|   | þ          QUARTERLY      REPORT PURSUANT TO SECTION 13 OR15(d) |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   |  ̈        TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15 (d) |
|--------|---------------------------------------------------------------------------------------------------------------|

|   |               OF      THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

----

|  PART I -- FINANCIAL INFORMATION                                                                                                                                  | PageNumber  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
| Item      1.  Financial Statements (Unaudited):                                                                                                              |             |
|              Consolidated Balance      Sheets at June 30, 2008 and September 30, 2007                 | 3                |
|              Consolidated      Statements of Income for the three and nine months      ended          |             |
|                   June      30, 2008 and June 30, 2007                       | 4                |
|              Consolidated      Statement of Stockholders’ Equity for the nine months      ended |             |
|                   June      30, 2008                                         | 5                |
|              Consolidated Statements of      Cash Flows for the nine months ended                     |             |
|                   June      30, 2008 and June 30, 2007                       | 6                |
|              Notes to Consolidated      Financial Statements                                          | 8                |
| Item      2.  Management’s Discussion and Analysis of      Financial Condition and                                                                     |             |
|                   Results      of Operations                                 | 10               |
| Item      3.  Quantitative and Qualitative Disclosure about      Market Risk                                                                                 | 45               |
| Item      4.  Controls and Procedures                                                                                                                        | 52               |
|                                                                                                                                                                   |             |
| PART      II -- OTHER INFORMATION                                                                                                                                      |             |
| Item      1.    Legal Proceedings                                                                                                                  | 52               |
| Item      1A. Risk      Factors                                                                                                                                        | 52               |
| Item      2.    Unregistered Sales of Equity Securities      and Use of Proceeds                                                                   | 53               |
| Item      3.    Defaults Upon Senior      Securities                                                                                               | 53               |
| Item      4.    Submission of Matters to a Vote of Security      Holders                                                                           | 53               |
| Item      5.    Other Information                                                                                                                  | 53               |
| Item      6.    Exhibits                                                                                                                           | 53               |
|                                                                                                                                                                   |             |
| Signature      Page                                                                                                                                                    | 54               |
|                                                                                                                                                                   |             |
| INDEX      TO EXHIBITS                                                                                                                                                 | 55               |
|                                                                                                                                                                   |             |

----

CONSOLIDATED BALANCE SHEETS

|                                                                                                                             |   | June      30, |      |   | September      30, |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------------|--------|
|                                                                                                                             |   | 2008          |      |   | 2007               |   |
| ASSETS:                                                                                                                          |   | (Unaudited)   |      |   |               |   |
| Cash      and cash equivalents                                                                                                   |   | $             | 86,437    |   |               | $      | 162,791 |   |
| Investment      securities:                                                                                                      |   |          |      |   |               |   |   |   |
|     Available-for-sale      ("AFS") at market (amortized cost of $51,833 and $102,331)                       |   |          | 51,343    |   |               |   | 102,424 |   |
|     Held-to-maturity      ("HTM") at cost (market value of $92,778 and $418,940)                             |   |          | 93,003    |   |               |   | 421,744 |   |
| Mortgage-related      securities:                                                                                                |   |          |      |   |               |   |   |   |
|     AFS,      at market (amortized cost of $1,273,229 and $400,705)                                          |   |          | 1,265,366 |   |               |   | 402,686 |   |
|     HTM,      at cost (market value of $791,936 and $995,415)                                                |   |          | 801,319   |   |               |   | 1,011,585 |   |
| Loans      receivable held-for-sale, net                                                                                         |   |          | 3,671     |   |               |   | 2,184 |   |
| Loans      receivable, net                                                                                                       |   |          | 5,326,061 |   |               |   | 5,291,426 |   |
| Mortgage      servicing rights ("MSR")                                                                                           |   |          | 5,166     |   |               |   | 5,606 |   |
| Bank-owned      life insurance ("BOLI")                                                                                          |   |          | 51,837    |   |               |   | 50,027 |   |
| Capital      stock of Federal Home Loan Bank ("FHLB"), at cost                                                                   |   |          | 129,172   |   |               |   | 139,661 |   |
| Accrued      interest receivable                                                                                                 |   |          | 32,308    |   |               |   | 35,869 |   |
| Premises      and equipment, net                                                                                                 |   |          | 27,775    |   |               |   | 26,610 |   |
| Real      estate owned, net                                                                                                      |   |          | 2,207     |   |               |   | 2,097 |   |
| Income      taxes receivable                                                                                                     |   |          | --        |   |               |   | 6,620 |   |
| Deferred      income tax assets, net                                                                                             |   |          | --        |   |               |   | 543 |   |
| Other      assets                                                                                                                |   |          | 16,472    |   |               |   | 15,657 |   |
|         TOTAL      ASSETS                                                                |   | $             | 7,892,137 |   |               | $      | 7,677,530 |   |
|                                                                                                                             |   |          |      |   |               |   |   |   |
| LIABILITIES:                                                                                                                     |   |          |      |   |               |   |   |   |
| Deposits                                                                                                                         |   | $             | 3,961,543 |   |               | $      | 3,922,782 |   |
| Advances      from FHLB                                                                                                          |   |          | 2,547,294 |   |               |   | 2,732,183 |   |
| Other      borrowings, net                                                                                                       |   |          | 453,566   |   |               |   | 53,524 |   |
| Advance      payments by borrowers for taxes and insurance                                                                       |   |          | 29,189    |   |               |   | 51,397 |   |
| Income      taxes payable                                                                                                        |   |          | 4,293     |   |               |   | -- |   |
| Deferred      income tax liabilities, net                                                                                        |   |          | 512       |   |               |   | -- |   |
| Accounts      payable and accrued expenses                                                                                       |   |          | 31,834    |   |               |   | 50,013 |   |
|         Total      liabilities                                                           |   |          | 7,028,231 |   |               |   | 6,809,899 |   |
|                                                                                                                             |   |          |      |   |               |   |   |   |
| STOCKHOLDERS'      EQUITY:                                                                                                       |   |          |      |   |               |   |   |   |
| Preferred      stock ($0.01 par value) 50,000,000 shares authorized; none      issued                                            |   |          | --        |   |               |   | -- |   |
| Common      stock ($0.01 par value) 450,000,000 shares authorized,      91,512,287                                               |   |          |      |   |               |   |   |   |
|         shares      issued;  74,067,618 and 74,258,977 shares      outstanding |   |          | 915       |   |               |   | 915 |   |
|         as      of June 30, 2008 and September 30, 2007, respectively                    |   |          |      |   |               |   |   |   |
| Additional      paid-in capital                                                                                                  |   |          | 443,446   |   |               |   | 438,964 |   |
| Unearned      compensation, Employee Stock Ownership Plan ("ESOP")                                                               |   |          | (10,586   | )      |               |   | (12,098 | ) |
| Unearned      compensation, Recognition and Retention Plan ("RRP")                                                               |   |          | (639      | )      |               |   | (630 | ) |
| Retained      earnings                                                                                                           |   |          | 753,951   |   |               |   | 750,186 |   |
| Accumulated      other comprehensive (loss) gain                                                                                 |   |          | (5,202    | )      |               |   | 1,287 |   |
| Less      shares held in treasury (17,444,669 and 17,253,310 shares as      of                                                   |   |          |      |   |               |   |   |   |
|        June      30, 2008 and September 30, 2007, respectively, at cost)                      |   |          | (317,979  | )      |               |   | (310,993 | ) |
|            Total      stockholders' equity                                |   |          | 863,906   |   |               |   | 867,631 |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                  |   | $             | 7,892,137 |   |               | $      | 7,677,530 |   |
|                                                                                                                             |   |          |      |   |               |   |   |   |

----

CAPITOL FEDERAL FINANCIAL AND SUBSIDIARY

|                                                                                      |   | For      the Three Months Ended |    |   | For      the Nine Months Ended |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                                                                                      |   | June      30,                   |    |   | June      30,                  |   |
|                                                                                      |   | 2008                            |    |   | 2007                           |   |   | 2008 |   |   | 2007 |   |
| INTEREST      AND DIVIDEND INCOME:                                                        |   |                            |    |   |                           |   |   |   |   |   |   |   |
| Loans      receivable                                                                     |   | $                               | 74,651  |   |                           | $      | 73,219 |   |   | $ | 226,190 |   |   | $ | 220,401 |   |
| Mortgage-related      securities                                                          |   |                            | 24,869  |   |                           |   | 16,224 |   |   |   | 62,242 |   |   |   | 53,062 |   |
| Investment      securities                                                                |   |                            | 1,298   |   |                           |   | 8,459 |   |   |   | 8,489 |   |   |   | 24,405 |   |
| Capital      stock of FHLB                                                                |   |                            | 1,502   |   |                           |   | 2,413 |   |   |   | 5,446 |   |   |   | 7,656 |   |
| Cash      and cash equivalents                                                            |   |                            | 465     |   |                           |   | 1,211 |   |   |   | 3,262 |   |   |   | 5,741 |   |
|      Total      interest and dividend income                     |   |                            | 102,785 |   |                           |   | 101,526 |   |   |   | 305,629 |   |   |   | 311,265 |   |
|                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE:                                                                    |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                  |   |                            | 31,174  |   |                           |   | 37,377 |   |   |   | 104,352 |   |   |   | 109,113 |   |
| FHLB      advances                                                                        |   |                            | 30,248  |   |                           |   | 37,220 |   |   |   | 96,205 |   |   |   | 116,469 |   |
| Other      borrowings                                                                     |   |                            | 4,682   |   |                           |   | 1,113 |   |   |   | 10,762 |   |   |   | 3,343 |   |
|      Total      interest expense                                 |   |                            | 66,104  |   |                           |   | 75,710 |   |   |   | 211,319 |   |   |   | 228,925 |   |
|                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NET      INTEREST AND DIVIDEND INCOME                                                     |   |                            | 36,681  |   |                           |   | 25,816 |   |   |   | 94,310 |   |   |   | 82,340 |   |
| PROVISION      (RECOVERY) FOR LOAN LOSSES                                                 |   |                            | 1,602   |   |                           |   | -- |   |   |   | 1,721 |   |   |   | (225 | ) |
|     NET      INTEREST AND DIVIDEND INCOME                             |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        AFTER      PROVISION (RECOVERY) FOR LOAN LOSSES |   |                            | 35,079  |   |                           |   | 25,816 |   |   |   | 92,589 |   |   |   | 82,565 |   |
|                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME:                                                                        |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Retail      fees and charges                                                              |   |                            | 4,566   |   |                           |   | 3,957 |   |   |   | 13,150 |   |   |   | 12,034 |   |
| Income      from BOLI                                                                     |   |                            | 577     |   |                           |   | -- |   |   |   | 1,810 |   |   |   | -- |   |
| Loan      fees                                                                            |   |                            | 572     |   |                           |   | 644 |   |   |   | 1,751 |   |   |   | 1,856 |   |
| Insurance      commissions                                                                |   |                            | 486     |   |                           |   | 529 |   |   |   | 1,661 |   |   |   | 1,483 |   |
| Gains      on securities and loans receivable, net                                        |   |                            | 244     |   |                           |   | 7 |   |   |   | 501 |   |   |   | 64 |   |
| Other,      net                                                                           |   |                            | 900     |   |                           |   | 771 |   |   |   | 3,565 |   |   |   | 2,363 |   |
|      Total      other income                                     |   |                            | 7,345   |   |                           |   | 5,908 |   |   |   | 22,438 |   |   |   | 17,800 |   |
|                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      EXPENSES:                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                                       |   |                            | 11,021  |   |                           |   | 10,717 |   |   |   | 31,729 |   |   |   | 31,211 |   |
| Occupancy      of premises                                                                |   |                            | 3,750   |   |                           |   | 3,488 |   |   |   | 10,384 |   |   |   | 9,887 |   |
| Regulatory      and other services                                                        |   |                            | 1,267   |   |                           |   | 1,781 |   |   |   | 4,345 |   |   |   | 4,914 |   |
| Deposit      and loan transaction fees                                                    |   |                            | 1,364   |   |                           |   | 1,226 |   |   |   | 3,935 |   |   |   | 3,226 |   |
| Advertising                                                                               |   |                            | 1,216   |   |                           |   | 1,081 |   |   |   | 3,433 |   |   |   | 3,193 |   |
| Other,      net                                                                           |   |                            | 1,218   |   |                           |   | 1,843 |   |   |   | 6,368 |   |   |   | 5,602 |   |
|      Total      other expenses                                   |   |                            | 19,836  |   |                           |   | 20,136 |   |   |   | 60,194 |   |   |   | 58,033 |   |
| INCOME      BEFORE INCOME TAX EXPENSE                                                     |   |                            | 22,588  |   |                           |   | 11,588 |   |   |   | 54,833 |   |   |   | 42,332 |   |
| INCOME      TAX EXPENSE                                                                   |   |                            | 8,233   |   |                           |   | 4,299 |   |   |   | 19,638 |   |   |   | 16,336 |   |
| NET      INCOME                                                                           |   | $                               | 14,355  |   |                           | $      | 7,289 |   |   | $ | 35,195 |   |   | $ | 25,996 |   |
|                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per common share                                                      |   | $                               | 0.20    |   |                           | $      | 0.10 |   |   | $ | 0.48 |   |   | $ | 0.36 |   |
| Diluted      earnings per common share                                                    |   | $                               | 0.20    |   |                           | $      | 0.10 |   |   | $ | 0.48 |   |   | $ | 0.36 |   |
| Dividends      declared per public share                                                  |   | $                               | 0.50    |   |                           | $      | 0.50 |   |   | $ | 1.50 |   |   | $ | 1.59 |   |
|                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic      weighted average common shares                                                 |   |                            | 72,933  |   |                           |   | 72,947 |   |   |   | 72,922 |   |   |   | 72,795 |   |
| Diluted      weighted average common shares                                               |   |                            | 73,021  |   |                           |   | 73,043 |   |   |   | 72,985 |   |   |   | 72,944 |   |

----

CAPITOL FEDERAL FINANCIAL ANDSUBSIDIARY

|                                                                                       |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   | Accumulated      |   |    |     |   |   |   |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------|--------|---------|--------------|--------|--------|--------------|--------|--------|----------|--------|--------|------------------|--------|---------|----------|--------|--------|--------|--------|
|                                                                                       |   |   |   |   | Additional |   |    | Unearned     |   |   | Unearned     |   |   |     |   |   | Other            |   |    |     |   |   |   |   |
|                                                                                       |   | Common |   |   | Paid-In    |   |    | Compensation |   |   | Compensation |   |   | Retained |   |   | Comprehensive    |   |    | Treasury |   |   |   |   |
|                                                                                       |   | Stock  |   |   | Capital    |   |    | (ESOP)       |   |   | (RRP)        |   |   | Earnings |   |   | Gain      (Loss) |   |    | Stock    |   |   | Total  |   |
|                                                                                       |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |
| Balance      at October 1, 2007                                                            |   | $      | 915    |   |       | $      | 438,964 |         |   | $      | (12,098      | )      |   | $        | (630   | )      |             | $      | 750,186 |     |   | $      | 1,287  |   |   | $ | (310,993 | ) |   | $ | 867,631 |   |
| Cumulative      effect of Financial Accounting                                             |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
|   Standards      Board Interpretation No. 48        adoption |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   | (339    | )        |   |   |   |   |   |   |   |   |   |   | (339 | ) |
| Balance      at October 1, 2007                                                            |   | $      | 915    |   |       | $      | 438,964 |         |   | $      | (12,098      | )      |   | $        | (630   | )      |             | $      | 749,847 |     |   | $      | 1,287  |   |   | $ | (310,993 | ) |   | $ | 867,292 |   |
| Comprehensive      income:                                                                 |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                          |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   | 35,195  |     |   |   |   |   |   |   |   |   |   |   | 35,195 |   |
|    Changes      in unrealized gains (losses)                                |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
|    on      mortgage-related and investment       securities  |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
|         AFS, net of deferred income taxes                                   |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
|    of      $3.9 million                                                     |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   | (6,489 | )      |   |   |   |   |   |   | (6,489 | ) |
| Total      comprehensive income                                                            |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   | 28,706 |   |
|                                                                                       |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefit of market value change in     vested RRP      shares  |   |   |   |   |       |   | 15      |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   | 15 |   |
| Common      stock committed to be   released for allocation -      ESOP          |   |   |   |   |       |   | 3,838   |         |   |   | 1,512        |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   | 5,350 |   |
| Acquisition      of treasury stock                                                         |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   | (7,307 | ) |   |   | (7,307 | ) |
| Stock      options exercised                                                               |   |   |   |   |       |   | 151     |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   | 225 |   |   |   | 376 |   |
| Treasury      stock activity related to RRP,   net                               |   |   |   |   |       |   | 216     |         |   |   |         |   |   |     | (322   | )      |             |   |    |     |   |   |   |   |   |   | 96 |   |   |   | (10 | ) |
| Amortization      of unearned   compensation - RRP                               |   |   |   |   |       |   |    |         |   |   |         |   |   |     | 313    |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   | 313 |   |
| Stock      based compensation expense                                                      |   |   |   |   |       |   | 262     |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   | 262 |   |
| Dividends      on common stock to public                                                   |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
|   stockholders      ($1.50 per public share)                                     |   |   |   |   |       |   |    |         |   |   |         |   |   |     |   |   |             |   | (31,091 | )        |   |   |   |   |   |   |   |   |   |   | (31,091 | ) |
| Balance      at June 30, 2008                                                              |   | $      | 915    |   |       | $      | 443,446 |         |   | $      | (10,586      | )      |   | $        | (639   | )      |             | $      | 753,951 |     |   | $      | (5,202 | )      |   | $ | (317,979 | ) |   | $ | 863,906 |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                                                          |   | For      the Nine Months Ended |       |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|
|                                                                                                                          |   | June      30,                  |       |
|                                                                                                                          |   | 2008                           |       |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                    |   |                           |       |   |   |   |
| Net      income                                                                                                               |   | $                              | 35,195     |   |   | $ | 25,996 |   |
| Adjustments      to reconcile net income to net cash provided by                                                              |   |                           |       |   |   |   |   |   |
|   operating      activities:                                                                                        |   |                           |       |   |   |   |   |   |
|     FHLB      stock dividends                                                                             |   |                           | (5,446     | ) |   |   | (7,655 | ) |
|     Provision      (Recovery) for loan losses                                                             |   |                           | 1,721      |   |   |   | (225 | ) |
|     Originations      of loans receivable held-for-sale                                                   |   |                           | (32,555    | ) |   |   | (1,941 | ) |
|     Proceeds      from sales of loans receivable held-for-sale                                            |   |                           | 31,220     |   |   |   | 3,103 |   |
|     MSR      activity, net                                                                                |   |                           | 440        |   |   |   | 900 |   |
|     Amortization      and accretion of premiums and discounts on mortgage-                                |   |                           |       |   |   |   |   |   |
|       related      securities and investment securities                                         |   |                           | 496        |   |   |   | (626 | ) |
|     Principal      collected on trading securities                                                        |   |                           | --         |   |   |   | 7,729 |   |
|     Proceeds      from sale of trading securities                                                         |   |                           | --         |   |   |   | 389,209 |   |
|     Increase      in cash surrender value of BOLI                                                         |   |                           | (1,810     | ) |   |   | -- |   |
|     Depreciation      and amortization of premises and equipment                                          |   |                           | 3,934      |   |   |   | 3,399 |   |
|     Amortization      of deferred debt issuance costs                                                     |   |                           | 42         |   |   |   | 42 |   |
|          Deferred gain on termination of interest rate swaps, net of      amortization                         |   |                           | 1,294      |   |   |   | -- |   |
|     Common      stock committed to be released for allocation - ESOP                                      |   |                           | 5,350      |   |   |   | 5,766 |   |
|     Stock      based compensation - stock options and RRP                                                 |   |                           | 575        |   |   |   | 514 |   |
|     Other,      net                                                                                       |   |                           | (484       | ) |   |   | (525 | ) |
|   Changes      in:                                                                                                  |   |                           |       |   |   |   |   |   |
|       Accrued      interest receivable                                                          |   |                           | 3,561      |   |   |   | 3,223 |   |
|       Other      assets                                                                         |   |                           | (815       | ) |   |   | (1,290 | ) |
|       Income      taxes payable/receivable                                                      |   |                           | 15,583     |   |   |   | 13,337 |   |
|       Accounts      payable and accrued expenses                                                |   |                           | (4,362     | ) |   |   | (2,285 | ) |
|              Net      cash provided by operating activities  |   |                           | 53,939     |   |   |   | 438,671 |   |
|                                                                                                                          |   |                           |       |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                    |   |                           |       |   |   |   |   |   |
| Proceeds      from maturities or calls of investment securities AFS                                                           |   |                           | 99,791     |   |   |   | 83,740 |   |
| Purchases      of investment securities AFS                                                                                   |   |                           | (49,248    | ) |   |   | (1,520 | ) |
| Proceeds      from maturities or calls of investment securities HTM                                                           |   |                           | 514,108    |   |   |   | 361,500 |   |
| Purchases      of investment securities HTM                                                                                   |   |                           | (185,138   | ) |   |   | (683,717 | ) |
| Principal      collected on mortgage-related securities AFS                                                                   |   |                           | 171,534    |   |   |   | 174,750 |   |
| Purchases      of mortgage-related securities AFS                                                                             |   |                           | (1,044,847 | ) |   |   | (19,912 | ) |
| Proceeds      from sale of mortgage-related securities AFS                                                                    |   |                           | --         |   |   |   | 15,237 |   |
| Principal      collected on mortgage-related securities HTM                                                                   |   |                           | 215,767    |   |   |   | 186,217 |   |
| Purchases      of mortgage-related securities HTM                                                                             |   |                           | (5,483     | ) |   |   | (135,570 | ) |
| Proceeds      from the redemption of capital stock of FHLB                                                                    |   |                           | 28,861     |   |   |   | 25,529 |   |
| Purchases      of capital stock of FHLB                                                                                       |   |                           | (12,926    | ) |   |   | (301 | ) |
| Loan      originations, net of principal collected                                                                            |   |                           | (85,692    | ) |   |   | (96,602 | ) |
| Loan      purchases, net of principal collected                                                                               |   |                           | 45,015     |   |   |   | 64,824 |   |
| Net      deferred fee activity                                                                                                |   |                           | 463        |   |   |   | 177 |   |
| Purchases      of premises and equipment, net                                                                                 |   |                           | (5,113     | ) |   |   | (4,292 | ) |
| Proceeds      from sales of real estate owned, net                                                                            |   |                           | 4,084      |   |   |   | 3,711 |   |
|              Net      cash used in investing activities |   |                           | (308,824   | ) |   |   | (26,229 | ) |

----

| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                                  |   |   |     |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Dividends      paid                                                                                                                         |   |   | (31,091  | )      |   |   | (32,653 | ) |
| Dividends      in excess of debt service cost of ESOP, net                                                                                  |   |   | --       |   |   |   | 669 |   |
| Deposits,      net of withdrawals                                                                                                           |   |   | 38,761   |   |   |   | 46,262 |   |
| Proceeds      from advances/line of credit from FHLB                                                                                        |   |   | 725,000  |   |   |   | 6,901 |   |
| Repayments      on advances/line of credit from FHLB                                                                                        |   |   | (925,000 | )      |   |   | (406,901 | ) |
| Proceeds      from repurchase agreements                                                                                                    |   |   | 400,000  |   |   |   | -- |   |
| Change      in advance payments by borrowers for taxes    and insurance                                                                |   |   | (22,208  | )      |   |   | (26,139 | ) |
| Acquisitions      of treasury stock                                                                                                         |   |   | (7,307   | )      |   |   | (1,516 | ) |
| Stock      options exercised                                                                                                                |   |   | 325      |   |   |   | 3,828 |   |
| Excess      tax benefits from stock options                                                                                                 |   |   | 51       |   |   |   | 2,529 |   |
|              Net      cash provided by (used in) financing activities |   |   | 178,531  |   |   |   | (407,020 | ) |
|                                                                                                                                        |   |   |     |   |   |   |   |   |
| NET      (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                                              |   |   | (76,354  | )      |   |   | 5,422 |   |
| CASH      AND CASH EQUIVALENTS:                                                                                                             |   |   |     |   |   |   |   |   |
| Beginning      of period                                                                                                                    |   |   | 162,791  |   |   |   | 183,242 |   |
| End      of period                                                                                                                          |   | $      | 86,437   |   |   | $      | 188,664 |   |
|                                                                                                                                        |   |   |     |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION:                                                                                     |   |   |     |   |   |   |   |   |
|       Income      tax payments, net of refunds                                                                |   | $      | 4,003    |   |   | $      | 711 |   |
|       Interest      payments, net of interest credited to deposits                                            |   | $      | 106,659  |   |   | $      | 124,992 |   |
|                                                                                                                                        |   |   |     |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF NON-CASH                                                                                                    |   |   |     |   |   |   |   |   |
|       INVESTING      AND FINANCING ACTIVITIES:                                                                |   |   |     |   |   |   |   |   |
|       Loans      transferred to real estate owned                                                             |   | $      | 4,188    |   |   | $      | 2,673 |   |
|                                                                                                                                        |   |   |     |   |   |   |   |   |
|       Market      value change related to fair value hedge:                                                   |   |   |     |   |   |   |   |   |
|             Interest      rate swaps hedging FHLB advances                      |   | $      | (13,817  | )      |   | $      | (1,632 | ) |

----

Notes to Consolidated Interim Financial Statements(Unaudited)

The Company accounts for the 3,024,574 shares acquired by its ESOPin accordance with Statement of Position (“SOP”) 93-6 and the shares awardedpursuant to its RRP in a manner similar to the ESOP shares.  Sharesacquired by the ESOP and shares awarded pursuant to the RRP are not consideredin the basic average shares outstanding until the shares are committed forallocation or vested to an employee’s individual account.  Thefollowing is a reconciliation of the numerators and denominators of the basicand diluted earnings per share calculations. 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | For      the Three Months Ended |       |   | For      the Nine Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | June      30,                   |       |   | June      30,                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2008(1)                         |       |   | 2007(4)         |   |   | 2008(2) (3)         |   |   | 2007(4) (5)         |   |
|                                                                                                                                                                                                                                      (Dollars      in thousands, except per share amounts) |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                               | 14,355     |   |                           | $      | 7,289 |   |   | $ | 35,195 |   |   | $ | 25,996 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                            | 72,832,039 |   |                           |   | 72,846,007 |   |   |   | 72,870,800 |   |   |   | 72,743,849 |   |
| Average      committed ESOP shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                            | 101,374    |   |                           |   | 101,374 |   |   |   | 50,778 |   |   |   | 50,779 |   |
| Total      basic average common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                            | 72,933,413 |   |                           |   | 72,947,381 |   |   |   | 72,921,578 |   |   |   | 72,794,628 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive RRP shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                            | 5,240      |   |                           |   | 5,234 |   |   |   | 4,295 |   |   |   | 5,987 |   |
| Effect      of dilutive stock options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                            | 82,132     |   |                           |   | 90,298 |   |   |   | 58,784 |   |   |   | 143,210 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total      diluted average common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                            | 73,020,785 |   |                           |   | 73,042,913 |   |   |   | 72,984,657 |   |   |   | 72,943,825 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                               | 0.20       |   |                           | $      | 0.10 |   |   | $ | 0.48 |   |   | $ | 0.36 |   |
|      Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                               | 0.20       |   |                           | $      | 0.10 |   |   | $ | 0.48 |   |   | $ | 0.36 |   |

----

----

|   | · | our      ability to continue to maintain overhead costs at reasonable      levels; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | our      ability to continue to originate a significant volume of one- to      four-family mortgage loans in our marketarea; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to acquire funds from or invest funds in wholesale or secondary      markets; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | the      future earnings and capital levels of the Bank, which could affect the      ability of the Company to pay dividends in accordance with its dividend      policies; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      credit risks of lending and investing activities, including changes in the      level and direction of loan delinquencies and write-offs and changes in      estimates of the adequacy of the allowance for loan  losses; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the      strength of the U.S. economy in general and the strength of the local      economies in which we conductoperations; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      effects of, and changes in, trade, monetary and fiscal policies and laws,      including interest rate policies of the Board of Governors of the Federal      Reserve System; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      effects of, and changes in, foreign and military policies of the United      States Government; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | inflation,      interest rate, market and monetaryfluctuations; |
|--------|--------|-----------------------------------------------------------------|

|   | · | fluctuations      in real estate values; |
|--------|--------|------------------------------------------|

|   | · | our      ability to access cost-effectivefunding; |
|--------|--------|---------------------------------------------------|

|   | · | the      timely development of and acceptance of our new products and services and      the perceived overall value of these products and services by users,      including the features, pricing and quality compared to competitors’      products and services; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      willingness of users to substitute competitors’ products and services for      our products and services; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | our      success in gaining regulatory approval of our products and services, when      required; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | the      impact of changes in laws and regulations affecting financial      institutions; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | technological      changes; |
|--------|--------|-----------------------------|

|   | · | acquisitions      and dispositions; |
|--------|--------|-------------------------------------|

|   | · | changes      in consumer spending and saving habits;and |
|--------|--------|---------------------------------------------------------|

|   | · | our      success at managing the risks involved in our  business. |
|--------|--------|-------------------------------------------------------------------|

----

----

----

----

|                                                  |   | Balance      at                                       |       |
|-------------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                                  |   | June      30,                                         |       |   | March      31, |   |   | December      31, |   |   | September      30, |   |   | June      30, |   |
|                                                  |   | 2008                                                  |       |   | 2008 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
|                                                  |   | (Dollars      in thousands, except per share amounts) |       |
| Selected      Balance Sheet Data:                     |   |                                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                     |   | $                                                     | 7,892,137  |   |   | $ | 8,034,662 |   |   | $ | 7,945,586 |   |   | $ | 7,677,530 |   |   | $ | 7,826,549 |   |
| Cash      and cash equivalents                        |   |                                                  | 86,437     |   |   |   | 264,501 |   |   |   | 253,725 |   |   |   | 162,791 |   |   |   | 188,664 |   |
| Investment      securities                            |   |                                                  | 144,346    |   |   |   | 88,597 |   |   |   | 500,045 |   |   |   | 524,168 |   |   |   | 673,160 |   |
| Mortgage-related      securities                      |   |                                                  | 2,066,685  |   |   |   | 2,076,766 |   |   |   | 1,608,897 |   |   |   | 1,414,271 |   |   |   | 1,466,822 |   |
| Loans      receivable, net                            |   |                                                  | 5,326,061  |   |   |   | 5,292,866 |   |   |   | 5,310,296 |   |   |   | 5,291,426 |   |   |   | 5,252,275 |   |
| MSR                                                   |   |                                                  | 5,166      |   |   |   | 4,734 |   |   |   | 5,483 |   |   |   | 5,606 |   |   |   | 6,017 |   |
| Capital      stock of FHLB                            |   |                                                  | 129,172    |   |   |   | 129,170 |   |   |   | 139,380 |   |   |   | 139,661 |   |   |   | 147,557 |   |
| Deposits                                              |   |                                                  | 3,961,543  |   |   |   | 4,020,966 |   |   |   | 3,981,449 |   |   |   | 3,922,782 |   |   |   | 3,946,693 |   |
| Advances      from FHLB                               |   |                                                  | 2,547,294  |   |   |   | 2,547,588 |   |   |   | 2,746,532 |   |   |   | 2,732,183 |   |   |   | 2,870,337 |   |
| Other      borrowings                                 |   |                                                  | 453,566    |   |   |   | 453,552 |   |   |   | 303,538 |   |   |   | 53,524 |   |   |   | 53,509 |   |
| Stockholders'      equity                             |   |                                                  | 863,906    |   |   |   | 869,106 |   |   |   | 862,579 |   |   |   | 867,631 |   |   |   | 870,095 |   |
| Accumulated      other comprehensive (loss) gain |   |                                                  | (5,202     | ) |   |   | 6,215 |   |   |   | 3,165 |   |   |   | 1,287 |   |   |   | 174 |   |
| Equity      to total assets at end of period          |   |                                                  | 10.95      | % |   |   | 10.82 | % |   |   | 10.86 | % |   |   | 11.30 | % |   |   | 11.12 | % |
| Book      value per share                             |   | $                                                     | 11.84      |   |   | $ | 11.92 |   |   | $ | 11.84 |   |   | $ | 11.88 |   |   | $ | 11.92 |   |
| Shares      outstanding                               |   |                                                  | 72,985,216 |   |   |   | 72,930,747 |   |   |   | 72,857,963 |   |   |   | 73,024,845 |   |   |   | 73,010,580 |   |

----

|                                                     |   | For      the Three Months Ended |    |   | For      the Three Months Ended |   |
|----------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|
|                                                     |   | June      30, 2008              |    |   | June      30, 2007              |   |
|                                                     |   | Amount                          |    |   | Rate                            |   |   | %      of Total |   |   | Amount |   |   | Rate |   |   | %      of Total |   |
| Fixed-Rate:                                              |   | (Dollars      in thousands)     |    |
|    One-      to four-family               |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       <=      15 years  |   | $                               | 62,965  |   |                            |   | 5.21 | % |   |   | 21.21 | % |   | $ | 35,188 |   |   |   | 5.69 | % |   |   | 11.67 | % |
|       >      15 years   |   |                            | 163,671 |   |                            |   | 5.83 |   |   |   | 55.13 |   |   |   | 163,983 |   |   |   | 6.04 |   |   |   | 54.39 |   |
|    Other      real estate                 |   |                            | 675     |   |                            |   | 6.50 |   |   |   | 0.23 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|    Consumer                               |   |                            | 3,996   |   |                            |   | 8.03 |   |   |   | 1.34 |   |   |   | 8,480 |   |   |   | 8.32 |   |   |   | 2.81 |   |
|     Total      fixed-rate            |   |                            | 231,307 |   |                            |   | 5.70 |   |   |   | 77.91 |   |   |   | 207,651 |   |   |   | 6.07 |   |   |   | 68.87 |   |
|                                                     |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustable-Rate:                                         |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-      to four-family               |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       <=      36 months |   |                            | 4,220   |   |                            |   | 5.21 |   |   |   | 1.42 |   |   |   | 8,688 |   |   |   | 5.34 |   |   |   | 2.88 |   |
|       >      36 months  |   |                            | 30,897  |   |                            |   | 5.52 |   |   |   | 10.41 |   |   |   | 47,540 |   |   |   | 5.66 |   |   |   | 15.76 |   |
|    Other      real estate                 |   |                            | 1,800   |   |                            |   | 6.00 |   |   |   | 0.60 |   |   |   | 15,000 |   |   |   | 7.45 |   |   |   | 4.97 |   |
|    Consumer                               |   |                            | 28,667  |   |                            |   | 6.07 |   |   |   | 9.66 |   |   |   | 22,685 |   |   |   | 8.56 |   |   |   | 7.52 |   |
|     Total      adjustable-rate       |   |                            | 65,584  |   |                            |   | 5.75 |   |   |   | 22.09 |   |   |   | 93,913 |   |   |   | 6.62 |   |   |   | 31.13 |   |
|                                                     |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      originations, refinances and purchases        |   | $                               | 296,891 |   |                            |   | 5.71 | % |   |   | 100.00 | % |   | $ | 301,564 |   |   |   | 6.24 | % |   |   | 100.00 | % |
|                                                     |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased      loans included above:                     |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Fixed-rate                                   |   | $                               | 18,209  |   |                            |   | 5.51 | % |   |   |   |   |   | $ | 13,635 |   |   |   | 6.03 | % |   |   |   |   |
|   Adjustable-rate                              |   | $                               | 14,509  |   |                            |   | 5.51 | % |   |   |   |   |   | $ | 40,989 |   |   |   | 6.33 | % |   |   |   |   |

----

|                                                     |   | For      the Nine Months Ended |    |   | For      the Nine Months Ended |   |
|----------------------------------------------------------|--------|--------------------------------|---------|--------|--------------------------------|--------|
|                                                     |   | June      30, 2008             |    |   | June      30, 2007             |   |
|                                                     |   | Amount                         |    |   | Rate                           |   |   | %      of Total |   |   | Amount |   |   | Rate |   |   | %      of Total |   |
| Fixed-Rate:                                              |   | (Dollars      in thousands)    |    |
|    One-      to four-family               |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       <=      15 years  |   | $                              | 120,162 |   |                           |   | 5.36 | % |   |   | 16.33 | % |   | $ | 78,611 |   |   |   | 5.69 | % |   |   | 11.52 | % |
|       >      15 years   |   |                           | 415,714 |   |                           |   | 5.85 |   |   |   | 56.51 |   |   |   | 366,144 |   |   |   | 6.04 |   |   |   | 53.64 |   |
|    Other      real estate                 |   |                           | 975     |   |                           |   | 6.58 |   |   |   | 0.13 |   |   |   | 3,873 |   |   |   | 6.54 |   |   |   | 0.57 |   |
|    Consumer                               |   |                           | 15,081  |   |                           |   | 8.13 |   |   |   | 2.05 |   |   |   | 25,487 |   |   |   | 8.12 |   |   |   | 3.73 |   |
|     Total      fixed-rate            |   |                           | 551,932 |   |                           |   | 5.81 |   |   |   | 75.02 |   |   |   | 474,115 |   |   |   | 6.10 |   |   |   | 69.46 |   |
|                                                     |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustable-Rate:                                         |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-      to four-family               |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       <=      36 months |   |                           | 22,266  |   |                           |   | 5.33 |   |   |   | 3.03 |   |   |   | 23,095 |   |   |   | 5.35 |   |   |   | 3.38 |   |
|       >      36 months  |   |                           | 88,606  |   |                           |   | 5.64 |   |   |   | 12.04 |   |   |   | 106,106 |   |   |   | 5.66 |   |   |   | 15.54 |   |
|    Other      real estate                 |   |                           | 1,800   |   |                           |   | 6.00 |   |   |   | 0.24 |   |   |   | 15,000 |   |   |   | 7.45 |   |   |   | 2.20 |   |
|    Consumer                               |   |                           | 71,097  |   |                           |   | 6.95 |   |   |   | 9.67 |   |   |   | 64,316 |   |   |   | 8.57 |   |   |   | 9.42 |   |
|     Total      adjustable-rate       |   |                           | 183,769 |   |                           |   | 6.11 |   |   |   | 24.98 |   |   |   | 208,517 |   |   |   | 6.65 |   |   |   | 30.54 |   |
|                                                     |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      originations, refinances and purchases        |   | $                              | 735,701 |   |                           |   | 5.88 | % |   |   | 100.00 | % |   | $ | 682,632 |   |   |   | 6.27 | % |   |   | 100.00 | % |
|                                                     |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased      loans included above:                     |   |                           |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Fixed-rate                                   |   | $                              | 40,486  |   |                           |   | 5.77 | % |   |   |   |   |   | $ | 34,644 |   |   |   | 6.08 | % |   |   |   |   |
|   Adjustable-rate                              |   | $                              | 54,611  |   |                           |   | 5.64 | % |   |   |   |   |   | $ | 69,871 |   |   |   | 6.07 | % |   |   |   |   |

----

|                             | For      the Three Months Ended |   |
|----------------------------------|---------------------------------|--------|
|                             | June      30, 2008              |   | March      31, 2008 |   | December      31, 2007 |   | September      30, 2007 |   |
|                             | Amount                          | Rate   |   |   | Amount | Rate |   |   | Amount | Rate |   |   | Amount | Rate |   |   |
|                             | (Dollars      in thousands)     |
| Beginning      balance           |  $      5,352,278     | 5.66   | % |   |  $      5,366,186  | 5.71 | % |   |  $      5,346,626  | 5.68 | % |   |  $      5,303,830  | 5.64 | % |   |
| Originations      and refinances | 264,173                    | 5.74   |   |   | 201,832  | 5.77 |   |   | 174,599  | 6.34 |   |   | 225,333  | 6.50 |   |   |
| Purchases                        | 32,718                     | 5.51   |   |   | 30,513  | 5.58 |   |   | 31,866  | 5.98 |   |   | 39,820  | 6.06 |   |   |
| Repayments                       | (258,350)                       |   |   |   | (244,763) |   |   |   | (186,091) |   |   |   | (221,075) |   |   |   |
| Other(1)                         | (918)                           |   |   |   | (1,490) |   |   |   | (814) |   |   |   | (1,282) |   |   |   |
| Ending      balance              |  $      5,389,901     | 5.63   | % |   |  $      5,352,278  | 5.66 | % |   |  $      5,366,186  | 5.71 | % |   |  $      5,346,626  | 5.68 | % |   |
|                             |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             | For      the Nine Months Ended  |   |   |   |   |   |   |   |   |   |
|                             | June      30, 2008              |   | June      30, 2007 |   |   |   |   |   |   |   |   |   |
|                             | Amount                          | Rate   |   |   | Amount | Rate |   |   |   |   |   |   |   |   |   |   |
|                             | (Dollars      in thousands)     |   |   |   |   |   |   |   |   |   |
| Beginning      balance           |  $      5,346,626     | 5.68   | % |   |  $      5,257,473  | 5.55 | % |   |   |   |   |   |   |   |   |   |
| Originations      and refinances | 640,604                    | 5.91   |   |   | 578,117  | 6.30 |   |   |   |   |   |   |   |   |   |   |
| Purchases                        | 95,097                     | 5.69   |   |   | 104,515  | 6.07 |   |   |   |   |   |   |   |   |   |   |
| Repayments                       | (689,204)                       |   |   |   | (634,905) |   |   |   |   |   |   |   |   |   |   |   |
| Other(1)                         | (3,222)                         |   |   |   | (1,370) |   |   |   |   |   |   |   |   |   |   |   |
| Ending      balance              |  $      5,389,901     | 5.63   | % |   |  $      5,303,830  | 5.64 | % |   |   |   |   |   |   |   |   |   |

----

|                                                                                         | June      30, 2008                                               | March      31, 2008 |              | September      30, 2007 |
|----------------------------------------------------------------------------------------------|------------------------------------------------------------------|---------------------|-------------------|-------------------------|
|                                                                                         | Amount                                                           |                | Average Rate |                    | %      of Total | Amount |   | Average Rate |   | %      of Total |   | Amount |   | Average      Rate |   | %      of Total |
|                                                                                         | (Dollars      in thousands)                                      |
| Real Estate Loans                                                                            |                                                             |                |              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      One-      to four-family                                       |  $        5,033,735 |                | 5.58              | %                       |   | 93.39 | % |  $        5,001,195 |   | 5.58 | % |   | 93.44 | % |   |  $        4,992,398 |   | 5.55 | % |   | 93.38 | % |
|      Multi-family      and commercial                               | 57,835                                                           |                | 6.42              |                    |   | 1.07 |   | 57,273 |   | 6.46 |   |   | 1.07 |   |   | 60,625 |   | 6.48 |   |   | 1.13 |   |
|      Construction      and development                              | 88,177                                                           |                | 5.64              |                    |   | 1.64 |   | 82,737 |   | 6.10 |   |   | 1.55 |   |   | 74,521 |   | 6.22 |   |   | 1.39 |   |
|           Total      real estate loans     | 5,179,747                                                        |                | 5.59              |                    |   | 96.10 |   | 5,141,205 |   | 5.60 |   |   | 96.06 |   |   | 5,127,544 |   | 5.57 |   |   | 95.90 |   |
|                                                                                         |                                                             |                |              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer Loans                                                                               |                                                             |                |              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Savings      loans                                             | 4,393                                                            |                | 6.16              |                    |   | 0.08 |   | 4,918 |   | 6.37 |   |   | 0.09 |   |   | 5,249 |   | 6.55 |   |   | 0.10 |   |
|      Automobile                                                     | 3,648                                                            |                | 7.01              |                    |   | 0.07 |   | 3,836 |   | 7.02 |   |   | 0.07 |   |   | 4,234 |   | 6.98 |   |   | 0.08 |   |
|      Home      equity                                               | 201,497                                                          |                | 6.56              |                    |   | 3.74 |   | 201,743 |   | 7.26 |   |   | 3.77 |   |   | 208,986 |   | 8.41 |   |   | 3.91 |   |
|      Other                                                          | 616                                                              |                | 7.99              |                    |   | 0.01 |   | 576 |   | 8.36 |   |   | 0.01 |   |   | 613 |   | 8.26 |   |   | 0.01 |   |
|           Total      consumer loans        | 210,154                                                          |                | 6.56              |                    |   | 3.90 |   | 211,073 |   | 7.24 |   |   | 3.94 |   |   | 219,082 |   | 8.33 |   |   | 4.10 |   |
| Total      loans receivable                                                                  | 5,389,901                                                        |                | 5.63              | %                       |   | 100.00 | % | 5,352,278 |   | 5.66 | % |   | 100.00 | % |   | 5,346,626 |   | 5.68 | % |   | 100.00 | % |
|                                                                                         |                                                             |                |              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                        |                                                             |                |              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Loans      in process                                          | 47,772                                                           |                |              |                    |   |   |   | 45,033 |   |   |   |   |   |   |   | 41,126 |   |   |   |   |   |   |
|      Deferred      fees and discounts                               | 10,357                                                           |                |              |                    |   |   |   | 10,129 |   |   |   |   |   |   |   | 9,893 |   |   |   |   |   |   |
|      Allowance      for loan losses                                 | 5,711                                                            |                |              |                    |   |   |   | 4,250 |   |   |   |   |   |   |   | 4,181 |   |   |   |   |   |   |
|           Total      loans receivable, net |  $        5,326,061 |                |              |                    |   |   |   |  $        5,292,866 |   |   |   |   |   |   |   |  $        5,291,426 |   |   |   |   |   |   |

----

----

----

|               | Credit      Score                                                                                                        |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|
|               | Less      than 660                                                                                                       |   |   |   | 661      to 700 |   |   |   | 701      to 750 |   |   |   | 751      and above |   |   |   | Total |   |   |
| LTV ratio          | Amount                                                                                                                   | %      of total | Amount | %      of total | Amount | %      of total |   | Amount | %      of total | Amount | %      of total |
|               | (Dollars      in thousands)                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less      than 70% |  $              157,547                       | 3.1 | % |   |  $       144,113 | 2.9 | % |   |  $           385,463 | 7.7 | % |   |  $          1,732,384 | 34.4 | % |   |  $        2,419,507 | 48.1 | % |
| 70%      to 80%    |                  146,170            | 2.9 |   |   |           143,276 | 2.8 |   |   |               411,869 | 8.2 |   |   |              1,157,998 | 23.0 |   |   |            1,859,313 | 36.9 |   |
| More      than 80% |                    82,411 | 1.7 |   |   |             85,493 | 1.7 |   |   |               213,498 | 4.2 |   |   |                 373,513 | 7.4 |   |   |               754,915 | 15.0 |   |
| Total              |  $              386,128                       | 7.7 | % |   |  $       372,882 | 7.4 | % |   |  $        1,010,830 | 20.1 | % |   |  $          3,263,895 | 64.8 | % |   |  $        5,033,735 |     100.0 | % |

|                                          |   | June      30,               |   |   | March      31, |   |   | December      31, |   |   | September      30, |   |
|-----------------------------------------------|--------|-----------------------------|--------|--------|----------------|--------|--------|-------------------|--------|--------|--------------------|--------|
|                                          |   | 2008                        |   |   | 2008           |   |   | 2007              |   |   | 2007               |   |
|                                          |   | (Dollars      in thousands) |   |
| Loans      30-89 days delinquent(1)           |   | $                           | 19,212 |   |           | $      | 18,908 |              |   | $      | 22,712             |   |   | $ | 17,732 |   |
| Non-performing      loans(2)                  |   |                        | 13,254 |   |           |   | 9,884  |              |   |   | 10,232             |   |   |   | 7,352 |   |
| Real      estate owned                        |   |                        | 2,207  |   |           |   | 2,764  |              |   |   | 2,023              |   |   |   | 2,097 |   |
| Non-performing      assets to total assets at |   |                        |   |   |           |   |   |              |   |   |               |   |   |   |   |   |
|   end      of period                |   |                        | 0.20   | %      |           |   | 0.16   | %                 |   |   | 0.15               | %      |   |   | 0.12 | % |
| Non-performing      loans to total loans      |   |                        | 0.25   | %      |           |   | 0.19   | %                 |   |   | 0.19               | %      |   |   | 0.14 | % |

----

----

|                                                     |   | For      the Three Months Ended |   |   | For      the Nine Months Ended |   |
|----------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                     |   | June      30,                   |   |   | June      30,                  |   |
|                                                     |   | 2008                            |   |   | 2007                           |   |   | 2008 |   |   | 2007 |   |
| Allowance      for loan losses:                          |   | (Dollars      in thousands)     |   |
| Beginning      balance                                   |   | $                               | 4,250  |   |                           | $      | 4,193 |   |   | $ | 4,181 |   |   | $ | 4,433 |   |
| Losses      charged against the allowance:               |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   One-      to four-family loans               |   |                            | 133    |   |                           |   | -- |   |   |   | 163 |   |   |   | 9 |   |
|   Multi-family      loans                      |   |                            | --     |   |                           |   | -- |   |   |   | -- |   |   |   | -- |   |
|   Commercial      and other loans              |   |                            | --     |   |                           |   | -- |   |   |   | -- |   |   |   | -- |   |
|   Consumer      loans                          |   |                            | 8      |   |                           |   | 4 |   |   |   | 28 |   |   |   | 10 |   |
|     Total      charge-offs           |   |                            | 141    |   |                           |   | 4 |   |   |   | 191 |   |   |   | 19 |   |
|   Recoveries                                   |   |                            | --     |   |                           |   | -- |   |   |   | -- |   |   |   | -- |   |
|   Provision      (recovery) charged to expense |   |                            | 1,602  |   |                           |   | -- |   |   |   | 1,721 |   |   |   | (225 | ) |
| Ending      balance                                      |   | $                               | 5,711  |   |                           | $      | 4,189 |   |   | $ | 5,711 |   |   | $ | 4,189 |   |
|                                                     |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses to non-                   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   performing      loans at period end          |   |                            |   |   |                           |   |   |   |   |   | 43.09 | % |   |   | 63.92 | % |
| Allowance      for loan losses to loans                  |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   receivable,      net at period end           |   |                            |   |   |                           |   |   |   |   |   | 0.11 | % |   |   | 0.08 | % |

----

|                                        | For      the Three Months Ended          |
|---------------------------------------------|------------------------------------------|
|                                        | June      30, 2008                       |   | March      31, 2008 |   | December      31, 2007 |   | September      30, 2007 |
|                                        | Amount                                   | Yield |   | WAL |   | Amount | Yield |   | WAL |   | Amount | Yield |   | WAL |   | Amount | Yield |   | WAL |
|                                        | (Dollars      in thousands)              |
| Beginning      balance                      |  $   2,076,766  | 4.70 | % | 4.88 |   |  $    1,608,897  | 4.66 | % | 4.41 |   |  $    1,414,271  | 4.46 | % | 4.04 |   |  $      1,466,822  | 4.30 | % | 4.89 |
| Maturities      and repayments              | (172,376)                                |   |   |   |   | (119,682) |   |   |   |   | (95,243) |   |   |   |   | (126,050) |   |   |   |
| Net      amortization of premiums/discounts | (9)                                      |   |   |   |   | (426) |   |   |   |   | (335) |   |   |   |   | (783) |   |   |   |
| Purchases:                                  |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Fixed                           | 129,614                             | 4.64 |   | 4.56 |   | 395,048  | 4.90 |   | 4.98 |   | 200,382  | 5.17 |   | 3.98 |   | 72,610  | 5.79 |   | 4.34 |
|   Adjustable                      | 50,443                              | 4.25 |   | 4.04 |   | 188,024  | 4.71 |   | 5.06 |   | 86,819  | 4.88 |   | 4.68 |   |  --  |  -- |   |  -- |
| Change      in valuation on AFS securities  | (17,753)                                 |   |   |   |   | 4,905  |   |   |   |   | 3,003  |   |   |   |   | 1,672  |   |   |   |
| Ending      balance                         |  $   2,066,685  | 4.76 | % | 4.32 |   |  $    2,076,766  | 4.70 | % | 4.88 |   |  $    1,608,897  | 4.66 | % | 4.41 |   |  $      1,414,271  | 4.46 | % | 4.04 |
|                                        |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        | For      the Nine Months Ended           |   |   |   |   |   |   |   |   |   |   |
|                                        | June      30, 2008                       |   | June      30, 2007 |   |   |   |   |   |   |   |   |   |   |
|                                        | Amount                                   | Yield |   | WAL |   | Amount | Yield |   | WAL |   |   |   |   |   |   |   |   |   |   |
|                                        | (Dollars      in thousands)              |   |   |   |   |   |   |   |   |   |   |
| Beginning      balance                      |  $   1,414,271  | 4.46 | % | 4.04 |   |  $    2,084,786  | 4.54 | % | 4.39 |   |   |   |   |   |   |   |   |   |   |
| Maturities      and repayments              | (387,301)                                |   |   |   |   | (368,696) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of securities, net of gains       |  --                            |   |   |   |   | (404,459) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      amortization of premiums/discounts | (770)                                    |   |   |   |   | (3,291) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases:                                  |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Fixed                           | 725,044                             | 4.93 |   | 4.63 |   | 2,675  | 5.64 |   | 15.45 |   |   |   |   |   |   |   |   |   |   |
|   Adjustable                      | 325,286                             | 4.68 |   | 4.80 |   | 152,807  | 5.00 |   | 1.61 |   |   |   |   |   |   |   |   |   |   |
| Change      in valuation on AFS securities  | (9,845)                                  |   |   |   |   | 3,000  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending      balance                         |  $   2,066,685  | 4.76 | % | 4.32 |   |  $    1,466,822  | 4.30 | % | 4.89 |   |   |   |   |   |   |   |   |   |   |

----

|                                        | For      the Three Months Ended                                     |
|---------------------------------------------|---------------------------------------------------------------------|
|                                        | June      30, 2008                                                  |   | March      31, 2008 |   | December      31, 2007 |   | September      30, 2007 |
|                                        | Amount                                                              | Yield |   | WAL |   | Amount | Yield |   | WAL |   | Amount | Yield |   | WAL |   | Amount | Yield |   | WAL |
|                                        | (Dollars      in thousands)                                         |
| Beginning      balance                      |  $        88,597  | 4.48 | % | 2.78 |   |  $       500,045  | 4.14 | % | 0.67 |   |  $       524,168  | 4.52 | % | 1.66 |   |  $         673,160  | 4.68 | % | 1.71 |
| Maturities      and calls                   | (4,009)                                                             |   |   |   |   | (420,000) |   |   |   |   | (189,890) |   |   |   |   | (155,250) |   |   |   |
| Net      amortization of premiums/discounts | (204)                                                               |   |   |   |   | 307  |   |   |   |   | 171  |   |   |   |   | 334  |   |   |   |
| Purchases:                                  |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Fixed                           | 56,669                                                         | 3.12 |   | 1.46 |   | 8,253  | 3.20 |   | 5.67 |   | 165,590  | 4.28 |   | 0.70 |   | 5,802  | 3.76 |   | 4.85 |
|   Adjustable                      | 3,874                                                          | 6.58 |   | 28.98 |   | -- | -- |   | -- |   | -- | -- |   | -- |   | -- | -- |   | -- |
| Change      in valuation of AFS securities  | (581)                                                               |   |   |   |   | (8) |   |   |   |   | 6  |   |   |   |   | 122  |   |   |   |
| Ending      balance                         |  $      144,346             | 3.94 | % | 4.45 |   |  $         88,597  | 4.48 | % | 2.78 |   |  $       500,045  | 4.14 | % | 0.67 |   |  $         524,168  | 4.52 | % | 1.66 |
|                                        |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        | For      the Nine Months Ended                                      |   |   |   |   |   |   |   |   |   |   |
|                                        | June      30, 2008                                                  |   | June      30, 2007 |   |   |   |   |   |   |   |   |   |   |
|                                        | Amount                                                              | Yield |   | WAL |   | Amount | Yield |   | WAL |   |   |   |   |   |   |   |   |   |   |
|                                        | (Dollars      in thousands)                                         |   |   |   |   |   |   |   |   |   |   |
| Beginning      balance                      |  $      524,168             | 4.52 | % | 1.66 |   |  $       429,480  | 4.46 | % | 2.63 |   |   |   |   |   |   |   |   |   |   |
| Maturities      and calls                   | (613,899)                                                           |   |   |   |   | (445,240) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      amortization of premiums/discounts | 274                                                            |   |   |   |   | 3,917  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases:                                  |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Fixed                           | 230,512                                                        | 3.96 |   | 1.07 |   | 685,237  | 5.20 |   | 0.85 |   |   |   |   |   |   |   |   |   |   |
|   Adjustable                      | 3,874                                                          | 6.58 |   | 28.98 |   | -- | -- |   | -- |   |   |   |   |   |   |   |   |   |   |
| Change      in valuation of AFS securities  | (583)                                                               |   |   |   |   | (234) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending      balance                         |  $      144,346             | 3.94 | % | 4.45 |   |  $       673,160  | 4.68 | % | 1.71 |   |   |   |   |   |   |   |   |   |   |

----

|                |   | At                          |      | At                  |    | At                     |      | At                      |
|---------------------|--------|-----------------------------|-----------|---------------------|---------|------------------------|-----------|-------------------------|
|                |   | June      30, 2008          |      | March      31, 2008 |    | December      31, 2007 |      | September      30, 2007 |
|                |   |                        |      |                | Average |                   | %      of |                    |   |   |   | Average |   | %      of |   |   |   |   | Average |   | %      of |   |   |   |   | Average |   | %      of |
|                |   | Amount                      |      |                | Rate    |                   | Total     |                    | Amount |   |   | Rate |   | Total |   | Amount |   |   | Rate |   | Total |   | Amount |   |   | Rate |   | Total |
|                |   | (Dollars      in thousands) |
| Checking            |   | $                           | 419,678   |                |    |                   | 0.21      | %                       |   |   | 10.59 | % |   | $ | 423,675 |   |   |   | 0.21 | % |   |   | 10.54 | % |   | $ | 413,349 |   |   |   | 0.21 | % |   |   | 10.38 | % |   | $ | 394,109 |   |   |   | 0.21 | % |   |   | 10.05 | % |
| Savings             |   |                        | 232,807   |                |    |                   | 1.64      |                    |   |   | 5.88 |   |   |   | 231,050 |   |   |   | 1.35 |   |   |   | 5.75 |   |   |   | 229,862 |   |   |   | 2.05 |   |   |   | 5.77 |   |   |   | 237,148 |   |   |   | 2.58 |   |   |   | 6.04 |   |
| Money      market   |   |                        | 811,415   |                |    |                   | 1.46      |                    |   |   | 20.48 |   |   |   | 827,623 |   |   |   | 1.65 |   |   |   | 20.58 |   |   |   | 811,002 |   |   |   | 2.95 |   |   |   | 20.37 |   |   |   | 790,277 |   |   |   | 3.18 |   |   |   | 20.15 |   |
| Certificates        |   |                        | 2,497,643 |                |    |                   | 4.16      |                    |   |   | 63.05 |   |   |   | 2,538,618 |   |   |   | 4.54 |   |   |   | 63.13 |   |   |   | 2,527,236 |   |   |   | 4.77 |   |   |   | 63.48 |   |   |   | 2,501,248 |   |   |   | 4.77 |   |   |   | 63.76 |   |
| Total      deposits |   | $                           | 3,961,543 |                |    |                   | 3.04      | %                       |   |   | 100.00 | % |   | $ | 4,020,966 |   |   |   | 3.31 | % |   |   | 100.00 | % |   | $ | 3,981,449 |   |   |   | 3.77 | % |   |   | 100.00 | % |   | $ | 3,922,782 |   |   |   | 3.86 | % |   |   | 100.00 | % |

----

| Total      voting shares outstanding at  September 30, 2007                 |             | 74,258,977  |
|---------------------------------------------------------------------------------------|------------------|------------------|
| Treasury      stock acquisitions                                                      |             |             | (225,042) |
| RRP      grants                                                                       |             |             | 10,000  |
| Options      exercised                                                                |             |             | 23,683  |
| Total      voting shares outstanding at June 30, 2008                                 |             | 74,067,618  |
| Unvested      shares in ESOP                                                          |             |             | (1,209,832) |
| Shares      held by MHC                                                               |             |             | (52,192,817) |
| Total      shares eligible to receive dividends at June 30, 2008 (public      shares) | 20,664,969  |

----

|                                           |   | Calendar      Year                                    |       |
|------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                           |   | 2008                                                  |       |   | 2007 |   |   | 2006 |   |
|                                           |   | (Dollars      in thousands, except per share amounts) |       |
| Quarter      ended March 31                    |   |                                                  |       |   |   |   |   |   |   |
| Number      of dividend shares                 |   |                                                  | 20,660,510 |   |   |   | 20,520,793 |   |   |   | 20,457,283 |   |
| Dividend      per share                        |   | $                                                     | 0.50       |   |   | $ | 0.50 |   |   | $ | 0.50 |   |
| Total      dividends paid                      |   | $                                                     | 10,330     |   |   | $ | 10,261 |   |   | $ | 10,229 |   |
| Quarter      ended June 30                     |   |                                                  |       |   |   |   |   |   |   |   |   |   |
| Number      of dividend shares                 |   |                                                  | 20,661,660 |   |   |   | 20,673,933 |   |   |   | 20,257,420 |   |
| Dividend      per share                        |   | $                                                     | 0.50       |   |   | $ | 0.50 |   |   | $ | 0.50 |   |
| Total      dividends paid                      |   | $                                                     | 10,331     |   |   | $ | 10,337 |   |   | $ | 10,129 |   |
| Quarter      ended September 30                |   |                                                  |       |   |   |   |   |   |   |   |   |   |
| Number      of dividend shares                 |   |                                                  | 20,667,969 |   |   |   | 20,694,533 |   |   |   | 20,250,134 |   |
| Dividend      per share                        |   | $                                                     | 0.50       |   |   | $ | 0.50 |   |   | $ | 0.50 |   |
| Total      dividends paid                      |   |                                                  | 10,334     |   |   | $ | 10,347 |   |   | $ | 10,125 |   |
| Quarter      ended December 31                 |   |                                                  |       |   |   |   |   |   |   |   |   |   |
| Number      of dividend shares                 |   |                                                  |       |   |   |   | 20,860,278 |   |   |   | 20,432,393 |   |
| Dividend      per share                        |   |                                                  |       |   |   | $ | 0.50 |   |   | $ | 0.50 |   |
| Total      dividends paid                      |   |                                                  |       |   |   | $ | 10,430 |   |   | $ | 10,216 |   |
| Special      year end dividend                 |   |                                                  |       |   |   |   |   |   |   |   |   |   |
| Number      of dividend shares                 |   |                                                  |       |   |   |   | -- |   |   |   | 20,432,793 |   |
| Dividend      per share                        |   |                                                  |       |   |   | $ | -- |   |   | $ | 0.09 |   |
| Total      dividends paid                      |   |                                                  |       |   |   | $ | -- |   |   | $ | 1,839 |   |
|                                           |   |                                                  |       |   |   |   |   |   |   |   |   |   |
| Calendar      year-to-date dividends per share |   | $                                                     | 1.50       |   |   | $ | 2.00 |   |   | $ | 2.09 |   |

----

|                                                           | At                     |   | For      the Three Months Ended                                        |   |
|----------------------------------------------------------------|------------------------|--------|------------------------------------------------------------------------|--------|
|                                                           | June      30, 2008     |   | June      30, 2008                                                     |   | March      31, 2008 |   | December      31, 2007 |   | June      30, 2007 |   |
|                                                           |                   |   | Average                                                                |   |   |   | Average |   |   |   | Average |   |   |   | Average |   |   |   |
|                                                           | Yield/                 |   | Outstanding                                                            |   | Yield/ |   | Outstanding |   | Yield/ |   | Outstanding |   | Yield/ |   | Outstanding |   | Yield/ |   |
|                                                           | Rate                   |   | Balance                                                                |   | Rate |   | Balance |   | Rate |   | Balance |   | Rate |   | Balance |   | Rate |   |
| Assets:                                                        |                   |   | (Dollars      in thousands)                                            |   |
|   Interest-earning      assets:                      |                   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Loans      receivable (1)        | 5.67%                  |   |  $         5,316,794 |   | 5.62 | % |  $      5,306,797 |   | 5.67 | % |  $      5,309,758 |   | 5.74 | % |  $      5,238,291 |   | 5.59 | % |
|      Mortgage-related      securities | 4.76    |   | 2,107,757                                                              |   | 4.72 |   | 1,756,593 |   | 4.61 |   | 1,497,081 |   | 4.58 |   | 1,543,049 |   | 4.21 |   |
|      Investment      securities       | 3.94    |   | 128,784                                                                |   | 4.03 |   | 304,470 |   | 4.02 |   | 391,173 |   | 4.22 |   | 717,008 |   | 4.72 |   |
|      Capital      stock of FHLB       | 4.72    |   | 128,379                                                                |   | 4.71 |   | 130,752 |   | 5.73 |   | 133,378 |   | 6.21 |   | 149,288 |   | 6.48 |   |
|      Cash      and cash equivalents   | 2.35    |   | 90,556                                                                 |   | 2.03 |   | 171,356 |   | 3.16 |   | 129,227 |   | 4.32 |   | 89,768 |   | 5.34 |   |
|   Total      interest-earning assets (1)             | 5.35    |   | 7,772,270                                                              |   | 5.29 |   | 7,669,968 |   | 5.31 |   | 7,460,617 |   | 5.41 |   | 7,737,404 |   | 5.25 |   |
|   Other      noninterest-earning assets              |                   |   | 187,701                                                                |   |   |   | 202,741 |   |   |   | 203,260 |   |   |   | 160,904 |   |   |   |
| Total      assets                                              |                   |   |  $         7,959,971 |   |   |   |  $      7,872,709 |   |   |   |  $      7,663,877 |   |   |   |  $      7,898,308 |   |   |   |
|                                                           |                   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                     |                   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest-bearing      liabilities:                 |                   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Savings                                | 1.65    |   | 230,164                                                                |   | 1.42 |   | 228,710 |   | 1.66 |   | 232,930 |   | 2.34 |   | 243,816 |   | 2.92 |   |
|     Checking                               | 0.21    |   | 412,468                                                                |   | 0.20 |   | 395,295 |   | 0.21 |   | 382,748 |   | 0.21 |   | 407,993 |   | 0.21 |   |
|     Money      market                      | 1.46    |   | 814,074                                                                |   | 1.53 |   | 810,464 |   | 2.22 |   | 794,391 |   | 3.12 |   | 808,162 |   | 3.27 |   |
|     Certificates                           | 4.16    |   | 2,508,743                                                              |   | 4.32 |   | 2,531,232 |   | 4.68 |   | 2,504,463 |   | 4.79 |   | 2,480,765 |   | 4.66 |   |
|       Total      deposits        | 3.04    |   | 3,965,449                                                              |   | 3.15 |   | 3,965,701 |   | 3.56 |   | 3,914,532 |   | 3.86 |   | 3,940,736 |   | 3.81 |   |
|       FHLB      advances (2)     | 4.73    |   | 2,547,450                                                              |   | 4.75 |   | 2,602,210 |   | 4.88 |   | 2,593,271 |   | 5.19 |   | 2,915,505 |   | 5.05 |   |
|       Other      borrowings      | 4.07    |   | 452,458                                                                |   | 4.09 |   | 323,323 |   | 4.74 |   | 149,724 |   | 5.77 |   | 53,500 |   | 8.23 |   |
|   Total      interest-bearing liabilities            | 3.73    |   | 6,965,357                                                              |   | 3.80 |   | 6,891,234 |   | 4.11 |   | 6,657,527 |   | 4.42 |   | 6,909,741 |   | 4.36 |   |
|   Other      noninterest-bearing liabilities         |                   |   | 122,747                                                                |   |   |   | 111,881 |   |   |   | 137,469 |   |   |   | 118,137 |   |   |   |
|   Stockholders'      equity                          |                   |   | 871,867                                                                |   |   |   | 869,594 |   |   |   | 868,881 |   |   |   | 870,430 |   |   |   |
| Total      liabilities and                                     |                   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       stockholders'      equity  |                   |   |  $         7,959,971 |   |   |   |  $      7,872,709 |   |   |   |  $      7,663,877 |   |   |   |  $      7,898,308 |   |   |   |

----

|                                                                     |   |   |                                                                                   |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |
|--------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------|--------|--------|--------|
| Net      interest rate spread                                            | 1.62%  |   |                                                                                   |   | 1.49   | %      |                                                                 |   | 1.20   | %      |                                                                 |   | 0.99   | %      |                                                                 |   | 0.89   | %      |
| Net      interest-earning assets                                         |   |   |  $            806,913 |   |   |   |  $         778,734 |   |   |   |  $         803,090 |   |   |   |  $         827,663 |   |   |   |
| Net      interest margin                                                 |   |   |                                                                                   |   | 1.89   | %      |                                                                 |   | 1.62   | %      |                                                                 |   | 1.43   | %      |                                                                 |   | 1.33   | %      |
| Ratio      of interest-earning assets                                    |   |   |                                                                                   |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |
|       to      interest-bearing liabilities |   |   |                                                                                   |   | 1.12   |   |                                                                 |   | 1.11   |   |                                                                 |   | 1.12   |   |                                                                 |   | 1.12   |   |
|                                                                     |   |   |                                                                                   |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |
| Selected      performance ratios:                                        |   |   |                                                                                   |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |                                                                 |   |   |   |
|   Return      on average assets (annualized)                   |   |   |                                                                                   |   | 0.72   | %      |                                                                 |   | 0.60   | %      |                                                                 |   | 0.48   | %      |                                                                 |   | 0.37   | %      |
|   Return      on average equity (annualized)                   |   |   |                                                                                   |   | 6.59   | %      |                                                                 |   | 5.39   | %      |                                                                 |   | 4.20   | %      |                                                                 |   | 3.35   | %      |
|   Average      equity to average assets                        |   |   |                                                                                   |   | 10.95  | %      |                                                                 |   | 11.05  | %      |                                                                 |   | 11.34  | %      |                                                                 |   | 11.02  | %      |

----

|                                                            |   | For      the Three Months Ended                       |    |
|-----------------------------------------------------------------|--------|-------------------------------------------------------|---------|
|                                                            |   | June      30,                                         |    |   | March      31, |   |   | December      31, |   |   | September      30, |   |   | June      30, |   |
|                                                            |   | 2008                                                  |    |   | 2008 |   |   | 2007 |   |   | 2007 |   |   | 2007 |   |
| Selected      income statement data:                            |   | (Dollars      in thousands, except per share amounts) |    |
| Interest      and dividend income:                              |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loans      receivable                               |   | $                                                     | 74,651  |   |   | $ | 75,276 |   |   | $ | 76,263 |   |   | $ | 74,343 |   |   | $ | 73,219 |   |
|   Mortgage-related      securities                    |   |                                                  | 24,869  |   |   |   | 20,246 |   |   |   | 17,127 |   |   |   | 15,690 |   |   |   | 16,224 |   |
|   Investment      securities                          |   |                                                  | 1,298   |   |   |   | 3,061 |   |   |   | 4,130 |   |   |   | 6,444 |   |   |   | 8,459 |   |
|   Other      interest and dividend income             |   |                                                  | 1,967   |   |   |   | 3,233 |   |   |   | 3,508 |   |   |   | 3,808 |   |   |   | 3,624 |   |
|     Total      interest and dividend income |   |                                                  | 102,785 |   |   |   | 101,816 |   |   |   | 101,028 |   |   |   | 100,285 |   |   |   | 101,526 |   |
|                                                            |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                          |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Deposits                                            |   |                                                  | 31,174  |   |   |   | 35,145 |   |   |   | 38,033 |   |   |   | 38,166 |   |   |   | 37,377 |   |
|   FHLB      advances                                  |   |                                                  | 30,248  |   |   |   | 31,796 |   |   |   | 34,161 |   |   |   | 36,894 |   |   |   | 37,220 |   |
|   Other      borrowings                               |   |                                                  | 4,682   |   |   |   | 3,873 |   |   |   | 2,207 |   |   |   | 1,125 |   |   |   | 1,113 |   |
|      Total      interest expense       |   |                                                  | 66,104  |   |   |   | 70,814 |   |   |   | 74,401 |   |   |   | 76,185 |   |   |   | 75,710 |   |
|                                                            |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                                  |   |                                                  | 1,602   |   |   |   | 119 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest and dividend income                           |   |                                                  | 35,079  |   |   |   | 30,883 |   |   |   | 26,627 |   |   |   | 24,100 |   |   |   | 25,816 |   |
|                                                            |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income                                               |   |                                                  | 7,345   |   |   |   | 7,982 |   |   |   | 7,111 |   |   |   | 6,412 |   |   |   | 5,908 |   |
| Other      expenses                                             |   |                                                  | 19,836  |   |   |   | 20,907 |   |   |   | 19,451 |   |   |   | 19,938 |   |   |   | 20,136 |   |
| Income      tax expense                                         |   |                                                  | 8,233   |   |   |   | 6,231 |   |   |   | 5,174 |   |   |   | 4,274 |   |   |   | 4,299 |   |
|      Net      income                   |   | $                                                     | 14,355  |   |   | $ | 11,727 |   |   | $ | 9,113 |   |   | $ | 6,300 |   |   | $ | 7,289 |   |
|                                                            |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Efficiency      ratio                                           |   |                                                  | 45.05   |   |   |   | 53.63 |   |   |   | 57.65 |   |   |   | 65.34 |   |   |   | 63.47 |   |
|                                                            |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                                   |   | $                                                     | 0.20    |   |   | $ | 0.16 |   |   | $ | 0.12 |   |   | $ | 0.08 |   |   | $ | 0.10 |   |
| Diluted      earnings per share                                 |   | $                                                     | 0.20    |   |   | $ | 0.16 |   |   | $ | 0.12 |   |   | $ | 0.08 |   |   | $ | 0.10 |   |
| Dividends      declared per public share                        |   | $                                                     | 0.50    |   |   | $ | 0.50 |   |   | $ | 0.50 |   |   | $ | 0.50 |   |   | $ | 0.50 |   |

----

----

----

The table below presents the dollar amount of changes ininterest income and interest expense for major components of interest-earningassets and interest-bearing liabilities, comparing the quarter ended June 30,2008 to the quarter ended June 30, 2007.  For each category ofinterest-earning assets and interest-bearing liabilities, information isprovided on changes attributable to (1) changes in volume, which are changes inthe average balance multiplied by the previous year’s average rate and (2)changes in rate, which are changes in the average rate multiplied by the averagebalance from the previous year.  The net changes attributable to thecombined impact of both rate and volume have been allocated proportionately tothe changes due to volume and the changes due to rate.

|                                                | Quarter      Ended June 30,                                       |   |                                                                                                |
|-----------------------------------------------------|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|
|                                                | 2008      vs. 2007                                                |   |                                                                                                |
|                                                | Increase      (Decrease) Due to                                   |   |                                                                                                |
|                                                |                                                              |   |                                                                                                |   |   |   |   |
|                                                | Volume                                                            |   | Rate                                                                                                |   | Total |   |   |
|                                                | (Dollars      in thousands)                                       |   |
| Interest-earning      assets:                       |                                                              |   |                                                                                                |   |   |   |
| Loans      receivable                               |   $    1,066                   |   |   $           366             |   |   $             1,432  |   |
| Mortgage-related      securities                    | 6,481                                                        |   | 2,164                                                                                          |   | 8,645  |   |
| Investment      securities                          | (6,082)                                                           |   | (1,079)                                                                                             |   | (7,161) |   |
| Capital      stock of FHLB                          | (308)                                                             |   | (602)                                                                                               |   | (910) |   |
| Cash      equivalents                               | 10                                                           |   | (757)                                                                                               |   | (747) |   |
| Total      interest-earning assets                  |  $     1,167                   |   |  $              92  |   |  $              1,259  |   |
|                                                |                                                              |   |                                                                                                |   |   |   |
| Interest-bearing      liabilities:                  |                                                              |   |                                                                                                |   |   |   |
| Savings                                             |  $         (94) |   |  $          (857)                            |   |  $               (951) |   |
| Checking                                            | 2                                                            |   | (10)                                                                                                |   | (8) |   |
| Money      market                                   | 49                                                           |   | (3,505)                                                                                             |   | (3,456) |   |
| Certificates                                        | 325                                                          |   | (2,113)                                                                                             |   | (1,788) |   |
| FHLB      advances                                  | (4,705)                                                           |   | (2,267)                                                                                             |   | (6,972) |   |
| Other      borrowings                               | 3,885                                                        |   | (316)                                                                                               |   | 3,569  |   |
| Total      interest-bearing liabilities             |  $    (538)                              |   | $      (9,068)                                                        |   |  $           (9,606) |   |
|                                                |                                                              |   |                                                                                                |   |   |   |
| Net      change in net interest and dividend income |  $    1,705                         |   |  $        9,160                                   |   |  $            10,865  |   |

----

----

----

|                                                                     | For      the Nine Months Ended                                                         |   |
|--------------------------------------------------------------------------|----------------------------------------------------------------------------------------|--------|
|                                                                     | June      30, 2008                                                                     |   | June      30, 2007 |   |
|                                                                     | Average                                                                                |   |   |   | Average |   |   |   |
|                                                                     | Outstanding                                                                            |   | Yield/ |   | Outstanding |   | Yield/ |   |
|                                                                     | Balance                                                                                |   | Rate |   | Balance |   | Rate |   |
| Assets:                                                                  | (Dollars      in thousands)                                                            |   |
|   Interest-earning      assets:                                |                                                                                   |   |   |   |   |   |   |   |
|      Loans      receivable (1)                  |  $         5,311,111                 |   | 5.68 | % |  $      5,232,290 |   | 5.62 | % |
|      Mortgage-related      securities           | 1,786,085                                                                              |   | 4.65 |   | 1,660,441 |   | 4.26 |   |
|      Investment      securities                 | 275,234                                                                                |   | 4.11 |   | 688,599 |   | 4.73 |   |
|      Capital      stock of FHLB                 | 130,845                                                                                |   | 5.56 |   | 157,895 |   | 6.48 |   |
|      Cash      and cash equivalents             | 130,375                                                                                |   | 3.29 |   | 147,386 |   | 5.14 |   |
|   Total      interest-earning assets (1)                       | 7,633,650                                                                              |   | 5.34 |   | 7,886,611 |   | 5.26 |   |
|   Other      noninterest-earning assets                        | 197,944                                                                                |   |   |   | 155,907 |   |   |   |
| Total      assets                                                        |  $         7,831,594                 |   |   |   |  $      8,042,518 |   |   |   |
|                                                                     |                                                                                   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                               |                                                                                   |   |   |   |   |   |   |   |
|   Interest-bearing      liabilities:                           |                                                                                   |   |   |   |   |   |   |   |
|     Savings                                          | 230,426                                                                                |   | 1.81 |   | 180,887 |   | 2.37 |   |
|     Checking                                         | 396,785                                                                                |   | 0.21 |   | 399,102 |   | 0.22 |   |
|     Money      market                                | 806,359                                                                                |   | 2.29 |   | 811,888 |   | 3.30 |   |
|     Certificates                                     | 2,514,228                                                                              |   | 4.60 |   | 2,512,057 |   | 4.54 |   |
|       Total      deposits                  | 3,947,798                                                                              |   | 3.52 |   | 3,903,934 |   | 3.74 |   |
|       FHLB      advances (2)               | 2,581,022                                                                              |   | 4.94 |   | 3,099,727 |   | 4.96 |   |
|       Other      borrowings                | 307,922                                                                                |   | 4.60 |   | 53,486 |   | 8.24 |   |
|   Total      interest-bearing liabilities                      | 6,836,742                                                                              |   | 4.10 |   | 7,057,147 |   | 4.31 |   |
|   Other      noninterest-bearing liabilities                   | 124,741                                                                                |   |   |   | 117,529 |   |   |   |
|   Stockholders'      equity                                    | 870,111                                                                                |   |   |   | 867,842 |   |   |   |
| Total      liabilities and stockholders' equity                          |  $         7,831,594                 |   |   |   |  $      8,042,518 |   |   |   |
|                                                                     |                                                                                   |   |   |   |   |   |   |   |
| Net      interest rate spread                                            |                                                                                   |   | 1.24 | % |   |   | 0.95 | % |
| Net      interest-earning assets                                         |  $            796,908 |   |   |   |  $         829,464 |   |   |   |
| Net      interest margin                                                 |                                                                                   |   | 1.65 | % |   |   | 1.39 | % |
| Ratio      of interest-earning assets                                    |                                                                                   |   |   |   |   |   |   |   |
|       to      interest-bearing liabilities |                                                                                   |   | 1.12 |   |   |   | 1.12 |   |
|                                                                     |                                                                                   |   |   |   |   |   |   |   |
| Selected      Performance Ratios:                                        |                                                                                   |   |   |   |   |   |   |   |
|   Return      on average assets (annualized)                   |                                                                                   |   | 0.60 | % |   |   | 0.43 | % |
|   Return      on average equity (annualized)                   |                                                                                   |   | 5.39 | % |   |   | 3.99 | % |
|   Average      equity to average assets                        |                                                                                   |   | 11.11 | % |   |   | 10.79 | % |

----

|                                                | For      the Nine Months Ended                             |
|-----------------------------------------------------|------------------------------------------------------------|
|                                                | June      30, 2008 vs. June 30, 2007                       |
|                                                | Increase      (Decrease) Due to                            |
|                                                |                                                       |   |   |   |   |
|                                                | Volume                                                     |   | Rate |   | Total |
|                                                | (Dollars      in thousands)                                |
| Interest-earning      assets:                       |                                                       |   |   |   |   |
| Loans      receivable                               |   $    3,223            |   |   $        2,566  |   |   $             5,789  |
| Mortgage-related      securities                    | 4,154                                                 |   | 5,026  |   | 9,180  |
| Investment      securities                          | (13,088)                                                   |   | (2,828) |   | (15,916) |
| Capital      stock of FHLB                          | (1,207)                                                    |   | (1,003) |   | (2,210) |
| Cash      and cash equivalents                      | (602)                                                      |   | (1,877) |   | (2,479) |
| Total      interest-earning assets                  |  $    (7,520)                     |   |  $         1,884  |   |  $            (5,636) |
|                                                |                                                       |   |   |   |   |
| Interest-bearing      liabilities:                  |                                                       |   |   |   |   |
| Savings(1)                                          |  $       773  |   |  $          (854) |   |  $                 (81) |
| Checking                                            | (4)                                                        |   | (27) |   | (31) |
| Money      market                                   | (125)                                                      |   | (5,636) |   | (5,761) |
| Certificates(1)                                     | 68                                                    |   | 1,044  |   | 1,112  |
| FHLB      advances                                  | (19,299)                                                   |   | (965) |   | (20,264) |
| Other      borrowings                               | 7,854                                                 |   | (435) |   | 7,419  |
| Total      interest-bearing liabilities             |  $  (10,733)                                |   |  $       (6,873) |   |  $          (17,606) |
|                                                |                                                       |   |   |   |   |
| Net      change in net interest and dividend income |  $      3,213      |   |  $        8,757  |   |  $            11,970  |

----

----

|                                                | Quarter      Ended                                                                     |
|-----------------------------------------------------|----------------------------------------------------------------------------------------|
|                                                | June      30, 2008 vs. March 31, 2008                                                  |
|                                                | Increase      (Decrease) Due to                                                        |
|                                                |                                                                                   |   |   |   |   |
|                                                | Volume                                                                                 |   | Rate |   | Total |
|                                                | (Dollars      in thousands)                                                            |
| Interest-earning      assets:                       |                                                                                   |   |   |   |   |
| Loans      receivable                               |   $       113                        |   |   $         (738) |   |   $              (625) |
| Mortgage-related      securities                    | 4,133                                                                             |   | 490   |   | 4,623  |
| Investment      securities                          | (1,771)                                                                                |   | 8  |   | (1,763) |
| Capital      stock of FHLB                          | (33)                                                                                   |   | (328) |   | (361) |
| Cash      and cash equivalents                      | (514)                                                                                  |   | (391) |   | (905) |
| Total      interest-earning assets                  |  $     1,928                                        |   |  $          (959) |   |  $                 969  |
|                                                |                                                                                   |   |   |   |   |
| Interest-bearing      liabilities:                  |                                                                                   |   |   |   |   |
| Savings                                             |  $            6  |   |  $          (132) |   |  $               (126) |
| Checking                                            | 9                                                                                 |   | (10) |   | (1) |
| Money      market                                   | 20                                                                                |   | (1,382) |   | (1,362) |
| Certificates                                        | (257)                                                                                  |   | (2,225) |   | (2,482) |
| FHLB      advances                                  | (679)                                                                                  |   | (869) |   | (1,548) |
| Other      borrowings                               | 1,289                                                                             |   | (480) |   | 809  |
| Total      interest-bearing liabilities             |  $        388                        |   |  $       (5,098) |   |  $            (4,710) |
|                                                |                                                                                   |   |   |   |   |
| Net      change in net interest and dividend income |  $     1,540                                        |   |  $         4,139  |   |  $              5,679  |
|                                                |                                                                                   |   |   |   |   |

----

----

|   | · | the      origination, purchase, or sale ofloans, |
|--------|--------|--------------------------------------------------|

|   | · | the      purchase or sale of investment and mortgage-related      securities, |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | extensions      of credit on home equity loans and construction  loans, |
|--------|--------|-------------------------------------------------------------------------|

|   | · | terms      and conditions of operating leases,and |
|--------|--------|---------------------------------------------------|

|   | · | funding      withdrawals of savings accounts atmaturity. |
|--------|--------|----------------------------------------------------------|

|                                               | Maturity      Range                                                |
|----------------------------------------------------|--------------------------------------------------------------------|
|                                               |                                                               |   |  Less      than |   |   1      - 3 |   |   3      - 5 |   | More      than |   |
|                                               | Total                                                              |   |  1      year |   |  years |   |  years |   | 5      years |   |
|                                               |                                                               |
|                                               |                                                               |   |   |   |   |   |   |   |   |   |
| FHLB      Advances                                 |  $   2,546,000                                 |   |  $       500,000 |   |  $   1,445,000 |   |  $    601,000 |   |  $            -- |   |
|     Weighted      average rate | 4.71                                                               | % | 4.09 | % | 5.19 | % | 4.06 | % |  -- | % |
|                                               |                                                               |   |   |   |   |   |   |   |   |   |
| Repurchase      Agreements                         |          400,000      |   |  -- |   |          175,000 |   |        225,000 |   |  -- |   |
|     Weighted      average rate | 3.88                                                               | % |  -- | % | 3.62 | % | 4.08 | % |  -- | % |
|                                               |                                                               |   |   |   |   |   |   |   |   |   |
| Certificates      of Deposit                       |       2,497,643                      |   |        1,511,847 |   |          853,562 |   |        131,101 |   |            1,133 |   |
|     Weighted      average rate | 4.16                                                               | % |                 4.17 | % |                4.18 | % |              3.79 | % |              4.22 | % |
|                                               |                                                               |   |   |   |   |   |   |   |   |   |
| Commitments      to originate and                  |                                                               |   |   |   |   |   |   |   |   |   |
|    purchase      mortgage loans     |         156,308            |   |           156,308 |   |  -- |   |  -- |   |  -- |   |
|     Weighted      average rate | 5.85                                                               | % | 5.85 | % |  -- |   |  -- |   |  -- |   |
|                                               |                                                               |   |   |   |   |   |   |   |   |   |
| Commitments      to fund unused home               |                                                               |   |   |   |   |   |   |   |   |   |
|    equity      lines of credit      |         269,716            |   |           269,716 |   |  -- |   |  -- |   |  -- |   |
|     Weighted      average rate | 5.70                                                               | % | 5.70 | % |  -- |   |  -- |   |  -- |   |
|                                               |                                                               |   |   |   |   |   |   |   |   |   |
| Unadvanced      portion of                         |                                                               |   |   |   |   |   |   |   |   |   |
|    construction      loans          |           47,772 |   |             47,772 |   |  -- |   |  -- |   |  -- |   |

----

|                        |                                               |   |                                                                                                            |   |     |   |
|-----------------------------|----------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|----------|--------|
|                        | FHLB                                               |   | Repurchase                                                                                                      |   | Weighted |   |
| Maturity      by            | Advances                                           |   | Agreements                                                                                                      |   | Average  |   |
| Fiscal      year            | Amount                                             |   | Amount                                                                                                          |   | Rates    |   |
| (Dollars      in thousands) |                                               |
| 2008                        |  $      200,000 |   |  $                 -- |   | 3.99     | %      |
| 2009                        | 620,000                                            |   |  --                                                                                                        |   | 4.27     |   |
| 2010(1)                     | 925,000                                            |   | 25,000                                                                                                          |   | 5.50     |   |
| 2011                        | 276,000                                            |   | 150,000                                                                                                         |   | 4.49     |   |
| 2012                        | 100,000                                            |   | 150,000                                                                                                         |   | 4.22     |   |
| 2013                        | 425,000                                            |   | 75,000                                                                                                          |   | 3.80     |   |
|   Total           |  $   2,546,000                 |   |  $      400,000                                                              |   | 4.59     | %      |

|                    |                                               |   | Weighted |   |
|-------------------------|----------------------------------------------------|--------|----------|--------|
| Maturity      by        |                                               |   | Average  |   |
| Quarter      End        | Amount                                             |   | Rate     |   |
|                    | (Dollars      in thousands)                        |   |     |   |
| September      30, 2008 |  $      200,000 |   | 3.99     | %      |
| December      31, 2008  |  --                                           |   |  -- |   |
| March      31, 2009     | 300,000                                            |   | 4.16     |   |
| June      30, 2009      |  --                                           |   | --       |   |
|                    |  $      500,000 |   | 4.09     | %      |

----

|                           |   |   | Regulatory                     |
|--------------------------------|--------|--------|--------------------------------|
|                           |   |   | Requirement                    |
|                           | Bank   |   | For      “Well           |
|                           | Ratios |   | Capitalized”      Status |
| Core      capital              | 10.0%  |   | 5.0%                           |
| Tier      I risk-based capital | 23.4%  |   | 6.0%                           |
| Total      risk-based capital  | 23.2%  |   | 10.0%                          |

Item 3.   Quantitative and QualitativeDisclosure About Market Risk

----

| Percentage      Change in Net Interest Income |   |
|-----------------------------------------------|--------|
|                                          |   |   | At |
| Change                                        |   |   | June      30, | March      31, | September      30, |
| in      Interest Rates (1)                    |   |   | 2008      (2) | 2008      (2) | 2007 |
| -100      bp                                  |   |   | 0.93 | -2.61 | 14.53 |
|        000 bp                            |   |   | -- | -- | -- |
| +100      bp                                  |   |   | -2.39 | -3.08 | -8.30 |
| +200      bp                                  |   |   | -6.12 | -7.38 | -23.25 |
| +300      bp                                  |   |   | -10.24 | -12.65 | -38.61 |

| (2) | The      Bank implemented changes to its modeling of prepayments during the current      quarter to make them more consistent with general market      conventions.  Consequently, comparisons to the September 2007      period are less meaningful. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Percentage      Change in MVPE |
|--------------------------------|
|                           |   |   | At |
| Change                         |   |   | June      30, |   | March      31, | September      30, |
| in      Interest Rates (1)     |   |   | 2008      (2) |   | 2008      (2) | 2007 |
| -100      bp                   |   |   | 3.00 |   | -1.09 | 5.37 |
|        000 bp             |   |   | -- |   | -- | -- |
| +100      bp                   |   |   | -10.79 |   | -8.69 | -13.99 |
| +200      bp                   |   |   | -26.83 |   | -25.07 | -32.14 |
| +300      bp                   |   |   | -45.30 |   | -44.23 | -52.52 |

| (1) | Assumes      an instantaneous, permanent and parallel change in interest rates at all      maturities. |
|-----|--------------------------------------------------------------------------------------------------------|

| (2) | The      Bank implemented changes to its modeling of prepayments during the current      quarter to make them more consistent with general market      conventions.  Consequently, comparisons to the September 2007      period are less meaningful. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| June      30, 2008                                              |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
|-----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                            |   | Within      Three Months                                                                          | Three      Months To One Year                                                                                                          | More      Than One Year to Three Years                                                                                                 | More      Than Three Years to Five Years                                                                                               | OverFive      Years                                                                                                                    | Total                                                                    |
|                                                                 |   |                                                                                              |
| Interest-earning      assets:                                   |   | (Dollars      in thousands)                                                                       |
| Loans      receivable (1)      (2):                             |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Mortgage      loans:                                            |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Fixed                                                           |   |      $       194,383                  |     $        416,086                                                       |     $     1,052,264                                                                       |     $        632,908                                                       |     $     1,356,841                                                                       |    $   3,652,482                           |
| Adjustable                                                      |   |              158,228             |              519,665                                                  |              722,166                                                  |                96,280                                       |                  7,582                            |        1,503,921                      |
| Other      loans                                                |   |              132,464             |                23,017                                       |                30,525                                       |                11,182                                       |                12,699                                       |          209,887            |
| Securities:                                                     |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Non-mortgage      securities (3)                                |   |                30,304  |                59,002                                       |                12,253                                       |                  6,121                            |                37,156                                       |          144,836            |
| Mortgage-related      securities (4)                            |   |              324,897             |              483,302                                                  |              519,193                                                  |              273,605                                                  |              473,551                                                  |        2,074,548                      |
| Other      interest-earning assets                              |   |                61,897  |                       -- |                       -- |                       -- |                       -- |            61,897 |
| Total      interest-earning assets                              |   |              902,173             |           1,501,072                                                                  |           2,336,401                                                                  |           1,020,096                                                                  |           1,887,829                                                                  |        7,647,571                      |
|                                                            |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Interest-bearing      liabilities:                              |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Deposits:                                                       |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Savings      (5)                                                |   |              122,417             |                  7,200                            |                16,952                                       |                13,416                                       |                72,822                                       |          232,807            |
| Checking      (5)                                               |   |                10,182  |                33,647                                       |                76,672                                       |                75,658                                       |              223,519                                                  |          419,678            |
| Money      market (5)                                           |   |                36,628  |              101,031                                                  |              186,604                                                  |              142,563                                                  |              344,589                                                  |          811,415            |
| Certificates                                                    |   |              454,875             |           1,056,971                                                                  |              853,563                                                  |              131,101                                                  |                  1,133                            |        2,497,643                      |
| Borrowings      (6)                                             |   |              253,609             |              300,000                                                  |           1,620,000                                                                  |              826,000                                                  |                       -- |        2,999,609                      |
| Total      interest-bearing liabilities                         |   |              877,711             |           1,498,849                                                                  |           2,753,791                                                                  |           1,188,738                                                                  |              642,063                                                  |        6,961,152                      |
|                                                            |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Excess      (deficiency) of interest-earning assets over        |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
|   interest-bearing      liabilities                   |   |     $           24,462 |     $           2,223                                       |     $        (417,390)                                                     |     $        (168,642)                                                     |     $      1,245,766                                                                 |    $     686,419                 |
|                                                            |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Cumulative      excess (deficiency) of interest-earning         |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
|   assets      over interest-bearing liabilities       |   |     $           24,462 |     $           26,685                                      |     $        (390,705)                                                     |     $        (559,347)                                                     |     $         686,419                                                 |                                                                     |
|                                                            |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
| Cumulative      excess (deficiency) of interest-earning         |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
|   assets      over interest-bearing liabilities as a  |   |                                                                                              |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                                                                                   |                                                                     |
|    percent      of total assets at June 30, 2008 |   | 0.31 %                                                                                       | 0.34 %                                                                                                                            | (4.95)%                                                                                                                                | (7.09)%                                                                                                                                | 8.70%                                                                                                                                  |                                                                     |
| Cumulative      excess (deficiency) at September 30, 2007       |   | (9.45)%                                                                                           | (11.57)%                                                                                                                               | (5.52)%                                                                                                                                | 1.68 %                                                                                                                            | 8.72%                                                                                                                                  |                                                                     |
| Cumulative      excess (deficiency) at September 30, 2006       |   | (7.91)%                                                                                           | (13.62)%                                                                                                                               | (13.92)%                                                                                                                               | (4.37)%                                                                                                                                | 7.94%                                                                                                                                  |                                                                     |

----

----

Changes inportfolio composition.  The following table presents thedistribution of our investment and mortgage-related securities portfolios, atcost, at the dates indicated.  Overall, fixed-rate securitiescomprised 60% of these portfolios at June 30, 2008 and September 30,2007.  The WAL is the estimated remaining maturity after projectedprepayment speeds and call option assumptions have been applied.  Theincrease in the WAL between September 30, 2007 and June 30, 2008 was due largelyto purchasing new securities and reinvesting principal cash flows intosecurities with longer WAL, to maturing securities, and to issuers of certainsecurities in the portfolio exercising their option to call the security. The increase in the yield between September 30, 2007 and June 30, 2008 is aresult of the purchase of securities with yields greater than that of theoverall portfolio yield.

|                              |                                                                   | June      30, 2008                                                                    |   | March      31, 2008 |   | December      31, 2007 |   | September      30, 2007 |                                                                      |
|-----------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|---------------------|--------|------------------------|--------|-------------------------|---------------------------------------------------------------------------|
|                              |                                                                   | Balance                                                                               |   | WAL                 |   | Yield                  |   |                    | Balance                                                                   |   | WAL |   | Yield |   |   | Balance |   | WAL |   | Yield |   |   | Balance |   | WAL |   | Yield |   |   |
|                              |                                                                   |   (Dollars      in thousands)                                               |   |                |   |                   |   |                    |                                                                      |   |
| Fixed-rate      investments:      |                                                                   |                                                                                  |   |                |   |                   |   |                    |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              | Agency      bonds                                                      |  $            82,664 |   | 2.62           |   | 4.29                   | %      |                    |  $          41,382 |   | 0.19 |   | 5.47 | % |   |  $       460,997 |   | 0.28 |   | 4.18 | % |   |  $       501,057 |   | 1.51 |   | 4.56 | % |
|                              | Mortgage-related      securities                                       | 1,196,543                                                                             |   | 4.43           |   | 4.86                   |   |                    | 1,156,848                                                                 |   | 4.03 |   | 4.83 |   |   | 806,285 |   | 4.12 |   | 4.79 |   |   | 632,142 |   | 4.15 |   | 4.68 |   |
|                              | Municipal      bonds                                                   | 58,303                                                                                |   | 5.22           |   | 3.39                   |   |                    | 47,124                                                                    |   | 5.15 |   | 3.57 |   |   | 38,949 |   | 7.06 |   | 3.66 |   |   | 23,018 |   | 5.06 |   | 3.69 |   |
|                              |    Total      fixed-rate investments                    | 1,337,510                                                                             |   | 4.35           |   | 4.76                   |   |                    | 1,245,354                                                                 |   | 3.94 |   | 4.80 |   |   | 1,306,231 |   | 2.85 |   | 4.54 |   |   | 1,156,217 |   | 3.02 |   | 4.61 |   |
|                              |                                                                   |                                                                                  |   |                |   |                   |   |                    |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustable-rate      investments: |                                                                   |                                                                                  |   |                |   |                   |   |                    |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              | Mortgage-related      securities                                       | 878,005                                                                               |   | 4.17           |   | 4.62                   |   |                    | 910,030                                                                   |   | 5.97 |   | 4.55 |   |   | 797,628 |   | 4.71 |   | 4.53 |   |   | 780,147 |   | 3.95 |   | 4.29 |   |
|                              | Trust      preferred securities                                        | 3,869                                                                                 |   | 28.98          |   | 4.44                   |   |                    | --                                                                   |   | --  |   | --  |   |   | --  |   | --  |   | --  |   |   | --  |   | --  |   | --  |   |
|                              |    Total      adjustable-rate investments               | 881,874                                                                               |   | 4.28           |   | 4.62                   |   |                    | 910,030                                                                   |   | 5.97 |   | 4.55 |   |   | 797,628 |   | 4.71 |   | 4.53 |   |   | 780,147 |   | 3.95 |   | 4.29 |   |
|                              |      Total      investment portfolio, at cost |  $       2,219,384                            |   | 4.32           |   | 4.70                   | %      |                    |  $     2,155,384                            |   | 4.80 |   | 4.70 | % |   |  $    2,103,859 |   | 3.56 |   | 4.54 | % |   |  $    1,936,364 |   | 3.40 |   | 4.48 | % |

|                               |                                                     | June      30, 2008                       |   |       | March      31, 2008 |                                                           |                                           | December      31, 2007 |       |   | September      30, 2007                            |                               |
|------------------------------------|----------------------------------------------------------|------------------------------------------|--------|------------|---------------------|----------------------------------------------------------------|------------------------------------------------|------------------------|------------|--------|----------------------------------------------------|------------------------------------|
|                               |                                                     | Amount                                   |   |  Rate |                |                                                           | Amount                                         |                   |  Rate |   |                                               | Amount                             |   |  Rate |   |   | Amount |   |  Rate |   |
|                               |                                                     | (Dollars      in thousands)              |   |       |                |                                                           |                                           |                   |
| Certificates      maturing within: |                                                     |                                     |   |       |                |                                                           |                                           |                   |       |   |                                               |                               |   |   |   |   |   |
| 0      to 3 months                 |  $       454,875 |                                     | 4.71   | %          |                |  $        574,897 |                                           | 4.84                   | %          |   |  $      506,282 |                               | 4.74 | % |   |  $       358,141 |   | 4.55 | % |
| 3      to 6 months                 | 489,029                                                  |                                     | 4.57   |       |                | 448,972                                                        |                                           | 4.74                   |       |   | 573,343                                            |                               | 4.87 |   |   | 507,072 |   | 4.77 |   |
| 6      months to one year          | 567,943                                                  |                                     | 3.40   |       |                | 634,845                                                        |                                           | 4.36                   |       |   | 749,696                                            |                               | 4.86 |   |   | 881,810 |   | 4.88 |   |
| One      year to two years         | 638,300                                                  |                                     | 4.10   |       |                | 508,283                                                        |                                           | 4.20                   |       |   | 357,331                                            |                               | 4.45 |   |   | 400,859 |   | 4.66 |   |
| After      two years               | 347,496                                                  |                                     | 4.19   |       |                | 371,621                                                        |                                           | 4.64                   |       |   | 340,584                                            |                               | 4.81 |   |   | 353,366 |   | 4.85 |   |
|                               | Total      certificates                                  |  $    2,497,643 |   | 4.16       | %                   |                                                           |  $     2,538,618 |                   | 4.54       | %      |                                               |  $   2,527,236 |   | 4.77 | % |   |  $    2,501,248 |   | 4.77 | % |
|                               |                                                     |                                     |   |       |                |                                                           |                                           |                   |       |   |                                               |                               |   |   |   |   |   |   |   |   |
| Average      maturity (in years)   | 1.03                                                     |                                     |   |       |                | 0.95                                                           |                                           |                   |       |   | 0.90                                               |                               |   |   |   | 0.95 |   |   |   |

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.  Controls andProcedures

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

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Item2.  Unregistered Sales of Equity Securities and Use ofProceeds

|                                  | Total          |                  | Total      Number of     | Maximum      Number                                                                                                                                                                         |
|---------------------------------------|----------------|-----------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  | Number      of | Average               | Shares      Purchased as | of      Shares that May                                                                                                                                                                     |
|                                  | Shares         | Price  Paid | Part      of Publicly    | Yet      Be Purchased                                                                                                                                                                       |
| Period                                | Purchased      | per      Share        | Announced      Plans     | Under      the Plan                                                                                                                                                                         |
| April      1, 2008 through            |           |                  |                     |                                                                                                                                                                                        |
|    April      30, 2008 |  --       | --          | --                       |                               187,931 |
| May      1, 2008 through              |           |                  |                     |                                                                                                                                                                                        |
|    May      31, 2008   | 1,500          |  --      (1)     | 1,500                    |                               186,431 |
| June      1, 2008 through             |           |                  |                     |                                                                                                                                                                                        |
|    June      30, 2008  | --        | --     |  --                 |                               186,431 |
|      Total   | 1,500          |                  | 1,500                    |                               186,431 |

None.

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| ExhibitNumber                       |    Document |
|-------------------------------------|----------------------------|
|      2.0   |                       | Plan      of Reorganization and Stock Issuance Plan* |
|      3(i)  |                       | Federal      Stock Charter of Capitol Federal Financial* |
|      3(ii) |                       | Bylaws      of Capitol Federal Financial filed on November 29, 2007 as Exhibit 3(ii)      to |
|                                |                       | the      Annual Report on Form 10-K and incorporated herein by      reference |
|      4(i)  |                       | Form      of Stock Certificate of Capitol Federal Financial* |
|      4(ii) |                       | The      Registrant agrees to furnish to the Securities and Exchange Commission,      upon request, the |
|                                |                       | instruments      defining the rights of the holders of the Registrant’s long-term      debt |
|    10.1(i)           |                       | Registrant’s      Thrift Plan filed on November 29, 2007 as Exhibit 10.1(i)    to |
|                                |                       | the      Annual Report on Form 10-K and incorporated herein by      reference |
|    10.1(ii)          |                       | Registrant’s      Stock Ownership Plan filed on November 29, 2007 as Exhibit 10.1(ii)      to |
|                                |                       | the      Annual Report on Form 10-K and incorporated herein by      reference |
|    10.2              |                       | Registrant’s      2000 Stock Option and Incentive Plan (the “Stock Option Plan”) filed on      April 13, |
|                                |                       | 2000      as Appendix A to Registrant’s Revised Proxy Statement (File No. 000-25391)      and incorporated herein by reference  |
|    10.3              |                       | Registrant’s      2000 Recognition and Retention Plan (the “RRP”) filed on April 13, 2000      as |
|                                |                       | Appendix      B to Registrant’s Revised Proxy Statement (File No. 000-25391) and      incorporated herein by reference |
|    10.4              |                       | Capitol      Federal Financial Deferred Incentive Bonus Plan |
|                                |                       |   |
|    10.5              |                       | Form      of Incentive Stock Option Agreement under the Stock Option Plan filed on      February 4, 2005 |
|                                |                       | as      Exhibit 10.5 to the December 31, 2004 Form 10-Q and incorporated herein by      reference |
|    10.6              |                       | Form      of Non-Qualified Stock Option Agreement under the Stock Option Plan filed      on February 4, |
|                                |                       | 2005      as Exhibit 10.6 to the December 31, 2004 Form 10-Q and incorporated herein      by reference |
|    10.7              |                       | Form      of Restricted Stock Agreement under the RRP filed on February 4, 2005 as      Exhibit 10.7 to the |
|                                |                       | December      31, 2004 Form 10-Q and incorporated herein by reference |
|    10.8              |                       | Description      of Named Executive Officer Salary and Bonus Arrangements filed on November      29, |
|                                |                       | 2007      as Exhibit 10.8 to the Annual Report on Form 10-K and incorporated herein      by reference |
|    10.9              |                       | Description      of Director Fee Arrangements filed on February 5, 2007 as Exhibit 10.9 to      the December 31, 2007 Form 10-Q and incorporated herein by      reference |
|    10.10             |                       | Short-term      Performance Plan filed on December 14, 2005 as Exhibit 10.10 to the      Annual |
|                                |                       | Report      on Form 10-K for the fiscal year ended September 30, 2005 and incorporated      herein by reference |
|    11                |                       | Statement      re: computation of earnings per share** |
|    31.1              |                       | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 made by John B.      Dicus, President and Chief Executive Officer |
|    31.2              |                       | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 made by Kent G.      Townsend, Executive Vice President and Chief FinancialOfficer  |
|    32                |                       | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 made by John B. Dicus, President and Chief      Executive Officer, and Kent G. Townsend, Executive Vice President and      Chief Financial Officer |

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