Capitol Federal Financial, Inc.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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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.
Jun 30, 2025 · Filed Aug 8, 2025
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Financial Condition - Liabilities
Liabilities. Total liabilities were $8.65 billion at June 30, 2025, compared to $8.50 billion at September 30, 2024. The increase was due primarily to a $301.2 million increase in deposits, partially offset by a $108.0 million decrease in borrowings due to principal payments made on the Bank's amortizing advances, along with borrowings that matured but were not replaced.
Deposits. The following table presents the amount, weighted average rate and percent of total for the components of our deposit portfolio at the dates presented. The decrease in the deposit portfolio rate at June 30, 2025 compared to March 31, 2025 and September 30, 2024 was due mainly to lower rates on retail certificates of deposit.
| June 30, 2025 · March 31, 2025 · September 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| % of | % of | % of | |||||||
| Amount | Rate | Total | Amount | Rate | Total | Amount | Rate | Total | |
| (Dollars in thousands) | |||||||||
| Non-interest-bearing checking | $579,595 | —% | 9.0% | $574,940 | —% | 9.0% | $549,596 | —% | 9.0% |
| Interest-bearing checking | 884,838 | 0.24 | 13.8 | 905,922 | 0.22 | 14.2 | 847,542 | 0.23 | 13.8 |
| High yield savings | 408,018 | 3.88 | 6.4 | 284,097 | 4.09 | 4.5 | 96,241 | 4.09 | 1.6 |
| Other savings | 433,188 | 0.07 | 6.7 | 448,034 | 0.07 | 7.0 | 444,331 | 0.11 | 7.2 |
| Money market | 1,203,917 | 1.22 | 18.7 | 1,247,106 | 1.21 | 19.6 | 1,226,962 | 1.46 | 20.0 |
| Certificates of deposit | 2,921,581 | 3.81 | 45.4 | 2,912,446 | 3.99 | 45.7 | 2,965,310 | 4.25 | 48.4 |
| $6,431,137 | 2.24 | 100.0% | $6,372,545 | 2.28 | 100.0% | $6,129,982 | 2.45 | 100.0% | |
The following table presents the amount, weighted average rate, and percent of total for the components of our deposit portfolio, split between retail non-maturity deposits, commercial non-maturity deposits, and certificates of deposit at the dates presented. Total deposits increased $301.2 million, or 4.9%, from September 30, 2024. The increase was primarily in retail non-maturity deposits which increased $246.6 million, or 8.5%, due mainly to an increase in high yield savings accounts, along with a $98.3 million, or 37.8%, increase in commercial non-maturity deposits, and a $40.2 million, or 52.5%, increase in public unit certificates from September 30, 2024. The increases noted above were partially offset by an $85.4 million, or 3.0%, decrease in retail certificates of deposit from September 30, 2024.
| June 30, 2025 · March 31, 2025 · September 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| % of | % of | % of | |||||||
| Amount | Rate | Total | Amount | Rate | Total | Amount | Rate | Total | |
| (Dollars in thousands) | |||||||||
| Retail non-maturity deposits: | |||||||||
| Non-interest-bearing checking | $415,066 | —% | 6.5% | $442,379 | —% | 6.9% | $418,790 | —% | 6.8% |
| Interest-bearing checking | 810,027 | 0.09 | 12.6 | 837,294 | 0.09 | 13.1 | 799,407 | 0.10 | 13.0 |
| High yield savings | 408,018 | 3.88 | 6.4 | 284,097 | 4.09 | 4.5 | 96,241 | 4.09 | 1.6 |
| Other savings | 429,778 | 0.07 | 6.6 | 444,681 | 0.07 | 7.0 | 441,265 | 0.11 | 7.2 |
| Money market | 1,088,623 | 1.07 | 16.9 | 1,138,281 | 1.08 | 17.9 | 1,149,212 | 1.37 | 18.7 |
| Total | 3,151,512 | 0.91 | 49.0 | 3,146,732 | 0.79 | 49.4 | 2,904,915 | 0.73 | 47.4 |
| Commercial non-maturity deposits: | |||||||||
| Non-interest-bearing checking | 164,529 | — | 2.5 | 132,561 | — | 2.1 | 130,806 | — | 2.1 |
| Interest-bearing checking | 74,811 | 1.89 | 1.2 | 68,628 | 1.83 | 1.1 | 48,135 | 2.40 | 0.8 |
| Savings | 3,410 | 0.05 | 0.1 | 3,353 | 0.05 | 0.1 | 3,066 | 0.05 | 0.1 |
| Money market | 115,294 | 2.58 | 1.8 | 108,825 | 2.57 | 1.7 | 77,750 | 2.72 | 1.3 |
| Total | 358,044 | 1.23 | 5.6 | 313,367 | 1.29 | 4.9 | 259,757 | 1.26 | 4.2 |
| Certificates of deposit: | |||||||||
| Retail certificates of deposit | 2,745,213 | 3.80 | 42.7 | 2,790,993 | 3.99 | 43.8 | 2,830,579 | 4.23 | 46.2 |
| Commercial certificates of deposit | 59,695 | 3.69 | 0.9 | 58,545 | 3.90 | 0.9 | 58,236 | 4.40 | 1.0 |
| Public unit certificates of deposit | 116,673 | 4.12 | 1.8 | 62,908 | 4.22 | 1.0 | 76,495 | 4.62 | 1.2 |
| Total | 2,921,581 | 3.81 | 45.4 | 2,912,446 | 3.99 | 45.7 | 2,965,310 | 4.25 | 48.4 |
| $6,431,137 | 2.24 | 100.0% | $6,372,545 | 2.28 | 100.0% | $6,129,982 | 2.45 | 100.0% | |
The following table presents the amount, weighted average rate, and percent of total for total retail deposits, commercial deposits, and public unit certificates of deposit at the dates noted.
| June 30, 2025 · March 31, 2025 · September 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| % of | % of | % of | |||||||
| Amount | Rate | Total | Amount | Rate | Total | Amount | Rate | Total | |
| (Dollars in thousands) | |||||||||
| Total retail deposits | $5,896,725 | 2.25% | 91.7% | $5,937,725 | 2.30% | 93.2% | $5,735,494 | 2.46% | 93.6% |
| Total commercial deposits | 417,739 | 1.58 | 6.5 | 371,912 | 1.70 | 5.8 | 317,993 | 1.84 | 5.2 |
| Public unit certificates of deposit | 116,673 | 4.12 | 1.8 | 62,908 | 4.22 | 1.0 | 76,495 | 4.62 | 1.2 |
| $6,431,137 | 2.24 | 100.0% | $6,372,545 | 2.28 | 100.0% | $6,129,982 | 2.45 | 100.0% | |
As of June 30, 2025, approximately $899.4 million (or approximately 14%) of the Bank's Call Report deposit balance was uninsured, of which approximately $509.4 million (or approximately 8% of the Bank's Call Report deposit balance) related to commercial and retail deposit accounts, with the remainder mainly comprised of fully collateralized public unit deposits and intercompany accounts. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.
Borrowings. Total borrowings at June 30, 2025 were $2.07 billion, which was comprised of $1.87 billion in fixed-rate FHLB advances, $200.0 million in FHLB variable-rate advances tied to interest rate swaps, and $1.1 million in finance leases.
The following table presents the maturity of term borrowings, which consist of FHLB advances, along with associated weighted average contractual and effective rates as of June 30, 2025. Amortizing FHLB advances totaling $297.2 million as of June 30, 2025 are presented based on their maturity dates versus their quarterly scheduled repayment dates.
| Maturity by · Contractual · Effective | |||
|---|---|---|---|
| Fiscal Year | Amount | Rate | Rate(1) |
| (Dollars in thousands) | |||
| 2025 | $100,000 | 4.69% | 3.03% |
| 2026 | 425,000 | 2.11 | 2.30 |
| 2027 | 745,000 | 3.49 | 3.56 |
| 2028 | 570,902 | 4.37 | 4.14 |
| 2029 | 141,250 | 4.45 | 4.45 |
| 2030 | 90,000 | 4.20 | 4.20 |
| $2,072,152 | 3.60 | 3.52 | |
(1)The effective rate includes the impact of interest rate swaps and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid.
The following table presents borrowing activity for the periods shown. The borrowings presented in the table have original contractual terms of one year or longer or are tied to interest rate swaps with original contractual terms of one year or longer. Line of credit borrowings and finance leases are excluded from the table. The effective rate is shown as a weighted average and includes the impact of interest rate swaps and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid. The weighted average maturity ("WAM") is the remaining weighted average contractual term in years. The beginning and ending WAMs represent the remaining maturity as of the first and last days of the period presented. During the current quarter, the Bank prepaid fixed-rate FHLB advances with a weighted average remaining term of 0.6 years totaling $200.0 million and a weighted average contractual interest rate of 4.70%, and replaced these advances with $200.0 million of fixed-rate FHLB advances with a weighted average contractual interest rate of 3.83% and a weighted average term of 2.5 years. The weighted average effective interest rate of the new advances was 3.93%, which includes the impact of deferred prepayment penalties being recognized over the life of the new advances. This activity is reflected in the table below. During the prior year period, Federal Reserve's Bank Term Funding Program ("BTFP") borrowings were paid off with a portion of the proceeds received from the securities strategy.
| For the Three Months Ended · For the Nine Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2025 · June 30, 2025 · June 30, 2024 | |||||||||||||||
| Effective · Effective · Effective | |||||||||||||||
| Amount · Rate · WAM · Amount · Rate · WAM · Amount · Rate · WAM | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Beginning balance | $2,143,320 | 3.54% | 1.6 | $2,180,656 | 3.29% | 1.6 | $2,882,828 | 3.34% | 1.8 | ||||||
| Maturities and repayments | (371,168) | 3.93 | (758,504) | 3.40 | (339,754) | 2.91 | |||||||||
| New FHLB borrowings | 300,000 | 3.93 | 2.5 | 650,000 | 4.13 | 2.9 | 250,000 | 4.55 | 4.2 | ||||||
| BTFP, net | — | — | — | — | — | — | (500,000) | 4.70 | — | ||||||
| Ending balance | $2,072,152 | 3.52 | 1.7 | $2,072,152 | 3.52 | 1.7 | $2,293,074 | 3.24 | 1.7 | ||||||
Maturities of Interest-Bearing Liabilities. The following table presents the maturity and weighted average repricing rate, which is also the weighted average effective rate, of certificates of deposit, split between retail/commercial and public unit amounts, and non-amortizing FHLB advances for the next four quarters as of June 30, 2025.
| September 30, · December 31, · March 31, · June 30, | |||||
|---|---|---|---|---|---|
| 2025 | 2025 | 2026 | 2026 | Total | |
| (Dollars in thousands) | |||||
| Retail/Commercial Certificates: | |||||
| Amount | $453,811 | $618,835 | $302,603 | $556,155 | $1,931,404 |
| Repricing Rate | 4.20% | 3.95% | 3.59% | 3.82% | 3.91% |
| Public Unit Certificates: | |||||
| Amount | $10,983 | $14,329 | $43,110 | $9,001 | $77,423 |
| Repricing Rate | 4.42% | 3.87% | 4.13% | 4.22% | 4.13% |
| Term Borrowings: | |||||
| Amount | $100,000 | $100,000 | $100,000 | $100,000 | $400,000 |
| Repricing Rate | 3.03% | 1.09% | 1.60% | 2.51% | 2.06% |
| Total | |||||
| Amount | $564,794 | $733,164 | $445,713 | $665,156 | $2,408,827 |
| Repricing Rate | 4.00% | 3.56% | 3.19% | 3.63% | 3.61% |
The following table sets forth the WAM information for our certificates of deposit, in years, as of June 30, 2025.
| Retail certificates of deposit | 0.9 |
|---|---|
| Commercial certificates of deposit | 0.7 |
| Public unit certificates of deposit | 0.9 |
| Total certificates of deposit | 0.9 |
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