Financial Performance - The Company reported net income of $30.8 million, or $0.24 per share, for the current six-month period, compared to $16.3 million, or $0.12 per share, for the prior year[111]. - For the quarter ended March 31, 2025, the company reported net income of $15.4 million, or $0.12 per share, unchanged from the prior quarter[202]. - Income before income tax expense surged to $38,351 thousand, up 98.9% from $19,285 thousand in the prior year[234]. - Net income rose to $30,830 thousand, reflecting an increase of $14,525 thousand, or 89.1%[234]. - The effective tax rate increased to 19.6% from 15.5%, influenced by higher pretax income[234]. Asset and Deposit Growth - Total assets reached $9.72 billion, a $190.6 million increase from September 30, 2024, driven by increases in cash and securities[116]. - Total deposits increased by $242.6 million to $6.37 billion, primarily due to high yield savings accounts[117]. - Total assets increased to $9,718,184 thousand, a 7.5% increase from December 31, 2024[132]. - Deposits rose by $166.4 million, or 10.7% annualized, primarily due to the high yield savings account offering[133]. - The deposit portfolio totaled $6,372,545 thousand as of March 31, 2025, with a weighted average rate of 2.28%, down from 2.34% at December 31, 2024[180]. Loan Portfolio and Quality - The Bank's asset quality remained strong, with loans 30 to 89 days delinquent at 0.18% and loans 90 or more days delinquent at 0.12%[120]. - Loans receivable, net decreased by $77.7 million during the current quarter, with a shift from one- to four-family loans to commercial loans[132]. - The one- to four-family loan portfolio decreased by $96.0 million, while commercial loans grew by $21.8 million[132]. - The total amount of one- to four-family loans 30 to 89 days delinquent was $14,440,000, which is 0.18% of total loans receivable[159]. - The total amount of loans 90 or more days delinquent or in foreclosure was $9,563,000, which is 0.12% of total loans[161]. Interest Income and Margin - The net interest margin increased by 13 basis points to 1.89% due to higher yields on loans and a shift towards the commercial loan portfolio[112]. - Total interest and dividend income for the current quarter was $98.175 million, a 0.6% increase from $97.622 million in the prior quarter[204]. - Interest income from loans receivable rose by $10.2 million or 6.7% to $162.3 million, primarily due to a shift from one- to four-family loans to higher yielding commercial loans[223]. - The average rate for total loans receivable was 4.10% as of March 31, 2025, compared to 4.07% as of December 31, 2024[137]. - The net interest margin increased by 10 basis points from 1.82% in the prior year quarter to 1.92% in the current year quarter, driven by higher yields on loans[242]. Non-Interest Income and Expenses - Non-interest income rose to $4.953 million, a 5.5% increase from $4.693 million, driven by higher insurance commissions and other non-interest income[209]. - Total non-interest expenses increased to $29.540 million, an 8.8% rise from $27.148 million, largely due to higher salaries and employee benefits[211]. - The efficiency ratio for the current quarter was 60.54%, up from 57.86% in the prior quarter, indicating increased costs relative to revenue generation[212]. - Total non-interest income increased significantly to $9,646 thousand from a loss of $4,251 thousand, marking a change of $13,897 thousand, or 326.9%[229]. Capital and Borrowings - The Bank's capital ratios exceeded well-capitalized requirements, with stockholders' equity totaling $1.04 billion[119]. - Total liabilities increased to $8.68 billion as of March 31, 2025, up from $8.50 billion at September 30, 2024, primarily due to a $242.6 million increase in deposits[178]. - The weighted average effective rate of total borrowings was 3.54% as of March 31, 2025, down from 3.62%[188]. - The Bank had total borrowings of $2.14 billion, representing approximately 22% of total assets, with $684.7 million scheduled to be repaid or mature in the next 12 months[265]. - The Bank's risk-based tier 1 capital ratio was 16.5% as of March 31, 2025, indicating strong capital adequacy[272]. Future Plans and Strategies - Management plans to launch new checking products and digital banking services for small businesses in June 2025[126]. - The bank plans to enhance its digital banking experience, including a new deposit account onboarding platform set for November 2024[127]. - Management is actively evaluating new services for commercial and small businesses to grow fee revenue streams[128]. - The Company initiated a securities strategy by selling $1.30 billion of securities, resulting in an impairment loss of $192.6 million[122]. - The Company plans to pay out a total of $0.34 per share in dividends for fiscal year 2025, contingent on earnings exceeding this amount[194].

Core Viewpoint - Capitol Federal Financial (CFFN) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - The recent upgrade for Capitol Federal indicates a positive outlook for its earnings, which is expected to translate into increased buying pressure and a rise in stock price [3][5]. - For the fiscal year ending September 2025, Capitol Federal is projected to earn $0.49 per share, reflecting a year-over-year increase of 32.4% [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Capitol Federal's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Capitol Federal Financial (CFFN) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.11 per share a year ago [1][2] - The company achieved revenues of $48.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.29% and up from $45.96 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was 9.09%, with the company having surpassed consensus EPS estimates three times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.11, with expected revenues of $48.59 million, and for the current fiscal year, the estimate is $0.46 on revenues of $192.92 million [8] Stock Performance and Outlook - Capitol Federal shares have declined approximately 8.6% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Savings and Loan industry, to which Capitol Federal belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Flushing Financial (FFIC), another company in the same industry, is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year increase of 57.1% [10]

Financial Performance - The Company reported net income of $15.4 million, or $0.12 per share, for the quarter ended March 31, 2025, unchanged from the prior quarter[2]. - For the six months ended March 31, 2025, net income was $30.8 million, or $0.24 per share, compared to $16.3 million, or $0.12 per share, in the prior year[18]. - Net income for the six months ended March 31, 2025, was $30,830 thousand, an increase of $14,525 thousand or 89.1% from $16,305 thousand in the prior year[33]. - Net income for the three months ended March 31, 2025, was $15,399 thousand, slightly down from $15,431 thousand in the previous quarter[56]. Interest Income and Expense - Total interest and dividend income rose to $98.175 million, a 0.6% increase from the previous quarter[4]. - Interest expense decreased by 1.9% to $54.335 million, primarily due to lower rates on deposits[7]. - Total interest and dividend income increased by $10,816 thousand, or 5.8%, to $195,797 thousand for the six months ended March 31, 2025, compared to $184,981 thousand for the same period in 2024[22]. - Interest expense on deposits rose by $7,340 thousand, or 11.1%, totaling $73,198 thousand for the six months ended March 31, 2025, compared to $65,858 thousand in the prior year[25]. Non-Interest Income and Expense - Non-interest income increased by 5.5% to $4.953 million, driven by higher insurance commissions and other non-interest income[10]. - Non-interest income surged to $9,646 thousand for the six months ended March 31, 2025, compared to a net loss of $4,251 thousand in the prior year, marking a change of $13,897 thousand or 326.9%[28]. - Non-interest expense rose by 8.8% to $29.540 million, with significant increases in salaries and employee benefits, and regulatory services[13]. - Total non-interest expense slightly decreased by $265 thousand, or 0.5%, to $56,688 thousand for the six months ended March 31, 2025, compared to $56,953 thousand in the prior year[31]. Efficiency and Ratios - The Company's efficiency ratio was 60.54%, up from 57.86% in the prior quarter, indicating higher costs relative to revenue generation[14]. - The efficiency ratio improved to 59.23% for the current year period compared to 74.29% for the prior year period, indicating better cost management[32]. - The return on average assets (annualized) was 0.64% for the three months ended March 31, 2025, slightly down from 0.65% in the previous quarter[58]. - Return on average assets improved to 0.64% for the six months ended March 31, 2025, up from 0.34% in the prior year[60]. - Return on average equity increased to 5.97% for the six months ended March 31, 2025, compared to 3.15% for the same period in 2024[60]. Assets and Liabilities - Total assets increased by $180 million, or 7.5%, to $9.72 billion as of March 31, 2025, primarily due to increases in cash and cash equivalents and securities[37]. - Total assets increased to $9,611,340 thousand as of March 31, 2025, from $9,552,269 thousand at the end of the previous quarter[58]. - Total liabilities increased to $8.68 billion as of March 31, 2025, compared to $8.51 billion as of December 31, 2024[54]. - The Bank's stockholders' equity totaled $1.04 billion as of March 31, 2025, reflecting an increase of $4.8 million from September 30, 2024[44]. Deposits - Deposits rose by $166.4 million, or 10.7% annualized, during the current quarter, largely due to the Bank's high yield savings account offering[39]. - Deposits rose by $242.6 million from September 30, 2024, driven by high yield savings accounts and retail checking accounts, while borrowings decreased by $36.6 million[41]. - The deposit portfolio totaled $6.372 billion, with a weighted average rate of 2.28%[104]. - Total retail deposits amounted to $5,937,725 thousand with an average rate of 2.30%, representing 93.2% of total deposits[107]. Loans and Credit Quality - Loan originations for one- to four-family and consumer loans amounted to $64.5 million at a rate of 6.65% for the three months ended March 31, 2025[43]. - Total loans receivable as of March 31, 2025, amounted to $7,894,620 thousand, with a weighted average rate of 4.10%[64]. - The unpaid principal balance of non-owner occupied commercial real estate loans was $1.01 billion as of March 31, 2025[72]. - The total amount of consumer loans was $108,483 thousand, with a weighted average rate of 7.93%[64]. - As of March 31, 2025, the total gross loan amount was $1,802,424,000, a slight decrease from $1,813,579,000 as of December 31, 2024[75]. - The total number of non-accrual loans was 81, with a total amount of $10,833,000 as of March 31, 2025[84]. - The percentage of loans 90 or more days delinquent or in foreclosure was 0.12% as of March 31, 2025, compared to 0.13% on December 31, 2024[84]. Credit Losses and Provisions - The provision for credit losses increased to $677 thousand in the current year period from $424 thousand in the prior year period, driven by commercial loan growth[27]. - The allowance for credit losses (ACL) totaled $23,970,000 as of March 31, 2025, with a ratio of ACL to loans receivable at 0.30%[89]. - The commercial real estate substandard loans increased to $45,961,000 as of March 31, 2025, primarily due to a $39.0 million participation loan related to a hotel in Texas[86]. - The ratio of ACL to commercial real estate loans was 1.27 as of March 31, 2025, slightly down from 1.32 on December 31, 2024[89]. Securities and Investments - The Company initiated a securities strategy in October 2023, selling $1.30 billion of securities to improve earnings and liquidity[20]. - The securities portfolio at amortized cost was $941.585 million, with fixed-rate securities comprising 92% of the portfolio[97]. - The weighted average yield on the securities portfolio was 5.46% as of March 31, 2025[98]. - The weighted average life (WAL) of the securities portfolio was estimated at 5.6 years[98]. Borrowings - The Bank's total borrowings as of March 31, 2025, were $2,143,320 thousand with a weighted average effective rate of 3.54%[112]. - New FHLB borrowings during the three months ended March 31, 2025, amounted to $150,000 thousand at an effective rate of 4.35%[112]. - The weighted average maturity (WAM) of the Bank's borrowings remained at 1.6 years as of March 31, 2025[112]. Future Outlook - The Bank anticipates continued improvement in net interest margin for the remainder of fiscal year 2025, driven by decreasing deposit costs and increasing yields on the loan portfolio[35]. - Management anticipates improved occupancy and cash flow for the hotel project in Texas during 2025, expecting full stabilization in 2026[86].

Group 1 - Continued net interest margin expansion is expected to be a key earnings catalyst for Capitol Federal Financial (NASDAQ: CFFN) this year [1] - There is a less optimistic outlook on residential mortgage demand compared to previous assessments [1] - Loan growth is anticipated to be maintained near historical levels [1]

Financial Performance - The Company reported net income of $15.4 million, or $0.12 per share, for the current quarter, compared to $2.5 million, or $0.02 per share, in the prior year quarter[113]. - Net income for the quarter ended December 31, 2024, was $15,431,000, compared to $2,543,000 for the same quarter in 2023, reflecting a significant year-over-year increase[204]. - Basic EPS for the quarter ended December 31, 2024, was $0.12, up from $0.02 for the same quarter in 2023[204]. - Income before income tax expense increased dramatically by 823.5% to $19.098 million, with net income rising by 506.8% to $15.431 million[246]. - The Company reported total dividends paid year-to-date of $44,275,000 for 2024, with a per share dividend of $0.340[201]. Interest Income and Margin - Total interest and dividend income for the quarter ended December 31, 2024, was $97,622,000, an increase from $91,692,000 for the same quarter in 2023[204]. - The net interest margin increased by 15 basis points to 1.86% due to higher yields on loans and securities, outpacing the increase in deposit costs[114]. - Total interest and dividend income rose to $97.622 million, up 6.5% from $91.692 million in the prior year quarter, with loans receivable increasing by 7.2% to $81.394 million[232]. - The net interest margin increased by six basis points from 1.80% in the prior quarter to 1.86% in the current quarter, primarily due to growth in the higher yielding commercial loan portfolio[213]. Loan Portfolio and Growth - The loan portfolio reached $7.95 billion, a $46.2 million increase from the previous quarter, with commercial loans growing by 36.5% on an annualized basis[117]. - Total loans receivable reached $7,981,231 thousand, with a yield of 4.05%, reflecting an increase from $7,939,973 thousand and a yield of 4.00% in the previous quarter[207]. - Loans receivable, net rose by $46.2 million during the current quarter, with a shift towards commercial loans, which grew by $137.5 million[132]. - Total originated, refinanced, and purchased loans reached $335,521 thousand, with an overall weighted average rate of 6.85%[140]. Deposits and Borrowings - Total deposits increased by $76.1 million to $6.21 billion, primarily in retail savings accounts due to high-yield offerings[118]. - The deposit portfolio balance increased to $6,206,117 thousand at December 31, 2024, compared to $6,129,982 thousand at September 30, 2024[181]. - Total borrowings decreased by $15.8 million to $2.16 billion, with $2.91 billion in additional liquidity available[119]. - Total borrowings were $2.16 billion, consisting of $1.96 billion in fixed-rate FHLB advances and $200 million in variable-rate advances tied to interest rate swaps[185]. Asset Quality and Delinquency - The Bank's asset quality remained strong, with loans 30 to 89 days delinquent at 0.40% and loans 90 or more days delinquent at 0.13%[121]. - The total amount of loans 90 or more days delinquent or in foreclosure was $10.140 million, representing 0.13% of total loans[160]. - The delinquent loans for 30 to 89 days increased to $31,965 thousand as of December 31, 2024, compared to $16,030 thousand in September 2024, reflecting a rise in delinquency rates[157]. - Total nonaccrual loans increased to $11,361,000 from $10,092,000, representing a rise of 12.5%[160]. Efficiency and Expenses - The efficiency ratio improved to 57.86% from 92.86% in the prior year quarter, with an operating expense ratio of 1.14% compared to 1.18%[115]. - Non-interest expense increased slightly to $27.1 million, a 0.4% increase from $27.0 million in the prior quarter, driven by higher salaries and employee benefits[222]. - The Company's efficiency ratio improved to 57.86% from 59.29% in the prior quarter, indicating a more efficient operation due to higher net interest income[223]. - The provision for credit losses for the current quarter was $677 thousand, compared to a provision release of $637 thousand in the prior quarter, reflecting a $2.0 million increase in the allowance for loans[218]. Future Plans and Strategies - Management plans to launch new checking products and digital banking services for small businesses in the second quarter of fiscal year 2025[127]. - The Company anticipates sufficient taxable income in fiscal year 2025 to allow for earnings distributions to the holding company in fiscal year 2026[198]. - The Company has $75 million authorized for stock repurchase, with plans to extend the repurchase program through February 2026[196].

Core Viewpoint - Capitol Federal Financial (CFFN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates as a key factor influencing stock prices, with a strong correlation between earnings estimate revisions and near-term stock movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - Capitol Federal is projected to earn $0.46 per share for the fiscal year ending September 2025, reflecting a year-over-year increase of 24.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Capitol Federal has risen by 2.2%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Capitol Federal to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1: Earnings Performance - Capitol Federal Financial (CFFN) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and up from $0.10 per share a year ago [1] - The earnings surprise for this quarter was 9.09%, following a previous quarter where the company reported earnings of $0.09 per share against an expectation of $0.07, resulting in a surprise of 28.57% [2] - Over the last four quarters, Capitol Federal has surpassed consensus EPS estimates two times [2] Group 2: Revenue Performance - The company posted revenues of $46.92 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.74%, compared to year-ago revenues of $30.7 million [3] - Capitol Federal has also topped consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - Capitol Federal shares have declined approximately 3.4% since the beginning of the year, while the S&P 500 has gained 3.2% [4] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.11 on revenues of $47.33 million, and $0.45 on revenues of $191.46 million for the current fiscal year [8] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the sector [9] Group 4: Competitor Insights - Berkshire Hills Bancorp (BHLB), another company in the same industry, is expected to report quarterly earnings of $0.54 per share, reflecting a year-over-year change of +14.9% [10] - The expected revenues for Berkshire Hills Bancorp are $104.59 million, which is a decrease of 16.7% from the year-ago quarter [11]

Financial Performance - The company reported net income of $15.4 million, or $0.12 per share, for the quarter ended December 31, 2024, an increase of $3.4 million from the previous quarter[6]. - Net income for the three months ended December 31, 2024, was $15.4 million, a 506.8% increase from $2.5 million in the prior year[38]. - Net income for the quarter ended December 31, 2024, was $15.431 million, an increase from $12.057 million in the previous quarter[60]. - The effective tax rate decreased to 19.2% from 37.2% in the prior quarter, resulting in a significant reduction in income tax expense[17]. Income and Expenses - Interest and dividend income totaled $97.622 million, a $755 thousand increase from the previous quarter, primarily driven by an increase in the average balance of the commercial loan portfolio[4]. - Non-interest income decreased to $4.693 million, down $93 thousand from the previous quarter, with deposit service fees declining by 4.3%[12]. - Total non-interest expense increased slightly to $27.148 million, with salaries and employee benefits rising by 8.8% due to the accrual of incentive compensation[14]. - The company's efficiency ratio improved to 57.86% from 59.29% in the prior quarter, indicating better cost management relative to revenue generation[15]. Loan Portfolio and Credit Losses - The provision for credit losses was recorded at $677 thousand, compared to a provision release of $637 thousand in the prior quarter, reflecting a $2.0 million increase in the allowance for credit losses for loans[10]. - The Company recorded a provision for credit losses of $677 thousand during the current quarter, compared to $123 thousand for the prior year quarter[30]. - The allowance for credit losses (ACL) increased to $24.997 million, with a ratio of ACL to loans receivable at 0.31% as of December 31, 2024[91]. - The ratio of non-performing loans to total loans was 0.13% as of December 31, 2024, up from 0.12% in the previous quarter[85]. Asset and Liability Management - Total assets increased by 0.4% to $9.54 billion as of December 31, 2024, from $9.53 billion at the end of the previous quarter[40]. - Total interest-earning assets increased to $9,088,947 thousand with a net interest income of $42,230 thousand for the three months ended December 31, 2024, reflecting a net interest margin of 1.86%[63]. - Total interest-bearing liabilities reached $7,815,163 thousand with an average rate of 2.79% as of December 31, 2024[119]. - The total amount of non-maturity deposits was $2,735,138 thousand with an average rate of 0.88%[119]. Securities and Investments - The Company initiated a securities strategy by selling $1.30 billion of securities, representing 94% of its securities portfolio, and recognized an impairment loss of $192.6 million[23]. - The securities portfolio's ending balance was $861.5 million with a weighted average yield of 5.62%[101]. - The weighted average life (WAL) of the securities portfolio was estimated at 4.8 years as of December 31, 2024[100]. Dividends and Stockholder Equity - The company announced a cash dividend of $0.085 per share, payable on February 21, 2025, to stockholders of record as of February 7, 2025[6]. - Stockholders' equity totaled $1.03 billion at December 31, 2024, a decrease of $5.3 million from September 30, 2024, primarily due to a decrease in accumulated other comprehensive income[48]. - The Company intends to pay a regular quarterly cash dividend of $0.085 per share for fiscal year 2025, totaling $0.34 per share for the year[51]. Market and Economic Conditions - Single-family origination activity has slowed, with originated loan balances decreasing due to high interest rates and limited housing inventory, impacting the one- to four-family loan portfolio[42]. - The one- to four-family originated loan portfolio is expected to continue decreasing due to ongoing housing affordability challenges[42]. - The bank anticipates funding approximately $87.5 million in commercial real estate and construction loans during the March 2025 quarter[76]. Delinquency and Non-Performing Assets - The total amount of loans 30 to 89 days delinquent was $31.965 million, representing 0.40% of total loans receivable[84]. - Non-performing assets totaled $11.361 million, accounting for 0.12% of total assets as of December 31, 2024[85]. - The increase in 30-89 day delinquent commercial real estate loans was primarily due to a $15.5 million Community Reinvestment Act loan[83].

Financial Performance - The Company reported a net loss for tax purposes for fiscal year 2024 due to the sale of securities in October 2023, resulting in negative current and accumulated earnings and profits[100]. - The Bank's ability to pay dividends and repurchase shares is contingent upon generating sufficient earnings and cash availability at the holding company level[99]. - The increase in commercial loans exposes the Bank to greater lending and credit risks, potentially impacting financial condition and results of operations[77]. Taxation - As of September 30, 2024, the Bank had $75.9 million in pre-1988 bad debt reserves, resulting in an unrecorded deferred tax liability of $15.9 million[58]. - The Kansas privilege tax rate for fiscal year 2024 is set at 4.5% of earnings, which will decrease to 4.18% starting in fiscal year 2025[60]. - Capitol Federal Financial, Inc. files a consolidated Kansas corporate tax return with a corporate tax rate of 4.0% plus a 3.0% surcharge on earnings over $50,000[59]. - The Company intends not to distribute earnings from the Bank to the Company during fiscal year 2025 to minimize tax associated with bad debt recapture[103]. Employee and Community Engagement - The Bank's total employees increased to 659, with a full-time equivalent of 636, up from 632 in the previous year[63]. - The Bank recorded over 3,690 hours of volunteer time by employees for local organizations and charities during fiscal year 2024[64]. - The Company actively promotes diversity and inclusion, with initiatives supported by the Board of Directors and an Inclusion Task Force[67]. Regulatory and Competitive Environment - The Company faces strong competition from local, regional, and national banks, which may limit growth and profitability[92]. - The Company is subject to extensive regulation, which may impose restrictions on operations and increase compliance costs[93]. Risk Management and Cybersecurity - The Company faces increasing information security risks due to evolving technologies and cyber threats, which could adversely affect business operations and reputation[81]. - The Bank has implemented a comprehensive cybersecurity risk management program to protect sensitive information and mitigate threats[116]. - The Bank conducts regular assessments and testing of cybersecurity policies and practices, including audits and vulnerability testing, to ensure effectiveness[119]. - A third-party risk program is in place to manage information security and privacy risks associated with third-party relationships, including assessments during onboarding and throughout the relationship lifecycle[120]. - The Bank faces ongoing malicious cyber activities, including unauthorized access attempts and phishing, which could materially impact operations and financial condition[121]. - The Board of Directors oversees cybersecurity risk management and receives annual comprehensive updates on IT status and cyber incidents from the Chief Information Officer[122]. - As of September 30, 2024, there were no known cybersecurity incidents that materially affected the Bank's business strategies or financial condition[124]. - The Bank's risk management and compliance programs may not effectively mitigate all risks, potentially affecting business performance[105]. - The Company is vulnerable to increasing fraud and financial crimes, which could materially impact results of operations[107]. - The Company relies heavily on technology, and failures in technology initiatives could adversely affect business performance[91].