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Capitol Federal Financial Inc

For the period ended Dec 31, 2024. Filed Feb 7, 2025.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Dec 31, 2024 · Filed Feb 7, 2025

CFFN$8.60+2.0%Stored close · as of Nov 9, 2026

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Financial Condition - Loans Receivable

Loans Receivable. The following table presents the balance and weighted average rate of our loan portfolio as of the dates indicated.

December 31, 2024 · September 30, 2024 · December 31, 2023
Amount · Rate · Amount · Rate · Amount · Rate
(Dollars in thousands)
One- to four-family:
Originated$3,907,8093.64%$3,941,9523.60%$3,986,4793.44%
Correspondent purchased2,163,8473.482,212,5873.482,360,8433.45
Bulk purchased123,0292.97127,1612.80134,5042.10
Construction19,1656.3522,9706.0543,6314.47
Total6,213,8503.586,304,6703.556,525,4573.42
Commercial:
Commercial real estate1,353,4825.481,191,6245.431,019,4315.27
Commercial and industrial131,2676.66129,6786.66113,6866.46
Construction161,7446.14187,6766.40196,4935.41
Total1,646,4935.641,508,9785.651,329,6105.39
Consumer loans:
Home equity103,0068.3199,9888.9096,9528.84
Other9,6805.779,6155.729,6705.32
Total112,6868.09109,6038.62106,6228.52
Total loans receivable7,973,0294.077,923,2514.027,961,6893.82
Less:
ACL24,99723,03524,178
Deferred loan fees/discounts30,97330,33630,653
Premiums/deferred costs(36,497)(37,458)(40,652)
Total loans receivable, net$7,953,556$7,907,338$7,947,510

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
December 31, 2024 · December 31, 2023
Amount · Rate · Amount · Rate
(Dollars in thousands)
Beginning balance$7,923,2514.02%$7,984,3813.76%
Originated and refinanced265,7316.76101,4027.00
Purchased and participations69,7907.213,4975.91
Change in undisbursed loan funds(36,990)83,246
Repayments(248,760)(210,611)
Principal recoveries/ (charge-offs), net7(1)
Other—(225)
Ending balance$7,973,0294.07$7,961,6893.82

The following table presents loan origination, refinance, and purchase/participation activity for the periods indicated, excluding endorsement activity, along with associated weighted average rates and percent of total. Commercial loan renewals are not included in the activity in the following table except to the extent new funds are disbursed at the time of renewal. Loan originations, purchases/participations, and refinances are reported together.

For the Three Months Ended
December 31, 2024 · December 31, 2023
Amount · Rate · % of Total · Amount · Rate · % of Total
(Dollars in thousands)
Fixed-rate:
One- to four-family$64,9125.90%19.4%$37,1676.89%35.5%
One- to four-family construction10,8245.963.29,3086.848.9
Commercial:
Real estate28,4947.038.57477.760.7
Commercial and industrial16,8757.495.02,6057.062.5
Construction1,1358.000.31329.000.1
Home equity1,7448.420.52,6309.012.5
Consumer other4007.480.11,0846.831.0
Total fixed-rate124,3846.4437.053,6737.0151.2
Adjustable-rate:
One- to four-family2,9286.380.918,4866.6517.6
One- to four-family construction2,8816.630.98,0406.607.7
Commercial:
Real estate119,0556.7935.59,3505.008.9
Commercial and industrial9,8117.282.93,5557.883.4
Construction65,9067.4719.63,9478.413.8
Home equity8,9798.672.77,1799.396.8
Consumer other1,5776.070.56694.650.6
Total adjustable-rate211,1377.0963.051,2266.9248.8
Total originated, refinanced and purchased/participations$335,5216.85100.0%$104,8996.96100.0%
Purchased and participation loans included above:
Fixed-rate:
Correspondent purchased - one- to four-family$——$2,9786.43
Participations and purchases - commercial24,5007.00——
Total fixed-rate purchased/participations24,5007.002,9786.43
Adjustable-rate:
Correspondent purchased - one- to four-family——5192.93
Participations and purchases - commercial45,2907.32——
Total adjustable-rate purchased/participations45,2907.325192.93
Total purchased/participation loans$69,7907.21$3,4975.91

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 LTV ratio, and average balance per loan as of December 31, 2024. Credit scores were updated in September 2024 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
AmountTotalRateScoreLTVBalance
(Dollars in thousands)
Originated$3,907,80962.9%3.64%77158%$169
Correspondent purchased2,163,84734.83.4876762401
Bulk purchased123,0292.02.9777353279
Construction19,1650.36.3578046355
$6,213,850100.0%3.5877060214

The following table presents origination activity in our one- to four-family loan portfolio, excluding endorsement activity, along with the weighted average rate, weighted average LTV and weighted average credit score for the three months ended December 31, 2024.

Credit
AmountRateLTVScore
(Dollars in thousands)
$81,5455.95%73%766

The following table presents the amount and weighted average rate of one- to four-family loan origination and refinance commitments as of December 31, 2024.

AmountRate
(Dollars in thousands)
$42,0236.47%

Commercial Loans -The table below presents commercial loan origination and purchase activity during the three months ended December 31, 2024.

OriginatedParticipationTotal
AmountRateAmountRateAmountRate
(Dollars in thousands)
Commercial real estate$120,7456.79%$26,8047.04%$147,5496.84%
Commercial and industrial26,6867.41——26,6867.41
Commercial construction24,0557.7742,9867.3167,0417.47
$171,4867.02$69,7907.21$241,2767.08

The following table presents commercial loan disbursements, excluding lines of credit, during the three months ended December 31, 2024.

AmountRate
(Dollars in thousands)
Commercial real estate$147,2686.61%
Commercial and industrial10,2007.33
Commercial construction46,9686.24
$204,4366.56

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 December 31, 2024, the Bank had five commercial real estate and commercial construction loan commitments, totaling $53.7 million, at a weighted average rate of 7.32%. We anticipate fully funding the majority of the undisbursed amounts as most are not cancellable by the Bank. Of the total commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of December 31, 2024, management anticipates funding approximately $87.5 million during the March 2025 quarter, $91.4 million during the June 2025 quarter, $73.8 million during the September 2025 quarter, and $94.3 million during the December 2025 quarter or later. At December 31, 2024, the unpaid principal balance of non-owner occupied commercial real estate loans was $1.02 billion and the unpaid principal balance of owner occupied commercial real estate loans was $166.1 million, which are included in the table below.

December 31, 2024 · September 30, 2024 · December 31, 2023
Unpaid · Undisbursed · Gross Loan · Gross Loan · Gross Loan
Count · Principal · Amount · Amount · Amount · Amount
(Dollars in thousands)
Hotel23$387,305$45,342$432,647$323,396$231,987
Multi-family37206,681179,660386,341359,707302,908
Senior housing37342,0493,763345,812332,334330,077
Retail building134273,49662,639336,135316,261349,028
Office building78127,738672128,410127,961129,348
One- to four-family property31559,4804,39963,87963,41665,583
Single use building3139,79926240,06143,43843,815
Warehouse/manufacturing4834,27229734,56934,65636,056
Other6644,4061,31945,72562,01352,193
769$1,515,226$298,353$1,813,579$1,663,182$1,540,995
Weighted average rate5.55%6.77%5.75%5.77%5.44%

The following table summarizes the Bank's commercial real estate and commercial construction loans by state as of the dates indicated.

December 31, 2024 · September 30, 2024 · December 31, 2023
Unpaid · Undisbursed · Gross Loan · Gross Loan · Gross Loan
CountPrincipalAmountAmountAmountAmount
(Dollars in thousands)
Kansas566$590,691$118,471$709,162$713,437$662,756
Texas20289,52140,762330,283348,066347,825
Missouri132259,88645,949305,835313,146326,593
California380,56988281,45115,040—
Colorado1046,06014,74560,80550,01749,428
New York160,000—60,00060,000—
Nebraska832,26227,14459,40632,42237,799
Tennessee337,8402,94240,78235,97339,569
Other26118,39747,458165,85595,08177,025
769$1,515,226$298,353$1,813,579$1,663,182$1,540,995

The following table presents the Bank's commercial real estate and commercial construction loans by unpaid principal balance, aggregated by type of primary collateral and state, along with weighted average LTV ratio and weighted average DSCR as of December 31, 2024. The LTV ratio is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of December 31, 2024 and the most current collateral value available, which is most often the value at origination/purchase. For existing real estate, the "as is" value is used. If the property is to be constructed, the "as completed" value of the collateral is utilized. The DSCR is calculated based on historical borrower performance, or projected borrower performance for newly formed entities with no performance history. The DSCR presented in the table below is based on the DSCR at the time of origination unless an updated DSCR has been calculated at the time of subsequent loan renewals or reviews of borrower financials.

Weighted · Weighted
Kansas · Texas · Missouri · California · Other · Total · LTV · DSCR
(Dollars in thousands)
Hotel$42,272$140,576$9,596$77,601$117,260$387,30554.8%1.58x
Senior housing176,266—109,431—56,352342,04970.81.48
Retail building86,88469,65149,011—67,950273,49663.01.91
Multi-family122,64717,92645,481—20,627206,68164.31.24
Office building58,07960,4678,844—348127,73852.02.69
Other104,54390137,5232,96832,022177,95759.02.99
$590,691$289,521$259,886$80,569$294,559$1,515,22661.41.83
Weighted LTV64.3%55.1%66.6%48.6%61.0%61.4%
Weighted DSCR1.96x1.51x2.10x2.08x1.58x1.83x

The following table presents the Bank's commercial loan portfolio and outstanding loan commitments, categorized by aggregate gross loan amount (unpaid principal plus undisbursed amounts) or outstanding loan commitment amount and average loan amount, as of December 31, 2024. For loans and commitments over $50.0 million, $181.8 million related to hotels in California, New York, and Texas, $143.1 million related to multi-family properties located in Kansas, and $60.0 million related to an office building in Texas.

Average · Weighted · Weighted
CountAmountAmountLTVDSCR
(Dollars in thousands)
Greater than $50 million6$384,910$64,15255.9%1.49x
>$30 to $50 million6210,87035,14565.91.41
>$20 to $30 million17413,14924,30368.21.34
>$15 to $20 million8134,80516,85162.61.67
>$10 to $15 million11128,26411,66066.51.61
>$5 to $10 million29205,9667,10264.41.84
$1 to $5 million113262,6712,32560.12.13
Less than $1 million584126,69321753.93.80
774$1,867,328$2,41362.31.75

The following table summarizes the Bank's commercial and industrial loans by loan purpose as of the dates indicated. As of December 31, 2024, the Bank also had two commercial and industrial loan commitments totaling $981 thousand, at a weighted average rate of 7.95%.

December 31, 2024 · September 30,2024 · December 31,2023
Unpaid · Undisbursed · Gross Loan · Gross Loan · Gross Loan
CountPrincipalAmountAmountAmountAmount
(Dollars in thousands)
Working capital164$47,978$38,208$86,186$74,097$75,461
Purchase/refinance business assets5741,56250442,06637,95039,418
Finance/lease vehicle25226,655—26,65528,31821,180
Purchase equipment708,99814,47423,47215,45713,167
Other216,0742,0698,1437,7358,000
564$131,267$55,255$186,522$163,557$157,226
6.66%7.23%6.83%6.89%6.90%
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.