Capitol Federal Financial, Inc.® (NASDAQ: CFFN) (the "Company,"
"we" or "our"), the parent company of Capitol Federal Savings Bank
(the "Bank"), announced results today for the quarter ended March
31, 2024. For best viewing results, please view this release in
Portable Document Format (PDF) on our website,
https://ir.capfed.com.
The highlights for the quarter include:
- net income of $13.8 million;
- basic and diluted earnings per share of $0.11;
- net interest margin of 1.82%, an improvement of 11 basis points
from the prior quarter;
- paid dividends of $0.085 per share; and
- on April 23, 2024, announced a cash dividend of $0.085 per
share, payable on May 17, 2024 to stockholders of record as of the
close of business on May 3, 2024.
Comparison of Operating Results for the Three Months Ended
March 31, 2024 and December 31, 2023
For the quarter ended March 31, 2024, the Company recognized net
income of $13.8 million, or $0.11 per share, compared to a net
income of $2.5 million, or $0.02 per share, for the quarter ended
December 31, 2023. The higher net income in the current quarter was
due primarily to the prior quarter including $13.3 million ($10.0
million net of tax) of net losses related to the strategic
securities transaction ("securities strategy") discussed in the
"Comparison of Operating Results for the Six Months Ended March 31,
2024 and March 31, 2023" section below. Excluding the securities
strategy, earnings per share would have been $0.10 for the prior
quarter. The increase in earnings per share in the current quarter,
excluding the net losses on securities sales related to the
securities strategy in the prior quarter, was due primarily to an
increase in the net interest margin. The net interest margin
increased 11 basis points, from 1.71% for the prior quarter to
1.82% for the current quarter due mainly to a full quarter of
higher yielding securities that were purchased during the prior
quarter in association with the securities strategy.
Interest and Dividend Income
The following table presents the components of interest and
dividend income for the time periods presented, along with the
change measured in dollars and percent.
For the Three Months
Ended
March 31,
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
76,122
$
75,941
$
181
0.2
%
Mortgage-backed securities ("MBS")
7,794
5,859
1,935
33.0
Cash and cash equivalents
4,513
4,778
(265
)
(5.5
)
Federal Home Loan Bank Topeka ("FHLB")
stock
2,528
2,586
(58
)
(2.2
)
Investment securities
2,332
2,528
(196
)
(7.8
)
Total interest and dividend income
$
93,289
$
91,692
$
1,597
1.7
The increase in interest income on MBS was due to an increase in
the weighted average yield from having a full quarter of securities
at higher market yields purchased in association with the
securities strategy. The weighted average yield on MBS increased
133 basis points compared to the prior quarter. The decrease in
interest income on investment securities was due to a decrease in
the average balance of the portfolio, partially offset by a higher
weighted average yield, both a result of the securities strategy as
not all the proceeds from the securities sale were reinvested into
the securities portfolio. See additional discussion regarding the
use of the proceeds from the securities sale in the "Comparison of
Operating Results for the Six Months Ended March 31, 2024 and March
31, 2023" section below.
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 Three Months
Ended
March 31,
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Deposits
$
33,415
$
32,443
$
972
3.0
%
Borrowings
18,554
19,656
(1,102
)
(5.6
)
Total interest expense
$
51,969
$
52,099
$
(130
)
(0.2
)
The increase in interest expense on deposits was due primarily
to increases in the weighted average rate paid and the average
balance of the retail certificate of deposit portfolio, partially
offset by decreases in the weighted average rate paid and the
average balance of money market accounts. A large portion of the
decrease in the average balance of money market accounts during the
current quarter was related to the Presidents' Day certificate of
deposit campaign as funds from money market accounts moved to
certificates of deposit as a result of the campaign. The weighted
average rate of the money market portfolio decreased due primarily
to management lowering the rates for certain tiers during the
current quarter. The decrease in interest expense on borrowings was
due mainly to the pay down of $500.0 million of borrowings under
the Federal Reserve's Bank Term Funding Program ("BTFP"), as part
of the securities strategy during the prior quarter.
Provision for Credit Losses
For the quarter ended March 31, 2024, the Bank recorded a
provision for credit losses of $301 thousand, compared to a
provision for credit losses of $123 thousand for the prior quarter.
The provision for credit losses in the current quarter was
comprised of a $456 thousand increase in the allowance for credit
losses ("ACL") for loans, partially offset by a $155 thousand
release in the reserve for off-balance sheet credit exposures. The
provision for credit losses associated with the ACL was due
primarily to commercial loan growth and disbursements on commercial
loans, along with changes in the commercial loan mix. See
additional discussion regarding changes to the loan mix in the
"Financial Condition as of March 31, 2024" section below. The
release of provision for credit losses associated with the reserves
for off-balance sheet credit exposures was due primarily to a
reduction in the balance of commercial off-balance sheet credit
exposures due to loans funding.
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:
2024
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
2,451
$
2,575
$
(124
)
(4.8
)%
Insurance commissions
735
863
(128
)
(14.8
)
Net loss from securities transactions
—
(13,345
)
13,345
100.0
Other non-interest income
1,457
1,013
444
43.8
Total non-interest income
$
4,643
$
(8,894
)
$
13,537
152.2
The net loss from securities transactions in the prior quarter
relates to the securities strategy. There was no similar
transaction in the current quarter. 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
in the current quarter while none were received in the prior
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:
2024
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
12,887
$
12,992
$
(105
)
(0.8
)%
Information technology and related
expense
4,954
5,369
(415
)
(7.7
)
Occupancy, net
3,481
3,372
109
3.2
Federal insurance premium
1,727
1,860
(133
)
(7.2
)
Regulatory and outside services
1,380
1,643
(263
)
(16.0
)
Advertising and promotional
1,271
988
283
28.6
Deposit and loan transaction costs
867
542
325
60.0
Office supplies and related expense
419
361
58
16.1
Other non-interest expense
1,459
1,381
78
5.6
Total non-interest expense
$
28,445
$
28,508
$
(63
)
(0.2
)
The decrease in salaries and employee benefits was due mainly to
a decrease in loan commissions compared to the prior quarter. The
decrease in information technology and related expense was due
primarily to lower software licensing expenses and professional
services, mainly related to costs associated with the digital
transformation. The decrease in regulatory and outside services was
due primarily to the timing of external audit expenses. The
increase in advertising and promotional expense was due mainly to
the timing of campaigns. The increase in deposit and loan
transaction costs was due primarily to expenses related to calendar
year-end processing.
The Company's efficiency ratio was 61.89% for the current
quarter compared to 92.86% for the prior quarter. Excluding the net
losses from the securities strategy, the efficiency ratio would
have been 64.73% for the prior quarter. The improvement in the
efficiency ratio, excluding the securities strategy, was due
primarily to higher 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 generally
indicates that it is costing the financial institution more money
to generate revenue, relative to its net interest income 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:
2024
2023
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
(benefit)
$
17,217
$
2,068
$
15,149
732.5
%
Income tax expense (benefit)
3,455
(475
)
3,930
(827.4
)
Net income
$
13,762
$
2,543
$
11,219
441.2
Effective Tax Rate
20.1
%
(23.0
)%
The income tax benefit in the prior quarter was a result of
treating the $13.3 million net loss associated with the securities
strategy as a discrete tax benefit in the prior quarter. The tax
benefit related to the net loss was $3.3 million. Without the tax
benefit, income tax expense would have been $2.8 million and the
effective tax rate, without the $13.3 million net pre-tax loss,
would have been 18.0% for the prior quarter.
The increase in the effective tax rate from 18.0% for the prior
quarter, without the tax benefit related to the securities
strategy, to 20.1% for the current quarter was due primarily to
recording income taxes on the current quarter distribution of
earnings from the Bank to the Company. The tax on the earnings
distribution was due to the recapture of a portion of the Bank’s
bad debt reserves which were established prior to September 30,
1988, and are included in the Bank’s retained earnings (“pre-1988
bad debt reserves”). The federal tax regulations prior to September
30, 1988 allowed banks to deduct, up to specified formula limits, a
certain percentage of income as bad debts, for which the Bank was
not required to establish a deferred tax liability. Rather, the
difference was recorded in the Bank’s retained earnings. The
pre-1988 bad debt reserves in retained earnings are subject to
recapture by the Bank on the occurrence of certain distributions in
excess of earnings and profits accumulated in tax years beginning
after December 31, 1951 (“accumulated earnings and profits”). For
federal tax return purposes, the net loss on the securities
strategy in fiscal years 2023 and 2024 will be reported on the
Company’s September 30, 2024 federal tax return, as the actual
sales of the securities occurred during fiscal year 2024.
Therefore, it is anticipated that a taxable net loss will be
reported on the Company’s September 30, 2024 federal tax return
which will result in the Bank and Company having a negative current
and accumulated earnings and profit position. This requires the
Bank to draw upon the pre-1988 bad debt reserves for any
distributions from the Bank to the Company during the current
fiscal year. The Bank is required to pay taxes on the reductions to
the pre-1988 bad debt reserves equal to the current corporate tax
rate at the time of the distribution of the amount of Bank earnings
paid to the Company. Management and the board of directors are
evaluating alternatives regarding additional fiscal year 2024
earnings distributions from the Bank to the Company as well as the
implications of negative current and accumulated earnings and
profit. At March 31, 2024, Capitol Federal Financial, Inc., at the
holding company level, had $46.3 million in cash on deposit at the
Bank.
Comparison of Operating Results for the Six Months Ended
March 31, 2024 and 2023
The Company recognized net income of $16.3 million, or $0.12 per
share, for the current year period, compared to net income of $30.4
million, or $0.23 per share, for the prior year period. The lower
net income for the current year period was primarily a result of
the $13.3 million net loss on the securities sales associated with
the securities strategy, along with lower net interest income,
partially offset by lower provision for credit losses and income
tax expense in the current year period. Excluding the effects of
the securities strategy, earnings per share would have been $0.20
for the current year period. See "Securities Strategy to Improve
Earnings" section below for additional discussion.
Periodically at management's discretion, we have utilized a
strategy to increase earnings which entails entering into
short-term FHLB borrowings and depositing the proceeds from these
FHLB borrowings, net of the purchases of FHLB stock made to meet
FHLB stock holding requirements, at the Federal Reserve Bank of
Kansas City ("FRB") (the "leverage strategy"). See additional
information regarding the leverage strategy in the "Financial
Condition as of March 31, 2024 - Leverage Strategy" section below.
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 net interest margin increased 17 basis points, from 1.59%
for the prior year period to 1.76% for the current year period, due
primarily to the leverage strategy being in place during the prior
year period but not in place during the current year period. The
leverage strategy negatively impacted the net interest margin for
the prior year period by 20 basis points. The absence of the
leverage strategy during the current year period was partially
offset by the negative effect on the net interest margin of an
increase in the costs of deposits and borrowings, which exceeded
the increase in yields on securities and loans.
Securities Strategy to Improve Earnings
In October 2023, the Company initiated a securities strategy by
selling $1.30 billion of securities, representing 94% of its
securities portfolio. Since the Company did not have the intent to
hold the $1.30 billion of securities to maturity at September 30,
2023, the Company recognized an impairment loss on those
securities, $192.6 million of which was reflected in the Company's
financial statements for the quarter ended September 30, 2023. The
securities strategy was designed to allow the Company to improve
its earnings stream going forward, beginning in the current fiscal
year, by redeploying most of the proceeds into current market rate
securities and to provide liquidity to deleverage the balance sheet
utilizing the remaining proceeds. During the quarter ended December
31, 2023 the Company completed the sale of securities and
recognized $13.3 million ($10.0 million net of tax), or $0.08 per
share, of additional loss related to the sale of the securities.
See additional information regarding the impact of the securities
strategy on our financial measurements in "Average Balance Sheets"
below. The $1.30 billion of securities sold had a weighted average
yield of 1.22% and an average duration of 3.6 years. With the
proceeds from the sale of the securities, the Company purchased
$632.0 million of securities yielding 5.75%, paid down $500.0
million of borrowings with a cost of 4.70%, and held the remaining
cash at the FRB earning interest at the reserve balance rate until
such time as it can be used to fund commercial activity or other
Bank operations.
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:
2024
2023
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
152,063
$
134,138
$
17,925
13.4
%
MBS
13,653
9,559
4,094
42.8
Cash and cash equivalents
9,291
27,648
(18,357
)
(66.4
)
FHLB stock
5,114
7,765
(2,651
)
(34.1
)
Investment securities
4,860
1,776
3,084
173.6
Total interest and dividend income
$
184,981
$
180,886
$
4,095
2.3
The increase in interest income on loans receivable was due to
an increase in the weighted average yield and the average balance
of the loan portfolio. The increase in the weighted average yield
was due primarily to originations and purchases at higher market
yields between periods, 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 the average balance
was mainly in the commercial real estate loan portfolio. The
increase in interest income on MBS and investment securities was
due to an increase in the weighted average yield, partially offset
by a decrease in the average balance, both a result of the
securities strategy. The decrease in interest income on cash and
cash equivalents and the decrease in dividend income on FHLB stock
were due mainly to the leverage strategy being utilized during the
prior year period and not being utilized during the current year
period. Interest income on cash and cash equivalents related to the
leverage strategy decreased $27.2 million and dividend income on
FHLB stock related to the leverage strategy decreased $2.8 million
compared to the prior year period. Interest income on cash and cash
equivalents not associated with the leverage strategy increased
$8.8 million related to an increase in the average balance of cash
and cash equivalents as a result of the securities strategy.
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:
2024
2023
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Deposits
$
65,858
$
28,044
$
37,814
134.8
%
Borrowings
38,210
65,055
(26,845
)
(41.3
)
Total interest expense
$
104,068
$
93,099
$
10,969
11.8
The increase in interest expense on deposits was due almost
entirely to an increase in the weighted average rate paid on the
deposit portfolio, specifically retail certificates of deposit and
money market accounts. Interest expense on borrowings associated
with the leverage strategy decreased $28.5 million compared to the
prior year period due to the leverage strategy being in place
during the prior year period and not being in place during the
current year period. Interest expense on borrowings not associated
with the leverage strategy increased $1.7 million due to new
borrowings added between periods, at market interest rates higher
than the overall portfolio rate, to replace maturing advances and
to fund operational needs.
Provision for Credit Losses
The Bank recorded a provision for credit losses of $424 thousand
during the current year period, compared to a provision for credit
losses of $4.6 million for the prior year period. The provision for
credit losses in the current year period was comprised of an $856
thousand increase in the ACL for loans, partially offset by a $432
thousand release in the reserve for off-balance sheet credit
exposures. The provision for credit losses associated with the ACL
was due primarily to commercial loan growth. The release of
provision for credit losses associated with the reserve for
off-balance sheet credit exposures was due primarily to a reduction
in the balance of commercial off-balance sheet credit exposures due
to construction loans funding and converting to permanent
loans.
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:
2024
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
5,026
$
6,583
$
(1,557
)
(23.7
)%
Insurance commissions
1,598
1,672
(74
)
(4.4
)
Net loss from securities transactions
(13,345
)
—
(13,345
)
N/A
Other non-interest income
2,470
2,180
290
13.3
Total non-interest income
$
(4,251
)
$
10,435
$
(14,686
)
(140.7
)
The decrease in deposit service fees was due primarily to a
change in the fee structure of certain deposit products after the
digital transformation. The net loss from securities transactions
relates to the securities strategy, with no similar transaction in
the prior year period. 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 in the current
year period while none were received in the prior 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:
2024
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
25,879
$
26,487
$
(608
)
(2.3
)%
Information technology and related
expense
10,323
10,859
(536
)
(4.9
)
Occupancy, net
6,853
7,042
(189
)
(2.7
)
Federal insurance premium
3,587
2,058
1,529
74.3
Regulatory and outside services
3,023
2,838
185
6.5
Advertising and promotional
2,259
2,166
93
4.3
Deposit and loan transaction costs
1,409
1,301
108
8.3
Office supplies and related expense
780
1,264
(484
)
(38.3
)
Other non-interest expense
2,840
2,389
451
18.9
Total non-interest expense
$
56,953
$
56,404
$
549
1.0
The decrease in salaries and employee benefits was a result of a
decrease in full-time equivalent employees between the two periods
as a result of management's decision to not backfill non-critical
employees through natural attrition, along with a reduction in loan
commissions. During fiscal year 2023, the Bank moved to a new
branch staffing model comprised of decision makers and well-rounded
employees that is intended to add an elevated experience for
customers who choose in-person banking activities. The decrease in
information technology and related expenses was due mainly to lower
third-party project management expenses related to the Bank's
digital transformation project during the prior year period,
partially offset by higher software licensing expenses resulting
from new agreements associated with the digital transformation
project. The increase in the federal insurance premium was due to
an increase in the Federal Deposit Insurance Corporation ("FDIC")
assessment rate as a result of the way the rate is adjusted for the
occurrence of a net loss during the quarter ending September 30,
2023, along with an FDIC rule that increased the FDIC initial base
deposit assessment rate approximately two basis points on January
1, 2023. The decrease in office supplies and related expense was
due primarily to the timing of office supply purchases and lower
postage expense in the current year period, along with the
write-off of the Bank's remaining inventory of unissued
non-contactless debit cards during the prior year period which had
become obsolete. The increase in other non-interest expense was due
mainly to an increase in fraud losses and other miscellaneous
expenses.
The Company's efficiency ratio was 74.29% for the current year
period compared to 57.43% for the prior year period. Excluding the
net losses from the securities strategy, the efficiency ratio would
have been 63.28% for the current year period. The change in the
efficiency ratio, excluding the securities strategy, was due
primarily to lower net interest income in the current year period
compared to the prior 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 Six Months
Ended
March 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
$
19,285
$
37,267
$
(17,982
)
(48.3
)%
Income tax expense
2,980
6,838
(3,858
)
(56.4
)
Net income
$
16,305
$
30,429
$
(14,124
)
(46.4
)
Effective Tax Rate
15.5
%
18.3
%
The lower income tax expense in the current year period was a
result of treating the $13.3 million net loss on the securities
sale associated with the securities strategy as a discrete tax
benefit. The tax benefit related to the net loss was $3.3 million.
Without the tax benefit, income tax expense would have been $6.2
million and the effective tax rate, would have been 19.1% for the
current year period.
Financial Condition as of March 31, 2024
The following table summarizes the Company's financial condition
at the dates indicated.
Annualized
Annualized
March 31,
December 31,
Percent
September 30,
Percent
2024
2023
Change
2023
Change
(Dollars and shares in
thousands)
Total assets
$
9,721,286
$
9,576,064
6.1
%
$
10,177,461
(9.0
)%
Available-for-sale ("AFS") securities
842,950
740,462
55.4
1,384,482
(78.2
)
Loans receivable, net
7,877,569
7,947,510
(3.5
)
7,970,949
(2.3
)
Deposits
6,141,711
6,021,595
8.0
6,051,220
3.0
Borrowings
2,351,022
2,373,064
(3.7
)
2,879,125
(36.7
)
Stockholders' equity
1,024,903
1,034,121
(3.6
)
1,044,054
(3.7
)
Equity to total assets at end of
period
10.5
%
10.8
%
10.3
%
Average number of basic shares
outstanding
130,536
132,353
(5.5
)
133,225
(4.0
)
Average number of diluted shares
outstanding
130,536
132,353
(5.5
)
133,225
(4.0
)
During the current quarter, total assets increased $145.2
million, to $9.72 billion at March 31, 2024, due primarily to
increases in cash and securities, partially offset by a decrease in
the loan portfolio. The loan portfolio mix continued to shift from
one- to four-family loans to commercial loans during the current
quarter with an $88.0 million decrease in one- to four-family
loans, including a $46.4 million decrease in one- to four-family
correspondent loans and a $36.4 million decrease in one- to
four-family originated loans, partially offset by a $20.3 million
increase in commercial loans. As a result of rising interest rates
and lack of housing inventory, there has been a slowdown in the
housing market which has impacted the demand for residential loans
and has directly impacted the Bank's one- to four-family loan
portfolio. Origination and refinance activity has slowed
considerably and there has been a reduction in one- to four-family
loan balances through scheduled repayments and loan payoffs. While
the Bank's loan activity levels are down, partially due to the
interest rate environment and seasonality, management expects the
Bank's one- to four-family loan portfolio will continue to decrease
as cash flows from the one- to four-family portfolio will be used
to fund commercial loan growth. During the current quarter, several
commercial loans were prepaid which contributed to the slower
growth in the balance of commercial loans. Management anticipates
the balance of commercial loans will trend upward in future
periods.
Total liabilities increased $154.4 million during the current
quarter due primarily to a $120.1 million increase in deposits. The
increase in deposits was primarily in retail certificates of
deposit, all in the 14 months or shorter term category, partially
offset by a decrease in retail money market accounts. During the
current quarter, the Bank held a Presidents' Day certificate of
deposit campaign which resulted in some customers electing to move
funds from money market accounts at the Bank into the certificate
of deposit portfolio. The Presidents' Day certificate of deposit
campaign resulted in $147.0 million in new certificates of deposit
at a weighted average rate of 5.27% and a weighted average term of
7 months. Total borrowings decreased $22.0 million during the
current quarter as not all maturing FHLB borrowings were replaced.
Management estimates that the Bank had $2.87 billion in additional
liquidity available at March 31, 2024 based on the Bank's blanket
collateral agreement with FHLB and unencumbered securities.
Total assets decreased $456.2 million from September 30, 2023
due primarily to the securities strategy. The loan portfolio
decreased $93.4 million due mainly to a $154.4 million decrease in
one- to four-family loans, partially offset by a $62.5 million
increase in commercial loans during the current year period.
Total liabilities decreased $437.0 million from September 30,
2023 due primarily to a decrease in borrowings as some of the funds
from the securities strategy were used to repay $500.0 million of
BTFP borrowings. Total deposits increased $90.5 million from
September 30, 2023 primarily in retail certificates of deposit, all
in the 14 months or shorter term category, partially offset by a
decrease in retail money market accounts.
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, 2024
March 31, 2024
Amount
Rate
Amount
Rate
(Dollars in thousands)
Loan originations, purchases, and
participations
One- to four-family and consumer:
Originated
$
53,752
6.86
%
$
134,818
7.01
%
Purchased
—
—
3,497
5.91
Commercial:
Originated
32,567
7.60
52,903
7.20
Participations/Purchased
24,447
8.09
24,447
8.09
$
110,766
7.35
$
215,665
7.16
Deposit Activity
Non-maturity deposits
$
(47,347
)
$
(85,607
)
Retail/Commercial certificates of
deposit
162,294
198,132
Borrowing activity
Maturities and repayments
(72,418
)
2.84
(229,836
)
3.26
New borrowings
50,000
4.17
200,000
4.54
Leverage Strategy
Periodically, the Bank has utilized a leverage strategy to
increase earnings which entails entering into short-term FHLB
borrowings and depositing the proceeds from these FHLB borrowings,
net of the purchases of FHLB stock made to meet FHLB stock holding
requirements, at the FRB. The leverage strategy is not a core
operating business for the Company. It provides the Company the
ability to utilize excess capital to generate earnings.
Additionally, it is a strategy that can be exited quickly without
additional costs. The profitability of the leverage strategy is
attributable to net income derived from the dividends received on
the increased FHLB stock holdings, plus the net interest rate
spread between the yield on the leverage strategy cash at the FRB
and the rate paid on the leverage strategy FHLB borrowings, less
applicable FDIC premiums and estimated income tax expense. Leverage
strategy borrowings are repaid prior to each quarter end so there
is no impact to quarter end capital ratios. The leverage strategy
was not in place during the current year period due to the strategy
being unprofitable, but it was in place at points during the prior
year period. During the prior year period, the average balance of
cash associated with the leverage strategy was $1.37 billion and
interest earned on that cash was $27.2 million, the average balance
of FHLB stock associated with the leverage strategy was $64.4
million and dividends earned on that stock were $2.8 million, and
the average balance of FHLB borrowings associated with the leverage
strategy was $1.43 billion and the related interest expense was
$28.6 million. Additionally, the Company recognized $286 thousand
of FDIC premiums and $197 thousand of income tax expenses during
the prior year period related to the leverage strategy. 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 leverage
strategy.
Stockholders' Equity
Stockholders' equity totaled $1.02 billion at March 31, 2024, a
decrease of $19.2 million from September 30, 2023. The decrease in
stockholders' equity during the current year period was due to a
$19.6 million decrease in additional paid-in capital, due mainly to
share repurchases. During the current year period, the Company paid
regular quarterly cash dividends totaling $22.4 million, or $0.17
per share. On April 23, 2024, the Company announced a regular
quarterly cash dividend of $0.085 per share, or approximately $11.0
million, payable on May 17, 2024 to stockholders of record as of
the close of business on May 3, 2024.
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, 2024, the Bank's capital ratios exceeded
the well-capitalized requirements and the Bank also exceeded all
internal policy thresholds for sensitivity to changes in interest
rates. As of March 31, 2024, the Bank's community bank leverage
ratio was 9.1%.
At March 31, 2024, Capitol Federal Financial, Inc., at the
holding company level, had $46.3 million in cash on deposit at the
Bank. For fiscal year 2024, it is the intention of the Board of
Directors to pay out the regular quarterly cash dividend of $0.085
per share, totaling $0.34 per share for the year. To the extent
that earnings in fiscal year 2024 exceed $0.34 per share, the Board
of Directors will consider the payment of additional dividends.
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.
During the current year period, the Company repurchased
3,280,110 shares of common stock at an average price of $5.87 per
share. There remains $2.0 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's existing approval
for the Company to repurchase shares expires in August 2024. In
February 2024, the Company notified the FRB of its intent to
authorize the repurchase of up to $75 million in additional common
stock over a period of time, depending upon market conditions, cash
balances at the Company level, and after the completion of the
Company's existing share repurchase program. This plan has no
expiration date; however, the FRB's new approval for the Company to
repurchase shares expires in February 2025.
The following table presents a reconciliation of total to net
shares outstanding as of March 31, 2024.
Total shares outstanding
132,685,065
Less unallocated Employee Stock Ownership
Plan ("ESOP") shares and unvested restricted stock
(2,824,976
)
Net shares outstanding
129,860,089
Capitol Federal Financial, Inc. is the holding company for the
Bank. The Bank has 49 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)
March 31,
December 31,
September 30,
2024
2023
2023
ASSETS:
Cash and cash equivalents (includes
interest-earning deposits of $419,332, $287,748 and $213,830)
$
443,513
$
320,357
$
245,605
AFS securities, at estimated fair value
(amortized cost of $831,337, $721,612 and $1,385,992)
842,950
740,462
1,384,482
Loans receivable, net (ACL of $24,634,
$24,178 and $23,759)
7,877,569
7,947,510
7,970,949
FHLB stock, at cost
109,070
110,166
110,714
Premises and equipment, net
91,105
91,475
91,531
Income taxes receivable, net
2,644
3,939
8,531
Deferred income tax assets, net
35,390
34,076
29,605
Other assets
319,045
328,079
336,044
TOTAL ASSETS
$
9,721,286
$
9,576,064
$
10,177,461
LIABILITIES:
Deposits
$
6,141,711
$
6,021,595
$
6,051,220
Borrowings
2,351,022
2,373,064
2,879,125
Advances by borrowers
52,698
24,839
62,993
Other liabilities
150,952
122,445
140,069
Total liabilities
8,696,383
8,541,943
9,133,407
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, 132,685,065, 133,908,375 and
135,936,375 shares issued and outstanding as of March 31, 2024,
December 31, 2023, and September 30, 2023, respectively
1,327
1,339
1,359
Additional paid-in capital
1,147,029
1,154,655
1,166,643
Unearned compensation, ESOP
(27,258
)
(27,671
)
(28,083
)
Retained earnings
(110,722
)
(113,357
)
(104,565
)
Accumulated other comprehensive income,
net of tax
14,527
19,155
8,700
Total stockholders' equity
1,024,903
1,034,121
1,044,054
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
9,721,286
$
9,576,064
$
10,177,461
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,
2024
2023
2024
2023
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
76,122
$
75,941
$
152,063
$
134,138
MBS
7,794
5,859
13,653
9,559
Cash and cash equivalents
4,513
4,778
9,291
27,648
FHLB stock
2,528
2,586
5,114
7,765
Investment securities
2,332
2,528
4,860
1,776
Total interest and dividend income
93,289
91,692
184,981
180,886
INTEREST EXPENSE:
Deposits
33,415
32,443
65,858
28,044
Borrowings
18,554
19,656
38,210
65,055
Total interest expense
51,969
52,099
104,068
93,099
NET INTEREST INCOME
41,320
39,593
80,913
87,787
PROVISION FOR CREDIT LOSSES
301
123
424
4,551
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
41,019
39,470
80,489
83,236
NON-INTEREST INCOME:
Deposit service fees
2,451
2,575
5,026
6,583
Insurance commissions
735
863
1,598
1,672
Net loss from securities transactions
—
(13,345
)
(13,345
)
—
Other non-interest income
1,457
1,013
2,470
2,180
Total non-interest income
4,643
(8,894
)
(4,251
)
10,435
NON-INTEREST EXPENSE:
Salaries and employee benefits
12,887
12,992
25,879
26,487
Information technology and related
expense
4,954
5,369
10,323
10,859
Occupancy, net
3,481
3,372
6,853
7,042
Federal insurance premium
1,727
1,860
3,587
2,058
Regulatory and outside services
1,380
1,643
3,023
2,838
Advertising and promotional
1,271
988
2,259
2,166
Deposit and loan transaction costs
867
542
1,409
1,301
Office supplies and related expense
419
361
780
1,264
Other non-interest expense
1,459
1,381
2,840
2,389
Total non-interest expense
28,445
28,508
56,953
56,404
INCOME BEFORE INCOME TAX EXPENSE
(BENEFIT)
17,217
2,068
19,285
37,267
INCOME TAX EXPENSE (BENEFIT)
3,455
(475
)
2,980
6,838
NET INCOME
$
13,762
$
2,543
$
16,305
$
30,429
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
income (annualized for the three-month periods) by the average
balance of the related assets, and weighted average rates are
derived by dividing expense (annualized for the three-month
periods) 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, 2024
December 31, 2023
Average
Interest
Average
Interest
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Amount
Paid
Rate
Amount
Paid
Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
One- to four-family loans:
Originated
$
3,987,323
$
35,151
3.53
%
$
4,025,539
$
35,060
3.48
%
Correspondent purchased
2,369,131
19,274
3.25
2,413,900
19,660
3.26
Bulk purchased
133,832
735
2.20
136,609
694
2.03
Total one- to four-family loans
6,490,286
55,160
3.40
6,576,048
55,414
3.37
Commercial loans
1,351,574
18,708
5.48
1,306,917
18,267
5.47
Consumer loans
106,267
2,254
8.53
105,958
2,260
8.46
Total loans receivable(1)
7,948,127
76,122
3.82
7,988,923
75,941
3.78
MBS(2)
538,882
7,794
5.78
526,733
5,859
4.45
Investment securities(2)(3)
175,832
2,332
5.31
266,873
2,528
3.79
FHLB stock(4)
107,562
2,528
9.45
108,648
2,586
9.44
Cash and cash equivalents(5)
330,751
4,513
5.40
346,220
4,778
5.40
Total interest-earning assets
9,101,154
93,289
4.09
9,237,397
91,692
3.95
Other non-interest-earning assets
467,949
466,084
Total assets
$
9,569,103
$
9,703,481
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
878,243
438
0.20
$
886,530
445
0.20
Savings
471,239
224
0.19
472,819
138
0.12
Money market
1,335,269
5,706
1.72
1,364,565
6,737
1.96
Retail certificates
2,623,613
25,297
3.88
2,555,375
23,199
3.60
Commercial certificates
51,304
510
4.00
49,558
463
3.70
Wholesale certificates
112,077
1,240
4.45
130,857
1,461
4.43
Total deposits
5,471,745
33,415
2.46
5,459,704
32,443
2.36
Borrowings(6)
2,360,776
18,554
3.15
2,467,410
19,656
3.15
Total interest-bearing liabilities
7,832,521
51,969
2.67
7,927,114
52,099
2.61
Non-interest-bearing deposits
528,278
537,144
Other non-interest-bearing liabilities
172,042
202,743
Stockholders' equity
1,036,262
1,036,480
Total liabilities and stockholders'
equity
$
9,569,103
$
9,703,481
Net interest income(7)
$
41,320
$
39,593
Net interest-earning assets
$
1,268,633
$
1,310,283
Net interest margin(8)
1.82
1.71
Ratio of interest-earning assets to
interest-bearing liabilities
1.16x
1.17x
Selected performance ratios:
Return on average assets
(annualized)(9)(14)
0.58
%
0.10
%
Return on average equity
(annualized)(10)(14)
5.31
0.98
Average equity to average assets
10.83
10.68
Operating expense ratio
(annualized)(11)
1.19
1.18
Efficiency ratio(12)(14)
61.89
92.86
Pre-tax yield on leverage strategy(13)
—
—
For the Six Months
Ended
March 31, 2024
March 31, 2023
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
$
4,006,536
$
70,211
3.50
%
$
4,050,149
$
67,024
3.31
%
Correspondent purchased
2,391,638
38,934
3.26
2,383,295
36,642
3.07
Bulk purchased
135,228
1,429
2.11
145,779
847
1.16
Total one- to four-family loans
6,533,402
110,574
3.38
6,579,223
104,513
3.18
Commercial loans
1,329,123
36,974
5.47
1,085,870
25,917
4.72
Consumer loans
106,112
4,515
8.51
102,705
3,708
7.24
Total loans receivable(1)
7,968,637
152,063
3.80
7,767,798
134,138
3.45
MBS(2)
532,774
13,653
5.13
1,197,462
9,559
1.60
Investment securities(2)(3)
221,601
4,860
4.39
525,047
1,776
0.68
FHLB stock(4)
108,108
5,114
9.46
182,737
7,765
8.52
Cash and cash equivalents(5)
338,528
9,291
5.40
1,389,121
27,648
3.94
Total interest-earning assets
9,169,648
184,981
4.02
11,062,165
180,886
3.26
Other non-interest-earning assets
467,011
255,882
Total assets
$
9,636,659
$
11,318,047
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
882,409
883
0.20
$
998,604
657
0.13
Savings
472,034
362
0.15
543,630
201
0.07
Money market
1,349,997
12,443
1.84
1,690,893
6,218
0.74
Retail certificates
2,589,307
48,496
3.75
2,119,905
18,882
1.79
Commercial certificates
50,426
973
3.86
36,413
301
1.66
Wholesale certificates
121,518
2,701
4.45
112,272
1,785
3.19
Total deposits
5,465,691
65,858
2.41
5,501,717
28,044
1.02
Borrowings(6)
2,414,384
38,210
3.16
3,983,434
65,055
3.25
Total interest-bearing liabilities
7,880,075
104,068
2.64
9,485,151
93,099
1.96
Non-interest-bearing deposits
532,735
575,518
Other non-interest-bearing liabilities
187,477
182,083
Stockholders' equity
1,036,372
1,075,295
Total liabilities and stockholders'
equity
$
9,636,659
$
11,318,047
Net interest income(7)
$
80,913
$
87,787
Net interest-earning assets
$
1,289,573
$
1,577,014
Net interest margin(8)
1.76
1.59
Ratio of interest-earning assets to
interest-bearing liabilities
1.16x
1.17x
Selected performance ratios:
Return on average assets
(annualized)(9)(14)
0.34
%
0.54
%
Return on average equity
(annualized)(10)(14)
3.15
5.66
Average equity to average assets
10.75
9.50
Operating expense ratio
(annualized)(11)
1.18
1.00
Efficiency ratio(12)(14)
74.29
57.43
Pre-tax yield on leverage strategy(13)
—
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)
There were no nontaxable
securities included in the average balance of investment securities
for the quarter ended March 31, 2024. The average balance of
investment securities includes an average balance of nontaxable
securities of $201 thousand for the quarter ended December 31,
2023, and $101 thousand and $1.1 million for the six-month periods
ended March 31, 2024 and March 31, 2023, respectively.
(4)
There was no FHLB stock related
to the leverage strategy for the quarter and six-month period ended
March 31, 2024 and the quarter ended December 31, 2023. Included in
this line, for the six-month period ended March 31, 2023, is FHLB
stock related to the leverage strategy with an average outstanding
balance of $64.4 million and dividend income of $2.8 million, at a
weighted average yield of 8.58%, and FHLB stock not related to the
leverage strategy with an average outstanding balance of $118.4
million, and dividend income of $5.0 million, at a weighted average
yield of 8.49%.
(5)
There was no cash and cash
equivalents related to the leverage strategy during the quarter and
six-month period ended March 31, 2024 and the quarter ended
December 31, 2023. The average balance of cash and cash equivalents
includes an average balance of cash related to the leverage
strategy of $1.37 billion and interest income of $27.2 million, at
a weighted average yield of 3.93% during the six-month period ended
March 31, 2023.
(6)
There were no borrowings related
to the leverage strategy during the quarter and six-month period
ended March 31, 2024 and the quarter ended December 31, 2023.
Included in this line, for the six-month period ended March 31,
2023 are FHLB borrowings related to the leverage strategy with an
average outstanding balance of $1.43 billion and interest paid of
$28.6 million, at a weighted average rate of 3.95%, and borrowings
not related to the leverage strategy with an average outstanding
balance of $2.55 billion, and interest paid of $36.5 million, at a
weighted average rate of 2.86%. 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. Management believes the net interest
margin is important to investors as it is profitability measure for
financial institutions.
(9)
Return on average assets
represents annualized net income as a percentage of total average
assets. Management believes that the return on average assets is
important to investors as it shows the Company's profitability in
relation to the Company's average assets.
(10)
Return on average equity
represents annualized net income as a percentage of total average
equity. Management believes that the return on average equity is
important to investors as it shows the Company's profitability in
relation to the Company's average equity.
(11)
The operating expense ratio
represents annualized non-interest expense as a percentage of
average assets. Management believes the operating expense ratio is
important to investors as it provides insight into how efficiently
the Company is managing its expenses in relation to its assets. It
is a financial measurement ratio that does not take into
consideration changes in interest rates.
(12)
The efficiency ratio represents
non-interest expense as a percentage of the sum of net interest
income (pre-provision for credit losses) and non-interest income.
Management believes the efficiency ratio is important to investors
as it is a measure of a financial institution's 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 generally indicates that it is costing the financial
institution more money to generate revenue, related to its net
interest margin and non-interest income.
(13)
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. Management believes this ratio is
important to investors as it provides the yield the Company is
earning on the leverage strategy transaction.
(14)
The table below provides a
reconciliation between performance measures presented in accordance
with accounting standards generally accepted in the United States
of America ("GAAP") and the same performance measures excluding the
impact of the net loss on the securities transactions associated
with the securities strategy, which are not presented in accordance
with GAAP. The securities strategy was non-recurring in nature;
therefore management believes it is meaningful to investors to
present certain financial measures excluding the securities
strategy to better evaluate the Company's core operations. See
information regarding the securities strategy in "Comparison of
Operating Results for the Six Months Ended March 31, 2024 and March
31, 2023 - Securities Strategy."
For the Three Months
Ended
For the Six Months
Ended
December 31, 2023
March 31, 2024
Excluding
Excluding
Securities
Securities
Actual
Securities
Strategy
Actual
Securities
Strategy
(GAAP)
Strategy
(Non-GAAP)
(GAAP)
Strategy
(Non-GAAP)
Return on average assets (annualized)
0.10
%
(0.42
)%
0.52
%
0.34
%
(0.21
)%
0.55
%
Return on average equity (annualized)
0.98
(3.89
)
4.87
3.15
(1.94
)
5.09
Efficiency Ratio
92.86
28.13
64.73
74.29
11.01
63.28
Earnings per share(15)
$
0.02
$
(0.08
)
$
0.10
$
0.12
$
(0.08
)
$
0.20
(15)
Earnings per share is calculated
as net income divided by average shares outstanding. Management
believes earnings per share is an important measure to investors as
it shows the Company's earnings in relation to the Company's
outstanding shares.
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.
March 31, 2024
December 31, 2023
September 30, 2023
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
One- to four-family:
Originated
$
3,950,097
3.47
%
50.1
%
$
3,986,479
3.44
%
50.1
%
$
3,978,837
3.39
%
49.9
%
Correspondent purchased
2,314,448
3.46
29.3
2,360,843
3.45
29.7
2,405,911
3.44
30.1
Bulk purchased
132,284
2.28
1.7
134,504
2.10
1.7
137,193
1.85
1.7
Construction
40,628
4.84
0.5
43,631
4.47
0.5
69,974
3.68
0.9
Total
6,437,457
3.45
81.6
6,525,457
3.42
82.0
6,591,915
3.38
82.6
Commercial:
Commercial real estate
1,035,634
5.32
13.1
1,019,431
5.27
12.8
995,788
5.29
12.5
Commercial and industrial
112,123
6.53
1.4
113,686
6.46
1.4
112,953
6.36
1.4
Construction
202,201
5.54
2.6
196,493
5.41
2.5
178,746
5.01
2.2
Total
1,349,958
5.46
17.1
1,329,610
5.39
16.7
1,287,487
5.35
16.1
Consumer loans:
Home equity
96,114
8.86
1.2
96,952
8.84
1.2
95,723
8.83
1.2
Other
9,203
5.50
0.1
9,670
5.32
0.1
9,256
5.20
0.1
Total
105,317
8.57
1.3
106,622
8.52
1.3
104,979
8.51
1.3
Total loans receivable
7,892,732
3.86
100.0
%
7,961,689
3.82
100.0
%
7,984,381
3.76
100.0
%
Less:
ACL
24,634
24,178
23,759
Deferred loan fees/discounts
30,007
30,653
31,335
Premiums/deferred costs
(39,478
)
(40,652
)
(41,662
)
Total loans receivable, net
$
7,877,569
$
7,947,510
$
7,970,949
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, 2024
March 31, 2024
Amount
Rate
Amount
Rate
(Dollars in thousands)
Beginning balance
$
7,961,689
3.82
%
$
7,984,381
3.76
%
Originated and refinanced
86,319
7.14
187,721
7.06
Purchased and participations
24,447
8.09
27,944
7.82
Change in undisbursed loan funds
34,642
117,888
Repayments
(214,365
)
(424,976
)
Principal (charge-offs)/recoveries,
net
—
(1
)
Other
—
(225
)
Ending balance
$
7,892,732
3.86
$
7,892,732
3.86
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, 2024. Credit scores were updated in
September 2023 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
$
3,950,097
61.4
%
3.47
%
771
59
%
$
166
Correspondent purchased
2,314,448
35.9
3.46
767
64
410
Bulk purchased
132,284
2.1
2.28
771
55
284
Construction
40,628
0.6
4.84
770
46
415
6,437,457
100.0
3.45
770
61
214
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.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2024
March 31, 2024
Credit
Credit
Amount
Rate
LTV
Score
Amount
Rate
LTV
Score
(Dollars in thousands)
Originated
$
41,844
6.21
%
73
%
772
$
111,348
6.60
%
74
%
768
Correspondent purchased
—
—
—
—
3,497
5.91
70
765
$
41,844
6.21
73
772
$
114,845
6.58
74
768
As of March 31, 2024 the Bank had one- to four-family loan
origination and refinance commitments of $54.5 million at a
weighted average rate of 6.39%. There were no one- to four-family
correspondent loan purchase commitments at March 31, 2024.
Commercial Loans: During the six months ended March 31, 2024,
the Bank originated $52.9 million of commercial loans and entered
into commercial loan participations totaling $24.4 million. The
Bank also processed commercial loan disbursements, excluding lines
of credit, of approximately $134.9 million at a weighted average
rate of 6.15%.
As of March 31, 2024, December 31, 2023, and September 30, 2023,
the Bank's commercial and industrial gross loan amounts (unpaid
principal plus undisbursed amounts) totaled $164.8 million, $157.2
million, and $158.5 million, respectively, and commitments totaled
$2.9 million at March 31, 2024.
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, 2024, the Bank had six
commercial real estate and commercial construction loan commitments
totaling $85.0 million, at a weighted average rate of 7.89%.
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 March 31,
2024, management anticipates funding approximately $85 million
during the June 2024 quarter, $76 million during the September 2024
quarter, $70 million during the December 2024 quarter, and $141
million during the March 2025 quarter or later.
March 31, 2024
December 31, 2023
Unpaid
Undisbursed
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
(Dollars in thousands)
Retail building
138
$
276,593
$
66,120
$
342,713
$
349,028
Senior housing
34
304,207
9,155
313,362
330,077
Multi-family
40
133,348
167,937
301,285
302,908
Hotel
16
217,548
27,788
245,336
231,987
Office building
79
128,686
913
129,599
129,348
One- to four-family property
353
58,943
4,718
63,661
65,583
Single use building
31
39,141
4,693
43,834
43,815
Warehouse/manufacturing
39
32,100
560
32,660
36,056
Other
66
47,269
13,722
60,991
52,193
796
$
1,237,835
$
295,606
$
1,533,441
$
1,540,995
Weighted average rate
5.36
%
6.25
%
5.53
%
5.44
%
The following table summarizes the Bank's commercial real estate
and commercial construction loans by state as of the dates
indicated.
March 31, 2024
December 31, 2023
Unpaid
Undisbursed
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
(Dollars in thousands)
Kansas
592
$
502,060
$
156,516
$
658,576
$
662,756
Missouri
151
263,319
38,650
301,969
326,593
Texas
17
288,716
55,633
344,349
347,825
Colorado
9
44,034
10,717
54,751
49,428
Nebraska
8
37,359
275
37,634
37,799
Tennessee
1
32,944
1,576
34,520
39,569
Arkansas
4
32,871
658
33,529
32,956
Other
14
36,532
31,581
68,113
44,069
796
$
1,237,835
$
295,606
$
1,533,441
$
1,540,995
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, 2024.
Count
Amount
(Dollars in thousands)
Greater than $30 million
10
$
488,649
>$15 to $30 million
18
381,168
>$10 to $15 million
14
169,975
>$5 to $10 million
32
234,841
$1 to $5 million
137
325,280
Less than $1 million
1,178
186,284
1,389
$
1,786,197
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, 2024, approximately
68% 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, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
One- to four-family:
Originated
72
$
6,803
77
$
7,746
88
$
9,078
67
$
6,377
45
$
4,116
Correspondent purchased
10
3,144
16
6,049
17
5,192
20
6,704
10
3,436
Bulk purchased
5
856
4
583
1
149
—
—
3
287
Construction
—
—
—
—
4
1,123
—
—
—
—
Commercial
11
3,354
14
3,809
5
94
6
573
5
389
Consumer
35
601
40
766
30
730
22
469
22
352
133
$
14,758
151
$
18,953
145
$
16,366
115
$
14,123
85
$
8,580
30 to 89 days delinquent loans to total
loans receivable, net
0.19
%
0.24
%
0.21
%
0.18
%
0.11
%
Non-Performing Loans and OREO
at:
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
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
23
$
2,380
29
$
3,749
24
$
2,246
16
$
1,582
15
$
1,084
Correspondent purchased
8
3,969
10
4,164
9
3,410
8
1,854
7
1,803
Bulk purchased
3
962
2
942
2
942
3
1,149
3
1,212
Commercial
11
1,203
8
1,198
12
2,183
8
1,225
7
1,152
Consumer
10
250
5
116
9
113
3
51
7
51
55
8,764
54
10,169
56
8,894
38
5,861
39
5,302
Loans 90 or more days delinquent or in
foreclosure as a percentage of total loans
0.11
%
0.13
%
0.11
%
0.07
%
0.07
%
Nonaccrual loans less than 90 Days
Delinquent:(1)
One- to four-family:
Originated
—
$
—
—
$
—
2
$
215
3
$
295
2
$
187
Correspondent purchased
—
—
—
—
1
282
—
—
—
—
Bulk purchased
—
—
—
—
—
—
1
257
1
257
Commercial
1
25
1
18
1
18
2
29
3
104
Consumer
—
—
—
—
—
—
1
37
—
—
1
25
1
18
4
515
7
618
6
548
Total nonaccrual loans
56
8,789
55
10,187
60
9,409
45
6,479
45
5,850
Nonaccrual loans as a percentage of total
loans
0.11
%
0.13
%
0.12
%
0.08
%
0.07
%
OREO:
One- to four-family:
Originated(2)
1
$
67
2
$
225
—
$
—
—
$
—
2
$
160
Correspondent purchased
—
—
1
219
1
219
—
—
—
—
1
67
3
444
1
219
—
—
2
160
Total non-performing assets
57
$
8,856
58
$
10,631
61
$
9,628
45
$
6,479
47
$
6,010
Non-performing assets as a percentage of
total assets
0.09
%
0.11
%
0.09
%
0.06
%
0.06
%
(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.
March 31, 2024
December 31, 2023
September 30, 2023
Special Mention
Substandard
Special Mention
Substandard
Special Mention
Substandard
(Dollars in thousands)
One- to four-family
$
21,531
$
21,033
$
19,601
$
22,659
$
18,603
$
19,314
Commercial
19,886
1,969
15,097
1,221
16,407
1,293
Consumer
263
309
335
175
327
190
$
41,680
$
23,311
$
35,033
$
24,055
$
35,337
$
20,797
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, 2024 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. On October 1, 2023, the
Bank adopted Accounting Standards Update ("ASU") 2022-02, Financial
Instruments - Credit Losses (Topic 326): Troubled Debt
Restructurings and Vintage Disclosures ("ASU 2022-02"), which
eliminated the accounting guidance for troubled debt restructurings
by creditors. The Company applied a modified retrospective approach
when adopting ASU 2022-02, resulting in a cumulative-effect
adjustment which is reflected in the table below ("ASU 2022-02
Adoption"). The reserve for off-balance sheet credit exposures
totaled $3.7 million at March 31, 2024.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2024
March 31, 2024
(Dollars in thousands)
Balance at beginning of period
$
24,178
$
23,759
ASU 2022-02 Adoption
—
20
Charge-offs:
One- to four-family
—
—
Commercial
(10
)
(10
)
Consumer
(8
)
(15
)
Total charge-offs
(18
)
(25
)
Recoveries:
One- to four-family
3
8
Commercial
—
1
Consumer
15
15
Total recoveries
18
24
Net (charge-offs) recoveries
—
(1
)
Provision for credit losses
456
856
Balance at end of period
$
24,634
$
24,634
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
—
0.01
ACL to non-performing loans at end of
period
280.28
280.28
ACL to loans receivable at end of
period
0.31
0.31
ACL to net charge-offs (annualized)
32,575x
10,971x
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,
September 30,
March 31,
December 31,
September 30,
2024
2023
2023
2024
2023
2023
(Dollars in thousands)
One- to four-family
$
5,060
$
5,248
$
5,328
0.08
%
0.08
%
0.08
%
Commercial:
Commercial real estate
16,605
16,152
15,589
1.60
1.58
1.57
Commercial and industrial
1,019
973
1,104
0.91
0.86
0.98
Construction
1,706
1,553
1,487
0.84
0.79
0.83
Total
19,330
18,678
18,180
1.43
1.40
1.41
Consumer
244
252
251
0.23
0.24
0.24
Total
$
24,634
$
24,178
$
23,759
0.31
0.30
0.30
Securities Portfolio
The following table presents the distribution of our securities
portfolio, at amortized cost, at March 31, 2024. Overall,
fixed-rate securities comprised 94% of our securities portfolio at
March 31, 2024. 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
$
636,387
5.68
%
6.2
U.S. Treasury bills
99,408
5.38
0.1
U.S. government-sponsored enterprise
debentures
91,542
5.62
5.5
Corporate bonds
4,000
5.12
8.1
$
831,337
5.63
5.4
The following table summarizes the activity in our securities
portfolio for the periods presented. The weighted average yields
for the beginning and ending balances are as of the first and last
days of the period 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, 2024
March 31, 2024
Amount
Yield
WAL
Amount
Yield
WAL
(Dollars in thousands)
Beginning balance - carrying value
$
740,462
5.67
%
3.9
$
1,384,482
1.35
%
3.8
Maturities and repayments
(205,929
)
(255,533
)
Proceeds from sale
—
(1,272,512
)
Net amortization of
(premiums)/discounts
2,970
5,741
Purchases
312,684
5.34
5.6
980,994
5.60
4.4
Net loss from securities transactions
—
(13,345
)
Change in valuation on AFS securities
(7,237
)
13,123
Ending balance - carrying value
$
842,950
5.63
5.4
$
842,950
5.63
5.4
Deposit Portfolio
The following table presents the amount, weighted average rate,
and percent of total for the components of our deposit portfolio at
the dates presented. The increase in the deposit portfolio rate
from March 31, 2024 compared to December 31, 2023 and September 30,
2023 was due mainly to higher rates on retail certificates of
deposit.
March 31, 2024
December 31, 2023
September 30, 2023
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
Non-interest-bearing checking
$
549,818
—
%
8.9
%
$
555,382
—
%
9.2
%
$
558,326
—
%
9.2
%
Interest-bearing checking
902,848
0.19
14.7
895,665
0.17
14.9
901,994
0.19
14.9
Savings
482,503
0.27
7.9
471,372
0.12
7.8
480,091
0.12
7.9
Money market
1,300,252
1.67
21.2
1,360,349
1.96
22.6
1,380,617
1.96
22.8
Retail certificates of deposit
2,725,110
4.01
44.4
2,569,391
3.75
42.7
2,533,954
3.47
41.9
Commercial certificates of deposit
55,727
4.19
0.9
49,152
3.80
0.8
48,751
3.56
0.8
Public unit certificates of deposit
125,453
4.61
2.0
120,284
4.54
2.0
147,487
4.44
2.5
$
6,141,711
2.32
100.0
%
$
6,021,595
2.20
100.0
%
$
6,051,220
2.07
100.0
%
Borrowings
The following table presents the maturity of term borrowings,
which consist of FHLB advances, along with associated weighted
average contractual and effective rates as of March 31, 2024.
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)
2024
$
275,000
3.77
%
2.57
%
2025
650,000
3.30
2.96
2026
575,000
2.81
2.95
2027
482,500
3.14
3.25
2028
320,492
4.92
4.17
2029
50,000
4.17
4.17
$
2,352,992
3.44
3.16
(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.
Line of credit borrowings and finance leases are excluded from the
table. The effective rate is shown as a weighted average and
includes the impact of 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. During the current year period, management paid down
BTFP borrowings with the proceeds received from the securities
strategy.
For the Three Months
Ended
For the Six Months
Ended
March 31, 2024
March 31, 2024
Effective
Effective
Amount
Rate
WAM
Amount
Rate
WAM
(Dollars in thousands)
Beginning balance
$
2,375,410
3.13
%
2.0
$
2,882,828
3.34
%
1.8
Maturities and repayments
(72,418
)
2.84
(229,836
)
3.26
New FHLB borrowings
50,000
4.17
5.0
200,000
4.54
4.0
BTFP, net
—
—
—
(500,000
)
4.70
—
Ending balance
$
2,352,992
3.16
1.9
$
2,352,992
3.16
1.9
Maturities of Interest-Bearing Liabilities
The following table presents the maturity and weighted average
repricing rate, which is also the weighted average effective rate,
of certificates of deposit, split between retail/commercial and
public unit amounts, and non-amortizing FHLB advances for the next
four quarters as of March 31, 2024.
June 30,
September 30,
December 31,
March 31,
2024
2024
2024
2025
Total
(Dollars in thousands)
Retail/Commercial Certificates:
Amount
$
488,977
$
497,837
$
577,131
$
473,162
$
2,037,107
Repricing Rate
4.05
%
4.45
%
4.41
%
4.43
%
4.33
%
Public Unit Certificates:
Amount
$
31,563
$
34,985
$
29,025
$
17,526
$
113,099
Repricing Rate
4.42
%
4.63
%
4.67
%
4.90
%
4.62
%
Non-Amortizing FHLB Advances:
Amount
$
100,000
$
175,000
$
200,000
$
150,000
$
625,000
Repricing Rate
1.98
%
2.91
%
3.35
%
1.93
%
2.67
%
Total
Amount
$
620,540
$
707,822
$
806,156
$
640,688
$
2,775,206
Repricing Rate
3.73
%
4.08
%
4.15
%
3.86
%
3.97
%
The following table sets forth the WAM information for our
certificates of deposit, in years, as of March 31, 2024.
Retail certificates of deposit
1.0
Commercial certificates of deposit
0.8
Public unit certificates of deposit
0.6
Total certificates of deposit
0.9
Average Rates and Lives
At March 31, 2024, the Bank's gap between the amount of
interest-earning assets and interest-bearing liabilities projected
to reprice within one year was $(1.10) billion, or (11.3)% of total
assets, compared to $(679.7) million, or (7.1)% of total assets, at
December 31, 2023. The change in the one-year gap amount was due to
an increase in the amount of liability cash flows coming due in one
year at March 31, 2024, partially offset by an increase in the
amount of asset cash flows coming due during the same time period,
compared to December 31, 2023. The increase in liability cash flows
was due primarily to an increase in certificates of deposit
scheduled to mature within one year as of March 31, 2024, compared
to December 31, 2023, as the Bank continued to offer its highest
rates on shorter-term certificates of deposit. The increase in
asset cash flows was due primarily to an increase in the balance of
cash between the two periods.
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, 2024, the Bank's one-year gap is projected to be $(1.21)
billion, or (12.5)% 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 $(789.7) million, or (8.2)% of total
assets, if interest rates were to have increased 200 basis points
as of December 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 March 31, 2024. 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
$
842,950
5.63
%
3.6
9.1
%
Loans receivable:
Fixed-rate one- to four-family
5,476,286
3.34
6.7
69.4
%
59.0
Fixed-rate commercial
468,257
4.61
3.0
5.9
5.0
All other fixed-rate loans
49,291
5.86
6.8
0.6
0.5
Total fixed-rate loans
5,993,834
3.46
6.4
75.9
64.5
Adjustable-rate one- to four-family
920,543
3.95
4.0
11.7
9.9
Adjustable-rate commercial
881,701
5.98
7.4
11.2
9.5
All other adjustable-rate loans
96,654
8.35
3.0
1.2
1.0
Total adjustable-rate loans
1,898,898
5.12
5.5
24.1
20.4
Total loans receivable
7,892,732
3.86
6.2
100.0
%
84.9
FHLB stock
109,070
9.47
2.0
1.2
Cash and cash equivalents
443,513
5.10
—
4.8
Total interest-earning assets
$
9,288,265
4.14
5.6
100.0
%
Non-maturity deposits
$
2,685,603
0.92
6.8
48.0
%
33.8
%
Retail certificates of deposit
2,725,110
4.01
1.0
48.7
34.3
Commercial certificates of deposit
55,727
4.19
0.8
1.0
0.7
Public unit certificates of deposit
125,453
4.61
0.6
2.3
1.6
Total interest-bearing deposits
5,591,893
2.54
3.8
100.0
%
70.4
Term borrowings
2,353,963
3.16
1.9
29.6
Total interest-bearing liabilities
$
7,945,856
2.73
3.2
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424310306/en/
For further information contact: Kent Townsend Executive Vice
President, Chief Financial Officer and Treasurer (785) 231-6360
ktownsend@capfed.com Investor Relations (785) 270-6055
investorrelations@capfed.com
Capitol Federal Financial (NASDAQ:CFFN)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Capitol Federal Financial (NASDAQ:CFFN)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
