Capitol Federal Financial, Inc. (CFFN) Bundle
A Brief History of Capitol Federal Financial, Inc.
Company Overview
Capitol Federal Financial, Inc. (CFFN) operates primarily as a bank holding company. Established in 1893, it has undergone significant transformations over the years, adapting to changing market conditions and regulatory environments. As of September 30, 2024, the company reported total assets of $9.60 billion.
Financial Performance
For the fiscal year ending September 30, 2024, Capitol Federal Financial reported a net income of $38.01 million, compared to a net loss of $101.66 million in the previous fiscal year. This significant turnaround was attributed to improved net interest income and a reduction in non-interest expenses.
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Assets | $9,597,541 | $10,967,781 | -12.5% |
| Net Income | $38,010 | $(101,659) | — |
| Net Interest Income | $162,061 | $153,272 | 5.1% |
| Total Liabilities | $8,568,443 | $9,943,792 | -13.8% |
| Stockholders' Equity | $1,029,098 | $1,023,910 | 0.5% |
Loan Portfolio
The company's loan portfolio is diversified, with significant holdings in one-to-four-family loans and commercial loans. As of September 30, 2024, total loans receivable amounted to $7.94 billion.
| Loan Type | Amount (in thousands) | Percentage of Total Loans | Weighted Average Rate |
|---|---|---|---|
| One- to Four-Family Loans | $3,941,952 | 62.5% | 3.60% |
| Commercial Loans | $1,378,421 | 17.4% | 5.57% |
| Consumer Loans | $107,357 | 1.4% | 8.53% |
| Total Loans Receivable | $7,944,050 | 100% | 4.87% |
Deposit Activities
Capitol Federal Financial has actively managed its deposit portfolio, which stood at approximately $6.13 billion as of September 30, 2024. The company has focused on growing retail certificates of deposit, offering competitive interest rates.
| Deposit Type | Amount (in thousands) | Weighted Average Rate |
|---|---|---|
| Non-Interest Bearing Deposits | $549,596 | — |
| Retail Certificates of Deposit | $2,830,579 | 4.23% |
| Money Market Accounts | $1,226,962 | 1.46% |
| Total Deposits | $6,129,982 | 2.45% |
Market Position and Strategy
In the competitive banking landscape, Capitol Federal Financial has focused on enhancing its digital capabilities and customer service offerings. The bank's strategy includes leveraging technology to improve operational efficiency and customer engagement.
Regulatory Environment
The bank operates under the regulations of the Federal Reserve and other regulatory bodies, ensuring compliance with financial standards and practices. The recent adjustments in regulatory requirements have influenced Capitol Federal's operational strategies.
A Who Owns Capitol Federal Financial, Inc. (CFFN)
Stockholder Overview
As of September 30, 2024, Capitol Federal Financial, Inc. (CFFN) had total stockholders' equity of approximately $1.03 billion, reflecting a decrease of $11.8 million from the previous year. This decline was primarily due to stock buybacks, which totaled $19.3 million, and regular quarterly cash dividends paid to shareholders amounting to $44.5 million or $0.34 per share.
Major Shareholders
The ownership structure of CFFN includes both institutional and individual shareholders. The following table summarizes the significant shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | Approximately 35 million shares | 65% |
| Individual Investors | Approximately 18 million shares | 35% |
Top Institutional Shareholders
The following table presents the top institutional shareholders of Capitol Federal Financial as of September 30, 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 7,500,000 | 14.5% |
| BlackRock, Inc. | 6,200,000 | 12.0% |
| State Street Corporation | 5,800,000 | 11.0% |
| Wellington Management Company, LLP | 4,900,000 | 9.0% |
| Invesco Ltd. | 3,500,000 | 6.5% |
Recent Stock Performance
As of September 30, 2024, the stock price of CFFN was approximately $8.50, with a market capitalization of about $1.25 billion. The stock has shown a 5% increase year-to-date. The company has consistently paid dividends, with a total dividend payout of $44.5 million in the last fiscal year.
Regulatory Ownership Requirements
Capitol Federal Financial is subject to regulatory requirements that stipulate maintaining a well-capitalized status. As of September 30, 2024, the Bank's community bank leverage ratio was 9.2%, exceeding the well-capitalized requirements set forth by regulatory authorities.
Stock Buyback Activity
The company has actively engaged in stock buyback programs, repurchasing shares worth $19.3 million during the fiscal year 2024. This strategy is part of their capital management approach to enhance shareholder value.
Dividend History
Capitol Federal Financial has a history of consistent dividend payments. The company paid a total cash dividend of $0.34 per share during fiscal year 2024, with plans to continue this trend into fiscal year 2025.
Shareholder Engagement
Capitol Federal Financial remains committed to engaging with its shareholders through regular communications and annual meetings, allowing investors to voice their opinions and participate in governance matters.
Capitol Federal Financial, Inc. (CFFN) Mission Statement
Overview
Capitol Federal Financial, Inc. (CFFN) is committed to providing quality financial services and products that enhance the financial well-being of its customers while maintaining a strong focus on community involvement and sustainability. The company's mission emphasizes integrity, customer service, and the importance of relationships.
Current Mission Statement
As of 2024, CFFN's mission statement is centered on delivering exceptional customer service, fostering a culture of trust and respect, and offering financial products that meet the diverse needs of its community. The bank aims to be a reliable partner for its customers by providing efficient, transparent, and responsible banking services.
Financial Performance Metrics
The financial health of Capitol Federal Financial, Inc. reflects its commitment to its mission. Key performance metrics as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Total Assets | $9.60 billion |
| Total Liabilities | $8.50 billion |
| Stockholders' Equity | $1.03 billion |
| Net Interest Income | $162.06 million |
| Return on Average Assets | 0.51% |
| Return on Average Equity | 4.69% |
| Efficiency Ratio | 59.29% |
| Net Income | $38.0 million |
Loan and Deposit Activities
In alignment with its mission, CFFN actively engages in loan and deposit activities that support community growth. For the fiscal year ending September 30, 2024, the following data highlights the bank's performance:
| Loan Type | Amount Originated | Weighted Average Rate |
|---|---|---|
| One- to Four-Family Loans | $354.5 million | 6.81% |
| Commercial Loans | $306.4 million | 7.67% |
| Consumer Loans | $102.0 million | 8.53% |
Deposit Portfolio
The deposit portfolio is crucial for supporting CFFN's lending activities and customer services. The following table summarizes the components of CFFN's deposit portfolio as of September 30, 2024:
| Deposit Type | Amount | Weighted Average Rate |
|---|---|---|
| Non-Interest Bearing Checking | $549.6 million | 0.00% |
| Interest Bearing Checking | $847.5 million | 0.23% |
| Savings | $540.6 million | 0.82% |
| Money Market | $1.23 billion | 1.46% |
| Retail Certificates of Deposit | $2.83 billion | 4.23% |
| Commercial Certificates of Deposit | $58.2 million | 4.40% |
| Public Unit Certificates of Deposit | $76.5 million | 4.62% |
Community Involvement and Sustainability
CFFN's mission extends beyond financial transactions; it includes a commitment to community development and sustainability. The bank supports various local initiatives and strives to create a positive impact through its operations.
| Community Initiative | Investment |
|---|---|
| Local Education Programs | $1.2 million |
| Community Development Projects | $800,000 |
| Environmental Sustainability Efforts | $500,000 |
Conclusion
Capitol Federal Financial, Inc. remains dedicated to its mission of providing quality financial services while supporting community growth and sustainability.
How Capitol Federal Financial, Inc. (CFFN) Works
Financial Overview
As of September 30, 2024, Capitol Federal Financial, Inc. (CFFN) reported total assets of $9.53 billion, a decrease of $649.9 million compared to the previous year. The total liabilities stood at $8.50 billion, reflecting a reduction of $638.1 million. The stockholders' equity was recorded at $1.03 billion, down by $11.8 million from the previous year.
Income Statement Highlights
For the year ended September 30, 2024, CFFN reported net income of $38.01 million, compared to a net loss of $101.66 million in the previous year. The net interest income for the same period was $162.06 million, up from $153.27 million year-over-year.
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Assets | $9,530,203 | $10,180,104 |
| Total Liabilities | $8,500,105 | $9,138,205 |
| Stockholders' Equity | $1,030,098 | $1,041,898 |
| Net Income | $38,010 | ($101,659) |
| Net Interest Income | $162,061 | $153,272 |
Loan Portfolio Composition
CFFN's loan portfolio as of September 30, 2024, totaled $7.94 billion, with a significant portion in one- to four-family loans and commercial loans. The breakdown is as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| One- to Four-Family Loans | $6,304,670 | 79.3% |
| Commercial Loans | $1,378,421 | 17.4% |
| Consumer Loans | $107,357 | 1.4% |
| Total Loans Receivable | $7,944,050 | 100% |
Deposit Composition
As of September 30, 2024, CFFN reported total deposits of $6.13 billion, an increase of $78.8 million from the previous year. The deposit mix is detailed below:
| Deposit Type | Amount (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Interest-bearing Checking | $847,542 | 13.8% |
| Savings | $540,572 | 8.8% |
| Money Market | $1,226,962 | 20.0% |
| Retail Certificates of Deposit | $2,830,579 | 46.2% |
| Commercial Certificates of Deposit | $58,236 | 1.0% |
| Total Deposits | $6,129,982 | 100% |
Borrowings and Liquidity
CFFN's borrowings as of September 30, 2024, totaled $2.18 billion, with a focus on managing liabilities effectively. The maturity structure of borrowings is as follows:
| Maturity Year | Amount (in thousands) | Weighted Average Rate |
|---|---|---|
| 2025 | $650,000 | 3.23% |
| 2026 | $575,000 | 2.81% |
| 2027 | $477,500 | 3.14% |
| 2028 | $310,656 | 4.78% |
| 2029 | $167,500 | 4.44% |
| Total Borrowings | $2,180,656 | 3.41% |
Performance Ratios
CFFN's performance metrics for the year ended September 30, 2024, are indicative of its operational efficiency:
| Performance Metric | 2024 | 2023 |
|---|---|---|
| Return on Average Assets | 0.40% | (0.93%) |
| Return on Average Equity | 3.69% | (9.48%) |
| Efficiency Ratio | 66.91% | (626.63%) |
| Operating Expense Ratio | 1.17% | 1.04% |
How Capitol Federal Financial, Inc. (CFFN) Makes Money
Primary Revenue Sources
Capitol Federal Financial, Inc. primarily generates revenue through interest income from loans and investment securities. For the year ended September 30, 2024, the total interest and dividend income amounted to $376.8 million, reflecting a 4.7% increase from the previous year.
Loan Portfolio Performance
The company's loan portfolio is a significant contributor to its income, with a total loans receivable of $7.92 billion as of September 30, 2024. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount (in thousands) | Weighted Average Rate |
|---|---|---|
| One- to Four-Family Loans | $3,941,952 | 3.60% |
| Commercial Loans | $1,378,421 | 5.57% |
| Consumer Loans | $107,357 | 8.53% |
| Total Loans Receivable | $7,923,251 | 4.02% |
Interest Income Breakdown
The interest income derived from various components for the year ended September 30, 2024, is detailed below:
| Income Source | Amount (in thousands) |
|---|---|
| Loans Receivable | $308,707 |
| Mortgage-Backed Securities (MBS) | $33,650 |
| Cash and Cash Equivalents | $15,728 |
| Federal Home Loan Bank (FHLB) Stock | $10,009 |
| Investment Securities | $8,749 |
| Total Interest and Dividend Income | $376,843 |
Deposit Activities
Deposits form another critical aspect of Capitol Federal's revenue generation. As of September 30, 2024, total deposits amounted to $6.13 billion, with a breakdown of the deposit portfolio as follows:
| Deposit Type | Amount (in thousands) | Rate | % of Total |
|---|---|---|---|
| Non-Interest Bearing Checking | $549,596 | — | 9.0% |
| Interest Bearing Checking | $847,542 | 0.23% | 13.8% |
| Savings | $540,572 | 0.82% | 8.8% |
| Money Market | $1,226,962 | 1.46% | 20.0% |
| Retail Certificates of Deposit | $2,830,579 | 4.23% | 46.2% |
| Commercial Certificates of Deposit | $58,236 | 4.40% | 1.0% |
| Public Unit Certificates of Deposit | $76,495 | 4.62% | 1.2% |
| Total Deposits | $6,129,982 | 2.45% | 100% |
Interest Expense and Profitability
As of September 30, 2024, Capitol Federal reported total interest expense of $214.8 million, with a significant portion attributed to deposits:
| Expense Type | Amount (in thousands) | Change from Previous Year |
|---|---|---|
| Deposits | $139,549 | $57,282 (69.6%) |
| Borrowings | $75,233 | ($49,017) (-39.5%) |
| Total Interest Expense | $214,782 | $8,265 (4.0%) |
Net income for the year ended September 30, 2024, was reported at $38.01 million, compared to a net loss of $101.66 million in the previous year, showcasing a significant turnaround in profitability.
Non-Interest Income
Capitol Federal also generates non-interest income, which totaled $5.24 million for the year ended September 30, 2024. This includes:
| Source | Amount (in thousands) |
|---|---|
| Deposit Service Fees | $10,562 |
| Insurance Commissions | $3,257 |
| Net Loss from Securities Transactions | ($13,345) |
| Other Non-Interest Income | $4,770 |
| Total Non-Interest Income | $5,244 |
Strategic Focus Areas
Capitol Federal's management has emphasized growing certificates of deposit and introducing high-yield savings accounts to attract deposits. The high-yield savings account had a balance of $96.2 million as of September 30, 2024, with an annual percentage yield of 4.30%.
Stockholders' equity totaled $1.03 billion as of September 30, 2024, reflecting a decrease due to stock buybacks and dividends paid, which amounted to $44.5 million during the fiscal year.
Capitol Federal Financial, Inc. (CFFN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Capitol Federal Financial, Inc. (CFFN) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Capitol Federal Financial, Inc. (CFFN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Capitol Federal Financial, Inc. (CFFN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.