Capitol Federal Financial, Inc.
For the period ended Mar 31, 2025. Filed May 9, 2025.
View on SEC.govAbout 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.
Mar 31, 2025 · Filed May 9, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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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.
| March 31, 2025 · December 31, 2024 · September 30, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amount · Rate · Amount · Rate · Amount · Rate | ||||||||
| (Dollars in thousands) | ||||||||
| One- to four-family: | ||||||||
| Originated | $3,863,882 | 3.68% | $3,907,809 | 3.64% | $3,941,952 | 3.60% | ||
| Correspondent purchased | 2,117,232 | 3.48 | 2,163,847 | 3.48 | 2,212,587 | 3.48 | ||
| Bulk purchased | 119,914 | 3.09 | 123,029 | 2.97 | 127,161 | 2.80 | ||
| Construction | 16,782 | 6.53 | 19,165 | 6.35 | 22,970 | 6.05 | ||
| Total | 6,117,810 | 3.61 | 6,213,850 | 3.58 | 6,304,670 | 3.55 | ||
| Commercial: | ||||||||
| Commercial real estate | 1,340,539 | 5.50 | 1,353,482 | 5.48 | 1,191,624 | 5.43 | ||
| Commercial and industrial | 135,884 | 6.74 | 131,267 | 6.66 | 129,678 | 6.66 | ||
| Construction | 191,904 | 6.12 | 161,744 | 6.14 | 187,676 | 6.40 | ||
| Total | 1,668,327 | 5.67 | 1,646,493 | 5.64 | 1,508,978 | 5.65 | ||
| Consumer loans: | ||||||||
| Home equity | 99,049 | 8.12 | 103,006 | 8.31 | 99,988 | 8.90 | ||
| Other | 9,434 | 5.87 | 9,680 | 5.77 | 9,615 | 5.72 | ||
| Total | 108,483 | 7.93 | 112,686 | 8.09 | 109,603 | 8.62 | ||
| Total loans receivable | 7,894,620 | 4.10 | 7,973,029 | 4.07 | 7,923,251 | 4.02 | ||
| Less: | ||||||||
| ACL | 23,970 | 24,997 | 23,035 | |||||
| Deferred loan fees/discounts | 30,276 | 30,973 | 30,336 | |||||
| Premiums/deferred costs | (35,531) | (36,497) | (37,458) | |||||
| Total loans receivable, net | $7,875,905 | $7,953,556 | $7,907,338 | |||||
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, 2025 · March 31, 2025 · March 31, 2024 | ||||||||
| Amount · Rate · Amount · Rate · Amount · Rate | ||||||||
| (Dollars in thousands) | ||||||||
| Beginning balance | $7,973,029 | 4.07% | $7,923,251 | 4.02% | $7,984,381 | 3.76% | ||
| Originated and refinanced | 121,990 | 6.87 | 387,721 | 6.79 | 187,721 | 7.06 | ||
| Purchased and participations | — | — | 69,790 | 7.21 | 27,944 | 7.82 | ||
| Change in undisbursed loan funds | 37,061 | 71 | 117,888 | |||||
| Repayments | (237,346) | (486,106) | (424,976) | |||||
| Principal (charge-offs)/recoveries, net | (114) | (107) | (1) | |||||
| Other | — | — | (225) | |||||
| Ending balance | $7,894,620 | 4.10 | $7,894,620 | 4.10 | $7,892,732 | 3.86 | ||
The following table presents loan origination, refinance, and 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, participations, and refinances are reported together.
| For the Six Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 31, 2025 · March 31, 2024 | ||||||||
| Amount · Rate · % of Total · Amount · Rate · % of Total | ||||||||
| (Dollars in thousands) | ||||||||
| Commercial: | ||||||||
| Commercial real estate | ||||||||
| Fixed-rate | $29,808 | 7.02% | 6.5% | $1,156 | 7.28% | 0.5% | ||
| Adjustable-rate | 141,870 | 6.82 | 31.0 | 15,506 | 6.13 | 7.2 | ||
| 171,678 | 6.85 | 37.5 | 16,662 | 6.21 | 7.7 | |||
| Commercial and industrial | ||||||||
| Fixed-rate | 21,632 | 7.40 | 4.7 | 12,432 | 6.98 | 5.8 | ||
| Adjustable-rate | 11,040 | 7.37 | 2.4 | 7,983 | 7.69 | 3.7 | ||
| 32,672 | 7.39 | 7.1 | 20,415 | 7.26 | 9.5 | |||
| Commercial construction | ||||||||
| Fixed-rate | 1,135 | 8.00 | 0.3 | 3,632 | 7.07 | 1.7 | ||
| Adjustable-rate | 93,269 | 7.40 | 20.4 | 36,641 | 8.23 | 17.0 | ||
| 94,404 | 7.40 | 20.7 | 40,273 | 8.12 | 18.7 | |||
| Total commercial | ||||||||
| Fixed-rate | 52,575 | 7.19 | 11.5 | 17,220 | 7.02 | 8.0 | ||
| Adjustable-rate | 246,179 | 7.06 | 53.8 | 60,130 | 7.61 | 27.9 | ||
| 298,754 | 7.08 | 65.3 | 77,350 | 7.48 | 35.9 | |||
| Consumer: | ||||||||
| One- to four-family | ||||||||
| Fixed-rate | 108,697 | 6.06 | 23.8 | 77,119 | 6.66 | 35.8 | ||
| Adjustable-rate | 26,223 | 6.25 | 5.7 | 37,726 | 6.42 | 17.5 | ||
| 134,920 | 6.10 | 29.5 | 114,845 | 6.58 | 53.3 | |||
| Home equity and other | ||||||||
| Fixed-rate | 4,008 | 8.19 | 0.9 | 5,660 | 8.46 | 2.6 | ||
| Adjustable-rate | 19,829 | 8.27 | 4.3 | 17,810 | 9.12 | 8.2 | ||
| 23,837 | 8.25 | 5.2 | 23,470 | 8.96 | 10.8 | |||
| Total consumer | ||||||||
| Fixed-rate | 112,705 | 6.14 | 24.6 | 82,779 | 6.78 | 38.4 | ||
| Adjustable-rate | 46,052 | 7.12 | 10.1 | 55,536 | 7.29 | 25.7 | ||
| 158,757 | 6.42 | 34.7 | 138,315 | 6.98 | 64.1 | |||
| Total commercial and consumer | ||||||||
| Fixed-rate | 165,280 | 6.47 | 36.1 | 99,999 | 6.82 | 46.4 | ||
| Adjustable-rate | 292,231 | 7.07 | 63.9 | 115,666 | 7.46 | 53.6 | ||
| $457,511 | 6.85 | 100.0% | $215,665 | 7.16 | 100.0% | |||
| Commercial participations included above: | ||||||||
| Fixed-rate | 24,500 | 7.00 | 3,500 | 7.00 | ||||
| Adjustable-rate | 45,290 | 7.32 | 20,947 | 8.27 | ||||
| $69,790 | 7.21 | $24,447 | 8.09 | |||||
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 March 31, 2025. 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 | ||||||
|---|---|---|---|---|---|---|
| Amount | Total | Rate | Score | LTV | Balance | |
| (Dollars in thousands) | ||||||
| Originated | $3,863,882 | 63.1% | 3.68% | 771 | 58% | $169 |
| Correspondent purchased | 2,117,232 | 34.6 | 3.48 | 767 | 62 | 398 |
| Bulk purchased | 119,914 | 2.0 | 3.09 | 773 | 53 | 276 |
| Construction | 16,782 | 0.3 | 6.53 | 771 | 46 | 323 |
| $6,117,810 | 100.0% | 3.61 | 770 | 59 | 213 | |
The following table presents origination and refinance 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 time periods presented.
| For the Three Months Ended · For the Six Months Ended | |||||||
|---|---|---|---|---|---|---|---|
| March 31, 2025 · March 31, 2025 | |||||||
| Credit · Credit | |||||||
| Amount | Rate | LTV | Score | Amount | Rate | LTV | Score |
| (Dollars in thousands) | |||||||
| $53,375 | 6.32% | 74% | 769 | $134,920 | 6.10% | 73% | 767 |
The following table presents the amount and weighted average rate of one- to four-family loan origination and refinance commitments as of March 31, 2025.
| Amount | Rate |
|---|---|
| (Dollars in thousands) | |
| $49,489 | 6.46% |
Commercial Loans -The table below presents commercial loan origination and purchase activity for the time periods presented. For commercial real estate and commercial construction loans, the LTV ratio is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) and the collateral value at the time of origination. 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.
| For the Three Months Ended March 31, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Originated · Participation · Total · Weighted · Weighted | ||||||||
| Amount | Rate | Amount | Rate | Amount | Rate | LTV | DSCR | |
| (Dollars in thousands) | ||||||||
| Commercial real estate | $24,128 | 6.94% | $— | —% | $24,128 | 6.94% | 67.6% | 1.52x |
| Commercial and industrial | 5,987 | 7.29 | — | — | 5,987 | 7.29 | N/A | 3.91 |
| Commercial construction | 27,363 | 7.23 | — | — | 27,363 | 7.23 | 66.8 | 2.00 |
| $57,478 | 7.11 | $— | — | $57,478 | 7.11 | 67.2 | 1.99 | |
| For the Six Months Ended March 31, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Originated · Participation · Total · Weighted · Weighted | ||||||||
| Amount | Rate | Amount | Rate | Amount | Rate | LTV | DSCR | |
| (Dollars in thousands) | ||||||||
| Commercial real estate | $144,873 | 6.81% | $26,804 | 7.04% | $171,677 | 6.85% | 58.2% | 1.81x |
| Commercial and industrial | 32,673 | 7.39 | — | — | 32,673 | 7.39 | N/A | 3.96 |
| Commercial construction | 51,418 | 7.48 | 42,986 | 7.31 | 94,404 | 7.40 | 75.4 | 1.75 |
| $228,964 | 7.05 | $69,790 | 7.21 | $298,754 | 7.08 | 64.3 | 2.02 | |
The following table presents commercial loan disbursements, excluding lines of credit, during the six months ended March 31, 2025.
| Amount | Rate | |
|---|---|---|
| (Dollars in thousands) | ||
| Commercial real estate | $179,930 | 6.61% |
| Commercial and industrial | 16,843 | 7.36 |
| Commercial construction | 87,101 | 6.31 |
| $283,874 | 6.57 | |
The following table presents the Bank's commercial real estate and commercial construction loans by type of primary collateral as of the dates indicated. Management anticipates fully funding the majority of the undisbursed amounts as most are not cancellable by the Bank. At March 31, 2025, the unpaid principal balance of non-owner occupied commercial real estate loans was $1.01 billion and the unpaid principal balance of owner occupied commercial real estate loans was $163.4 million, both of which are included in the table below.
| March 31, 2025 · December 31, 2024 · September 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Unpaid · Undisbursed · Gross Loan · Gross Loan · Gross Loan | ||||||||||
| Count · Principal · Amount · Amount · Amount · Amount | ||||||||||
| (Dollars in thousands) | ||||||||||
| Hotel | 24 | $392,961 | $52,524 | $445,485 | $432,647 | $323,396 | ||||
| Multi-family | 34 | 204,276 | 152,792 | 357,068 | 386,341 | 359,707 | ||||
| Senior housing | 37 | 342,007 | 2,490 | 344,497 | 345,812 | 332,334 | ||||
| Retail building | 131 | 271,536 | 48,244 | 319,780 | 336,135 | 316,261 | ||||
| Office building | 77 | 126,617 | 540 | 127,157 | 128,410 | 127,961 | ||||
| One- to four-family property | 316 | 60,169 | 5,008 | 65,177 | 63,879 | 63,416 | ||||
| Warehouse/manufacturing | 49 | 36,822 | 6,742 | 43,564 | 34,569 | 34,656 | ||||
| Single use building | 28 | 35,204 | 262 | 35,466 | 40,061 | 43,438 | ||||
| Land | 26 | 34,662 | 193 | 34,855 | 15,615 | 32,943 | ||||
| Other | 37 | 28,189 | 1,186 | 29,375 | 30,110 | 29,070 | ||||
| 759 | $1,532,443 | $269,981 | $1,802,424 | $1,813,579 | $1,663,182 | |||||
| Weighted average rate | 5.58% | 6.82% | 5.76% | 5.75% | 5.77% | |||||
The following table presents management's funding expectations for the Bank's commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of March 31, 2025. Due to the nature of a revolving line of credit, management is unable to project funding expectations for those balances so those amounts are presented separately from management's funding expectations. The majority of the $136.5 million of commitments expected to fund during the June 30, 2025 quarter are related to hotel loans. Management has decided that it will continue to lend to existing borrowing relationships secured by hotels but is not taking on new relationships for hotel lending. Existing hotel lending opportunities in our pipeline will continue to be evaluated. Management believes that our intended level of concentration in this category of lending will be met with our existing portfolio and pipeline opportunities.
| Projected Disbursements for the Quarters Ending · Revolving | ||||||
|---|---|---|---|---|---|---|
| June 30, 2025 | September 30, 2025 | December 31, 2025 | Thereafter | Lines of Credit | Total | |
| (Dollars in thousands) | ||||||
| Undisbursed amounts | $98,394 | $82,063 | $49,769 | $35,696 | $4,059 | $269,981 |
| Commitments | 136,516 | 5,750 | 13,500 | 20,400 | 10,419 | 186,585 |
| $234,910 | $87,813 | $63,269 | $56,096 | $14,478 | $456,566 | |
| Weighted average rate | 6.84% | 6.89% | 7.10% | 7.01% | 7.06% | 6.92% |
The following table summarizes the Bank's commercial real estate and commercial construction loans by state as of the dates indicated.
| March 31, 2025 · December 31, 2024 · September 30, 2024 | ||||||
|---|---|---|---|---|---|---|
| Unpaid · Undisbursed · Gross Loan · Gross Loan · Gross Loan | ||||||
| Count | Principal | Amount | Amount | Amount | Amount | |
| (Dollars in thousands) | ||||||
| Kansas | 561 | $604,141 | $105,148 | $709,289 | $709,162 | $713,437 |
| Texas | 19 | 288,485 | 30,666 | 319,151 | 330,283 | 348,066 |
| Missouri | 129 | 257,626 | 41,459 | 299,085 | 305,835 | 313,146 |
| California | 4 | 83,441 | 11,989 | 95,430 | 81,451 | 15,040 |
| New York | 1 | 60,000 | — | 60,000 | 60,000 | 60,000 |
| Colorado | 9 | 44,953 | 10,181 | 55,134 | 60,805 | 50,017 |
| Tennessee | 3 | 39,248 | 1,353 | 40,601 | 40,782 | 35,973 |
| Nebraska | 7 | 11,519 | 27,139 | 38,658 | 59,406 | 32,422 |
| Arizona | 5 | 10,778 | 25,663 | 36,441 | 36,446 | 15,452 |
| Arkansas | 4 | 36,322 | — | 36,322 | 36,491 | 36,588 |
| Other | 17 | 95,930 | 16,383 | 112,313 | 92,918 | 43,041 |
| 759 | $1,532,443 | $269,981 | $1,802,424 | $1,813,579 | $1,663,182 | |
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 March 31, 2025. The LTV ratio is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of March 31, 2025 and the most current collateral value available, which is most often the value at origination/purchase. The DSCR is calculated at the time of origination, and is updated at the time of subsequent loan renewals, financial reviews (for applicable loans and lending relationships), and any other time management is aware of changes that may impact the DSCR. The DSCR presented in the table below is based on the DSCR at the time of origination unless an updated DSCR has been calculated. Commercial loans that have an outstanding balance of $1.5 million or more, or borrowing relationships with a total relationship exposure of $5.0 million or more are reviewed no less often than annually to monitor financial performance.
| Weighted · Weighted | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Kansas · Texas · Missouri · California · Other · Total · LTV · DSCR | |||||||||
| (Dollars in thousands) | |||||||||
| Hotel | $42,855 | $140,564 | $9,518 | $80,563 | $119,461 | $392,961 | 54.9% | 1.43x | |
| Senior housing | 176,234 | — | 109,022 | — | 56,751 | 342,007 | 70.6 | 1.44 | |
| Retail building | 85,072 | 67,486 | 48,237 | — | 70,741 | 271,536 | 62.9 | 2.09 | |
| Multi-family | 135,389 | 19,177 | 49,171 | — | 539 | 204,276 | 63.6 | 1.30 | |
| Office building | 57,220 | 60,358 | 8,700 | — | 339 | 126,617 | 51.7 | 1.89 | |
| One- to four-family property | 44,345 | — | 6,438 | — | 9,386 | 60,169 | 55.9 | 2.71 | |
| Warehouse/manufacturing | 31,116 | — | 2,442 | — | 3,264 | 36,822 | 58.1 | 3.02 | |
| Single use building | 13,488 | — | 18,463 | 2,878 | 375 | 35,204 | 61.5 | 1.87 | |
| Land | 6,286 | 900 | 738 | — | 26,738 | 34,662 | 70.6 | 3.97 | |
| Other | 12,136 | — | 4,897 | — | 11,156 | 28,189 | 56.8 | 2.00 | |
| $604,141 | $288,485 | $257,626 | $83,441 | $298,750 | $1,532,443 | 61.4 | 1.73 | ||
| Weighted LTV | 64.0% | 55.5% | 66.5% | 49.2% | 60.6% | 61.4% | |||
| Weighted DSCR | 1.88x | 1.69x | 1.70x | 1.50x | 1.58x | 1.73x | |||
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 March 31, 2025. For loans and commitments over $50.0 million, $267.4 million was related to hotels in Arizona, California, New York, and Texas, $143.1 million was related to multi-family properties in Kansas, and $60.0 million was related to an office building in Texas.
| Gross Loan | |||||
|---|---|---|---|---|---|
| and Commitment · Average · Weighted · Weighted | |||||
| Count | Amounts | Amount | LTV | DSCR | |
| (Dollars in thousands) | |||||
| Greater than $50 million | 7 | $470,423 | $67,203 | 53.8% | 1.36x |
| >$30 to $50 million | 7 | 260,597 | 37,228 | 62.2 | 1.55 |
| >$20 to $30 million | 16 | 388,792 | 24,300 | 67.4 | 1.41 |
| >$15 to $20 million | 8 | 138,665 | 17,333 | 63.6 | 1.42 |
| >$10 to $15 million | 12 | 145,313 | 12,109 | 70.4 | 1.80 |
| >$5 to $10 million | 27 | 192,300 | 7,122 | 64.3 | 1.77 |
| $1 to $5 million | 116 | 268,098 | 2,311 | 60.4 | 2.07 |
| Less than $1 million | 576 | 124,822 | 217 | 53.9 | 3.12 |
| 769 | $1,989,010 | 2,586 | 61.4 | 1.68 | |
The following table summarizes the Bank's commercial and industrial loans by loan purpose as of the dates indicated. As of March 31, 2025, the Bank also had four commercial and industrial loan commitments totaling $4.2 million, at a weighted average rate of 7.00%.
| March 31, 2025 · December 31,2024 · September 30,2024 | ||||||
|---|---|---|---|---|---|---|
| Unpaid · Undisbursed · Gross Loan · Gross Loan · Gross Loan | ||||||
| Count | Principal | Amount | Amount | Amount | Amount | |
| (Dollars in thousands) | ||||||
| Working capital | 162 | $51,930 | $33,283 | $85,213 | $86,186 | $74,097 |
| Purchase/refinance business assets | 53 | 40,724 | 504 | 41,228 | 42,066 | 37,950 |
| Finance/lease vehicle | 230 | 24,998 | 2,775 | 27,773 | 26,655 | 28,318 |
| Purchase equipment | 66 | 13,440 | 9,579 | 23,019 | 23,472 | 15,457 |
| Other | 20 | 4,792 | 2,537 | 7,329 | 8,143 | 7,735 |
| 531 | $135,884 | $48,678 | $184,562 | $186,522 | $163,557 | |
| Weighted average rate | 6.74% | 7.19% | 6.86% | 6.83% | 6.89% | |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.