that could affect economic activity or specific industry sectors; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor or depositor sentiment; demand for loans in the Company's market areas; the future earnings and capital levels of the Bank and the impact of potential pre-1988 bad debt recapture, which could affect the ability of the Company to pay dividends in accordance with its dividend policies; competition; and other risks detailed from time to time in documents filed or furnished by the Company with the Securities and Exchange Commission. Actual results may differ materially from those currently expected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.

SUPPLEMENTAL FINANCIAL INFORMATION

CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands, except per share amounts)

June 30,

March 31,

September 30,

2026

2025

ASSETS:

Cash and cash equivalents (includes interest-earning deposits of $118,155,

$314,655 and $229,566)

$ 136,098

$ 330,925

$ 252,443

AFS securities, at estimated fair value (amortized cost of $774,757, $795,659

and $847,369)

783,559

809,566

867,216

Loans receivable, net (ACL of $26,103, $26,599 and $24,039)

8,166,762

8,114,205

8,111,961

FHLB stock, at cost

76,115

79,420

90,662

Premises and equipment, net

88,461

88,413

89,314

Income taxes receivable, net

747

927

220

Deferred federal income tax assets, net

22,711

22,789

23,826

Other assets

387,731

382,835

343,059

TOTAL ASSETS

$ 9,662,184

$ 9,829,080

$ 9,778,701

LIABILITIES:

Deposits

$ 6,850,705

$ 6,924,491

$ 6,591,448

Borrowings

1,636,246

1,707,055

1,950,770

Advances by borrowers

40,594

57,528

65,416

Income taxes payable, net

—

Deferred state income tax liabilities, net

3,146

2,591

2,056

Other liabilities

110,173

111,689

121,334

Total liabilities

8,640,864

8,803,354

8,731,024

STOCKHOLDERS' EQUITY:

Preferred stock, $0.01 par value; 100,000,000 shares authorized, no shares issued

or outstanding

—

Common stock, $0.01 par value; 1,400,000,000 shares authorized, 125,857,559,

127,688,691 and 132,204,305 shares issued and outstanding as of June 30,

2026, March 31, 2026, and September 30, 2025, respectively

1,259

1,277

1,322

Additional paid-in capital

1,096,321

1,110,648

1,142,711

Unearned compensation, ESOP

(23,541)

(23,954)

(24,780)

Accumulated deficit

(60,798)

(73,805)

(87,331)

Accumulated other comprehensive income ("AOCI"), net of tax

8,079

11,560

15,755

Total stockholders' equity

1,021,320

1,025,726

1,047,677

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 9,662,184

$ 9,829,080

$ 9,778,701

See accompanying notes to consolidated financial statements.

CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands)

For the Three Months Ended

For the Nine Months Ended

June 30,

March 31,

June 30,

2026

2025

INTEREST AND DIVIDEND INCOME:

Loans receivable

$ 90,566

$ 89,323

$ 269,681

$ 245,175

MBS

10,747

10,853

32,941

34,451

Cash and cash equivalents

1,988

2,474

7,235

6,220

FHLB stock

1,767

1,858

5,657

6,834

Investment securities

154

2,795

Total interest and dividend income

105,119

104,560

315,668

295,475

INTEREST EXPENSE:

Deposits

36,275

36,299

110,074

109,058

Borrowings

15,361

15,995

48,528

54,889

Total interest expense

51,636

52,294

158,602

163,947

NET INTEREST INCOME

53,483

52,266

157,066

131,528

PROVISION FOR CREDIT LOSSES

(433)

2,372

3,045

226

NET INTEREST INCOME AFTER

PROVISION FOR CREDIT LOSSES

53,916

49,894

154,021

131,302

NON-INTEREST INCOME:

Deposit service fees

2,987

2,690

8,549

8,170

Income from BOLI

1,856

1,151

3,972

2,053

Insurance commissions

838

512

2,139

2,587

Other non-interest income

987

1,106

2,946

2,124

Total non-interest income

6,668

5,459

17,606

14,934

NON-INTEREST EXPENSE:

Salaries and employee benefits

16,858

15,828

48,433

44,447

Information technology and related expense

4,787

5,425

15,346

14,637

Occupancy, net

3,372

3,265

10,087

10,105

Professional and other services

1,501

1,579

4,869

3,843

Federal insurance premium

1,103

1,110

3,324

3,205

Advertising and promotional

1,365

645

3,066

3,035

Deposit and loan transaction costs

631

768

2,115

2,185

Office supplies and related expense

442

511

1,434

1,206

Other non-interest expense

1,283

1,143

3,418

3,589

Total non-interest expense

31,342

30,274

92,092

86,252

INCOME BEFORE INCOME TAX EXPENSE

29,242

25,079

79,535

59,984

INCOME TAX EXPENSE

5,672

4,931

15,513

10,772

NET INCOME

$ 23,570

$ 20,148

$ 64,022

$ 49,212

Average Balance Sheets. The following tables present the average balances of our assets, liabilities, and stockholders' equity, and the related annualized weighted average yields and rates on our interest-earning assets and interest-bearing liabilities for the periods indicated, as well as selected performance ratios and other information for the periods shown. Weighted average yields are derived by dividing annualized income by the average balance of the related assets, and weighted average rates are derived by dividing annualized expense by the average balance of the related liabilities, for the periods shown. Average outstanding balances are derived from average daily balances. All amounts are presented on a fully taxable basis for the periods presented. The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates.

For the Three Months Ended

June 30, 2026

March 31, 2026

Average

Interest

Average

Interest

Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/

Amount

Paid

Rate

Amount

Paid

Rate

(Dollars in thousands)

Assets:

Interest-earning assets:

One- to four-family loans:

Originated

$ 3,657,542

$ 36,163

3.95 %

$ 3,697,174

$ 36,229

3.92 %

Purchased

2,004,445

16,438

3.28

2,061,101

17,055

3.31

Total one- to four-family loans

5,661,987

52,601

3.72

5,758,275

53,284

3.70

Commercial loans:

Commercial real estate

1,935,982

28,038

5.73

1,896,666

27,150

5.73

Commercial and industrial

259,110

4,523

6.91

224,311

3,791

6.76

Commercial construction

191,277

3,275

6.77

176,061

3,001

6.82

Total commercial loans

2,386,369

35,836

5.94

2,297,038

33,942

5.91

Consumer loans

116,176

2,129

7.35

114,986

2,097

7.39

Total loans receivable (1)

8,164,532

90,566

4.42

8,170,299

89,323

4.37

MBS (2)

788,182

10,747

5.45

789,899

10,853

5.50

Investment securities (2)

4,000

5.13

4,000

5.13

FHLB stock

77,904

1,767

9.10

82,855

1,858

9.10

Cash and cash equivalents

215,292

1,988

3.65

271,032

2,474

3.65

Total interest-earning assets

9,249,910

105,119

4.53

9,318,085

104,560

4.49

Other non-interest-earning assets

499,604

486,394

Total assets

$ 9,749,514

$ 9,804,479

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Checking

$ 921,875

557

0.24

$ 905,915

542

0.24

High yield savings

674,677

6,082

3.62

587,450

5,262

3.63

Other savings

435,168

0.07

428,633

0.07

Money market

1,222,445

3,471

1.14

1,232,468

3,578

1.18

Retail certificates

2,814,027

24,786

3.53

2,842,406

25,342

3.62

Commercial certificates

67,447

588

3.49

64,107

557

3.52

Wholesale certificates

72,425

713

3.95

95,699

940

3.98

Total deposits

6,208,064

36,275

2.34

6,156,678

36,299

2.39

Borrowings

1,677,426

15,361

3.67

1,782,567

15,995

3.64

Total interest-bearing liabilities

7,885,490

51,636

2.63

7,939,245

52,294

2.67

Non-interest-bearing deposits

672,513

647,305

Other non-interest-bearing liabilities

168,254

176,382

Stockholders' equity

1,023,257

1,041,547

Total liabilities and stockholders' equity

$ 9,749,514

$ 9,804,479

Net interest income (3)

$ 53,483

$ 52,266

Net interest-earning assets

$ 1,364,420

$ 1,378,840

Net interest margin (4)

2.31

2.24

Ratio of interest-earning assets to interest-bearing liabilities

1.17x

Selected performance ratios:

Return on average assets (annualized) (5)

0.97 %

0.82 %

Return on average equity (annualized) (6)

9.21

7.74

Average equity to average assets

10.50

10.62

Operating expense ratio (annualized) (7)

1.29

1.24

Efficiency ratio (8)

52.10

52.45

For the Nine Months Ended

June 30, 2026

June 30, 2025

Average

Interest

Average

Interest

Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/

Amount

Paid

Rate

Amount

Paid

Rate

(Dollars in thousands)

Assets:

Interest-earning assets:

One- to four-family loans:

Originated

$ 3,701,099

$ 108,882

3.92 %

$ 3,881,138

$ 109,026

3.75 %

Purchased

2,059,731

50,962

3.30

2,286,491

56,270

3.28

Total one- to four-family loans

5,760,830

159,844

3.70

6,167,629

165,296

3.57

Commercial loans:

Commercial real estate

1,869,222

81,645

5.76

1,378,851

58,109

5.56

Commercial and industrial

232,844

12,181

6.90

135,669

6,881

6.69

Commercial construction

188,627

9,593

6.71

174,518

8,282

6.26

Total commercial loans

2,290,693

103,419

5.95

1,689,038

73,272

5.72

Consumer loans

115,248

6,418

7.45

110,534

6,607

7.99

Total loans receivable (1)

8,166,771

269,681

4.38

7,967,201

245,175

4.09

MBS (2)

801,600

32,941

5.48

825,420

34,451

5.57

Investment securities (2)

4,000

154

5.13

69,778

2,795

5.34

FHLB stock

83,014

5,657

9.11

97,985

6,834

9.32

Cash and cash equivalents

253,505

7,235

3.76

182,456

6,220

4.50

Total interest-earning assets

9,308,890

315,668

4.50

9,142,840

295,475

4.30

Other non-interest-earning assets

484,895

457,719

Total assets

$ 9,793,785

$ 9,600,559

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Checking

$ 902,885

1,602

0.24

$ 876,079

1,513

0.23

High yield savings

589,456

16,314

3.70

235,141

7,263

4.13

Other savings

428,891

234

0.07

441,022

254

0.08

Money market

1,232,038

10,975

1.19

1,235,352

11,606

1.26

Retail certificates

2,826,740

76,341

3.61

2,780,458

84,217

4.05

Commercial certificates

64,482

1,700

3.52

58,013

1,765

4.07

Wholesale certificates

97,562

2,908

3.99

75,805

2,440

4.30

Total deposits

6,142,054

110,074

2.40

5,701,870

109,058

2.56

Borrowings

1,790,988

48,528

3.62

2,136,105

54,889

3.43

Total interest-bearing liabilities

7,933,042

158,602

2.67

7,837,975

163,947

2.80

Non-interest-bearing deposits

642,958

553,644

Other non-interest-bearing liabilities

179,006

173,034

Stockholders' equity

1,038,779

1,035,906

Total liabilities and stockholders' equity

$ 9,793,785

$ 9,600,559

Net interest income (3)

$ 157,066

$ 131,528

Net interest-earning assets

$ 1,375,848

$ 1,304,865

Net interest margin (4)

2.25

1.92

Ratio of interest-earning assets to interest-bearing liabilities

1.17x

Selected performance ratios:

Return on average assets (annualized) (5)

0.87 %

0.68 %

Return on average equity (annualized) (6)

8.22

6.33

Average equity to average assets

10.61

10.79

Operating expense ratio (7)

1.25

1.20

Efficiency ratio (8)

52.72

58.89

(1)

Balances are adjusted for unearned loan fees and deferred costs. Loans that are 90 or more days delinquent are included in the loans receivable average balance with a yield of zero percent.

(2)

AFS security yields are based upon amortized cost which is adjusted for premiums and discounts.

(3)

Net interest income represents the difference between interest income earned on interest-earning assets and interest paid on interest-bearing liabilities. Net interest income depends on the average balance of interest-earning assets and interest-bearing liabilities, and the interest rates earned or paid on them.

(4)

Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. Management believes the net interest margin is important to investors as it is a profitability measure for financial institutions.

(5)

Return on average assets represents annualized net income as a percentage of total average assets. Management believes that the return on average assets is important to investors as it shows the Company's profitability in relation to the Company's average assets.

(6)

Return on average equity represents annualized net income as a percentage of total average equity. Management believes that the return on average equity is important to investors as it shows the Company's profitability in relation to the Company's average equity.

(7)

The operating expense ratio represents annualized non-interest expense as a percentage of average assets. Management believes the operating expense ratio is important to investors as it provides insight into how efficiently the Company is managing its expenses in relation to its assets. It is a financial measurement ratio that does not take into consideration changes in interest rates.

(8)

The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income. Management believes the efficiency ratio is important to investors as it is a measure of a financial institution's cost to generate income. A lower value generally indicates that it is costing the financial institution less money to generate revenue, related to its net interest margin and non-interest income.

Loan Portfolio

The following table presents information related to the composition of our loan portfolio in terms of dollar amounts, weighted average rates, and percentage of total as of the dates indicated.

June 30, 2026

March 31, 2026

September 30, 2025

% of

Amount

Rate

Total

Amount

Rate

Total

Amount

Rate

Total

(Dollars in thousands)

One- to four-family:

Originated

$ 3,642,458

3.90 %

44.5 %

$ 3,676,252

3.84 %

45.2 %

$ 3,774,134

3.78 %

46.4 %

Purchased

1,949,224

3.51

23.8

2,015,434

3.50

24.7

2,114,447

3.49

26.0

Construction

10,574

6.06

0.1

16,123

6.15

0.2

16,054

6.17

0.2

Total

5,602,256

3.77

68.4

5,707,809

3.73

70.1

5,904,635

3.68

72.6

Commercial:

Commercial real estate

2,005,641

5.82

24.5

1,896,313

5.80

23.3

1,709,990

5.82

21.0

Commercial and industrial

273,854

6.69

3.3

232,182

6.76

2.9

210,119

6.92

2.6

Commercial construction

193,480

6.59

2.4

189,251

6.73

2.3

195,886

6.42

2.4

Total

2,472,975

5.98

30.2

2,317,746

5.97

28.5

2,115,995

5.98

26.0

Consumer loans:

Home equity

110,372

7.57

1.3

106,414

7.55

1.3

104,809

8.15

1.3

Other

7,136

5.56

0.1

7,327

5.71

0.1

8,436

5.55

0.1

Total

117,508

7.45

1.4

113,741

7.43

1.4

113,245

7.96

1.4

Total loans receivable

8,192,739

4.49

100.0 %

8,139,296

4.42

100.0 %

8,133,875

4.34

100.0 %

Less:

ACL

26,103

26,599

24,039

Deferred loan fees/discounts

30,508

30,087

31,268

Premiums/deferred costs

(30,634)

(31,595)

(33,393)

Total loans receivable, net

$ 8,166,762

$ 8,114,205

$ 8,111,961

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. 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.

For the Three Months Ended

For the Nine Months Ended

June 30, 2026

March 31, 2026

June 30, 2026

June 30, 2025

Amount

Rate

Amount

Rate

Amount

Rate

Amount

Rate

(Dollars in thousands)

Beginning balance

$ 8,139,296

4.42 %

$ 8,199,975

4.38 %

$ 8,133,875

4.34 %

$ 7,923,251

4.02 %

Originated and refinanced

333,566

6.30

199,286

6.35

909,721

6.35

810,222

6.89

Participations

20,501

6.41

—

104,021

6.38

92,479

7.13

Change in undisbursed loan funds

(5,460)

17,995

(31,501)

(26,316)

Repayments

(295,016)

(277,923)

(922,873)

(754,599)

Principal (charge-offs)/recoveries, net

(148)

(37)

(304)

(132)

Other

—

(200)

(1,905)

Ending balance

$ 8,192,739

4.49

$ 8,139,296

4.42

$ 8,192,739

4.49

$ 8,043,000

4.25 %

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 ratio, and average balance per loan as of June 30, 2026. Credit scores were updated in September 2025 from a nationally recognized consumer rating agency. The LTV ratios 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.

% of

Credit

Average

Amount

Total

Rate

Score

LTV

Balance

(Dollars in thousands)

Originated

$ 3,642,458

65.0 %

3.90 %

770

57 %

$ 171

Purchased

1,949,224

34.8

3.51

767

372

Construction

10,574

0.2

6.06

769

246

5,602,256

100.0 %

3.77

769

211

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 June 30, 2026, the Bank had one- to four-family loan and refinance commitments totaling $39.9 million at a weighted average rate of 6.19%.

For the Three Months Ended

For the Nine Months Ended

June 30, 2026

Credit

Amount

Rate

LTV

Score

Amount

Rate

LTV

Score

(Dollars in thousands)

$ 101,202

6.04 %

75 %

773

$ 242,797

5.94 %

74 %

768

Commercial Loans: The tables below summarize commercial loan origination and participation activity for the time periods presented, along with weighted average LTV and weighted average DSCR. For commercial real estate and commercial construction loans, the LTV is calculated using the gross loan amount (comprised of unpaid principal and undisbursed amounts) and the collateral value at the time of origination. For existing real estate, the "as is" value is used. If the property is to be constructed, the "as completed" value of the collateral is utilized. The DSCR is calculated based on historical borrower performance, or projected borrower performance for newly formed entities with no performance history.

For the Three Months Ended June 30, 2026

Originated

Participation

Total

Weighted

Amount

Rate

Amount

Rate

Amount

Rate

LTV

DSCR

(Dollars in thousands)

Commercial real estate

$ 117,960

6.09 %

$ —

— %

$ 117,960

6.09 %

71 %

1.53x

Commercial and industrial

60,673

6.60

—

60,673

6.60

N/A

3.40

Commercial construction

33,481

6.39

20,501

6.41

53,982

6.40

1.30

$ 212,114

6.29

$ 20,501

6.41

$ 232,615

6.30

1.96

For the Nine Months Ended June 30, 2026

Originated

Participation

Total

Weighted

Amount

Rate

Amount

Rate

Amount

Rate

LTV

DSCR

(Dollars in thousands)

Commercial real estate

$ 356,885

6.24 %

$ 32,510

6.25 %

$ 389,395

6.24 %

69 %

2.29x

Commercial and industrial

113,108

6.62

—

113,108

6.62

N/A

3.81

Commercial construction

147,030

6.65

71,511

6.44

218,541

6.58

1.29

$ 617,023

6.41

$ 104,021

6.38

$ 721,044

6.40

2.22

The following table presents commercial loan disbursements, excluding lines of credit, during the periods indicated.

For the Three Months Ended

For the Nine Months Ended

June 30, 2026

March 31, 2026

June 30, 2026

June 30, 2025

Amount

Rate

Amount

Rate

Amount

Rate

Amount

Rate

(Dollars in thousands)

Commercial real estate

$ 119,251

6.09 %

$ 65,228

6.33 %

$ 391,723

6.25 %

$ 353,217

6.76 %

Commercial and industrial

62,919

6.64

4,147

6.45

136,211

6.80

86,105

7.38

Commercial construction

46,628

6.59

38,075

6.76

154,706

6.66

162,673

6.58

$ 228,798

6.34

$ 107,450

6.49

$ 682,640

6.45

$ 601,995

6.80

The following table presents the Bank's commercial real estate and commercial construction loans by type of primary collateral as of the dates indicated. Management anticipates fully funding the majority of the undisbursed amounts, as most are not cancellable by the Bank.

March 31,

June 30, 2026

2026

Unpaid

Undisbursed

Gross Loan

Count

Principal

Amount

(Dollars in thousands)

Hotel

$ 640,481

$ 51,430

$ 691,911

$ 695,290

Senior housing

541,134

30,272

571,406

560,906

Multi-family

314,828

110,553

425,381

427,359

Retail building

126

281,607

74,380

355,987

360,977

Office building

110,295

27,783

138,078

104,141

One- to four-family property

276

118,085

12,477

130,562

81,085

Warehouse/manufacturing

66,445

602

67,047

65,804

Single use building

52,928

2,372

55,300

32,715

Land

47,537

651

48,188

39,747

Other

25,781

540

26,321

23,727

728

$ 2,199,121

$ 311,060

$ 2,510,181

$ 2,391,751

Weighted average rate

5.89 %

6.54 %

5.97 %

5.98 %

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 average LTV and weighted average DSCR, as of June 30, 2026.

Non-owner Occupied

Owner Occupied

Unpaid

Weighted

Unpaid

Weighted

Count

Principal

LTV

DSCR

Count

Principal

LTV

DSCR

(Dollars in thousands)

Hotel

$ 604,272

54 %

1.44x

–

$ —

— %

—x

Senior housing

507,563

1.77

–

—

Retail building

176,667

1.95

68,778

1.97

Office building

66,197

1.36

36,095

8.38

Warehouse/manufacturing

23,941

3.71

33,313

1.57

Single use building

23,809

1.33

29,067

1.64

Other

5,766

1.39

7,125

1.90

175

$ 1,408,215

1.65

182

$ 174,378

3.16

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 June 30, 2026. Of the amounts included in the September 30, 2026 projected disbursement amount, $47.2 million was funded through July 24, 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.

Projected Disbursements for the Quarters Ending

September 30,

2026

December 31,

2026

March 31,

2027

Thereafter

Revolving

Lines of

Credit

Total

(Dollars in thousands)

Undisbursed amounts

$ 63,216

$ 72,538

$ 49,871

$ 117,687

$ 7,748

$ 311,060

Commitments

57,273

3,791

22,927

211,831

5,400

301,222

$ 120,489

$ 76,329

$ 72,798

$ 329,518

$ 13,148

$ 612,282

Weighted average rate

6.17 %

6.53 %

6.52 %

5.92 %

6.64 %

6.13 %

The following table summarizes the Bank's commercial real estate and commercial construction loans by the state in which the collateral is located, as of the dates indicated.

March 31,

June 30, 2026

2026

Unpaid

Undisbursed

Gross Loan

Count

Principal

Amount

(Dollars in thousands)

Kansas

517

$ 880,790

$ 125,425

$ 1,006,215

$ 962,807

Missouri

121

329,217

33,405

362,622

351,250

Texas

199,819

50,998

250,817

244,411

Arizona

138,151

14,300

152,451

153,311

California

122,728

23,411

146,139

123,643

New York

111,724

—

111,724

112,201

Other

416,692

63,521

480,213

444,128

728

$ 2,199,121

$ 311,060

$ 2,510,181

$ 2,391,751

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 June 30, 2026. The LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of June 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. In general, commercial borrowers with total loans of $2.5 million or more are reviewed at least annually to monitor financial performance.

Kansas

Missouri

Texas

Arizona

California

New York

Other

Total

(Dollars in thousands)

Hotel

$ 40,965

$ 23,002

$ 139,313

$ 114,159

$ 97,736

$ 108,626

$ 116,680

$ 640,481

Senior housing

329,489

140,365

—

71,280

541,134

Multi-family

203,027

63,537

19,944

—

28,320

314,828

Retail building

100,176

47,500

38,666

22,065

—

73,200

281,607

One- to four-family property

67,867

4,273

—

1,553

1,620

—

42,772

118,085

Office building

67,644

10,236

1,896

—

3,098

27,421

110,295

Warehouse/manufacturing

41,992

18,324

—

6,129

66,445

Single use building

11,544

17,638

—

374

23,372

—

52,928

Land

5,252

—

42,208

47,537

Other

12,834

4,265

—

8,682

25,781

$ 880,790

$ 329,217

$ 199,819

$ 138,151

$ 122,728

$ 111,724

$ 416,692

$ 2,199,121

Weighted LTV

66 %

65 %

59 %

55 %

47 %

67 %

63 %

Weighted DSCR

2.16x

1.47x

1.27x

1.48x

1.46x

1.83x

1.63x

1.77x

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 June 30, 2026.

Unpaid

Weighted

Count

Principal

Rate

LTV

DSCR

(Dollars in thousands)

Hotel

$ 640,481

6.14 %

55 %

1.43x

Senior housing

541,134

5.33

1.75

Multi-family

314,828

5.72

1.29

Retail building

126

281,607

6.06

1.87

One- to four-family property

276

118,085

5.93

2.00

Office building

110,295

6.42

3.65

Warehouse/manufacturing

66,445

6.41

2.33

Single use building

52,928

6.20

1.51

Land

47,537

6.25

3.96

Other

25,781

6.37

1.80

728

$ 2,199,121

5.89

1.77

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 June 30, 2026, aggregated by type of primary collateral, along with 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. The borrower anticipates selling this project once the property is constructed and rent commences. The Bank has a long-term relationship with the borrower and the borrower has extensive development experience.

Unpaid

Undisbursed

Gross Loan

Commitment

Total

Weighted

Count

Principal

Amount

Rate

LTV

DSCR

(Dollars in thousands)

Multi-family

$ 79,099

$ 110,523

$ 189,622

$ 188,204

$ 377,826

6.54 %

57 %

1.19x

Retail building

35,244

54,091

89,335

—

89,335

6.51

1.32

Hotel

36,208

43,949

80,157

34,305

114,462

6.80

1.47

Senior housing

33,571

26,363

59,934

—

59,934

6.36

1.31

Office building

8,003

19,048

27,051

—

27,051

6.58

1.13

One- to four-family property

1,355

8,121

9,476

—

9,476

6.54

1.28

Other

—

13,757

6.55

1.23

$ 193,480

$ 262,095

$ 455,575

$ 236,266

$ 691,841

6.56

1.26

Weighted average rate

6.59 %

6.56 %

6.57 %

6.55 %

6.56 %

Weighted LTV

69 %

55 %

64 %

Weighted DSCR

1.28x

1.27x

1.24x

1.26x

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 June 30, 2026, categorized by aggregate gross loan and commitment amount, along with average loan amount, and weighted average rate, LTV, and DSCR. For amounts over $60.0 million, there were $151.4 million for loans related to hotels in Arizona and California, $142.9 million for loans 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 June 30, 2026, and is collateralized by a hotel in Arizona.

Gross Loan

and Commitment

Average

Weighted

Count

Amounts

Amount

Rate

LTV

DSCR

(Dollars in thousands)

Greater than $60 million

$ 363,929

$ 72,786

5.90 %

60 %

1.51x

>$50 to $60 million

215,163

53,791

5.54

1.46

>$40 to $50 million

146,953

48,984

6.28

1.53

>$30 to $40 million

448,567

34,505

5.85

1.28

>$20 to $30 million

473,678

23,684

6.34

1.17

>$10 to $20 million

439,606

13,738

6.50

1.65

>$5 to $10 million

310,289

7,216

5.81

2.45

$1 to $5 million

131

305,027

2,328

5.45

2.36

Less than $1 million

491

108,191

220

6.42

2.99

742

$ 2,811,403

3,789

6.01

1.69

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 June 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 five commercial and industrial loan commitments totaling $13.8 million, with a weighted average rate of 6.59%, at June 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.

March 31,

June 30, 2026

2026

Unpaid

Undisbursed

Gross Loan

Weighted

Gross Loan

Count

Principal

Amount

DSCR

Amount

(Dollars in thousands)

Working capital

199

$ 113,398

$ 43,095

$ 156,493

5.09x

$ 157,380

Purchase/refinance business assets

101,735

3,065

104,800

1.98

54,202

Finance/lease vehicle

136

27,924

—

27,924

2.29

32,845

Purchase equipment

17,076

5,409

22,485

1.91

29,571

Other

13,721

524

14,245

1.26

15,281

465

$ 273,854

$ 52,093

$ 325,947

3.46

$ 289,279

Weighted average rate

6.69 %

6.61 %

6.68 %

6.74 %

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 June 30, 2026, categorized by aggregate gross loan and commitment amounts, along with 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 $7.3 million remained undisbursed as of June 30, 2026. This loan is part of the Bank's largest commercial and industrial lending relationship, which had a total gross loan balance of $84.4 million, representing approximately 26% of the gross commercial and industrial loan portfolio at June 30, 2026. The borrower is located in Kansas and, as of June 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.

Gross Loan

and

Commitment

Average

Weighted

Count

Amounts

Amount

DSCR

(Dollars in thousands)

Greater than $15 million

$ 89,664

$ 29,888

1.64x

>$10 to $15 million

34,542

11,514

2.40

>$5 to $10 million

91,719

7,643

1.70

>$1 to $5 million

60,296

1,884

8.99

>$500 thousand to $1 million

27,466

742

5.66

Less than $500 thousand

383

36,080

3.99

470

$ 339,767

723

3.61

Asset Quality

The following tables present loans 30 to 89 days delinquent, non-performing loans, and other real estate owned ("OREO") as of 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 June 30, 2026, approximately 81% were 59 days or less delinquent. Nonaccrual loans are loans that are 90 or more days delinquent or in foreclosure and other loans required to be reported as nonaccrual pursuant to the Bank's internal policies, even if the loans are current. Non-performing assets include nonaccrual loans and OREO.

Loans Delinquent for 30 to 89 Days at:

June 30,

March 31,

December 31,

September 30,

June 30,

2026

2025

Count

Amount

Count

Amount

Count

Amount

Count

Amount

Count

Amount

(Dollars in thousands)

One- to four-family:

Originated

$ 7,063

$ 6,624

$ 9,351

$ 7,338

$ 9,617

Purchased

2,209

2,366

5,767

3,221

2,958

Commercial:

Commercial real estate

2,040

1,554

2,584

1,236

1,654

Commercial and industrial

2,132

771

1,039

1,166

Consumer

499

570

635

520

634

105

$ 13,943

112

$ 11,885

144

$ 19,376

111

$ 12,347

133

$ 16,029

Loans 30 to 89 days delinquent

to total loans receivable, net

0.17 %

0.15 %

0.24 %

0.15 %

0.20 %

Nonaccrual Loans and OREO at:

June 30,

March 31,

December 31,

September 30,

June 30,

2026

2025

Count

Amount

Count

Amount

Count

Amount

Count

Amount

Count

Amount

(Dollars in thousands)

Loans 90 or More Days Delinquent or in Foreclosure:

One- to four-family:

Originated

$ 3,980

$ 4,130

$ 3,223

$ 2,754

$ 2,168

Purchased

3,694

5,606

1,469

1,524

1,875

Commercial:

Commercial real estate

2,821

2,634

3,358

3,123

3,387

Commercial and industrial

144

999

199

210

412

Consumer

176

218

176

10,815

13,441

8,467

7,705

8,018

Loans 90 or more days delinquent or in foreclosure

as a percentage of total loans

0.13 %

0.17 %

0.10 %

0.09 %

0.10 %

Nonaccrual loans less than 90 Days Delinquent: (1)

Commercial:

Commercial real estate

$ 39,969

$ 41,057

$ 40,338

$ 40,249

$ 40,338

Commercial and industrial

500

410

109

40,469

41,467

40,415

40,358

40,435

Total nonaccrual loans

51,284

54,908

48,882

48,063

48,453

Nonaccrual loans as a percentage of total loans

0.63 %

0.68 %

0.60 %

0.59 %

0.60 %

OREO:

One- to four-family:

Originated (2)

—

$ —

—

$ —

$ 291

$ 62

$ 92

Consumer

—

135

—

135

426

197

Total non-performing assets

$ 51,284

$ 55,043

$ 49,308

$ 48,260

$ 48,545

Non-performing assets as a percentage

of total assets

0.53 %

0.56 %

0.50 %

0.49 %

0.50 %

(1)

Includes loans required to be reported as nonaccrual pursuant to internal policies even if the loans are current.

(2)

Real estate-related consumer loans where we also hold the first mortgage are included in the one- to four-family category as the underlying collateral is one- to four-family property.

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 June 30, 2026 compared to September 30, 2025 was due mainly to a hotel participation loan being upgraded to a "pass" classification as a result of an improvement in the hotel's financial results. The majority of the substandard commercial real estate loan balance for the periods presented in the table below relates to one borrowing relationship. During the March 31, 2026 quarter, an updated appraisal was received related to the collateral securing the lending relationship. The updated appraisal was lower than the appraisal received in the prior year and as a result, a $4.0 million specific valuation allowance was recorded as of March 31, 2026 related to this lending relationship which was still in place at June 30, 2026. The loans associated with this lending relationship were on nonaccrual at the dates presented in the table below.

June 30, 2026

March 31, 2026

September 30, 2025

Special

Mention

Substandard

Special

Mention

Substandard

Special

Mention

Substandard

(Dollars in thousands)

One- to four-family

$ 11,839

$ 22,620

$ 12,498

$ 24,023

$ 13,055

$ 20,616

Commercial:

Commercial real estate

15,626

44,798

$ 22,352

45,773

59,993

45,550

Commercial and industrial

112

648

$ 364

1,414

399

473

Consumer

142

$ 356

$ 166

213

326

322

$ 27,719

$ 68,422

$ 35,380

$ 71,423

$ 73,773

$ 66,961

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 June 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.

In order to model the probabilities of default used in the discounted cash flow model, the model pairs the results of a regression analysis with an economic forecast for each loan pool in the model. The regression analyses are determined by comparing historical loss rates to related economic indices. The historical loss rates are determined by using the Company's historical loss experience, or peer data when the Company's own historical loss rates are not reflective of future loss expectations. During the current quarter, the Company updated the regression analyses used in the model which resulted in some changes to the amounts and levels of ACL calculated by the model, mainly for commercial construction loans. The regression analysis was updated in order to bring more historical time periods into the analysis.

The Company's commercial real estate loans generally have low LTVs and strong DSCRs, which serve as indicators that losses in the commercial real estate loan portfolio might be unlikely; however, because there is uncertainty surrounding the nature, timing, and amount of expected losses, management believes that in the event of a realized loss within the large dollar commercial real estate loan pool, the magnitude of such a loss could be significant. The large dollar commercial real estate loan concentration qualitative factor addresses the risks associated with large dollar relationships. As part of its analysis, management considered external data, including historical commercial real estate price index trending information, from a variety of sources to help determine the amount of this qualitative factor.

For one- to four-family loans, management believes there is a risk of loss in market value in an economic downturn related to, in particular, newer originations where property values have not experienced price appreciation, as compared to more seasoned loans in our portfolio, and applied a qualitative factor to account for this risk. To determine the appropriate amount of the one- to four-family loan qualitative factor as of June 30, 2026, management considered external historical home price index trending information, along with historical loan loss experience, and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

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 which resulted in a decrease in ACL of approximately $800 thousand, mainly within the commercial construction loan category. The update of the ACL model's regression analyses entailed incorporating additional historical loss time periods. The historical loss experience for commercial constructions 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 June 30, 2026 compared to September 30, 2025, was due primarily to establishing a $4.0 million specific valuation related to a 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. 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 loan DSCRs and LTVs in the "Loan Portfolio - Commercial Loans" section above.

Distribution of ACL

Ratio of ACL to Loans Receivable

June 30,

March 31,

September 30,

June 30,

March 31,

September 30,

2026

2025

2026

2025

(Dollars in thousands)

One- to four-family

$ 2,224

$ 2,663

$ 3,046

0.04 %

0.05 %

Commercial:

Commercial real estate

18,701

18,973

15,809

0.93

1.00

0.92

Commercial and industrial

2,810

2,046

2,499

1.03

0.88

1.19

Commercial construction

2,185

2,716

2,468

1.13

1.44

1.26

Total

23,696

23,735

20,776

0.96

1.02

0.98

Consumer

183

201

217

0.16

0.18

0.19

Total

$ 26,103

$ 26,599

$ 24,039

0.32

0.33

0.30

Historically, the Bank has maintained very low delinquency ratios and net charge-off 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 June 30, 2026, the Bank recognized $1.2 million of total net charge-offs. As of June 30, 2026, the ACL balance was $26.1 million and the reserve for off-balance sheet credit exposures totaled $6.2 million, which management believes is adequate for the credit risk characteristics in our loan portfolio.

The following table presents ACL activity and related ratios at the dates and for the periods indicated.

At or For the

Three Months

Ended

At or For the Nine

Months Ended

June 30, 2026

(Dollars in thousands)

Balance at beginning of period

$ 26,599

$ 24,039

Charge-offs:

One- to four-family

—

(12)

Commercial

(123)

(225)

Consumer

(27)

(77)

Total charge-offs

(150)

(314)

Recoveries:

One- to four-family

Commercial

—

Consumer

Total recoveries

Net (charge-offs) recoveries

(148)

(304)

Provision for credit losses

(348)

2,368

Balance at end of period

$ 26,103

Ratio of net charge-offs during the period

to average loans outstanding during the period

— %

Ratio of net charge-offs (recoveries) during the

period to average non-performing assets

0.28

0.61

ACL to non-performing loans at end of period

50.90

ACL to loans receivable at end of period

0.32

ACL to net charge-offs (annualized)

44x

65x

Securities Portfolio

The following table presents the distribution of our securities portfolio, at amortized cost, at June 30, 2026. Overall, fixed-rate securities comprised 91% of our securities portfolio at June 30, 2026. The weighted average life ("WAL") is the estimated remaining maturity (in years) after three-month historical prepayment speeds and projected call option assumptions have been applied.

Amount

Yield

WAL

(Dollars in thousands)

MBS

$ 770,757

5.42 %

3.4

Corporate bonds

4,000

5.12

5.9

$ 774,757

5.42

3.4

The following table summarizes the activity in our securities portfolio for the periods presented. The weighted average yields for the beginning and ending balances are as of the first and last days of the periods presented and are generally derived from recent prepayment activity on the securities in the portfolio. The beginning and ending WALs are the estimated remaining principal repayment terms (in years) after the most recent three-month historical prepayment speeds and projected call option assumptions have been applied.

For the Three Months Ended

For the Nine Months Ended

June 30, 2026

Amount

Yield

WAL

Amount

Yield

WAL

(Dollars in thousands)

Beginning balance - carrying value

$ 809,566

5.44 %

4.0

$ 867,216

5.45 %

4.8

Maturities and repayments

(36,829)

(113,127)

Net amortization of (premiums)/discounts

1,030

2,729

Purchases

14,897

3.76

7.2

37,786

4.22

6.5

Change in valuation on AFS securities

(5,105)

(11,045)

Ending balance - carrying value

$ 783,559

5.42

3.4

$ 783,559

5.42

3.4

Deposit Portfolio

The following table presents the amount, weighted average rate, and percent of total for the components of our deposit portfolio at the dates presented.

June 30, 2026

March 31, 2026

September 30, 2025

% of

Amount

Rate

Total

Amount

Rate

Total

Amount

Rate

Total

(Dollars in thousands)

Non-interest-bearing checking

$ 671,852

— %

9.8 %

$ 674,415

— %

9.7 %

$ 601,371

— %

9.1 %

Interest-bearing checking

914,462

0.25

13.3

935,193

0.24

13.5

859,256

0.21

13.0

High yield savings

731,580

3.60

10.7

630,923

3.59

9.1

460,712

3.88

7.0

Other savings

433,807

0.07

6.3

438,144

0.07

6.4

423,942

0.07

6.5

Money market

1,209,512

1.13

17.7

1,231,691

1.12

17.8

1,233,487

1.29

18.7

Certificates of deposit

2,889,492

3.48

42.2

3,014,125

3.60

43.5

3,012,680

3.74

45.7

$ 6,850,705

2.09

100.0 %

$ 6,924,491

2.13

100.0 %

$ 6,591,448

2.26

100.0 %

The following table presents the amount, weighted average rate, and percent of total for the components of our deposit portfolio, split between retail non-maturity deposits, commercial non-maturity deposits, and certificates of deposit at the dates presented.

June 30, 2026

March 31, 2026

September 30, 2025

% of

Amount

Rate

Total

Amount

Rate

Total

Amount

Rate

Total

(Dollars in thousands)

Retail non-maturity deposits:

Non-interest-bearing checking

$ 445,719

— %

6.5 %

$ 446,629

— %

6.4 %

$ 409,722

— %

6.2 %

Interest-bearing checking

828,292

0.05

12.1

857,351

0.08

12.4

790,783

0.08

12.0

High yield savings

731,580

3.60

10.7

630,923

3.59

9.1

460,712

3.88

7.0

Other savings

429,050

0.07

6.2

434,042

0.07

6.3

420,330

0.07

6.4

Money market

1,046,190

0.99

15.3

1,060,519

0.96

15.3

1,050,841

1.07

15.9

Total

3,480,831

1.08

50.8

3,429,464

0.99

49.5

3,132,388

0.96

47.5

Commercial non-maturity deposits:

Non-interest-bearing checking

226,133

—

3.3

227,786

—

3.3

191,649

—

2.9

Interest-bearing checking

86,170

2.13

1.2

77,842

2.04

1.1

68,473

1.72

1.0

Savings

4,757

0.05

0.1

4,102

0.05

0.1

3,612

0.05

0.1

Money market

163,322

2.01

2.4

171,172

2.11

2.5

182,646

2.52

2.8

Total

480,382

1.07

7.0

480,902

1.08

7.0

446,380

1.29

6.8

Certificates of deposit:

Retail certificates of deposit

2,770,322

3.47

40.4

2,872,653

3.60

41.4

2,828,982

3.73

43.0

Commercial certificates of deposit

52,088

3.39

0.8

67,169

3.52

1.0

61,819

3.64

0.9

Public unit certificates of deposit

67,082

3.93

1.0

74,303

3.96

1.1

121,879

4.06

1.8

Total

2,889,492

3.48

42.2

3,014,125

3.60

43.5

3,012,680

3.74

45.7

$ 6,850,705

2.09

100.0 %

$ 6,924,491

2.13

100.0 %

$ 6,591,448

2.26

100.0 %

The following table presents the amount, weighted average rate, and percent of total for total retail deposits, commercial deposits, and public unit certificates of deposit at the dates noted.

June 30, 2026

March 31, 2026

September 30, 2025

% of

Amount

Rate

Total

Amount

Rate

Total

Amount

Rate

Total

(Dollars in thousands)

Total retail deposits

$ 6,251,153

2.14 %

91.2 %

$ 6,302,117

2.18 %

90.9 %

$ 5,961,370

2.28 %

90.5 %

Total commercial deposits

532,470

1.29

7.8

548,071

1.38

8.0

508,199

1.58

7.7

Public unit certificates of deposit

67,082

3.93

1.0

74,303

3.96

1.1

121,879

4.06

1.8

$ 6,850,705

2.09

100.0 %

$ 6,924,491

2.13

100.0 %

$ 6,591,448

2.26

100.0 %

As of June 30, 2026, approximately $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 were estimated based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

Borrowings

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

Maturity by

Contractual

Effective

Fiscal Year

Amount

Rate

Rate (1)

(Dollars in thousands)

2026

$ 125,000

3.66 %

2027

360,000

2.58

2.72

2028

851,230

4.00

2029

231,250

3.98

4.13

2030

70,000

4.20

$ 1,637,480

3.67

3.72

(1)

The effective rate includes the impact of the interest rate swap and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid.

The following table presents borrowing activity for the periods shown. The borrowings presented in the table have original contractual terms of one year or longer or are tied to the interest rate swap which has an original contractual term longer than one year. Line of credit borrowings and finance leases are excluded from the table. The effective rate is shown as a weighted average and includes the impact of the interest rate swap and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid. The weighted average maturity ("WAM") is the remaining weighted average contractual term in years. The beginning and ending WAMs represent the remaining maturity as of the first and last days of the period presented.

For the Three Months Ended

For the Nine Months Ended

June 30, 2026

Effective

Amount

Rate

WAM

Amount

Rate

WAM

(Dollars in thousands)

Beginning balance

$ 1,708,648

3.65 %

1.6

$ 1,950,984

3.54 %

1.5

Maturities and repayments

(71,168)

1.96

(738,504)

3.28

New FHLB borrowings

—

425,000

3.79

2.3

Ending balance

$ 1,637,480

3.72

1.4

$ 1,637,480

3.72

1.4

The $425.0 million of new FHLB borrowings reflected in the table above in the current year period was used to prepay $425.0 million of existing advances which are included in maturities and repayments. During the March 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 in the table above.

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.

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 June 30, 2026.

September 30,

December 31,

March 31,

June 30,

2026

2027

Total

(Dollars in thousands)

Retail/Commercial Certificates:

Amount

$ 627,421

$ 747,961

$ 325,408

$ 603,398

$ 2,304,188

Repricing Rate

3.63 %

3.55 %

3.28 %

3.52 %

3.53 %

Public Unit Certificates:

Amount

$ 17,379

$ 18,673

$ 19,000

$ 11,250

$ 66,302

Repricing Rate

3.95 %

3.63 %

4.14 %

4.04 %

3.93 %

Term Borrowings:

Amount

$ 125,000

$ —

$ 100,000

$ 150,000

$ 375,000

Repricing Rate

3.66 %

— %

1.24

2.99 %

2.74 %

Total

Amount

$ 769,800

$ 766,634

$ 444,408

$ 764,648

$ 2,745,490

Repricing Rate

3.64 %

3.55 %

2.86 %

3.42 %

3.43 %

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

Retail certificates of deposit

0.7

Commercial certificates of deposit

0.5

Public unit certificates of deposit

0.5

Total certificates of deposit

0.7

Average Rates and Lives

At June 30, 2026, the gap between the amount of the Bank's interest-earning assets and interest-bearing liabilities projected to mature or reprice within one year was $(1.13) billion, or (11.7%) of total assets, compared to $(792.4) million, or (8.1%) of total assets, at March 31, 2026. The change in the one-year gap amount was due to both a net decrease in the amount of projected interest-earning asset cash flows coming due in one year and a net increase in the amount of interest-bearing liabilities for the same time period. The net decrease in projected asset cash flows was due primarily to a decrease in the balance of cash, partially offset by a net increase in the amount of loans projected to mature or reprice within one year resulting from an increase in the balance of the Bank's commercial loan portfolio. The net increase in liability cash flows was primarily related to the Bank's wholesale borrowings portfolio as it continued to season and an increase in the amount of certificates of deposit scheduled to mature within one year.

The amount of interest-bearing liabilities expected to reprice in a given period is not typically significantly impacted by changes in interest rates because the Bank's borrowings and certificate of deposit portfolios have contractual maturities and generally cannot be terminated early without a prepayment penalty. If interest rates were to increase 200 basis points, as of June 30, 2026, the Bank's projected one-year gap would have been $(1.28) billion, or (13.2)% of total assets. If interest rates were to decrease 200 basis points, as of June 30, 2026, the Bank's one-year gap would have been projected to be $(669.0) million, or (6.9)% of total assets. The changes in the gap amounts compared to when there is no change in rates was due to changes in the anticipated net cash flows primarily as a result of projected prepayments on mortgage-related assets in each rate environment. In higher rate environments, prepayments on mortgage-related assets are projected to be lower, and in lower rate environments, prepayments are projected to be higher.

The following table presents the weighted average yields/rates and WALs (in years), after applying prepayment, call assumptions, and decay rates for our interest-earning assets and interest-bearing liabilities as of June 30, 2026. Yields presented for interest-earning assets include the amortization of fees, costs, premiums and discounts, which are considered adjustments to the yield. The interest rate presented for term borrowings is the effective rate, which includes the impact of the interest rate swap and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid. The WAL presented for term borrowings includes the effect of the interest rate swap.

Amount

Yield/Rate

WAL

% of