Capitol Federal Financial, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Capitol Federal Financial, Inc. has filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and position.</b>

AI Summary

Capitol Federal Financial, Inc. (CFFN) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. Capitol Federal Financial, Inc. filed its 10-Q report for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on September 30th. The filing was made on February 7, 2024. The SIC code for Capitol Federal Financial, Inc. is 6035 (Savings Institution, Federally Chartered).

Why It Matters

For investors and stakeholders tracking Capitol Federal Financial, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Capitol Federal Financial, Inc., enabling them to assess the company's performance and make informed investment decisions. Understanding the details within this report is crucial for tracking the company's financial health, operational efficiency, and strategic direction in the savings institution sector.

Risk Assessment

Risk Level: low — Capitol Federal Financial, Inc. shows low risk based on this filing. The filing is a routine 10-Q report, indicating standard financial reporting rather than an extraordinary event.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Capitol Federal Financial's performance trends and outlook.

Key Numbers

• 2023-12-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-02-07 — Filing Date (Filed as of date)
• 2023-10-01 — Quarter Start Date (First day of the reporting quarter)
• 2024-02-02 — XBRL Instance Document Date (Date of XBRL instance document)

Key Players & Entities

• Capitol Federal Financial, Inc. (company) — Filer name
• CFFN (company) — Ticker symbol
• 6035 (dollar_amount) — Standard Industrial Classification
• MD (company) — State of incorporation
• KS (company) — State of business address
• 785-235-1341 (dollar_amount) — Business phone number

Forward-Looking Statements

• Capitol Federal Financial, Inc. will continue to operate primarily as a federally chartered savings institution. (Capitol Federal Financial, Inc.) — high confidence, target: 2024-12-31

FAQ

Industry Context

Capitol Federal Financial, Inc. operates as a federally chartered savings institution, a key player in the financial services sector focused on deposit-taking and lending activities.

Regulatory Implications

As a federally chartered savings institution, Capitol Federal Financial, Inc. is subject to regulations from federal banking authorities, ensuring compliance with financial stability and consumer protection laws.

What Investors Should Do

1. Analyze the balance sheet and income statement for the quarter ended December 31, 2023.
2. Review any disclosures related to changes in accounting standards or significant business developments.
3. Compare the financial results to the same period in the prior year, if comparative data is available in the full filing.

Key Dates

• 2023-12-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-02-07: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Comparative data from previous filings would be needed for a direct comparison.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share CFFN The NASDAQ Stock Market

Filing Documents

• cffn-20231231.htm (10-Q) — 3426KB
• cffn-123123xex311.htm (EX-31.1) — 10KB
• cffn-123123xex312.htm (EX-31.2) — 10KB
• cffn-123123xex32.htm (EX-32) — 9KB
• 0001490906-24-000014.txt (&nbsp;) — 13164KB
• cffn-20231231.xsd (EX-101.SCH) — 33KB
• cffn-20231231_cal.xml (EX-101.CAL) — 101KB
• cffn-20231231_def.xml (EX-101.DEF) — 326KB
• cffn-20231231_lab.xml (EX-101.LAB) — 538KB
• cffn-20231231_pre.xml (EX-101.PRE) — 458KB
• cffn-20231231_htm.xml (XML) — 3099KB

- FINANCIAL INFORMATION Page Number

PART I - FINANCIAL INFORMATION Page Number

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Balance Sheets at December 31 , 2023 and September 30, 202 3 3 Consolidated Statements of Income for the three months ended December 31 , 2023 and 2022 4 Consolidated Statements of Comprehensive Income for the three months ended December 31, 2023 and 2022 5 Consolidated Statements of Stockholders' Equity for the three months ended December 31 , 2023 and 2022 6 Consolidated Statements of Cash Flows for the three months ended December 31 , 2023 and 2022 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Financial Condition - Loans Receivable 33 Financial Condition - Asset Quality 38 Financial Condition - Liabilities 43 Financial Condition - Stockholders' Equity 46 Operating Results 47 Comparison of Operating Results for the three months ended December 31 , 2023 and September 30 , 2023 51 Comparison of Operating Results for the three months ended December 31, 2023 and 2022 54

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 59

Controls and Procedures

Item 4. Controls and Procedures 63

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 64

Risk Factors

Item 1A. Risk Factors 64

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 64

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 64

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 64

Other Information

Item 5. Other Information 65

Exhibits

Item 6. Exhibits 65 INDEX TO EXHIBITS 66

-- FINANCIAL INFORMATION

PART I -- FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except per share amounts) December 31, September 30, 2023 2023 ASSETS: Cash and cash equivalents (includes interest-earning deposits of $ 287,748 and $ 213,830 ) $ 320,357 $ 245,605 Available-for-sale ("AFS") securities, at estimated fair value (amortized cost of $ 721,612 and $ 1,385,992 ) 740,462 1,384,482 Loans receivable, net (allowance for credit losses ("ACL") of $ 24,178 and $ 23,759 ) 7,947,510 7,970,949 Federal Home Loan Bank Topeka ("FHLB") stock, at cost 110,166 110,714 Premises and equipment, net 91,475 91,531 Income taxes receivable, net 3,939 8,531 Deferred income tax assets, net 34,076 29,605 Other assets 328,079 336,044 TOTAL ASSETS $ 9,576,064 $ 10,177,461 LIABILITIES: Deposits $ 6,021,595 $ 6,051,220 Borrowings 2,373,064 2,879,125 Advances by borrowers 24,839 62,993 Other liabilities 122,445 140,069 Total liabilities 8,541,943 9,133,407 STOCKHOLDERS' EQUITY: Preferred stock, $ .01 par value; 100,000,000 shares authorized, no shares issued or outstanding — — Common stock, $ .01 par value; 1,400,000,000 shares authorized, 133,908,375 and 135,936,375 shares issued and outstanding as of December 31, 2023 and September 30, 2023, respectively 1,339 1,359 Additional paid-in capital 1,154,655 1,166,643 Unearned compensation, Employee Stock Ownership Plan ("ESOP") ( 27,671 ) ( 28,083 ) Retained earnings ( 113,357 ) ( 104,565 ) Accumulated other comprehensive income ("AOCI"), net of tax 19,155 8,700 Total stockholders' equity 1,034,121 1,044,054 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,576,064 $ 10,177,461 See accompanying notes to consolidated financial statements. 3 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended December 31, 2023 2022 INTE

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The consolidated financial statements include the accounts of Capitol Federal Financial, Inc. (the "Company") and its wholly-owned subsidiary, Capitol Federal Savings Bank (the "Bank"). The Bank has two wholly-owned subsidiaries, Capitol Funds, Inc. and Capital City Investments, Inc. Capitol Funds, Inc. has a wholly-owned subsidiary, Capitol Federal Mortgage Reinsurance Company. Capital City Investments, Inc. is a real estate and investment holding company. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year. Cash, Cash Equivalents and Restricted Cash - Cash, cash equivalents and restricted cash reported in the statement of cash flows consisted entirely of cash and cash equivalents at December 31, 2023 and September 30, 2023, respectively. At times, the Company holds restricted cash, which is reported in other assets on the consolidated balance sheet, related to collateral postings to/from the Bank's derivative counterparties associated with t

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View this 10-Q filing on SEC EDGAR