Capitol Federal Financial, Inc.® (NASDAQ: CFFN) (the "Company"),
the parent company of Capitol Federal Savings Bank (the "Bank"),
announced results today for the quarter ended March 31, 2023.
For best viewing results, please view this release in Portable
Document Format (PDF) on our website, http://ir.capfed.com.
Highlights for the quarter include:
- net income of $14.2 million;
- basic and diluted earnings per share of $0.11;
- net interest margin of 1.56% (1.71% excluding the effects of
the leverage strategy);
- annualized loan growth of 9.0%;
- paid dividends of $0.085 per share; and
- on April 25, 2023, announced a cash dividend of $0.085 per
share, payable on May 19, 2023 to stockholders of record as of the
close of business on May 5, 2023.
Comparison of Operating Results for the Three Months Ended
March 31, 2023 and December 31, 2022
For the quarter ended March 31, 2023, the Company recognized net
income of $14.2 million, or $0.11 per share, compared to net income
of $16.2 million, or $0.12 per share, for the quarter ended
December 31, 2022. The decrease in net income was due primarily to
lower net interest income in the current quarter. The net interest
margin decreased five basis points, from 1.61% for the prior
quarter to 1.56% for the current quarter. Excluding the effects of
the leverage strategy discussed below, the net interest margin
decreased 17 basis points, from 1.88% for the prior quarter to
1.71% for the current quarter. The decrease in the net interest
margin excluding the effects of the leverage strategy was due
mainly to an increase in the cost of deposits and borrowings,
partially offset by an increase in loan yields due to higher market
interest rates and an increase in the average balance of loans.
Management anticipates the reduction in the net interest margin
will continue in the near term. See additional discussion in
"Fiscal Year 2023 Outlook" below.
Liquidity, Capital, and Uninsured Deposits
For short-term liquidity needs, the Bank has access to a line of
credit at the Federal Home Loan Bank Topeka ("FHLB") in addition to
the Federal Reserve Bank of Kansas City ("FRB of Kansas City")
discount window and the newly established FRB Bank Term Funding
Program. The Bank did not have any borrowings from the FRB of
Kansas City discount window or Bank Term Funding Program during the
quarter. The Bank's FHLB borrowing limit was 50% of the Bank's Call
Report total assets as of March 31, 2023. The amount that can be
borrowed from the FRB of Kansas City's discount window is based
upon the fair value of securities pledged as collateral. Management
estimated that the Bank had $2.85 billion in additional liquidity
available at March 31, 2023 based on the Bank's blanket collateral
agreement with FHLB and unencumbered securities.
Accumulated other comprehensive loss was $118.6 million at March
31, 2023 of which $125.3 million was attributed to unrealized
losses on available-for-sale ("AFS") securities, partially offset
by $6.6 million of unrealized gains on derivatives. The unrealized
loss on AFS securities improved at March 31, 2023 from $142.1
million at December 31, 2022, due mainly to changes in market
interest rates.
As of March 31, 2023, approximately $634.7 million of the Bank's
deposit portfolio was uninsured, or approximately 10% of the Bank's
Call Report deposit balance, of which approximately $348.0 million
related to commercial and retail deposit accounts and the remainder
was mainly comprised of fully collateralized public unit deposits
and intercompany accounts. The uninsured amounts are estimates
based on the methodologies and assumptions used for the Bank's
regulatory reporting requirements.
Interest and Dividend Income
The following table presents the components of interest and
dividend income for the time periods presented, along with the
change measured in dollars and percent. The weighted average yield
on loans receivable increased 13 basis points and the weighted
average yield on mortgage-backed securities ("MBS") increased four
basis points compared to the prior quarter.
For the Three Months
Ended
March 31,
December 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
69,319
$
64,819
$
4,500
6.9
%
Cash and cash equivalents
10,977
16,671
(5,694
)
(34.2
)
MBS
4,748
4,811
(63
)
(1.3
)
FHLB stock
3,607
4,158
(551
)
(13.3
)
Investment securities
895
881
14
1.6
Total interest and dividend income
$
89,546
$
91,340
$
(1,794
)
(2.0
)
The increase in interest income on loans receivable was due to
growth in the loan portfolio, along with an increase in the
weighted average yield. The loan growth was mainly in the
correspondent one-to four-family and commercial real estate loan
portfolios. The increase in the weighted average yield was due
primarily to originations and purchases at higher market yields, as
well as disbursements on commercial construction loans at rates
higher than the overall portfolio rate and upward repricing of
existing adjustable-rate loans due to higher market interest rates.
The decrease in interest income on cash and cash equivalents was
due mainly to a decrease in the average balance of cash associated
with the leverage strategy compared to the prior quarter due to a
reduction in the leverage strategy usage in the current quarter,
partially offset by an increase in the yield earned on balances
held at the FRB of Kansas City due to higher market interest rates.
The decrease in dividend income on FHLB stock was due mainly to a
decrease in the average balance of FHLB stock associated with the
leverage strategy, partially offset by an increase in the dividend
rate paid by FHLB.
Interest Expense
The following table presents the components of interest expense
for the time periods presented, along with the change measured in
dollars and percent. The weighted average rate paid on deposits
increased 33 basis points and the weighted average rate paid on
borrowings not associated with the leverage strategy increased 30
basis points compared to the prior quarter.
For the Three Months
Ended
March 31,
December 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Borrowings
$
31,447
$
33,608
$
(2,161
)
(6.4
)%
Deposits
16,140
11,904
4,236
35.6
Total interest expense
$
47,587
$
45,512
$
2,075
4.6
The decrease in interest expense on borrowings was due primarily
to a decrease in the average balance of borrowings associated with
the leverage strategy compared to the prior quarter, partially
offset by an increase in the average balance of borrowings not
associated with the leverage strategy to fund operational needs.
The increase in interest expense on deposits was due primarily to
increases in the weighted average rate paid and average balance of
the certificate of deposit portfolio.
Provision for Credit Losses
For the quarter ended March 31, 2023, the Bank recorded a
provision for credit losses of $891 thousand, compared to a
provision for credit losses of $3.7 million for the prior quarter.
The provision for credit losses in the current quarter was
comprised of a $714 thousand increase in the allowance for credit
losses ("ACL") for loans and a $177 thousand increase in reserves
for off-balance sheet credit exposures. The provision for credit
losses associated with the ACL was due primarily to a reduction in
prepayment speeds related to the commercial loan portfolio along
with commercial loan growth, partially offset by a slightly
improved economic forecast. The provision for credit losses
associated with the reserves for off-balance sheet credit exposures
was primarily related to the commercial loan portfolio for the same
reasons noted above for the ACL.
Non-Interest Income
The following table presents the components of non-interest
income for the time periods presented, along with the change
measured in dollars and percent.
For the Three Months
Ended
March 31,
December 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
3,122
$
3,461
$
(339
)
(9.8
)%
Insurance commissions
877
795
82
10.3
Other non-interest income
1,084
1,096
(12
)
(1.1
)
Total non-interest income
$
5,083
$
5,352
$
(269
)
(5.0
)
The decrease in deposit service fees was due mainly to decreases
in debit card income and service charges as a result of lower
transaction activity during the current quarter.
Non-Interest Expense
The following table presents the components of non-interest
expense for the time periods presented, along with the change
measured in dollars and percent.
For the Three Months
Ended
March 31,
December 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
12,789
$
13,698
$
(909
)
(6.6
)%
Information technology and related
expense
5,789
5,070
719
14.2
Occupancy, net
3,568
3,474
94
2.7
Regulatory and outside services
1,305
1,533
(228
)
(14.9
)
Advertising and promotional
1,333
833
500
60.0
Federal insurance premium
1,246
812
434
53.4
Deposit and loan transaction costs
690
611
79
12.9
Office supplies and related expense
631
633
(2
)
(0.3
)
Other non-interest expense
1,280
1,109
171
15.4
Total non-interest expense
$
28,631
$
27,773
$
858
3.1
The decrease in salaries and employee benefits was attributable
mainly to a decrease in incentive compensation. The increase in
information technology and related expense was due primarily to
third-party project management expenses associated with the Bank's
ongoing digital transformation project and an increase in software
licensing. The decrease in regulatory and outside services was due
primarily to the timing of external audit expenses and a decrease
in outside consulting services. The increase in advertising and
promotional expense was due mainly to the timing of campaigns and
sponsorships. The increase in federal insurance premium expense was
due mainly to an increase in the Federal Deposit Insurance
Corporation ("FDIC") assessment rate effective January 1, 2023.
The Company's efficiency ratio was 60.86% for the current
quarter compared to 54.27% for the prior quarter. The change in the
efficiency ratio was due primarily to lower net interest income.
The efficiency ratio is a measure of a financial institution's
total non-interest expense as a percentage of the sum of net
interest income (pre-provision for credit losses) and non-interest
income. A higher value indicates that it is costing the financial
institution more money to generate revenue, relative to the net
interest margin and non-interest income.
Income Tax Expense
The following table presents pretax income, income tax expense,
and net income for the time periods presented, along with the
change measured in dollars and percent and the effective tax
rate.
For the Three Months
Ended
March 31,
December 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
$
17,520
$
19,747
$
(2,227
)
(11.3
)%
Income tax expense
3,331
3,507
(176
)
(5.0
)
Net income
$
14,189
$
16,240
$
(2,051
)
(12.6
)
Effective Tax Rate
19.0
%
17.8
%
The decrease in income tax expense was due primarily to lower
pretax income in the current quarter, partially offset by an
increase in the effective tax rate. The lower effective tax rate in
the prior quarter was due primarily to true-ups related to the
preparation of the September 30, 2022 tax returns.
Comparison of Operating Results for the Six Months Ended
March 31, 2023 and 2022
The Company recognized net income of $30.4 million, or $0.23 per
share, for the current year period compared to net income of $43.8
million, or $0.32 per share, for the prior year period. The
decrease in net income was due primarily to recording a provision
for credit losses of $4.6 million for the current year compared to
a release of provision of $6.6 million for the prior year period.
The net interest margin decreased 24 basis points, from 1.83% for
the prior year period to 1.59% for the current year period.
Excluding the effects of the leverage strategy, the net interest
margin decreased 21 basis points, from 2.00% for the prior year
period to 1.79% for the current year period. The decrease in the
net interest margin excluding the effects of the leverage strategy
was due mainly to an increase in the cost of borrowings and
deposits, which exceeded the increase in loan yields.
Interest and Dividend Income
The following table presents the components of interest and
dividend income for the time periods presented, along with the
change measured in dollars and percent.
For the Six Months
Ended
March 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
134,138
$
111,200
$
22,938
20.6
%
Cash and cash equivalents
27,648
963
26,685
2,771.0
MBS
9,559
9,446
113
1.2
FHLB stock
7,765
3,471
4,294
123.7
Investment securities
1,776
1,608
168
10.4
Total interest and dividend income
$
180,886
$
126,688
$
54,198
42.8
The increase in interest income on loans receivable was due to
an increase in the average balance and weighted average yield of
the loan portfolio. The increase in the average balance was mainly
in the correspondent one-to four-family and commercial real estate
loan portfolios. The increase in the weighted average yield was due
primarily to originations and purchases at higher market yields, as
well as disbursements on commercial construction loans at rates
higher than the overall portfolio rate and upward repricing of
existing adjustable-rate loans due to higher market interest rates.
The increase in interest income on cash and cash equivalents was
due mainly to a higher yield on cash related to an increase in FRB
interest rates. The increase in dividend income on FHLB stock was
due mainly to an increase in the average balance of FHLB stock,
along with a higher FHLB dividend rate compared to the prior year
period.
Interest Expense
The following table presents the components of interest expense
for the time periods presented, along with the change measured in
dollars and percent.
For the Six Months
Ended
March 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Borrowings
$
65,055
$
16,317
$
48,738
298.7
%
Deposits
28,044
17,656
10,388
58.8
Total interest expense
$
93,099
$
33,973
$
59,126
174.0
The increase in interest expense on borrowings was due primarily
to an increase in the weighted average rate on the borrowings
associated with the leverage strategy compared to the prior year
period along with an increase in the average balance and weighted
average rate on borrowings not associated with the leverage
strategy. Interest expense on borrowings associated with the
leverage strategy increased $27.3 million compared to the prior
year period. Interest expense on FHLB borrowings not associated
with the leverage strategy increased due to new borrowings added
between periods, at market interest rates higher than the overall
portfolio rate, to fund operational needs. See additional
discussion in the "Financial Condition" section below. The increase
in interest expense on deposits was due to an increase in the
weighted average rate paid on the deposit portfolio, primarily
certificates of deposit and money market accounts, partially offset
by a decrease in the average balance of these portfolios.
Provision for Credit Losses
The Bank recorded a provision for credit losses during the
current year period of $4.6 million, compared to a release of
provision of $6.6 million during the prior year period. The
provision for credit losses in the current year period was
comprised of a $3.6 million increase in the ACL for loans and a
$1.0 million increase in reserves for off-balance sheet credit
exposures. The provision for credit losses associated with both the
ACL and reserves for off-balance sheet credit exposures in the
current year period was due primarily to a reduction in the
projected prepayment speeds used in the model for all loan
categories, along with growth in the commercial loan portfolio and
commercial construction off-balance sheet credit exposures.
Non-Interest Income
The following table presents the components of non-interest
income for the time periods presented, along with the change
measured in dollars and percent.
For the Six Months
Ended
March 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
6,583
$
6,730
$
(147
)
(2.2
)%
Insurance commissions
1,672
1,254
418
33.3
Other non-interest income
2,180
2,938
(758
)
(25.8
)
Total non-interest income
$
10,435
$
10,922
$
(487
)
(4.5
)
The increase in insurance commissions was due primarily to
annual contingent insurance commissions received being higher than
anticipated and the related accrual adjustments, along with overall
commissions being higher in the current year. The decrease in other
non-interest income was due mainly to the prior year period
including gains on a loan-related financial derivative agreement,
with no such gains in the current year period.
Non-Interest Expense
The following table presents the components of non-interest
expense for the time periods presented, along with the change
measured in dollars and percent.
For the Six Months
Ended
March 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
26,487
$
27,751
$
(1,264
)
(4.6
)%
Information technology and related
expense
10,859
8,925
1,934
21.7
Occupancy, net
7,042
6,872
170
2.5
Regulatory and outside services
2,838
2,640
198
7.5
Advertising and promotional
2,166
2,558
(392
)
(15.3
)
Federal insurance premium
2,058
1,416
642
45.3
Deposit and loan transaction costs
1,301
1,386
(85
)
(6.1
)
Office supplies and related expense
1,264
970
294
30.3
Other non-interest expense
2,389
2,136
253
11.8
Total non-interest expense
$
56,404
$
54,654
$
1,750
3.2
The decrease in salaries and employee benefits was attributable
mainly to a decrease in incentive compensation. The increase in
information technology and related expenses was due mainly to
third-party project management expenses associated with the Bank's
ongoing digital transformation project, along with higher software
licensing expenses. The increase in regulatory and outside services
was due primarily to an increase in outside consulting services.
The decrease in advertising and promotional expense was due mainly
to the timing of campaigns and sponsorships. The increase in
federal insurance premium expense was due mainly to an increase in
the FDIC assessment rate, along with the leverage strategy being
utilized during the majority of the current year period and being
utilized for only three months during the prior year period. The
increase in office supplies and related expense was due primarily
to the write-off of the Bank's remaining inventory of unissued
non-contactless debit cards, which have now become obsolete. The
increase in other non-interest expense was due mainly to expenses
associated with the collateral received on the Bank's interest rate
swap agreements.
The Company's efficiency ratio was 57.43% for the current year
period compared to 52.74% for the prior year period. The change in
the efficiency ratio was due primarily to lower net interest income
and higher non-interest expense in the current year.
Income Tax Expense
The following table presents pretax income, income tax expense,
and net income for the time periods presented, along with the
change measured in dollars and percent and effective tax rate.
For the Six Months
Ended
March 31,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
$
37,267
$
55,610
$
(18,343
)
(33.0
)%
Income tax expense
6,838
11,801
(4,963
)
(42.1
)
Net income
$
30,429
$
43,809
$
(13,380
)
(30.5
)
Effective Tax Rate
18.3
%
21.2
%
The decrease in income tax expense was due primarily to lower
pretax income in the current year period, along with a decrease in
the effective tax rate. The decrease in the effective tax rate was
due primarily to lower projected pretax income in the current year,
as the Company's permanent differences, which generally reduce our
tax rate, have a larger impact to the overall effective rate.
Financial Condition as of March 31, 2023
The following table summarizes the Company's financial condition
at the dates indicated.
Annualized
Annualized
March 31,
December 31,
Percent
September 30,
Percent
2023
2022
Change
2022
Change
(Dollars and shares in
thousands)
Total assets
$
10,085,770
$
9,929,760
6.3
%
$
9,624,897
9.6
%
AFS securities
1,505,808
1,528,686
(6.0
)
1,563,307
(7.4
)
Loans receivable, net
7,958,567
7,783,358
9.0
7,464,208
13.2
Deposits
6,144,435
6,074,549
4.6
6,194,866
(1.6
)
Borrowings
2,696,604
2,645,195
7.8
2,132,154
52.9
Stockholders' equity
1,072,034
1,054,795
6.5
1,096,499
(4.5
)
Equity to total assets at end of
period
10.6
%
10.6
%
11.4
%
Average number of basic shares
outstanding
133,150
134,641
(4.4
)
135,773
(3.9
)
Average number of diluted shares
outstanding
133,150
134,641
(4.4
)
135,773
(3.9
)
During the current quarter, total assets increased by $156.0
million, which was primarily driven by growth of $175.2 million in
loans receivable, mainly in the correspondent one- to four-family
and commercial real estate loan portfolios. The one- to four-family
correspondent loan portfolio increased $115.3 million, or 4.9%,
primarily as a result of purchasing loans that were in the pipeline
as of December 31, 2022 as the Bank continues to work towards
reducing new correspondent purchases to zero. Commercial loans
increased $71.3 million, or 6.4%, during the current quarter, due
to $42.0 million in commercial real estate originations and
purchases along with $35.0 million in funding on construction
loans.
Total liabilities increased $138.8 million during the current
quarter due to an increase in deposits of $69.9 million, along with
new borrowings of $58.4 million. The increase in deposit balances
was due primarily to retail/commercial certificates of deposit,
which increased $236.7 million, partially offset by a decrease in
money market account balances, which decreased $159.3 million
during the current quarter. The decrease in money market account
balances was likely due to depositors moving funds to alternative,
higher yield investment products and/or withdrawing funds for
customer spending. Additionally, the Bank held a certificate of
deposit promotional campaign during the current quarter which
resulted in some customers electing to move funds from money
market, checking and savings accounts into these higher-yielding
certificates of deposit. The campaign resulted in $177.3 million in
new certificates of deposit at a weighted average rate of 4.34%,
the majority of which was from customer transfers of existing
deposits within the Bank. See additional discussion regarding net
interest margin compression in Fiscal Year 2023 Outlook.
The $494.4 million increase in loan balances and the $50.4
million decrease in deposit balances from September 30, 2022 to
March 31, 2023 made it necessary to increase FHLB borrowings by
$578.4 million during that time. The FHLB borrowing increase was
composed of $550.0 million of new advances with a weighted average
maturity ("WAM") of 3.3 years and $128.4 million on the Bank's FHLB
line of credit, partially offset by $100.0 million in FHLB advances
that matured during the current year period. While it is still
management's expectation that we will stay under $10 billion in
total assets at September 30, 2023, it is likely that we will
exceed that threshold throughout several quarters this year, which
occurred at March 31, 2023. We are working to limit the growth in
total assets, limit additional use of FHLB advances for operating
needs, and are evaluating other balance sheet management
opportunities.
At times, the Bank has utilized a leverage strategy to increase
earnings. The leverage strategy during the current quarter involved
borrowing up to $1.80 billion by entering into short-term FHLB
advances. During the current quarter, the average outstanding
balance of leverage strategy borrowings was $979.2 million. The
borrowings were repaid prior to quarter end. The proceeds from the
borrowings, net of the required FHLB stock holdings, which yielded
8.75% during the current quarter, were deposited at the FRB of
Kansas City. Net income attributable to the leverage strategy is
largely derived from the dividends received on FHLB stock holdings,
plus the net interest rate spread between the yield on the cash
deposited at the FRB of Kansas City and the rate paid on the
related FHLB borrowings, less applicable federal insurance premiums
and estimated taxes. Net income attributable to the leverage
strategy was $110 thousand during the current quarter, compared to
$763 thousand for the prior quarter. The decrease was due to a
lower net interest rate spread associated with the leverage
strategy and a reduction in the size of the leverage strategy
transaction because the borrowing capacity was needed for
operational purposes. Management continues to monitor the net
interest rate spread and overall profitability of the strategy. It
is expected that the strategy will continue to be utilized when it
is profitable and/or the borrowing capacity does not need to be
used for other purposes. When the leverage strategy is in place, it
reduces the net interest margin due to the amount of earnings from
the transaction in comparison to the size of the transaction.
The following table summarizes loan originations and purchases,
deposit activity, and borrowing activity, along with certain
related weighted average rates, during the periods indicated. The
borrowings presented in the table have original contractual terms
of one year or longer.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2023
March 31, 2023
Amount
Rate
Amount
Rate
(Dollars in thousands)
Loan originations, purchases, and
participations
One- to four-family and consumer:
Originated
$
101,077
5.73
%
$
246,183
5.43
%
Purchased
167,220
5.21
366,691
5.03
Commercial:
Originated
79,934
6.27
299,215
5.39
Participations/Purchased
48,380
6.90
184,214
6.19
$
396,611
5.76
$
1,096,303
5.41
Deposit activity
Non-maturity deposits
$
(189,585
)
$
(320,627
)
Retail/Commercial certificates of
deposit
236,652
233,602
Borrowing activity
Maturities and repayments
(107,418
)
1.64
(114,836
)
1.80
New borrowings
100,000
4.85
550,000
4.52
Stockholders' Equity
Stockholders' equity totaled $1.07 billion at March 31, 2023.
During the six months ended March 31, 2023, the Company paid cash
dividends totaling $60.5 million. These cash dividends totaled
$0.45 per share and consisted of a $0.28 per share cash true-up
dividend related to fiscal year 2022 earnings and two regular
quarterly cash dividends of $0.085 per share.
On April 25, 2023, the Company announced a regular quarterly
cash dividend of $0.085 per share, or approximately $11.3 million,
payable on May 19, 2023 to stockholders of record as of the close
of business on May 5, 2023. In the long run, management considers
the Bank's equity to total assets ratio of at least 9% an
appropriate level of capital. At March 31, 2023, this ratio was
9.7%.
Consistent with our goal to operate a sound and profitable
financial organization, we actively seek to maintain a
well-capitalized status for the Bank in accordance with regulatory
standards. As of March 31, 2023, the Bank's community bank leverage
ratio ("CBLR") was 9.7%, which exceeded the minimum requirement of
9.0%. The CBLR is based on average assets. The leverage strategy
increases average assets which in turn reduces the Bank's CBLR. As
of March, 31, 2023 the Bank exceeded all internal policy thresholds
for sensitivity to changes in interest rates, and the Bank's
risk-based tier 1 capital ratio was 19.2%.
At March 31, 2023, Capitol Federal Financial, Inc., at the
holding company level, had $56.4 million in cash on deposit at the
Bank. For fiscal year 2023, it is the intention of the Board of
Directors to pay out the regular quarterly cash dividend of $0.085
per share, as well as all of the Company's earnings in excess of
that amount. Dividend payments depend upon a number of factors,
including the Company's financial condition and results of
operations, regulatory capital requirements, regulatory limitations
on the Bank's ability to make capital distributions to the Company,
and the amount of cash at the holding company level.
There remains $22.5 million authorized under the existing stock
repurchase plan for additional purchases of the Company's common
stock. Shares may be repurchased from time to time based upon
market conditions, available liquidity and other factors. This plan
has no expiration date; however, the Federal Reserve Bank's
existing approval for the Company to repurchase shares expires in
August 2023.
The following table presents a reconciliation of total to net
shares outstanding as of March 31, 2023.
Total shares outstanding
136,144,725
Less unallocated Employee Stock Ownership
Plan ("ESOP") shares and unvested restricted stock
(2,952,066
)
Net shares outstanding
133,192,659
Fiscal Year 2023 Outlook
The rapid increase in short-term rates led by the FRB and the
inverted yield curve has led to decreases in the Bank's net
interest margin. There has been a runoff in deposit balances and
management has increased certificate of deposit and money market
account rates to help mitigate the outflow. The higher loan rates
have made the purchase of homes less affordable and reduced the
turnover of housing inventory, which lowers the likelihood of
existing one- to four-family loans at lower rates being paid off as
a result of housing turnover. These dynamics have caused our
balance sheet to change faster than what would occur in more stable
rate environments. Net interest margin compression is anticipated
to continue, and the margin is expected to compress more in the
near term, due to the shape of the yield curve and the pace at
which liabilities are repricing compared to assets, along with
lower costing deposits being replaced with higher costing
borrowings in order to fund loan growth, and deposit funds moving
from lower costing deposit accounts to certificates of deposit.
Loan growth is occurring at market interest rates that are higher
than the overall loan portfolio rate; however, the shift to
higher-costing borrowings and the pace at which the interest rate
increase is occurring for liabilities is more than offsetting the
benefit of the higher loan rates. As with managing the size of the
balance sheet discussed above, management continues to evaluate
funding options and plans to continue using shorter term advances,
as necessary, with the anticipation that when rates begin to
decrease, those borrowings can be repaid or repriced to lower cost
alternatives.
Subsequent to March 31, 2023, management increased the rates
offered on the Bank's money market accounts in response to
competitor pricing. This increase, in combination with the
full-quarter impact of the Bank's certificate of deposit
promotional campaign discussed above and the ongoing repricing of
the Bank's certificate of deposit and FHLB advance portfolios,
offset by growth in the yield on loans, is expected to reduce the
net interest margin by approximately 20 basis points during the
June 2023 quarter, excluding the impact of the leverage
strategy.
Management intends to implement a new core processing system
("digital transformation") for the Bank by September 2023. The
digital transformation is expected to better position the Bank for
the future and allow for the introduction of new products and
services to enhance customer experiences. Management anticipates
information technology and related expenses will be approximately
$5 million higher in fiscal year 2023 compared to fiscal year 2022
due to the digital transformation. In addition, it is expected
there will be approximately $1 million more of information
technology and related expenses in fiscal year 2023 related to
projects outside of the digital transformation and due to general
cost increases. Overall, it is anticipated that information
technology and related expenses will be approximately $6 million
higher in fiscal year 2023 compared to fiscal year 2022, or
approximately $24 million for the year. In fiscal year 2024,
information technology and related expense is expected to decrease
approximately $3 million from fiscal year 2023 levels due to a
reduction in professional service costs. Salaries and employee
benefits are expected to be approximately $3.5 million higher in
fiscal year 2023 due primarily to merit increases and salary
adjustments. Federal insurance premium expense is anticipated to be
approximately $1.3 million higher in fiscal year 2023 compared to
fiscal year 2022, due to the increase in the assessment rate that
began in January 2023. Management anticipates the effective tax
rate for fiscal year 2023 will be approximately 19%.
Capitol Federal Financial, Inc. is the holding company for the
Bank. The Bank has 50 branch locations in Kansas and Missouri, and
is one of the largest residential lenders in the State of Kansas.
News and other information about the Company can be found at the
Bank's website, http://www.capfed.com.
Forward-Looking
Statements
Except for the historical information contained in this press
release, the matters discussed herein may be deemed to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements about our beliefs, plans, objectives,
goals, expectations, anticipations, estimates and intentions. The
words "may," "could," "should," "would," "will," "believe,"
"anticipate," "estimate," "expect," "intend," "plan," and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties,
including: potential adverse impacts of the ongoing COVID-19
pandemic and any governmental or societal responses thereto on
economic conditions in the Company's local market areas and other
areas where the Bank has lending relationships, on other aspects of
the Company's business operations and on financial markets; changes
in policies or the application or interpretation of laws and
regulations by regulatory agencies and tax authorities; other
governmental initiatives affecting the financial services industry;
changes in accounting principles, policies or guidelines;
fluctuations in interest rates and the effects of inflation or a
potential recession; demand for loans in the Company's and its
correspondent banks' market areas; 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;
competition; and other risks detailed from time to time in
documents filed or furnished by the Company with the Securities and
Exchange Commission ("SEC"). Actual results may differ materially
from those currently expected. These forward-looking statements
represent the Company's judgment as of the date of this release.
The Company disclaims, however, any intent or obligation to update
these forward-looking statements.
SUPPLEMENTAL FINANCIAL INFORMATION
CAPITOL FEDERAL FINANCIAL, INC.
AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per
share amounts)
March 31,
December 31,
September 30,
2023
2022
2022
ASSETS:
Cash and cash equivalents (includes
interest-earning deposits of $21,830, $20,243 and $27,467)
$
60,207
$
49,686
$
49,194
AFS securities, at estimated fair value
(amortized cost of $1,671,538, $1,716,608 and $1,768,490)
1,505,808
1,528,686
1,563,307
Loans receivable, net (ACL of $19,889,
$19,189 and $16,371)
7,958,567
7,783,358
7,464,208
FHLB stock, at cost
128,096
124,119
100,624
Premises and equipment, net
92,415
93,507
94,820
Income taxes receivable, net
3,890
124
1,266
Deferred income tax assets, net
24,383
29,924
33,884
Other assets
312,404
320,356
317,594
TOTAL ASSETS
$
10,085,770
$
9,929,760
$
9,624,897
LIABILITIES:
Deposits
$
6,144,435
$
6,074,549
$
6,194,866
Borrowings
2,696,604
2,645,195
2,132,154
Advances by borrowers
60,195
36,207
80,067
Other liabilities
112,502
119,014
121,311
Total liabilities
9,013,736
8,874,965
8,528,398
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value;
100,000,000 shares authorized, no shares issued or outstanding
—
—
—
Common stock, $0.01 par value;
1,400,000,000 shares authorized, 136,144,725, 136,134,225 and
138,858,884 shares issued and outstanding as of March 31, 2023,
December 31, 2022, and September 30, 2022, respectively
1,361
1,361
1,388
Additional paid-in capital
1,168,059
1,168,061
1,190,213
Unearned compensation, ESOP
(28,910
)
(29,322
)
(29,735
)
Retained earnings
50,167
47,297
80,266
Accumulated other comprehensive (loss)
income, net of tax
(118,643
)
(132,602
)
(145,633
)
Total stockholders' equity
1,072,034
1,054,795
1,096,499
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
10,085,770
$
9,929,760
$
9,624,897
CAPITOL FEDERAL FINANCIAL, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
For the Three Months
Ended
For the Six Months
Ended
March 31,
December 31,
March 31,
2023
2022
2023
2022
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
69,319
$
64,819
$
134,138
$
111,200
Cash and cash equivalents
10,977
16,671
27,648
963
MBS
4,748
4,811
9,559
9,446
FHLB stock
3,607
4,158
7,765
3,471
Investment securities
895
881
1,776
1,608
Total interest and dividend income
89,546
91,340
180,886
126,688
INTEREST EXPENSE:
Borrowings
31,447
33,608
65,055
16,317
Deposits
16,140
11,904
28,044
17,656
Total interest expense
47,587
45,512
93,099
33,973
NET INTEREST INCOME
41,959
45,828
87,787
92,715
PROVISION FOR CREDIT LOSSES
891
3,660
4,551
(6,627
)
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES
41,068
42,168
83,236
99,342
NON-INTEREST INCOME:
Deposit service fees
3,122
3,461
6,583
6,730
Insurance commissions
877
795
1,672
1,254
Other non-interest income
1,084
1,096
2,180
2,938
Total non-interest income
5,083
5,352
10,435
10,922
NON-INTEREST EXPENSE:
Salaries and employee benefits
12,789
13,698
26,487
27,751
Information technology and related
expense
5,789
5,070
10,859
8,925
Occupancy, net
3,568
3,474
7,042
6,872
Regulatory and outside services
1,305
1,533
2,838
2,640
Advertising and promotional
1,333
833
2,166
2,558
Federal insurance premium
1,246
812
2,058
1,416
Deposit and loan transaction costs
690
611
1,301
1,386
Office supplies and related expense
631
633
1,264
970
Other non-interest expense
1,280
1,109
2,389
2,136
Total non-interest expense
28,631
27,773
56,404
54,654
INCOME BEFORE INCOME TAX EXPENSE
17,520
19,747
37,267
55,610
INCOME TAX EXPENSE
3,331
3,507
6,838
11,801
NET INCOME
$
14,189
$
16,240
$
30,429
$
43,809
Average Balance Sheets
The following tables present the average balances of our assets,
liabilities, and stockholders' equity, and the related annualized
weighted average yields and rates on our interest-earning assets
and interest-bearing liabilities for the periods indicated, as well
as selected performance ratios and other information for the
periods shown. Weighted average yields are derived by dividing
annualized income by the average balance of the related assets, and
weighted average rates are derived by dividing annualized expense
by the average balance of the related liabilities, for the periods
shown. Average outstanding balances are derived from average daily
balances. The weighted average yields and rates include
amortization of fees, costs, premiums and discounts, which are
considered adjustments to yields/rates. Weighted average yields on
tax-exempt securities are not calculated on a fully taxable
equivalent basis.
For the Three Months
Ended
March 31, 2023
December 31, 2022
Average
Interest
Average
Interest
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Amount
Paid
Rate
Amount
Paid
Rate
Assets:
(Dollars in thousands)
Interest-earning assets:
One- to four-family loans:
Originated
$
4,050,515
$
33,660
3.32
%
$
4,049,790
$
33,364
3.29
%
Correspondent purchased
2,462,960
19,380
3.15
2,305,362
17,261
2.99
Bulk purchased
144,438
413
1.14
147,091
434
1.18
Total one- to four-family loans
6,657,913
53,453
3.21
6,502,243
51,059
3.14
Commercial loans
1,147,681
13,924
4.85
1,025,402
11,993
4.58
Consumer loans
102,649
1,942
7.67
102,760
1,767
6.82
Total loans receivable(1)
7,908,243
69,319
3.51
7,630,405
64,819
3.38
MBS(2)
1,173,366
4,748
1.62
1,221,035
4,811
1.58
Investment securities(2)(3)
525,012
895
0.68
525,081
881
0.67
FHLB stock(4)
167,567
3,607
8.73
197,577
4,158
8.35
Cash and cash equivalents(5)
967,586
10,977
4.54
1,801,493
16,671
3.62
Total interest-earning assets
10,741,774
89,546
3.34
11,375,591
91,340
3.19
Other non-interest-earning assets
263,916
248,022
Total assets
$
11,005,690
$
11,623,613
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
989,440
368
0.15
$
1,007,569
289
0.11
Savings
541,324
101
0.08
545,885
100
0.07
Money market
1,620,451
3,184
0.80
1,759,804
3,035
0.68
Retail certificates
2,176,103
11,115
2.07
2,064,929
7,767
1.49
Commercial certificates
38,575
197
2.07
34,298
104
1.20
Wholesale certificates
127,037
1,175
3.75
97,828
609
2.47
Total deposits
5,492,930
16,140
1.19
5,510,313
11,904
0.86
Borrowings(6)
3,700,022
31,447
3.42
4,260,685
33,608
3.10
Total interest-bearing liabilities
9,192,952
47,587
2.09
9,770,998
45,512
1.84
Non-interest-bearing deposits
574,495
576,519
Other non-interest-bearing liabilities
172,481
191,474
Stockholders' equity
1,065,762
1,084,622
Total liabilities and stockholders'
equity
$
11,005,690
$
11,623,613
Net interest income(7)
$
41,959
$
45,828
Net interest-earning assets
$
1,548,822
$
1,604,593
Net interest margin(8)(9)
1.56
1.61
Ratio of interest-earning assets to
interest-bearing liabilities
1.17x
1.16x
Selected performance ratios:
Return on average assets
(annualized)(9)
0.52
%
0.56
%
Return on average equity
(annualized)(9)
5.33
5.99
Average equity to average assets
9.68
9.33
Operating expense ratio
(annualized)(10)
1.04
0.96
Efficiency ratio(9)(11)
60.86
54.27
Pre-tax yield on leverage strategy(12)
0.06
0.20
For the Six Months
Ended
March 31, 2023
March 31, 2022
Average
Interest
Average
Interest
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Amount
Paid
Rate
Amount
Paid
Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
One- to four-family loans:
Originated
$
4,050,149
$
67,024
3.31
%
$
3,968,475
$
64,415
3.25
%
Correspondent purchased
2,383,295
36,642
3.07
2,030,928
25,805
2.54
Bulk purchased
145,779
847
1.16
165,895
1,114
1.34
Total one- to four-family loans
6,579,223
104,513
3.18
6,165,298
91,334
2.96
Commercial loans
1,085,870
25,917
4.72
855,057
17,794
4.12
Consumer loans
102,705
3,708
7.24
91,573
2,072
4.54
Total loans receivable(1)
7,767,798
134,138
3.45
7,111,928
111,200
3.12
MBS(2)
1,197,462
9,559
1.60
1,397,056
9,446
1.35
Investment securities(2)(3)
525,047
1,776
0.68
522,986
1,608
0.61
FHLB stock(4)
182,737
7,765
8.52
115,546
3,471
6.02
Cash and cash equivalents(5)
1,389,121
27,648
3.94
993,653
963
0.19
Total interest-earning assets
11,062,165
180,886
3.26
10,141,169
126,688
2.49
Other non-interest-earning assets
255,882
398,355
Total assets
$
11,318,047
$
10,539,524
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
998,604
657
0.13
$
1,060,755
355
0.07
Savings
543,630
201
0.07
530,451
141
0.05
Money market
1,690,893
6,218
0.74
1,822,848
1,701
0.19
Retail certificates
2,119,905
18,882
1.79
2,270,195
14,847
1.31
Commercial certificates
36,413
301
1.66
142,982
455
0.64
Wholesale certificates
112,272
1,785
3.19
198,527
157
0.16
Total deposits
5,501,717
28,044
1.02
6,025,758
17,656
0.59
Borrowings(6)
3,983,434
65,055
3.25
2,533,641
16,317
1.28
Total interest-bearing liabilities
9,485,151
93,099
1.96
8,559,399
33,973
0.79
Non-interest-bearing deposits
575,518
564,089
Other non-interest-bearing liabilities
182,083
193,606
Stockholders' equity
1,075,295
1,222,430
Total liabilities and stockholders'
equity
$
11,318,047
$
10,539,524
Net interest income(7)
$
87,787
$
92,715
Net interest-earning assets
$
1,577,014
$
1,581,770
Net interest margin(8)(9)
1.59
1.83
Ratio of interest-earning assets to
interest-bearing liabilities
1.17x
1.18x
Selected performance ratios:
Return on average assets
(annualized)(9)
0.54
%
0.83
%
Return on average equity
(annualized)(9)
5.66
7.17
Average equity to average assets
9.50
11.60
Operating expense ratio
(annualized)(10)
1.00
1.04
Efficiency ratio(9)(11)
57.43
52.74
Pre-tax yield on leverage strategy(12)
0.15
0.15
(1)
Balances are adjusted for unearned loan
fees and deferred costs. Loans that are 90 or more days delinquent
are included in the loans receivable average balance with a yield
of zero percent.
(2)
AFS securities are adjusted for
unamortized purchase premiums or discounts.
(3)
The average balance of investment
securities includes an average balance of nontaxable securities of
$1.0 million and $1.1 million for the quarters ended March 31, 2023
and December 31, 2022, respectively, and $1.1 million and $3.0
million for the six-month periods ended March 31, 2023 and March
31, 2022, respectively.
(4)
Included in this line, for the quarters
ended March 31, 2023 and December 31, 2022, respectively, is FHLB
stock related to the leverage strategy with an average outstanding
balance of $44.1 million and $84.3 million, respectively, and
dividend income of $1.0 million and $1.8 million, respectively, at
a weighted average yield of 8.75% and 8.49%, respectively, and FHLB
stock not related to the leverage strategy with an average
outstanding balance of $123.5 million and $113.3 million,
respectively, and dividend income of $2.7 million and $2.4 million,
respectively, at a weighted average yield of 8.72% and 8.24%,
respectively. Included in this line, for the six-month periods
ended March 31, 2023 and March 31, 2022, respectively, is FHLB
stock related to the leverage strategy with an average outstanding
balance of $64.4 million and $42.6 million, respectively, and
dividend income of $2.8 million and $1.2 million, respectively, at
a weighted average yield of 8.58% and 5.75%, respectively, and FHLB
stock not related to the leverage strategy with an average
outstanding balance of $118.4 million and $72.9 million,
respectively, and dividend income of $5.0 million and $2.2 million,
respectively, at a weighted average yield of 8.49% and 6.18%,
respectively.
(5)
The average balance of cash and cash
equivalents includes an average balance of cash related to the
leverage strategy of $935.1 million and $1.79 billion during the
quarters ended March 31, 2023 and December 31, 2022, respectively,
and an average balance of cash related to the leverage strategy of
$1.37 billion and $904.6 million during the six-month periods ended
March 31, 2023 and March 31, 2022, respectively.
(6)
Included in this line, for the quarters
ended March 31, 2023 and December 31, 2022, are FHLB borrowings
related to the leverage strategy with an average outstanding
balance of $979.2 million and $1.87 billion, respectively, and
interest paid of $11.3 million and $17.3 million, respectively, at
a weighted average rate of 4.60% and 3.61%, respectively, and FHLB
borrowings not related to the leverage strategy with an average
outstanding balance of $2.72 billion and $2.39 billion,
respectively, and interest paid of $20.2 million and $16.3 million,
respectively, at a weighted average rate of 3.00% and 2.70%,
respectively. Included in this line, for the six-month periods
ended March 31, 2023 and March 31, 2022, are FHLB borrowings
related to the leverage strategy with an average outstanding
balance of $1.43 billion and $947.3 million, respectively, and
interest paid of $28.6 million and $1.3 million, respectively, at a
weighted average rate of 3.95% and 0.26%, respectively, and FHLB
borrowings not related to the leverage strategy with an average
outstanding balance of $2.55 billion and $1.59 billion,
respectively, and interest paid of $36.5 million and $15.1 million,
respectively, at a weighted average rate of 2.86% and 1.89%,
respectively. The FHLB advance amounts and rates included in this
line include the effect of interest rate swaps and are net of
deferred prepayment penalties.
(7)
Net interest income represents the
difference between interest income earned on interest-earning
assets and interest paid on interest-bearing liabilities. Net
interest income depends on the average balance of interest-earning
assets and interest-bearing liabilities, and the interest rates
earned or paid on them.
(8)
Net interest margin represents annualized
net interest income as a percentage of average interest-earning
assets.
(9)
The tables below provide a reconciliation
between performance ratios presented in accordance with accounting
standards generally accepted in the United States of America
("GAAP") and the same performance ratios excluding the effects of
the leverage strategy, which are not presented in accordance with
GAAP. Management believes it is important for comparability
purposes to provide the performance ratios without the leverage
strategy because of the unique nature of the leverage strategy. The
leverage strategy reduces some of our performance ratios due to the
amount of earnings associated with the transaction in comparison to
the size of the transaction, while increasing our net income.
For the Three Months
Ended
March 31, 2023
December 31, 2022
Actual
Leverage
Adjusted
Actual
Leverage
Adjusted
(GAAP)
Strategy
(Non-GAAP)
(GAAP)
Strategy
(Non-GAAP)
Yield on interest-earning assets
3.34
%
0.14
%
3.20
%
3.19
%
0.13
%
3.06
%
Cost of interest-bearing liabilities
2.09
0.30
1.79
1.84
0.42
1.42
Return on average assets (annualized)
0.52
(0.04
)
0.56
0.56
(0.07
)
0.63
Return on average equity (annualized)
5.33
0.05
5.28
5.99
0.28
5.71
Net interest margin
1.56
(0.15
)
1.71
1.61
(0.27
)
1.88
Efficiency Ratio
60.86
(0.07
)
60.93
54.27
(0.87
)
55.14
For the Six Months
Ended
March 31, 2023
March 31, 2022
Actual
Leverage
Adjusted
Actual
Leverage
Adjusted
(GAAP)
Strategy
(Non-GAAP)
(GAAP)
Strategy
(Non-GAAP)
Yield on interest-earning assets
3.26
%
0.13
%
3.13
%
2.49
%
(0.22
)%
2.71
%
Cost of interest-bearing liabilities
1.96
0.36
1.60
0.79
(0.07
)
0.86
Return on average assets (annualized)
0.54
(0.06
)
0.60
0.83
(0.07
)
0.90
Return on average equity (annualized)
5.66
0.16
5.50
7.17
0.09
7.08
Net interest margin
1.59
(0.20
)
1.79
1.83
(0.17
)
2.00
Efficiency Ratio
57.43
(0.50
)
57.93
52.74
(0.29
)
53.03
(10)
The operating expense ratio represents
annualized non-interest expense as a percentage of average
assets.
(11)
The efficiency ratio represents
non-interest expense as a percentage of the sum of net interest
income (pre-provision for credit losses) and non-interest
income.
(12)
The pre-tax yield on the leverage strategy
represents annualized pre-tax income resulting from the transaction
as a percentage of the average interest-earning assets associated
with the transaction.
Loan Portfolio
The following table presents information related to the
composition of our loan portfolio in terms of dollar amounts,
weighted average rates, and percentage of total as of the dates
indicated. The loan portfolio rate increased 10 basis points from
December 31, 2022 to March 31, 2023, due primarily to one- to
four-family correspondent and commercial loan growth at interest
rates higher than the existing portfolios, disbursements on higher
rate commercial construction loans, and repricing of existing
commercial loans to higher market interest rates. The average
prepayment speed on one- to four-family loans was 5% during the
current quarter and prior quarter, and 7% during the quarter ended
September 30, 2022.
March 31, 2023
December 31, 2022
September 30, 2022
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
One- to four-family:
Originated
$
4,003,823
3.28
%
50.3
%
$
4,007,596
3.25
%
51.5
%
$
3,988,469
3.20
%
53.4
%
Correspondent purchased
2,468,647
3.39
31.0
2,353,335
3.25
30.2
2,201,886
3.10
29.4
Bulk purchased
142,527
1.36
1.8
145,209
1.31
1.9
147,939
1.24
2.0
Construction
68,355
3.21
0.8
70,869
3.01
0.9
66,164
2.90
0.9
Total
6,683,352
3.28
83.9
6,577,009
3.20
84.5
6,404,458
3.12
85.7
Commercial:
Commercial real estate
874,718
4.48
11.0
833,444
4.34
10.7
745,301
4.30
10.0
Commercial and industrial
90,200
5.40
1.1
88,327
5.21
1.1
79,981
4.30
1.1
Construction
216,685
6.30
2.7
188,516
5.97
2.4
141,062
5.34
1.9
Total
1,181,603
4.89
14.8
1,110,287
4.69
14.2
966,344
4.45
13.0
Consumer loans:
Home equity
92,506
8.17
1.2
95,352
7.55
1.2
92,203
6.28
1.2
Other
8,664
4.66
0.1
9,022
4.43
0.1
8,665
4.21
0.1
Total
101,170
7.87
1.3
104,374
7.28
1.3
100,868
6.10
1.3
Total loans receivable
7,966,125
3.57
100.0
%
7,791,670
3.47
100.0
%
7,471,670
3.33
100.0
%
Less:
ACL
19,889
19,189
16,371
Deferred loan fees/discounts
30,830
30,513
29,736
Premiums/deferred costs
(43,161
)
(41,390
)
(38,645
)
Total loans receivable, net
$
7,958,567
$
7,783,358
$
7,464,208
Loan Activity: The following table summarizes activity in the
loan portfolio, along with weighted average rates where applicable,
for the periods indicated, excluding changes in ACL, deferred loan
fees/discounts, and premiums/deferred costs. Loans that were paid
off as a result of refinances are included in repayments. Loan
endorsements are not included in the activity in the following
table because a new loan is not generated at the time of the
endorsement. The endorsed balance and rate are included in the
ending loan portfolio balance and rate. Commercial loan renewals
are not included in the activity presented in the following table
unless new funds are disbursed at the time of renewal. The renewal
balance and rate are included in the ending loan portfolio balance
and rate.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2023
March 31, 2023
Amount
Rate
Amount
Rate
(Dollars in thousands)
Beginning balance
$
7,791,670
3.47
%
$
7,471,670
3.33
%
Originated and refinanced
181,011
5.97
545,398
5.41
Purchased and participations
215,600
5.59
550,905
5.41
Change in undisbursed loan funds
(24,949
)
(146,184
)
Repayments
(197,193
)
(449,992
)
Principal (charge-offs)/recoveries,
net
(14
)
(16
)
Other
—
(5,656
)
Ending balance
$
7,966,125
3.57
$
7,966,125
3.57
One- to Four-Family Loans: The following table presents, for our
portfolio of one- to four-family loans, the amount, percent of
total, weighted average rate, weighted average credit score,
weighted average loan-to-value ("LTV") ratio, and average balance
per loan as of March 31, 2023. Credit scores were updated in
September 2022 from a nationally recognized consumer rating agency.
The LTV ratios were based on the current loan balance and either
the lesser of the purchase price or original appraisal, or the most
recent Bank appraisal, if available. In most cases, the most recent
appraisal was obtained at the time of origination.
% of
Credit
Average
Amount
Total
Rate
Score
LTV
Balance
(Dollars in thousands)
Originated
$
4,003,823
60.5
%
3.28
%
771
60
%
$
162
Correspondent purchased
2,468,647
37.3
3.39
767
65
420
Bulk purchased
142,527
2.2
1.36
771
56
288
$
6,614,997
100.0
3.28
769
62
212
The following table presents originated and correspondent
purchased activity in our one- to four-family loan portfolio,
excluding endorsement activity, along with associated weighted
average rates, weighted average LTVs and weighted average credit
scores for the periods indicated. The majority of the correspondent
loans purchased during the current quarter were from applications
in the pipeline at December 31, 2022 as the Bank continues to
reduce correspondent purchases to near zero.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2023
March 31, 2023
Credit
Credit
Amount
Rate
LTV
Score
Amount
Rate
LTV
Score
(Dollars in thousands)
Originated
$
84,709
5.22
%
74
%
769
$
211,217
5.04
%
75
%
766
Correspondent purchased
167,220
5.21
76
770
366,691
5.03
77
769
$
251,929
5.22
75
770
$
577,908
5.03
76
768
The following table summarizes our one- to four-family loan
origination and refinance commitments and one- to four-family
correspondent loan purchase commitments as of March 31, 2023, along
with associated weighted average rates.
Amount
Rate
(Dollars in thousands)
Originate/refinance
$
86,153
5.67
%
Correspondent
14,870
4.59
$
101,023
5.51
Commercial Loans: During the six months ended March 31, 2023,
the Bank originated $299.2 million of commercial loans and entered
into commercial loan participations totaling $184.2 million. The
Bank also processed commercial loan disbursements, excluding lines
of credit, of approximately $306.7 million at a weighted average
rate of 5.45%.
As of March 31, 2023, December 31, 2022, and September 30, 2022,
the Bank's commercial and industrial gross loan amounts (unpaid
principal plus undisbursed amounts) totaled $130.3 million, $113.2
million, and $100.4 million, respectively, and commitments totaled
$7.0 million at March 31, 2023.
The following table presents the Bank's commercial real estate
and commercial construction loans by type of primary collateral as
of the dates indicated. As of March 31, 2023, the Bank had 11
commercial real estate and commercial construction loan commitments
totaling $91.6 million, at a weighted average rate of 6.78%.
Because the commitments to pay out undisbursed funds are not
cancellable by the Bank, unless the loan is in default, we
generally anticipate fully funding the related projects. Of the
total commercial undisbursed amounts and commitments outstanding as
of March 31, 2023, management anticipates approximately $85 million
will be funded during the June 2023 quarter, $84 million during the
September 2023 quarter, $89 million during the December 2023
quarter, and $63 million during the March 2024 quarter.
March 31, 2023
December 31, 2022
September 30, 2022
Unpaid
Undisbursed
Gross Loan
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
Amount
(Dollars in thousands)
Retail building
147
$
248,467
$
95,258
$
343,725
$
325,055
$
230,153
Senior housing
35
281,352
44,123
325,475
327,414
328,259
Hotel
13
209,251
26,463
235,714
216,604
181,546
Multi-family
39
71,941
161,557
233,498
210,255
122,735
Office building
87
104,968
26,730
131,698
114,844
109,653
One- to four-family property
390
62,405
9,299
71,704
72,339
68,907
Warehouse/manufacturing
40
43,469
10,030
53,499
42,496
10,891
Other
101
69,550
23,323
92,873
87,532
84,071
852
$
1,091,403
$
396,783
$
1,488,186
$
1,396,539
$
1,136,215
Weighted average rate
4.84
%
5.95
%
5.14
%
4.91
%
4.56
%
The following table summarizes the Bank's commercial real estate
and commercial construction loans by state as of the dates
indicated.
March 31, 2023
December 31, 2022
September 30, 2022
Unpaid
Undisbursed
Gross Loan
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
Amount
(Dollars in thousands)
Kansas
626
$
441,411
$
131,935
$
573,346
$
519,419
$
423,797
Missouri
179
253,277
110,155
363,432
335,400
296,443
Texas
15
240,237
95,487
335,724
336,512
280,840
Colorado
8
40,157
15,037
55,194
55,705
34,377
Tennessee
2
22,093
20,475
42,568
43,258
—
Nebraska
8
33,810
4,057
37,867
37,817
32,992
Other
14
60,418
19,637
80,055
68,428
67,766
852
$
1,091,403
$
396,783
$
1,488,186
$
1,396,539
$
1,136,215
The following table presents the Bank's commercial loan
portfolio and outstanding loan commitments, categorized by gross
loan amount (unpaid principal plus undisbursed amounts) or
outstanding loan commitment amount, as of March 31, 2023.
Count
Amount
(Dollars in thousands)
Greater than $30 million
9
$
438,526
>$15 to $30 million
20
423,808
>$10 to $15 million
11
131,234
>$5 to $10 million
28
200,785
$1 to $5 million
140
333,354
Less than $1 million
1,238
189,375
1,446
$
1,717,082
Asset Quality
The following tables present loans 30 to 89 days delinquent,
non-performing loans, and other real estate owned ("OREO") as of
the dates indicated. The amounts in the table represent the unpaid
principal balance of the loans less related charge-offs, if any. Of
the loans 30 to 89 days delinquent at March 31, 2023, approximately
79% were 59 days or less delinquent. Nonaccrual loans are loans
that are 90 or more days delinquent or in foreclosure and other
loans required to be reported as nonaccrual pursuant to accounting
and/or regulatory reporting requirements and/or internal policies,
even if the loans are current. Non-performing assets include
nonaccrual loans and OREO.
Loans Delinquent for 30 to 89
Days at:
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
One- to four-family:
Originated
45
$
4,116
56
$
4,708
48
$
4,134
64
$
6,035
64
$
6,931
Correspondent purchased
10
3,436
4
1,216
7
1,104
9
3,467
10
2,421
Bulk purchased
3
287
3
865
3
913
4
755
2
396
Commercial
5
389
6
191
—
—
6
706
4
373
Consumer
22
352
24
626
24
345
16
256
14
215
85
$
8,580
93
$
7,606
82
$
6,496
99
$
11,219
94
$
10,336
30 to 89 days delinquent loans
to total loans receivable, net
0.11
%
0.10
%
0.09
%
0.16
%
0.15
%
Non-Performing Loans and OREO
at:
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
Loans 90 or More Days Delinquent or in
Foreclosure:
One- to four-family:
Originated
15
$
1,084
13
$
1,034
29
$
2,919
36
$
2,585
44
$
3,999
Correspondent purchased
7
1,803
14
4,126
12
3,737
9
2,659
11
3,967
Bulk purchased
3
1,212
4
1,492
3
1,148
5
1,807
5
1,819
Commercial
7
1,152
7
1,152
8
1,167
7
1,184
6
1,167
Consumer
7
51
11
126
9
154
9
174
19
400
39
5,302
49
7,930
61
9,125
66
8,409
85
11,352
Loans 90 or more days delinquent or in
foreclosure
as a percentage of total loans
0.07
%
0.10
%
0.12
%
0.12
%
0.16
%
Nonaccrual loans less than 90 Days
Delinquent:(1)
One- to four-family:
Originated
2
$
187
3
$
219
3
$
222
2
$
207
5
$
505
Correspondent purchased
—
—
—
—
—
—
—
—
—
—
Bulk purchased
1
257
—
—
—
—
—
—
—
—
Commercial
3
104
2
84
1
77
1
4
2
34
Consumer
—
—
—
—
1
19
1
19
2
27
6
548
5
303
5
318
4
230
9
566
Total nonaccrual loans
45
5,850
54
8,233
66
9,443
70
8,639
94
11,918
Nonaccrual loans as a percentage of total
loans
0.07
%
0.11
%
0.13
%
0.12
%
0.17
%
OREO:
One- to four-family:
Originated(2)
2
$
160
2
$
161
4
$
307
2
$
237
—
$
—
Consumer
—
—
1
21
1
21
1
21
—
—
2
160
3
182
5
328
3
258
—
—
Total non-performing assets
47
$
6,010
57
$
8,415
71
$
9,771
73
$
8,897
94
$
11,918
Non-performing assets as a percentage of
total assets
0.06
%
0.08
%
0.10
%
0.09
%
0.13
%
(1)
Includes loans required to be reported as
nonaccrual pursuant to accounting and/or regulatory reporting
requirements and/or internal policies even if the loans are
current.
(2)
Real estate-related consumer loans where
we also hold the first mortgage are included in the one- to
four-family category as the underlying collateral is one- to
four-family property.
The following table presents loans classified as special mention
or substandard at the dates presented. The increase in commercial
special mention loans at March 31, 2023 compared to September 30,
2022 was due mainly to two loans in a single commercial
relationship moving to special mention during the December 31, 2022
quarter as certain underlying economic considerations being
monitored by management showed signs of deterioration.
March 31, 2023
December 31, 2022
September 30, 2022
Special Mention
Substandard
Special Mention
Substandard
Special Mention
Substandard
(Dollars in thousands)
One- to four-family
$
17,368
$
15,636
$
16,471
$
18,301
$
12,950
$
19,953
Commercial
28,441
1,881
28,441
2,413
565
2,733
Consumer
296
237
234
318
306
354
$
46,105
$
17,754
$
45,146
$
21,032
$
13,821
$
23,040
Allowance for Credit Losses: The Bank is utilizing a discounted
cash flow approach for estimating expected credit losses for pooled
loans and loan commitments. Management applied qualitative factors
at March 31, 2023 to account for economic uncertainty that may not
be adequately captured in the third party economic forecast
scenarios and other management considerations related to commercial
loans to account for credit risks not fully reflected in the
discounted cash flow model.
The following table presents ACL activity and related ratios at
the dates and for the periods indicated. The reserve for
off-balance sheet credit exposures totaled $5.8 million at March
31, 2023.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2023
March 31, 2023
(Dollars in thousands)
Balance at beginning of period
$
19,189
$
16,371
Charge-offs:
One- to four-family
—
—
Commercial
—
—
Consumer
(16
)
(20
)
Total charge-offs
(16
)
(20
)
Recoveries:
One- to four-family
—
1
Commercial
1
1
Consumer
1
2
Total recoveries
2
4
Net (charge-offs) recoveries
(14
)
(16
)
Provision for credit losses
714
3,534
Balance at end of period
$
19,889
$
19,889
Ratio of net charge-offs during the
period
to average loans outstanding during the
period
—
%
—
%
Ratio of net charge-offs (recoveries)
during the
period to average non-performing
assets
0.19
0.20
ACL to non-performing loans at end of
period
339.98
339.98
ACL to loans receivable at end of
period
0.25
0.25
ACL to net charge-offs (annualized)
344x
620x
The distribution of our ACL and the ratio of ACL to loans
receivable, by loan type, at the dates indicated is summarized
below.
Distribution of ACL
Ratio of ACL to Loans
Receivable
March 31,
December 31,
March 31,
December 31,
2023
2022
2023
2022
(Dollars in thousands)
One- to four-family
$
5,434
$
5,362
0.08
%
0.08
%
Commercial:
Commercial real estate
11,219
10,799
1.28
1.30
Commercial and industrial
520
491
0.58
0.56
Construction
2,483
2,294
1.15
1.22
Total
14,222
13,584
1.20
1.22
Consumer
233
243
0.23
0.23
Total
$
19,889
$
19,189
0.25
0.25
Securities Portfolio
The following table presents the distribution of our securities
portfolio, at amortized cost, at March 31, 2023. Overall,
fixed-rate securities comprised 95% of our securities portfolio at
March 31, 2023. The weighted average life ("WAL") is the estimated
remaining maturity (in years) after three-month historical
prepayment speeds and projected call option assumptions have been
applied. Weighted average yields on tax-exempt securities are not
calculated on a fully tax-equivalent basis.
Amount
Yield
WAL
(Dollars in thousands)
MBS
$
1,146,526
1.63
%
5.2
U.S. government-sponsored enterprise
debentures
519,981
0.64
2.4
Corporate bonds
4,000
5.12
9.1
Municipal bonds
1,031
2.55
4.9
$
1,671,538
1.33
4.3
The following table summarizes the activity in our securities
portfolio for the periods presented. The weighted average yields
for the beginning and ending balances are as of the first and last
days of the periods presented and are generally derived from recent
prepayment activity on the securities in the portfolio. The
beginning and ending WALs are the estimated remaining principal
repayment terms (in years) after three-month historical prepayment
speeds and projected call option assumptions have been applied.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2023
March 31, 2023
Amount
Yield
WAL
Amount
Yield
WAL
(Dollars in thousands)
Beginning balance - carrying value
$
1,528,686
1.31
%
4.3
$
1,563,307
1.29
%
4.2
Maturities and repayments
(44,348
)
(95,393
)
Net amortization of
(premiums)/discounts
(722
)
(1,559
)
Change in valuation on AFS securities
22,192
39,453
Ending balance - carrying value
$
1,505,808
1.33
4.3
$
1,505,808
1.33
4.3
Deposit Portfolio
The following table presents the amount, weighted average rate,
and percent of total for the components of our deposit portfolio at
the dates presented.
March 31, 2023
December 31, 2022
September 30, 2022
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
Non-interest-bearing checking
$
594,265
—
%
9.7
%
$
597,247
—
%
9.8
%
$
591,387
—
%
9.5
%
Interest-bearing checking
1,001,559
0.16
16.3
1,024,806
0.13
16.9
1,027,222
0.07
16.6
Savings
539,428
0.07
8.8
543,514
0.08
9.0
552,743
0.06
8.9
Money market
1,535,234
0.80
25.0
1,694,504
0.80
27.9
1,819,761
0.47
29.4
Retail certificates of deposit
2,299,829
2.54
37.4
2,073,633
1.83
34.1
2,073,542
1.34
33.5
Commercial certificates of deposit
43,590
2.71
0.7
33,134
1.55
0.5
36,275
0.97
0.6
Public unit certificates of deposit
130,530
4.01
2.1
107,711
3.17
1.8
93,936
1.61
1.5
$
6,144,435
1.29
100.0
%
$
6,074,549
0.94
100.0
%
$
6,194,866
0.63
100.0
%
Borrowings
The following table presents the maturity of non-amortizing term
borrowings, which consist entirely of FHLB advances, along with
associated weighted average contractual and effective rates as of
March 31, 2023. In addition to the borrowings in the table below,
there were two straight-line amortizing FHLB advances outstanding
at March 31, 2023, including a $42.5 million advance at a rate of
3.50% with quarterly payments of $2.5 million through June 2027 and
a $90.2 million advance at a rate of 4.45% with quarterly payments
of $4.9 million through October 2027, and there was an outstanding
balance of $203.4 million on the Bank's line of credit with FHLB at
March 31, 2023. See additional discussion in "Fiscal Year 2023
Outlook" above.
Maturity by
Contractual
Effective
Fiscal Year
Amount
Rate
Rate(1)
(Dollars in thousands)
2023
$
200,000
1.98
%
1.98
%
2024
490,000
3.73
2.84
2025
600,000
3.13
2.84
2026
525,000
2.69
2.85
2027
400,000
2.97
3.10
2028
150,000
4.87
3.58
$
2,365,000
3.14
2.86
(1)
The effective rate includes the impact of
interest rate swaps and the amortization of deferred prepayment
penalties resulting from FHLB advances previously prepaid.
The following table presents borrowing activity for the periods
shown. The borrowings presented in the table have original
contractual terms of one year or longer or are tied to interest
rate swaps with original contractual terms of one year or longer,
and line of credit borrowings are excluded. The effective rate is
shown as a weighted average and includes the impact of interest
rate swaps and the amortization of deferred prepayment penalties
resulting from FHLB advances previously prepaid. The WAM is the
remaining weighted average contractual term in years. The beginning
and ending WAMs represent the remaining maturity at each date
presented. For new borrowings, the WAMs presented are as of the
date of issue. The new FHLB borrowings added during the current
year period had a WAM of 3.3 years, which is generally a shorter
term than what management has selected in prior periods.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2023
March 31, 2023
Effective
Effective
Amount
Rate
WAM
Amount
Rate
WAM
(Dollars in thousands)
Beginning balance
$
2,505,082
2.80
%
2.4
$
2,062,500
2.44
%
2.5
Maturities and repayments
(107,418
)
1.64
(114,836
)
1.80
New FHLB borrowings
100,000
4.85
3.5
550,000
4.52
3.3
Ending balance
$
2,497,664
2.93
2.3
$
2,497,664
2.93
2.3
Maturities of Interest-Bearing Liabilities
The following table presents the maturity and weighted average
repricing rate, which is also the weighted average effective rate,
of certificates of deposit, split between retail/commercial and
public unit amounts, and non-amortizing term borrowings for the
next four quarters as of March 31, 2023.
June 30,
September 30,
December 31,
March 31,
2023
2023
2023
2024
Total
(Dollars in thousands)
Retail/Commercial Certificates:
Amount
$
201,179
$
253,690
$
258,274
$
270,075
$
983,218
Repricing Rate
1.05
%
1.72
%
2.50
%
2.79
%
2.08
%
Public Unit Certificates:
Amount
$
17,984
$
28,758
$
39,718
$
15,250
$
101,710
Repricing Rate
3.78
%
3.44
%
4.27
%
4.22
%
3.94
%
Term Borrowings:
Amount
$
100,000
$
100,000
$
150,000
$
65,000
$
415,000
Repricing Rate
1.82
%
2.14
%
3.42
%
2.65
%
2.61
%
Total
Amount
$
319,163
$
382,448
$
447,992
$
350,325
$
1,499,928
Repricing Rate
1.45
%
1.96
%
2.97
%
2.83
%
2.35
%
The following table sets forth the WAM information for our
certificates of deposit, in years, as of March 31, 2023.
Retail certificates of deposit
1.6
Commercial certificates of deposit
1.2
Public unit certificates of deposit
0.7
Total certificates of deposit
1.5
Average Rates and Lives
At March 31, 2023, the Bank's gap between the amount of
interest-earning assets and interest-bearing liabilities projected
to reprice within one year was $(803.5) million, or (8.0)% of total
assets, compared to $(1.02) billion, or (10.3)% of total assets, at
December 31, 2022. The change in the one-year gap amount was due
primarily to a decrease in the amount of liability cash flows
coming due in one year at March 31, 2023 compared to December 31,
2022 and an increase in the amount of asset cash flows coming due
for the same time periods. This was due primarily to a decrease in
the amount of non-maturity deposits projected by the Bank's
interest rate risk model to mature within one year as of March 31,
2023 compared to December 31, 2022, partially offset by an increase
in cash flows projected to be received on loans as of March 31,
2023.
The amount of interest-bearing liabilities expected to reprice
in a given period is not typically significantly impacted by
changes in interest rates, because the Bank's borrowings and
certificate of deposit portfolios have contractual maturities and
generally cannot be terminated early without a prepayment penalty.
If interest rates were to increase 200 basis points, as of March
31, 2023, the Bank's one-year gap is projected to be $(862.4)
million, or (8.6)% of total assets. The change in the gap compared
to when there is no change in rates is due to lower anticipated net
cash flows primarily as a result of lower prepayments on
mortgage-related assets in the higher rate environment. This
compares to a one-year gap of $(1.05) billion, or (10.6)% of total
assets, if interest rates were to have increased 200 basis points
as of December 31, 2022.
The following table presents the weighted average yields/rates
and WALs (in years), after applying prepayment, call assumptions,
and decay rates for our interest-earning assets and
interest-bearing liabilities as of March 31, 2023. Yields presented
for interest-earning assets include the amortization of fees,
costs, premiums and discounts, which are considered adjustments to
the yield. The interest rate presented for term borrowings is the
effective rate, which includes the impact of interest rate swaps
and the amortization of deferred prepayment penalties resulting
from FHLB advances previously prepaid. The WAL presented for term
borrowings includes the effect of interest rate swaps.
Amount
Yield/Rate
WAL
% of Category
% of Total
(Dollars in thousands)
Securities
$
1,505,808
1.33
%
3.9
15.6
%
Loans receivable:
Fixed-rate one- to four-family
5,726,192
3.24
6.7
71.9
%
59.3
Fixed-rate commercial
454,171
4.16
3.4
5.7
4.7
All other fixed-rate loans
80,451
3.91
7.2
1.0
0.9
Total fixed-rate loans
6,260,814
3.31
6.5
78.6
64.9
Adjustable-rate one- to four-family
888,805
3.42
3.8
11.2
9.2
Adjustable-rate commercial
727,432
5.37
7.9
9.1
7.5
All other adjustable-rate loans
89,074
7.86
3.0
1.1
0.9
Total adjustable-rate loans
1,705,311
4.49
5.5
21.4
17.6
Total loans receivable
7,966,125
3.56
6.3
100.0
%
82.5
FHLB stock
128,096
8.73
2.5
1.3
Cash and cash equivalents
60,207
1.77
—
0.6
Total interest-earning assets
$
9,660,236
3.27
5.8
100.0
%
Non-maturity deposits
$
3,076,221
0.46
6.2
55.4
%
37.3
%
Retail certificates of deposit
2,299,829
2.54
1.6
41.4
27.8
Commercial certificates of deposit
43,590
2.71
1.2
0.8
0.5
Public unit certificates of deposit
130,530
4.01
0.7
2.4
1.6
Total interest-bearing deposits
5,550,170
1.43
4.1
100.0
%
67.2
Term borrowings
2,497,664
2.93
2.3
92.5
%
30.3
Line of credit borrowings
203,400
4.99
—
7.5
2.5
Total borrowings
2,701,064
3.08
2.2
100.0
%
32.8
Total interest-bearing liabilities
$
8,251,234
1.97
3.5
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230426005209/en/
Kent Townsend Executive Vice President, Chief Financial Officer
and Treasurer (785) 231-6360 ktownsend@capfed.com
Investor Relations (785) 270-6055
investorrelations@capfed.com
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