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 June 30, 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 $8.3 million;
- basic and diluted earnings per share of $0.06;
- net interest margin of 1.32% (1.39% excluding the effects of
the leverage strategy);
- paid dividends of $0.085 per share; and
- on July 25, 2023, announced a cash dividend of $0.085 per
share, payable on August 18, 2023 to stockholders of record as of
the close of business on August 4, 2023.
Comparison of Operating Results for the Three Months Ended
June 30, 2023 and March 31, 2023
For the quarter ended June 30, 2023, the Company recognized net
income of $8.3 million, or $0.06 per share, compared to net income
of $14.2 million, or $0.11 per share, for the quarter ended March
31, 2023. The decrease in net income was due primarily to higher
deposit interest expense in the current quarter, partially offset
by lower income tax expense. The net interest margin decreased 24
basis points, from 1.56% for the prior quarter to 1.32% for the
current quarter. Excluding the effects of the leverage strategy
discussed in the "Leverage Strategy" section below, the net
interest margin decreased 32 basis points, from 1.71% for the prior
quarter to 1.39% 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. Management
anticipates the reduction in the net interest margin will continue
in the near term. See additional discussion in "Fiscal Year 2023
Outlook" below.
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 nine basis points and the weighted
average yield on cash and cash equivalents increased 61 basis
points compared to the prior quarter.
For the Three Months
Ended
June 30,
March 31,
Change Expressed in:
2023
2023
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
71,918
$
69,319
$
2,599
3.7
%
Cash and cash equivalents
10,009
10,977
(968
)
(8.8
)
Mortgage-backed securities ("MBS")
4,562
4,748
(186
)
(3.9
)
Federal Home Loan Bank Topeka ("FHLB")
stock
3,260
3,607
(347
)
(9.6
)
Investment securities
895
895
—
—
Total interest and dividend income
$
90,644
$
89,546
$
1,098
1.2
The increase in interest income on loans receivable was due to
an increase in the weighted average yield, along with an increase
in the average balance of commercial loans and correspondent one-to
four-family loans. The increase in the weighted average yield was
due primarily to originations and purchases/participations 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 average balance of operating cash, as proceeds from
the Federal Reserve's Bank Term Funding Program ("BTFP") have been
held in cash as management evaluates funding and balance sheet
management options, and an increase in the yield earned on balances
held at the Federal Reserve Bank of Kansas City ("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 59 basis points and the weighted average rate paid on
borrowings not associated with the leverage strategy increased 23
basis points compared to the prior quarter.
For the Three Months
Ended
June 30,
March 31,
Change Expressed in:
2023
2023
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Borrowings
$
31,449
$
31,447
$
2
—
%
Deposits
24,445
16,140
8,305
51.5
Total interest expense
$
55,894
$
47,587
$
8,307
17.5
During the current quarter, interest expense on borrowings
associated with the leverage strategy decreased $3.3 million due to
a reduction in usage of the leverage strategy. This was almost
entirely offset by an increase in interest expense on borrowings
not associated with the leverage strategy, due primarily to BTFP
borrowings which have been held in cash as management evaluates
funding and balance sheet management options. 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 and an increase in the weighted average rate
paid on money market accounts. Early in the current quarter,
management increased the rates offered on the Bank's money market
accounts in an effort to slow the outflow of deposit balances.
Provision for Credit Losses
For the quarter ended June 30, 2023, the Bank recorded a
provision for credit losses of $1.3 million, compared to a
provision for credit losses of $891 thousand for the prior quarter.
The provision for credit losses in the current quarter was
comprised of a $2.5 million increase in the allowance for credit
losses ("ACL") for loans, partially offset by a $1.2 million
decrease in the reserve for off-balance sheet credit exposures. The
provision for credit losses associated with the ACL was due
primarily to worsening economic forecast conditions compared to the
prior quarter, commercial loan growth, and a reduction in
prepayment speeds related to the commercial loan portfolio. The
release of provision for credit losses associated with the reserve
for off-balance sheet credit exposures was due primarily to
refining our methodology to account for the estimated credit losses
on unfunded commercial construction-to-permanent loans and
commitments for the time period after construction is expected to
be completed.
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
June 30,
March 31,
Change Expressed in:
2023
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
3,404
$
3,122
$
282
9.0
%
Insurance commissions
888
877
11
1.3
Other non-interest income
1,522
1,084
438
40.4
Total non-interest income
$
5,814
$
5,083
$
731
14.4
The increase in other non-interest income was due mainly to an
increase in income on bank-owned life insurance related to the
receipt of death benefits 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
June 30,
March 31,
Change Expressed in:
2023
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
13,200
$
12,789
$
411
3.2
%
Information technology and related
expense
6,118
5,789
329
5.7
Occupancy, net
3,556
3,568
(12
)
(0.3
)
Regulatory and outside services
1,436
1,305
131
10.0
Advertising and promotional
1,447
1,333
114
8.6
Federal insurance premium
1,231
1,246
(15
)
(1.2
)
Deposit and loan transaction costs
615
690
(75
)
(10.9
)
Office supplies and related expense
546
631
(85
)
(13.5
)
Other non-interest expense
1,187
1,280
(93
)
(7.3
)
Total non-interest expense
$
29,336
$
28,631
$
705
2.5
The increase in salaries and employee benefits was mainly
related to merit increases during the current quarter. The increase
in information technology and related expense was due primarily to
an increase in professional services related to the Company's
digital transformation, discussed below, and other
technology-related projects.
The Company's efficiency ratio was 72.32% for the current
quarter compared to 60.86% 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
June 30,
March 31,
Change Expressed in:
2023
2023
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
$
9,904
$
17,520
$
(7,616
)
(43.5
)%
Income tax expense
1,602
3,331
(1,729
)
(51.9
)
Net income
$
8,302
$
14,189
$
(5,887
)
(41.5
)
Effective Tax Rate
16.2
%
19.0
%
The decrease in income tax expense was due primarily to lower
pretax income in the current quarter and partially to a lower
effective tax rate. The decrease in effective tax rate was due
primarily to lower projected pretax income, as the Company's
permanent differences, which generally reduce our tax rate, have a
larger impact on the overall effective rate.
Comparison of Operating Results for the Nine Months Ended
June 30, 2023 and 2022
The Company recognized net income of $38.7 million, or $0.29 per
share, for the current year period compared to net income of $65.0
million, or $0.48 per share, for the prior year period. The
decrease in net income was due primarily to lower net interest
income, along with recording a provision for credit losses of $5.9
million for the current year period compared to a release of
provision of $5.7 million for the prior year period, partially
offset by lower income tax expense. The net interest margin
decreased 32 basis points, from 1.82% for the prior year period to
1.50% for the current year period. Excluding the effects of the
leverage strategy, the net interest margin decreased 38 basis
points, from 2.04% for the prior year period to 1.66% 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 Nine Months
Ended
June 30,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
206,056
$
168,086
$
37,970
22.6
%
Cash and cash equivalents
37,657
4,931
32,726
663.7
MBS
14,121
14,494
(373
)
(2.6
)
FHLB stock
11,025
6,166
4,859
78.8
Investment securities
2,671
2,423
248
10.2
Total interest and dividend income
$
271,530
$
196,100
$
75,430
38.5
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 a higher FHLB dividend rate compared to the prior
year period, along with an increase in the average balance of FHLB
stock due to an increase in FHLB borrowings.
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 Nine Months
Ended
June 30,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Borrowings
$
96,504
$
27,961
$
68,543
245.1
%
Deposits
52,489
25,443
27,046
106.3
Total interest expense
$
148,993
$
53,404
$
95,589
179.0
The increase in interest expense on borrowings was due primarily
to an increase in the average balance and weighted average rate on
borrowings not associated with the leverage strategy, along with an
increase in the weighted average rate on the borrowings associated
with the leverage strategy compared to the prior year period.
Interest expense on 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. Interest expense on borrowings associated
with the leverage strategy increased $31.6 million compared to the
prior year period. 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 $5.9 million, compared to a release of
provision of $5.7 million during the prior year period. The
provision for credit losses in the current year period was
comprised of a $6.1 million increase in the ACL for loans and a
$179 thousand decrease in reserves for off-balance sheet credit
exposures. The provision for credit losses associated with the ACL
was due primarily to worsening economic forecast conditions, along
with a reduction in the projected prepayment speeds used in the
model for all loan categories.
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 Nine Months
Ended
June 30,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
9,987
$
10,331
$
(344
)
(3.3
)%
Insurance commissions
2,560
2,042
518
25.4
Other non-interest income
3,702
4,664
(962
)
(20.6
)
Total non-interest income
$
16,249
$
17,037
$
(788
)
(4.6
)
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, along with a
decrease in income on bank-owned life insurance compared to the
prior year period due to a reduction in the yield and death
benefits received between the two periods.
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 Nine Months
Ended
June 30,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
39,687
$
42,332
$
(2,645
)
(6.2
)%
Information technology and related
expense
16,977
13,268
3,709
28.0
Occupancy, net
10,598
10,593
5
—
Regulatory and outside services
4,274
4,212
62
1.5
Advertising and promotional
3,613
3,626
(13
)
(0.4
)
Federal insurance premium
3,289
2,200
1,089
49.5
Deposit and loan transaction costs
1,916
2,050
(134
)
(6.5
)
Office supplies and related expense
1,810
1,464
346
23.6
Other non-interest expense
3,576
3,299
277
8.4
Total non-interest expense
$
85,740
$
83,044
$
2,696
3.2
The decrease in salaries and employee benefits was attributable
mainly to a decrease in incentive compensation, along with a
reduction in loan commissions due to a reduction in loan
origination activity, and an increase in capitalized payroll costs
related to the digital transformation project. 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 due to agreement renewals at higher costs. The
increase in federal insurance premium expense was due mainly to an
increase in the Federal Deposit Insurance Corporation ("FDIC")
assessment rate. 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, as well as to an increase in supplies and postage
expense. 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 61.78% for the current year
period compared to 51.99% for the prior year period. The change in
the efficiency ratio was due primarily to lower net interest income
in the current year period.
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 Nine Months
Ended
June 30,
Change Expressed in:
2023
2022
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
$
47,171
$
82,379
$
(35,208
)
(42.7
)%
Income tax expense
8,440
17,418
(8,978
)
(51.5
)
Net income
$
38,731
$
64,961
$
(26,230
)
(40.4
)
Effective Tax Rate
17.9
%
21.1
%
The decrease in income tax expense was due primarily to lower
pretax income in the current year period and partially to 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 on the overall
effective rate.
Financial Condition as of June 30, 2023
The following table summarizes the Company's financial condition
at the dates indicated.
Annualized
Annualized
June 30,
March 31,
Percent
September 30,
Percent
2023
2023
Change
2022
Change
(Dollars and shares in
thousands)
Total assets
$
10,294,127
$
10,085,770
8.3
%
$
9,624,897
9.3
%
Available-for-sale ("AFS") securities
1,444,867
1,505,808
(16.2
)
1,563,307
(10.1
)
Loans receivable, net
7,963,360
7,958,567
0.2
7,464,208
8.9
Deposits
6,092,840
6,144,435
(3.4
)
6,194,866
(2.2
)
Borrowings
2,986,162
2,696,604
43.0
2,132,154
53.4
Stockholders' equity
1,061,285
1,072,034
(4.0
)
1,096,499
(4.3
)
Equity to total assets at end of
period
10.3
%
10.6
%
11.4
%
Average number of basic shares
outstanding
133,199
133,150
0.1
135,773
(2.5
)
Average number of diluted shares
outstanding
133,199
133,150
0.1
135,773
(2.5
)
During the current quarter, total assets increased by $208.4
million largely due to an increase in operating cash related to
proceeds from BTFP borrowings being held in cash as management
evaluates funding and balance sheet management options. While the
total loan portfolio balance remained relatively unchanged, there
was a shift in the mix as commercial loans increased $42.5 million,
partially offset by a $36.1 million decrease in one- to four-family
loans, including a $26.9 million decrease in one- to four-family
correspondent loans. The Bank continues to reduce purchases of
correspondent loans with the intention of correspondent purchases
near zero, which will result in a continued decrease in the balance
of that portfolio. The securities portfolio decreased $60.9 million
during the current quarter as cash flows from securities were used
for other operational needs.
Total liabilities increased $219.1 million during the current
quarter due to an increase in borrowings of $289.6 million,
partially offset by a decrease in deposits of $51.6 million. The
increase in borrowings was due primarily to proceeds from new BTFP
borrowings totaling $500.0 million, partially offset by a reduction
in FHLB borrowings as the FHLB line of credit balance was paid off
and a maturing $100.0 million FHLB advance was not renewed.
Management continues to evaluate funding and balance sheet
management options and may pay down additional maturing FHLB
advances using proceeds from BTFP borrowings. The decrease in
deposits was due primarily to non-maturity deposits, which
decreased $217.6 million, partially offset by a $123.8 million
increase in retail certificates of deposit and a $41.9 million
increase in public unit certificates of deposit.
Total assets increased $669.2 million from September 30, 2022 to
June 30, 2023. The increase was mainly composed of a $499.2 million
increase in the loan portfolio and a $280.2 million increase in
operating cash, partially offset by a $118.4 million decrease in
securities. Deposits decreased $102.0 million during that same time
period, so the balance sheet growth was funded with additional
borrowings. The decrease in deposits during the current year period
was mainly in non-maturity deposits which decreased $538.2 million,
largely money market accounts, partially offset by a $350.1 million
increase in retail certificates of deposit and $78.5 million
increase in public unit certificates of deposit. During the March
2023 quarter, the Bank held a certificate of deposit promotional
campaign which resulted in $177.3 million in new retail
certificates of deposit with the majority of the funds coming from
customer transfers from existing deposits within the Bank. The
additional decrease in non-maturity deposit balances above the
certificate of deposit promotional campaign was likely due to
depositors moving funds to alternative, higher yielding investment
products and/or withdrawing funds for customer spending. The
increase in borrowings was composed of $500.0 million in BTFP
borrowings with a term of one year and a rate of 4.70%, and a net
increase of $354.0 million in FHLB borrowings. While it is still
management's expectation that we will stay under $10 billion in
total assets at September 30, 2023, that threshold was exceeded at
March 31, 2023 and June 30, 2023.
We are working to limit the growth in total assets and are
evaluating funding options as FHLB borrowings mature and other
balance sheet management opportunities. We are expecting to reduce
the size of the one- to four-family correspondent loan portfolio
over the coming months and use that cash to pay down borrowings.
Slower growth or no growth in our one- to four-family originated
loan portfolio will help to conserve cash as well. There were $75.4
million and $86.2 million in one-to four-family originated
commitments at June 30, 2023 and March 31, 2023 respectively, and
$3.2 million and $14.9 million of one-to four-family correspondent
commitments at June 30, 2023 and March 31, 2023 respectively. The
Bank continues to receive good commercial loan opportunities from
strong borrowers and as these opportunities present themselves, we
may sell select securities at a loss to help stay under $10 billion
in assets for the foreseeable future and provide capacity in the
balance sheet to fund these loan opportunities. At June 30, 2023,
there was $418.2 million of undisbursed funds related to commercial
real estate and construction loans and $17.8 million of commercial
real estate and construction commitments. Funding deposit run-off
continues to be a challenge and could require the use of
longer-term funding.
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 Nine Months
Ended
June 30, 2023
June 30, 2023
Amount
Rate
Amount
Rate
(Dollars in thousands)
Loan originations, purchases, and
participations
One- to four-family and consumer:
Originated
$
117,373
6.27
%
$
363,556
5.70
%
Purchased
35,508
4.61
402,199
4.99
Commercial:
Originated
117,687
6.96
416,902
5.83
Participations/Purchased
26,861
9.45
211,075
6.60
$
297,429
6.63
$
1,393,732
5.67
Deposit Activity
Non-maturity deposits
$
(217,596
)
$
(538,223
)
Retail/Commercial certificates of
deposit
124,086
357,688
Borrowing activity
Maturities and repayments
(107,418
)
1.98
(222,254
)
1.89
New borrowings
100,000
4.17
650,000
4.47
BTFP, net
500,000
4.70
500,000
4.70
Leverage Strategy
At times, the Bank has utilized a leverage strategy to increase
earnings which entails entering into short-term FHLB advances and
depositing the proceeds from the borrowings, net of the required
FHLB stock holdings, at the FRB of Kansas City. The borrowings were
repaid prior to quarter end. The average balance of leverage
strategy borrowings was $604.4 million and $979.2 million during
the quarters ended June 30, 2023 and March 31, 2023, respectively,
and $1.16 billion for the nine months ended June 30, 2023. At times
during the current quarter, the leverage strategy was not
profitable and therefore was not utilized, resulting in a decrease
in the average outstanding balance of leverage strategy borrowings
compared to the prior quarter. Net income attributable to the
leverage strategy was $86 thousand and $959 thousand for the
quarter and nine months ended June 30, 2023, respectively. 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. Management continues to monitor the
net interest rate spread and overall profitability of the
strategy.
Stockholders' Equity
Stockholders' equity totaled $1.06 billion at June 30, 2023.
During the nine months ended June 30, 2023, the Company paid cash
dividends totaling $71.8 million. These cash dividends totaled
$0.535 per share and consisted of a $0.28 per share cash true-up
dividend related to fiscal year 2022 earnings and three regular
quarterly cash dividends of $0.085 per share.
Accumulated other comprehensive loss was $126.7 million at June
30, 2023 of which $136.1 million was attributable to unrealized
losses on AFS securities, partially offset by $9.4 million of
unrealized gains on derivatives. The unrealized loss on AFS
securities increased at June 30, 2023 from $125.3 million at March
31, 2023, due mainly to changes in market interest rates.
On July 25, 2023, the Company announced a regular quarterly cash
dividend of $0.085 per share, or approximately $11.3 million,
payable on August 18, 2023 to stockholders of record as of the
close of business on August 4, 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 June 30, 2023, this ratio was
9.1%.
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 June 30, 2023, the Bank's community bank leverage
ratio ("CBLR") was 9.6%, 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 June 30, 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 18.6%.
At June 30, 2023, Capitol Federal Financial, Inc., at the
holding company level, had $87.3 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 FRB of Kansas City'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 June 30, 2023.
Total shares outstanding
136,158,569
Less unallocated Employee Stock Ownership
Plan ("ESOP") shares and unvested restricted stock
(2,916,461
)
Net shares outstanding
133,242,108
Fiscal Year 2023 Outlook
The rapid increase in short-term rates led by the Federal
Reserve and the resulting inverted yield curve has caused 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. Higher mortgage loan rates have made the purchase of homes
less affordable, 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 typically 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, possibly up to 10 basis points during the September 30, 2023
quarter. The continued net interest margin compression is due to
the Federal Reserve continuing to increase short-term interest
rates which is impacting the shape of the yield curve, the pace at
which liabilities are repricing compared to assets, 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 pace at
which the interest rate increases are 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.
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 primarily
to a reduction in professional service costs. Salaries and employee
benefits are expected to be approximately $1 million lower in
fiscal year 2023 compared to fiscal year 2022. 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 18%. This is lower than the previously
provided projection of 19%, due mainly to lower projected pretax
income as the Company's permanent differences, which generally
reduce our tax rate, have a larger impact on the overall effective
rate.
Capitol Federal Financial, Inc. is the holding company for the
Bank. The Bank has 51 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: changes in policies or the application or interpretation
of laws and regulations by regulatory agencies and tax authorities;
other governmental initiatives affecting the financial services
industry; changes in accounting principles, policies or guidelines;
fluctuations in interest rates and the effects of inflation or a
potential recession, whether caused by Federal Reserve action or
otherwise; the impact of bank failures or adverse developments at
other banks and related negative press about the banking industry
in general on investor or depositor sentiment; demand for loans in
the Company's 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)
June 30,
March 31,
September 30,
2023
2023
2022
ASSETS:
Cash and cash equivalents (includes
interest-earning deposits of $308,127, $21,830 and $27,467)
$
329,409
$
60,207
$
49,194
AFS securities, at estimated fair value
(amortized cost of $1,624,837, $1,671,538 and $1,768,490)
1,444,867
1,505,808
1,563,307
Loans receivable, net (ACL of $22,399,
$19,889 and $16,371)
7,963,360
7,958,567
7,464,208
FHLB stock, at cost
116,012
128,096
100,624
Premises and equipment, net
91,713
92,415
94,820
Income taxes receivable, net
5,894
3,890
1,266
Deferred income tax assets, net
26,889
24,383
33,884
Other assets
315,983
312,404
317,594
TOTAL ASSETS
$
10,294,127
$
10,085,770
$
9,624,897
LIABILITIES:
Deposits
$
6,092,840
$
6,144,435
$
6,194,866
Borrowings
2,986,162
2,696,604
2,132,154
Advances by borrowers
40,982
60,195
80,067
Other liabilities
112,858
112,502
121,311
Total liabilities
9,232,842
9,013,736
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, 136,158,569, 136,144,725 and
138,858,884 shares issued and outstanding as of June 30, 2023,
March 31, 2023, and September 30, 2022, respectively
1,361
1,361
1,388
Additional paid-in capital
1,167,979
1,168,059
1,190,213
Unearned compensation, ESOP
(28,497
)
(28,910
)
(29,735
)
Retained earnings
47,148
50,167
80,266
Accumulated other comprehensive (loss)
income, net of tax
(126,706
)
(118,643
)
(145,633
)
Total stockholders' equity
1,061,285
1,072,034
1,096,499
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
10,294,127
$
10,085,770
$
9,624,897
CAPITOL FEDERAL FINANCIAL, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
For the Three Months
Ended
For the Nine Months
Ended
June 30,
March 31,
June 30,
2023
2023
2023
2022
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
71,918
$
69,319
$
206,056
$
168,086
Cash and cash equivalents
10,009
10,977
37,657
4,931
MBS
4,562
4,748
14,121
14,494
FHLB stock
3,260
3,607
11,025
6,166
Investment securities
895
895
2,671
2,423
Total interest and dividend income
90,644
89,546
271,530
196,100
INTEREST EXPENSE:
Borrowings
31,449
31,447
96,504
27,961
Deposits
24,445
16,140
52,489
25,443
Total interest expense
55,894
47,587
148,993
53,404
NET INTEREST INCOME
34,750
41,959
122,537
142,696
PROVISION FOR CREDIT LOSSES
1,324
891
5,875
(5,690
)
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES
33,426
41,068
116,662
148,386
NON-INTEREST INCOME:
Deposit service fees
3,404
3,122
9,987
10,331
Insurance commissions
888
877
2,560
2,042
Other non-interest income
1,522
1,084
3,702
4,664
Total non-interest income
5,814
5,083
16,249
17,037
NON-INTEREST EXPENSE:
Salaries and employee benefits
13,200
12,789
39,687
42,332
Information technology and related
expense
6,118
5,789
16,977
13,268
Occupancy, net
3,556
3,568
10,598
10,593
Regulatory and outside services
1,436
1,305
4,274
4,212
Advertising and promotional
1,447
1,333
3,613
3,626
Federal insurance premium
1,231
1,246
3,289
2,200
Deposit and loan transaction costs
615
690
1,916
2,050
Office supplies and related expense
546
631
1,810
1,464
Other non-interest expense
1,187
1,280
3,576
3,299
Total non-interest expense
29,336
28,631
85,740
83,044
INCOME BEFORE INCOME TAX EXPENSE
9,904
17,520
47,171
82,379
INCOME TAX EXPENSE
1,602
3,331
8,440
17,418
NET INCOME
$
8,302
$
14,189
$
38,731
$
64,961
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
June 30, 2023
March 31, 2023
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
$
4,052,906
$
34,224
3.38
%
$
4,050,515
$
33,660
3.32
%
Correspondent purchased
2,491,016
19,937
3.20
2,462,960
19,380
3.15
Bulk purchased
141,985
527
1.49
144,438
413
1.14
Total one- to four-family loans
6,685,907
54,688
3.27
6,657,913
53,453
3.21
Commercial loans
1,180,906
15,172
5.08
1,147,681
13,924
4.85
Consumer loans
102,390
2,058
8.06
102,649
1,942
7.67
Total loans receivable(1)
7,969,203
71,918
3.60
7,908,243
69,319
3.51
MBS(2)
1,126,953
4,562
1.62
1,173,366
4,748
1.62
Investment securities(2)(3)
525,012
895
0.68
525,012
895
0.68
FHLB stock(4)
146,482
3,260
8.93
167,567
3,607
8.73
Cash and cash equivalents(5)
769,434
10,009
5.15
967,586
10,977
4.54
Total interest-earning assets
10,537,084
90,644
3.43
10,741,774
89,546
3.34
Other non-interest-earning assets
271,898
263,916
Total assets
$
10,808,982
$
11,005,690
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
949,909
398
0.17
$
989,440
368
0.15
Savings
521,831
143
0.11
541,324
101
0.08
Money market
1,485,672
6,295
1.70
1,620,451
3,184
0.80
Retail certificates
2,339,477
15,685
2.69
2,176,103
11,115
2.07
Commercial certificates
44,083
307
2.80
38,575
197
2.07
Wholesale certificates
155,157
1,617
4.18
127,037
1,175
3.75
Total deposits
5,496,129
24,445
1.78
5,492,930
16,140
1.19
Borrowings(6)
3,520,594
31,449
3.57
3,700,022
31,447
3.42
Total interest-bearing liabilities
9,016,723
55,894
2.48
9,192,952
47,587
2.09
Non-interest-bearing deposits
556,682
574,495
Other non-interest-bearing liabilities
161,360
172,481
Stockholders' equity
1,074,217
1,065,762
Total liabilities and stockholders'
equity
$
10,808,982
$
11,005,690
Net interest income(7)
$
34,750
$
41,959
Net interest-earning assets
$
1,520,361
$
1,548,822
Net interest margin(8)(9)
1.32
1.56
Ratio of interest-earning assets to
interest-bearing liabilities
1.17x
1.17x
Selected performance ratios:
Return on average assets
(annualized)(9)
0.31
%
0.52
%
Return on average equity
(annualized)(9)
3.09
5.33
Average equity to average assets
9.94
9.68
Operating expense ratio
(annualized)(10)
1.09
1.04
Efficiency ratio(9)(11)
72.32
60.86
Pre-tax yield on leverage strategy(12)
0.07
0.06
For the Nine Months
Ended
June 30, 2023
June 30, 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
$
4,051,068
$
101,249
3.33
%
$
3,973,184
$
96,583
3.24
%
Correspondent purchased
2,419,202
56,578
3.12
2,040,934
39,832
2.60
Bulk purchased
144,514
1,374
1.27
162,151
1,578
1.30
Total one- to four-family loans
6,614,784
159,201
3.21
6,176,269
137,993
2.98
Commercial loans
1,117,549
41,089
4.85
866,856
26,898
4.09
Consumer loans
102,600
5,766
7.51
91,979
3,195
4.64
Total loans receivable(1)
7,834,933
206,056
3.50
7,135,104
168,086
3.14
MBS(2)
1,173,959
14,121
1.60
1,379,334
14,494
1.40
Investment securities(2)(3)
525,035
2,671
0.68
522,706
2,423
0.62
FHLB stock(4)
170,652
11,025
8.64
132,657
6,166
6.21
Cash and cash equivalents(5)
1,182,559
37,657
4.20
1,305,949
4,931
0.50
Total interest-earning assets
10,887,138
271,530
3.32
10,475,750
196,100
2.49
Other non-interest-earning assets
261,221
362,229
Total assets
$
11,148,359
$
10,837,979
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
982,372
1,056
0.14
$
1,063,280
535
0.07
Savings
536,363
343
0.09
539,152
215
0.05
Money market
1,622,486
12,513
1.03
1,835,666
2,653
0.19
Retail certificates
2,193,096
34,567
2.11
2,236,551
21,230
1.27
Commercial certificates
38,970
608
2.09
123,398
584
0.63
Wholesale certificates
126,567
3,402
3.59
170,051
226
0.18
Total deposits
5,499,854
52,489
1.28
5,968,098
25,443
0.57
Borrowings(6)
3,829,154
96,504
3.35
2,918,291
27,961
1.27
Total interest-bearing liabilities
9,329,008
148,993
2.13
8,886,389
53,404
0.80
Non-interest-bearing deposits
569,239
571,685
Other non-interest-bearing liabilities
175,176
177,081
Stockholders' equity
1,074,936
1,202,824
Total liabilities and stockholders'
equity
$
11,148,359
$
10,837,979
Net interest income(7)
$
122,537
$
142,696
Net interest-earning assets
$
1,558,130
$
1,589,361
Net interest margin(8)(9)
1.50
1.82
Ratio of interest-earning assets to
interest-bearing liabilities
1.17x
1.18x
Selected performance ratios:
Return on average assets
(annualized)(9)
0.46
%
0.80
%
Return on average equity
(annualized)(9)
4.80
7.20
Average equity to average assets
9.64
11.10
Operating expense ratio
(annualized)(10)
1.03
1.02
Efficiency ratio(9)(11)
61.78
51.99
Pre-tax yield on leverage strategy(12)
0.13
0.23
(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 for each of the quarters ended June 30, 2023 and March
31, 2023, and $1.1 million and $2.1 million for the nine-month
periods ended June 30, 2023 and June 30, 2022, respectively.
(4)
Included in this line, for the quarters
ended June 30, 2023 and March 31, 2023, respectively, is FHLB stock
related to the leverage strategy with an average outstanding
balance of $27.2 million and $44.1 million, respectively, and
dividend income of $610 thousand and $1.0 million, respectively, at
a weighted average yield of 9.00% and 8.75%, respectively, and FHLB
stock not related to the leverage strategy with an average
outstanding balance of $119.3 million and $123.5 million,
respectively, and dividend income of $2.7 million and $2.7 million,
respectively, at a weighted average yield of 8.91% and 8.72%,
respectively. Included in this line, for the nine-month periods
ended June 30, 2023 and June 30, 2022, respectively, is FHLB stock
related to the leverage strategy with an average outstanding
balance of $52.0 million and $58.2 million, respectively, and
dividend income of $3.4 million and $2.7 million, respectively, at
a weighted average yield of 8.65% and 6.12%, respectively, and FHLB
stock not related to the leverage strategy with an average
outstanding balance of $118.7 million and $74.5 million,
respectively, and dividend income of $7.7 million and $3.5 million,
respectively, at a weighted average yield of 8.63% and 6.29%,
respectively.
(5)
The average balance of cash and cash
equivalents includes an average balance of cash related to the
leverage strategy of $577.2 million and $935.1 million during the
quarters ended June 30, 2023 and March 31, 2023, respectively, and
an average balance of cash related to the leverage strategy of
$1.10 billion and $1.23 billion during the nine-month periods ended
June 30, 2023 and June 30, 2022, respectively.
(6)
Included in this line, for the quarters
ended June 30, 2023 and March 31, 2023, are FHLB borrowings related
to the leverage strategy with an average outstanding balance of
$604.4 million and $979.2 million, respectively, and interest paid
of $7.9 million and $11.3 million, respectively, at a weighted
average rate of 5.20% and 4.60%, respectively, and borrowings not
related to the leverage strategy with an average outstanding
balance of $2.92 billion and $2.72 billion, respectively, and
interest paid of $23.5 million and $20.2 million, respectively, at
a weighted average rate of 3.23% and 3.00%, respectively. Included
in this line, for the nine-month periods ended June 30, 2023 and
June 30, 2022, are FHLB borrowings related to the leverage strategy
with an average outstanding balance of $1.16 billion and $1.30
billion, respectively, and interest paid of $36.5 million and $4.9
million, respectively, at a weighted average rate of 4.17% and
0.50%, respectively, and borrowings not related to the leverage
strategy with an average outstanding balance of $2.67 billion and
$1.62 billion, respectively, and interest paid of $60.0 million and
$23.0 million, respectively, at a weighted average rate of 2.99%
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
June 30, 2023
March 31, 2023
Actual
Leverage
Adjusted
Actual
Leverage
Adjusted
(GAAP)
Strategy
(Non-GAAP)
(GAAP)
Strategy
(Non-GAAP)
Yield on interest-earning assets
3.43
%
0.11
%
3.32
%
3.34
%
0.14
%
3.20
%
Cost of interest-bearing liabilities
2.48
0.20
2.28
2.09
0.30
1.79
Return on average assets (annualized)
0.31
(0.01
)
0.32
0.52
(0.04
)
0.56
Return on average equity (annualized)
3.09
0.03
3.06
5.33
0.05
5.28
Net interest margin
1.32
(0.07
)
1.39
1.56
(0.15
)
1.71
Efficiency Ratio
72.32
(0.12
)
72.44
60.86
(0.07
)
60.93
For the Nine Months
Ended
June 30, 2023
June 30, 2022
Actual
Leverage
Adjusted
Actual
Leverage
Adjusted
(GAAP)
Strategy
(Non-GAAP)
(GAAP)
Strategy
(Non-GAAP)
Yield on interest-earning assets
3.32
%
0.13
%
3.19
%
2.49
%
(0.25
)%
2.74
%
Cost of interest-bearing liabilities
2.13
0.29
1.84
0.80
(0.05
)
0.85
Return on average assets (annualized)
0.46
(0.04
)
0.50
0.80
(0.08
)
0.88
Return on average equity (annualized)
4.80
0.11
4.69
7.20
0.20
7.00
Net interest margin
1.50
(0.16
)
1.66
1.82
(0.22
)
2.04
Efficiency Ratio
61.78
(0.42
)
62.20
51.99
(0.65
)
52.64
(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 and 34
basis points during the current quarter and current year period,
respectively, 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 6% during the current quarter, 5% during
the prior quarter, and 7% during the quarter ended September 30,
2022.
June 30, 2023
March 31, 2023
September 30, 2022
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
One- to four-family:
Originated
$
3,992,730
3.33
%
50.1
%
$
4,003,823
3.28
%
50.3
%
$
3,988,469
3.20
%
53.4
%
Correspondent purchased
2,441,772
3.41
30.6
2,468,647
3.39
31.0
2,201,886
3.10
29.4
Bulk purchased
139,571
1.60
1.8
142,527
1.36
1.8
147,939
1.24
2.0
Construction
73,166
3.42
0.9
68,355
3.21
0.8
66,164
2.90
0.9
Total
6,647,239
3.33
83.4
6,683,352
3.28
83.9
6,404,458
3.12
85.7
Commercial:
Commercial real estate
924,142
5.00
11.6
874,718
4.48
11.0
745,301
4.30
10.0
Commercial and industrial
106,609
6.07
1.3
90,200
5.40
1.1
79,981
4.30
1.1
Construction
193,308
5.54
2.4
216,685
6.30
2.7
141,062
5.34
1.9
Total
1,224,059
5.18
15.3
1,181,603
4.89
14.8
966,344
4.45
13.0
Consumer loans:
Home equity
94,810
8.60
1.2
92,506
8.17
1.2
92,203
6.28
1.2
Other
8,632
4.96
0.1
8,664
4.66
0.1
8,665
4.21
0.1
Total
103,442
8.30
1.3
101,170
7.87
1.3
100,868
6.10
1.3
Total loans receivable
7,974,740
3.67
100.0
%
7,966,125
3.57
100.0
%
7,471,670
3.33
100.0
%
Less:
ACL
22,399
19,889
16,371
Deferred loan fees/discounts
31,557
30,830
29,736
Premiums/deferred costs
(42,576
)
(43,161
)
(38,645
)
Total loans receivable, net
$
7,963,360
$
7,958,567
$
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 Nine Months
Ended
June 30, 2023
June 30, 2023
Amount
Rate
Amount
Rate
(Dollars in thousands)
Beginning balance
$
7,966,125
3.57
%
$
7,471,670
3.33
%
Originated and refinanced
235,060
6.61
780,458
5.77
Purchased and participations
62,369
6.69
613,274
5.54
Change in undisbursed loan funds
396
(145,788
)
Repayments
(289,200
)
(739,192
)
Principal (charge-offs)/recoveries,
net
(10
)
(26
)
Other
—
(5,656
)
Ending balance
$
7,974,740
3.67
$
7,974,740
3.67
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 June 30, 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
$
3,992,730
60.7
%
3.33
%
771
60
%
$
163
Correspondent purchased
2,441,772
37.1
3.41
766
65
417
Bulk purchased
139,571
2.2
1.60
771
56
287
$
6,574,073
100.0
3.32
769
62
213
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 March 31, 2023 as the Bank continues to reduce
correspondent purchases to near zero.
For the Three Months
Ended
For the Nine Months
Ended
June 30, 2023
June 30, 2023
Credit
Credit
Amount
Rate
LTV
Score
Amount
Rate
LTV
Score
(Dollars in thousands)
Originated
$
98,257
5.78
%
77
%
767
$
309,474
5.28
%
76
%
766
Correspondent purchased
35,508
4.61
71
772
402,199
4.99
76
769
$
133,765
5.47
76
768
$
711,673
5.12
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 June 30, 2023, along
with associated weighted average rates.
Amount
Rate
(Dollars in thousands)
Originate/refinance
$
75,445
5.98
%
Correspondent
3,156
5.77
$
78,601
5.97
Commercial Loans: During the nine months ended June 30, 2023,
the Bank originated $416.9 million of commercial loans and entered
into commercial loan participations totaling $211.1 million. The
Bank also processed commercial loan disbursements, excluding lines
of credit, of approximately $402.3 million at a weighted average
rate of 5.90%.
As of June 30, 2023, March 31, 2023, and September 30, 2022, the
Bank's commercial and industrial gross loan amounts (unpaid
principal plus undisbursed amounts) totaled $144.8 million, $130.3
million, and $100.4 million, respectively, and commitments totaled
$230 thousand at June 30, 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 June 30, 2023, the Bank had four
commercial real estate and commercial construction loan commitments
totaling $17.8 million, at a weighted average rate of 6.83%.
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 real estate and commercial construction
undisbursed amounts and commitments outstanding as of June 30,
2023, management anticipates funding approximately $89 million
during the September 2023 quarter, $97 million during the December
2023 quarter, $64 million during the March 2024 quarter, and $167
million during the June 2024 quarter or later.
June 30, 2023
March 31, 2023
September 30, 2022
Unpaid
Undisbursed
Gross Loan
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
Amount
(Dollars in thousands)
Retail building
143
$
257,763
$
85,466
$
343,229
$
343,725
$
230,153
Senior housing
35
280,453
30,139
310,592
325,475
328,259
Multi-family
41
75,242
234,381
309,623
233,498
122,735
Hotel
13
213,444
21,419
234,863
235,714
181,546
Office building
85
116,251
18,066
134,317
131,698
109,653
One- to four-family property
384
63,697
7,289
70,986
71,704
68,907
Single use building
29
30,043
16,434
46,477
43,171
41,908
Other
116
80,557
4,978
85,535
103,201
53,054
846
$
1,117,450
$
418,172
$
1,535,622
$
1,488,186
$
1,136,215
Weighted average rate
5.09
%
6.04
%
5.35
%
5.14
%
4.56
%
The following table summarizes the Bank's commercial real estate
and commercial construction loans by state as of the dates
indicated.
June 30, 2023
March 31, 2023
September 30, 2022
Unpaid
Undisbursed
Gross Loan
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
Amount
(Dollars in thousands)
Kansas
621
$
443,903
$
201,532
$
645,435
$
573,346
$
423,797
Missouri
177
249,706
88,662
338,368
363,432
296,443
Texas
15
258,774
75,290
334,064
335,724
280,840
Colorado
8
40,929
14,184
55,113
55,194
34,377
Tennessee
2
24,038
18,501
42,539
42,568
—
Nebraska
8
34,710
3,039
37,749
37,867
32,992
Other
15
65,390
16,964
82,354
80,055
67,766
846
$
1,117,450
$
418,172
$
1,535,622
$
1,488,186
$
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 June 30, 2023.
Count
Amount
(Dollars in thousands)
Greater than $30 million
9
$
437,982
>$15 to $30 million
19
399,391
>$10 to $15 million
10
120,173
>$5 to $10 million
30
217,742
$1 to $5 million
138
331,248
Less than $1 million
1,261
191,887
1,467
$
1,698,423
Asset Quality
The following tables present loans 30 to 89 days delinquent,
non-performing loans, and other real estate owned ("OREO") as of
the dates indicated. The amounts in the table represent the unpaid
principal balance of the loans less related charge-offs, if any. Of
the loans 30 to 89 days delinquent at June 30, 2023, approximately
76% 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:
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
One- to four-family:
Originated
67
$
6,377
45
$
4,116
56
$
4,708
48
$
4,134
64
$
6,035
Correspondent purchased
20
6,704
10
3,436
4
1,216
7
1,104
9
3,467
Bulk purchased
—
—
3
287
3
865
3
913
4
755
Commercial
6
573
5
389
6
191
—
—
6
706
Consumer
22
469
22
352
24
626
24
345
16
256
115
$
14,123
85
$
8,580
93
$
7,606
82
$
6,496
99
$
11,219
30 to 89 days delinquent loans
to total loans receivable, net
0.18
%
0.11
%
0.10
%
0.09
%
0.16
%
Non-Performing Loans and OREO
at:
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 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
16
$
1,582
15
$
1,084
13
$
1,034
29
$
2,919
36
$
2,585
Correspondent purchased
8
1,854
7
1,803
14
4,126
12
3,737
9
2,659
Bulk purchased
3
1,149
3
1,212
4
1,492
3
1,148
5
1,807
Commercial
8
1,225
7
1,152
7
1,152
8
1,167
7
1,184
Consumer
3
51
7
51
11
126
9
154
9
174
38
5,861
39
5,302
49
7,930
61
9,125
66
8,409
Loans 90 or more days delinquent or in
foreclosure
as a percentage of total loans
0.07
%
0.07
%
0.10
%
0.12
%
0.12
%
Nonaccrual loans less than 90 Days
Delinquent:(1)
One- to four-family:
Originated
3
$
295
2
$
187
3
$
219
3
$
222
2
$
207
Correspondent purchased
—
—
—
—
—
—
—
—
—
—
Bulk purchased
1
257
1
257
—
—
—
—
—
—
Commercial
2
29
3
104
2
84
1
77
1
4
Consumer
1
37
—
—
—
—
1
19
1
19
7
618
6
548
5
303
5
318
4
230
Total nonaccrual loans
45
6,479
45
5,850
54
8,233
66
9,443
70
8,639
Nonaccrual loans as a percentage of total
loans
0.08
%
0.07
%
0.11
%
0.13
%
0.12
%
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
45
$
6,479
47
$
6,010
57
$
8,415
71
$
9,771
73
$
8,897
Non-performing assets as a percentage of
total assets
0.06
%
0.06
%
0.08
%
0.10
%
0.09
%
(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 June 30, 2023 compared to March 31, 2023
was due mainly to three loans in a single commercial relationship
where the borrower has experienced some performance issues, but is
beginning to trend in a positive direction. Management will
continue to closely monitor the borrower's performance.
June 30, 2023
March 31, 2023
September 30, 2022
Special Mention
Substandard
Special Mention
Substandard
Special Mention
Substandard
(Dollars in thousands)
One- to four-family
$
17,935
$
15,747
$
17,368
$
15,636
$
12,950
$
19,953
Commercial
45,377
1,265
28,441
1,881
565
2,733
Consumer
358
269
296
237
306
354
$
63,670
$
17,281
$
46,105
$
17,754
$
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 June 30, 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 $4.6 million at June 30,
2023.
For the Three Months
Ended
For the Nine Months
Ended
June 30, 2023
June 30, 2023
(Dollars in thousands)
Balance at beginning of period
$
19,889
$
16,371
Charge-offs:
One- to four-family
—
—
Commercial
—
—
Consumer
(11
)
(31
)
Total charge-offs
(11
)
(31
)
Recoveries:
One- to four-family
1
2
Commercial
—
1
Consumer
—
2
Total recoveries
1
5
Net (charge-offs) recoveries
(10
)
(26
)
Provision for credit losses
2,520
6,054
Balance at end of period
$
22,399
$
22,399
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
0.14
0.31
ACL to non-performing loans at end of
period
345.72
345.72
ACL to loans receivable at end of
period
0.28
0.28
ACL to net charge-offs (annualized)
611x
667x
The distribution of our ACL and the ratio of ACL to loans
receivable, by loan type, at the dates indicated is summarized
below. The increase in commercial ACL to loans receivable ratio
during the current quarter was due primarily to a worse economic
forecast utilized in the model compared to the prior quarter and a
slow down in prepayment speeds which lengthen the remaining term of
the portfolio.
Distribution of ACL
Ratio of ACL to Loans
Receivable
June 30,
March 31,
June 30,
March 31,
2023
2023
2023
2023
(Dollars in thousands)
One- to four-family
$
5,474
$
5,434
0.08
%
0.08
%
Commercial:
Commercial real estate
13,436
11,219
1.45
1.28
Commercial and industrial
929
520
0.87
0.58
Construction
2,321
2,483
1.20
1.15
Total
16,686
14,222
1.36
1.20
Consumer
239
233
0.23
0.23
Total
$
22,399
$
19,889
0.28
0.25
Securities Portfolio
The following table presents the distribution of our securities
portfolio, at amortized cost, at June 30, 2023. Overall, fixed-rate
securities comprised 96% of our securities portfolio at June 30,
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
$
1,099,824
1.65
%
4.9
U.S. government-sponsored enterprise
debentures
519,983
0.64
2.1
Corporate bonds
4,000
5.12
8.9
Municipal bonds
1,030
2.55
4.6
$
1,624,837
1.33
4.0
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 Nine Months
Ended
June 30, 2023
June 30, 2023
Amount
Yield
WAL
Amount
Yield
WAL
(Dollars in thousands)
Beginning balance - carrying value
$
1,505,808
1.33
%
4.3
$
1,563,307
1.29
%
4.2
Maturities and repayments
(45,964
)
(141,357
)
Net amortization of
(premiums)/discounts
(737
)
(2,296
)
Change in valuation on AFS securities
(14,240
)
25,213
Ending balance - carrying value
$
1,444,867
1.33
4.0
$
1,444,867
1.33
4.0
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. The increase in the deposit portfolio rate
during the current quarter and current year period was due mainly
to higher rates on money market accounts and retail certificates of
deposit.
June 30, 2023
March 31, 2023
September 30, 2022
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
Non-interest-bearing checking
$
567,764
—
%
9.3
%
$
594,265
—
%
9.7
%
$
591,387
—
%
9.5
%
Interest-bearing checking
938,722
0.19
15.4
1,001,559
0.16
16.3
1,027,222
0.07
16.6
Savings
509,975
0.12
8.4
539,428
0.07
8.8
552,743
0.06
8.9
Money market
1,436,429
1.94
23.6
1,535,234
0.80
25.0
1,819,761
0.47
29.4
Retail certificates of deposit
2,423,665
3.00
39.8
2,299,829
2.54
37.4
2,073,542
1.34
33.5
Commercial certificates of deposit
43,840
3.25
0.7
43,590
2.71
0.7
36,275
0.97
0.6
Public unit certificates of deposit
172,445
4.26
2.8
130,530
4.01
2.1
93,936
1.61
1.5
$
6,092,840
1.83
100.0
%
$
6,144,435
1.29
100.0
%
$
6,194,866
0.63
100.0
%
Borrowings
The following table presents the maturity of term borrowings,
which consist of FHLB advances and BTFP borrowings, along with
associated weighted average contractual and effective rates as of
June 30, 2023. Amortizing FHLB advances are presented based on
their maturity dates versus their quarterly scheduled repayment
dates.
Maturity by
Contractual
Effective
Fiscal Year
Amount
Rate
Rate(1)
(Dollars in thousands)
2023
$
100,000
2.14
%
2.14
%
2024
990,000
4.26
3.78
2025
650,000
3.26
2.95
2026
575,000
2.81
2.95
2027
440,000
3.02
3.13
2028
235,246
4.82
3.90
$
2,990,246
3.55
3.30
(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 weighted
average maturity ("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 3.2
years, which is generally a shorter term than what management has
selected in prior periods. During the current quarter, management
periodically paid off BTFP borrowings and borrowed new BTFP funds
to take advantage of lower rates. Because of these transactions,
BTFP activity is presented on a net basis in the table below.
For the Three Months
Ended
For the Nine Months
Ended
June 30, 2023
June 30, 2023
Effective
Effective
Amount
Rate
WAM
Amount
Rate
WAM
(Dollars in thousands)
Beginning balance
$
2,497,664
2.93
%
2.3
$
2,062,500
2.44
%
2.5
Maturities and repayments
(107,418
)
1.98
(222,254
)
1.89
New FHLB borrowings
100,000
4.17
2.5
650,000
4.47
3.2
BTFP, net
500,000
4.70
1.0
500,000
4.70
1.0
Ending balance
$
2,990,246
3.30
2.0
$
2,990,246
3.30
2.0
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 June 30, 2023.
September 30,
December 31,
March 31,
June 30,
2023
2023
2024
2024
Total
(Dollars in thousands)
Retail/Commercial Certificates:
Amount
$
253,836
$
266,356
$
263,365
$
369,749
$
1,153,306
Repricing Rate
1.76
%
2.58
%
2.84
%
3.64
%
2.80
%
Public Unit Certificates:
Amount
$
28,758
$
42,717
$
15,250
$
30,420
$
117,145
Repricing Rate
3.44
%
4.30
%
4.22
%
4.42
%
4.11
%
Term Borrowings:
Amount
$
100,000
$
150,000
$
65,000
$
600,000
$
915,000
Repricing Rate
2.14
%
3.42
%
2.67
%
4.25
%
3.77
%
Total
Amount
$
382,594
$
459,073
$
343,615
$
1,000,169
$
2,185,451
Repricing Rate
1.98
%
3.01
%
2.87
%
4.03
%
3.27
%
The following table sets forth the WAM information for our
certificates of deposit, in years, as of June 30, 2023.
Retail certificates of deposit
1.5
Commercial certificates of deposit
1.1
Public unit certificates of deposit
0.7
Total certificates of deposit
1.4
Average Rates and Lives
At June 30, 2023, the Bank's gap between the amount of
interest-earning assets and interest-bearing liabilities projected
to reprice within one year was $(1.00) billion, or (9.7)% of total
assets, compared to $(803.5) million, or (8.0)% of total assets, at
March 31, 2023. The change in the one-year gap amount was due
primarily to an increase in the amount of liability cash flows
coming due in one year at June 30, 2023 compared to March 31, 2023,
partially offset by an increase in the amount of asset cash flows
coming due for the same time period. This was due primarily to an
increase in the amount of certificates of deposit and borrowings
scheduled to mature within one year as of June 30, 2023 compared to
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 June 30,
2023, the Bank's one-year gap is projected to be $(1.19) billion,
or (11.6)% 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 $(862.4) million, or (8.6)% of total
assets, if interest rates were to have increased 200 basis points
as of March 31, 2023.
The following table presents the weighted average yields/rates
and WALs (in years), after applying prepayment, call assumptions,
and decay rates for our interest-earning assets and
interest-bearing liabilities as of June 30, 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
$
1,444,867
1.33
%
4.2
14.7
%
Loans receivable:
Fixed-rate one- to four-family
5,666,144
3.26
6.9
71.1
%
57.4
Fixed-rate commercial
422,245
4.42
3.3
5.3
4.3
All other fixed-rate loans
81,175
4.14
7.5
1.0
0.8
Total fixed-rate loans
6,169,564
3.35
6.7
77.4
62.5
Adjustable-rate one- to four-family
907,929
3.58
4.0
11.4
9.2
Adjustable-rate commercial
801,814
5.69
7.7
10.0
8.1
All other adjustable-rate loans
95,433
8.08
3.0
1.2
1.0
Total adjustable-rate loans
1,805,176
4.76
5.6
22.6
18.3
Total loans receivable
7,974,740
3.67
6.4
100.0
%
80.8
FHLB stock
116,012
8.97
2.3
1.2
Cash and cash equivalents
329,409
4.82
—
3.3
Total interest-earning assets
$
9,865,028
3.43
5.8
100.0
%
Non-maturity deposits
$
2,885,126
1.05
6.6
52.2
%
33.9
%
Retail certificates of deposit
2,423,665
3.00
1.5
43.9
28.5
Commercial certificates of deposit
43,840
3.25
1.1
0.8
0.5
Public unit certificates of deposit
172,445
4.26
0.7
3.1
2.0
Total interest-bearing deposits
5,525,076
2.02
4.1
100.0
%
64.9
Term borrowings
2,990,246
3.30
2.0
35.1
Total interest-bearing liabilities
$
8,515,322
2.47
3.4
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230726500326/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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