Capitol Federal Financial, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Capitol Federal Financial, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

Capitol Federal Financial, Inc. (CFFN) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Capitol Federal Financial, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the fiscal second quarter of 2024. The company's fiscal year ends on September 30th. The filing was made on May 10, 2024. The company is a federally chartered savings institution.

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 an update on the company's financial performance and position during the second quarter of its fiscal year. It allows stakeholders to assess the company's operational results, liquidity, and any material changes since the last filing.

Risk Assessment

Risk Level: — Capitol Federal Financial, Inc. shows moderate risk based on this filing. The filing is a standard 10-Q, which is a routine disclosure for publicly traded companies and does not contain immediate red flags.

Analyst Insight

Monitor future filings for trends in deposit accounts and insurance services, as these are key segments for Capitol Federal Financial.

Key Players & Entities

• Capitol Federal Financial, Inc. (company) — Filer
• CFFN (company) — Ticker Symbol

FAQ

Industry Context

Capitol Federal Financial operates as a federally chartered savings institution, a segment of the financial services industry focused on deposit-taking and lending.

Regulatory Implications

As a federally chartered savings institution, Capitol Federal Financial is subject to regulations from federal banking authorities, including the Office of the Comptroller of the Currency (OCC).

What Investors Should Do

1. Review the detailed financial statements within the 10-Q for specific figures on assets, liabilities, and equity.
2. Analyze management's discussion and analysis (MD&A) for insights into the company's performance drivers and outlook.
3. Compare the reported figures to previous periods to identify significant trends or changes.

Key Dates

• 2024-03-31: Period End Date — Financial reporting period for the 10-Q
• 2024-05-10: Filing Date — Date the 10-Q was submitted to the SEC

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 2023 annual report (10-K).

Key Financial Figures

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

Filing Documents

• cffn-20240331.htm (10-Q) — 4208KB
• cffn-033124xex311.htm (EX-31.1) — 10KB
• cffn-033124xex312.htm (EX-31.2) — 10KB
• cffn-033124xex32.htm (EX-32) — 9KB
• 0001490906-24-000024.txt (&nbsp;) — 14894KB
• cffn-20240331.xsd (EX-101.SCH) — 33KB
• cffn-20240331_cal.xml (EX-101.CAL) — 100KB
• cffn-20240331_def.xml (EX-101.DEF) — 327KB
• cffn-20240331_lab.xml (EX-101.LAB) — 499KB
• cffn-20240331_pre.xml (EX-101.PRE) — 460KB
• cffn-20240331_htm.xml (XML) — 3618KB

- FINANCIAL INFORMATION Page Number

PART I - FINANCIAL INFORMATION Page Number

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Balance Sheets at March 31, 2024 and September 30 , 2023 3 Consolidated Statements of Income for the three and six months ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity for the three and six months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 2023 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 31 Financial Condition - Loans Receivable 36 Financial Condition - Asset Quality 40 Financial Condition - Liabilities 45 Financial Condition - Stockholders' Equity 48 Operating Results 49 Comparison of Operating Results for the three months ended March 31, 2024 and December 31, 2023 50 Comparison of Operating Results for the six months ended March 31, 2024 and 2023 55 Comparison of Operating Results for the three months ended March 31, 2024 and 2023 61

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 70

Controls and Procedures

Item 4. Controls and Procedures 74

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 75

Risk Factors

Item 1A. Risk Factors 75

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 76

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 76

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 76

Other Information

Item 5. Other Information 76

Exhibits

Item 6. Exhibits 76 INDEX TO EXHIBITS 77

-- 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) March 31, September 30, 2024 2023 ASSETS: Cash and cash equivalents (includes interest-earning deposits of $ 419,332 and $ 213,830 ) $ 443,513 $ 245,605 Available-for-sale ("AFS") securities, at estimated fair value (amortized cost of $ 831,337 and $ 1,385,992 ) 842,950 1,384,482 Loans receivable, net (allowance for credit losses ("ACL") of $ 24,634 and $ 23,759 ) 7,877,569 7,970,949 Federal Home Loan Bank Topeka ("FHLB") stock, at cost 109,070 110,714 Premises and equipment, net 91,105 91,531 Income taxes receivable, net 2,644 8,531 Deferred income tax assets, net 35,390 29,605 Other assets 319,045 336,044 TOTAL ASSETS $ 9,721,286 $ 10,177,461 LIABILITIES: Deposits $ 6,141,711 $ 6,051,220 Borrowings 2,351,022 2,879,125 Advances by borrowers 52,698 62,993 Other liabilities 150,952 140,069 Total liabilities 8,696,383 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, 132,685,065 and 135,936,375 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively 1,327 1,359 Additional paid-in capital 1,147,029 1,166,643 Unearned compensation, Employee Stock Ownership Plan ("ESOP") ( 27,258 ) ( 28,083 ) Accumulated deficit ( 110,722 ) ( 104,565 ) Accumulated other comprehensive income ("AOCI"), net of tax 14,527 8,700 Total stockholders' equity 1,024,903 1,044,054 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,721,286 $ 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 For the Six Months Ended March 31

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. Net Presentation of Cash Flows Related to Borrowings - At times, the Bank enters into FHLB advances with contractual maturities of 90 days or less. Cash flows related to these advances are reported on a net basis in the consolidated statements of cash flows. Recent Accounting Pronouncements - In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled D

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