Dividend Yield: 5.76% Wedbush analyst David Chiaverini reiterated a Neutral rating with a price target of $17 on April 24. This analyst has an accuracy rate of 61%. Piper Sandler analyst Matthew Clark maintained a Neutral rating and cut the price target from $20 to $17 on May 1, 2023. This analyst has an accuracy rate of 66%. Recent News: Hanmi Financial said it will report second quarter financial results on Tuesday, July 23. Benzinga Pro's real-time newsfeed alerted to latest HAFC's news Loading... During ...

[PART I -- FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20--%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended March 31, 2024, including the balance sheets, income statements, statements of comprehensive income, stockholders' equity, and cash flows, along with detailed notes outlining significant accounting policies and financial instrument details [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a decrease in total assets to $9.72 billion from $10.18 billion at September 30, 2023, primarily due to a securities strategy, with net income for the six months ended March 31, 2024, significantly decreasing to $16.3 million from $30.4 million in the prior-year period due to a net loss on securities transactions, and total stockholders' equity also seeing a slight decline to $1.02 billion Consolidated Balance Sheet Summary (in thousands) | Metric | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | $9,721,286 | $10,177,461 | | Loans receivable, net | $7,877,569 | $7,970,949 | | AFS securities, at fair value | $842,950 | $1,384,482 | | **Total Liabilities** | $8,696,383 | $9,133,407 | | Deposits | $6,141,711 | $6,051,220 | | Borrowings | $2,351,022 | $2,879,125 | | **Total Stockholders' Equity** | $1,024,903 | $1,044,054 | Consolidated Income Statement Summary (in thousands, except EPS) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $41,320 | $41,959 | $80,913 | $87,787 | | Provision for Credit Losses | $301 | $891 | $424 | $4,551 | | Net Loss from Securities Transactions | $0 | $0 | $(13,345) | $0 | | **Net Income** | $13,762 | $14,189 | $16,305 | $30,429 | | **Diluted EPS** | $0.11 | $0.11 | $0.12 | $0.23 | Consolidated Cash Flow Summary (Six Months Ended, in thousands) | Cash Flow From | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Operating Activities | $15,168 | $24,734 | | Investing Activities | $674,270 | $(424,258) | | Financing Activities | $(491,530) | $410,537 | | **Net Increase in Cash** | **$197,908** | **$11,013** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the basis of presentation and significant accounting policies, including the adoption of ASU 2022-02 which eliminated Troubled Debt Restructuring (TDR) accounting, providing breakdowns of securities, loans, allowance for credit losses (ACL), borrowings, income taxes, and fair value measurements, with key disclosures covering the impact of the company's securities strategy on deferred tax assets and the composition of the loan portfolio - The Company adopted ASU 2022-02 on October 1, 2023, which eliminated the accounting guidance for Troubled Debt Restructurings (TDRs), resulting in a cumulative-effect adjustment to accumulated deficit of **$27 thousand**, net of tax[316](index=316&type=chunk) - The loan portfolio is primarily composed of one- to four-family loans, with a total net balance of **$7.88 billion** at March 31, 2024, down from **$7.97 billion** at September 30, 2023[32](index=32&type=chunk)[333](index=333&type=chunk) - Borrowings decreased to **$2.35 billion** at March 31, 2024, from **$2.88 billion** at September 30, 2023, mainly due to the payoff of **$500.0 million** in borrowings from the Federal Reserve's Bank Term Funding Program (BTFP)[53](index=53&type=chunk) - Due to an anticipated taxable net loss in fiscal year 2024 from its securities strategy, the Company recorded a deferred tax asset of **$42.3 million** related to the net operating loss as of March 31, 2024[64](index=64&type=chunk) - The majority of the company's financial instruments measured at fair value, including Mortgage-Backed Securities (MBS) and interest rate swaps, are classified as Level 2, valued using observable market inputs rather than direct quoted prices[69](index=69&type=chunk)[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operating results, detailing a significant securities strategy initiated in October 2023 to improve future earnings, covering performance metrics, balance sheet changes, strong asset quality, liquidity management, and detailed comparisons of operating results across different periods [Executive Summary](index=33&type=section&id=Executive%20Summary) The company initiated a securities strategy in October 2023, selling $1.30 billion of low-yield securities and redeploying proceeds into higher-yielding assets and paying down debt, resulting in a $13.3 million net loss but expected future earnings improvement, with net income for the six months ended March 31, 2024, at $16.3 million ($0.12/share), down from $30.4 million ($0.23/share) year-over-year, primarily due to the securities loss, while the loan portfolio shifted towards commercial loans and asset quality remained strong, and digital transformation efforts improved customer engagement - In October 2023, a securities strategy was launched, selling **$1.30 billion** of securities with a **1.22%** yield, with proceeds used to purchase **$632.0 million** of securities yielding **5.75%** and pay down **$500.0 million** of borrowings with a **4.70%** cost[99](index=99&type=chunk) - Net income for the six months ended March 31, 2024, was **$16.3 million** (**$0.12/share**), compared to **$30.4 million** (**$0.23/share**) for the prior-year period, with the decrease mainly due to a **$13.3 million** net loss on the securities sale[101](index=101&type=chunk) - Total assets decreased by **$456.2 million** to **$9.72 billion** at March 31, 2024, from September 30, 2023, primarily due to the securities strategy[103](index=103&type=chunk) - The company is advancing its digital transformation, resulting in a **64%** increase in person-to-person payment volume and a **40%** increase in payment amounts year-over-year for the current quarter following the integration of Zelle[107](index=107&type=chunk) [Financial Condition](index=36&type=section&id=Financial%20Condition) As of March 31, 2024, total assets were $9.72 billion, a decrease from September 30, 2023, driven by the securities strategy, with the loan portfolio decreasing slightly to $7.88 billion, deposits increasing to $6.14 billion, and borrowings significantly decreasing to $2.35 billion after paying off BTFP debt, while asset quality remained strong with low delinquency rates, stockholders' equity decreased to $1.02 billion due to dividends and share repurchases, and the company maintains a well-capitalized status Financial Condition Summary (in thousands) | Metric | March 31, 2024 | Dec 31, 2023 | Sept 30, 2023 | | :--- | :--- | :--- | :--- | | Total assets | $9,721,286 | $9,576,064 | $10,177,461 | | Loans receivable, net | $7,877,569 | $7,947,510 | $7,970,949 | | Deposits | $6,141,711 | $6,021,595 | $6,051,220 | | Borrowings | $2,351,022 | $2,373,064 | $2,879,125 | | Stockholders' equity | $1,024,903 | $1,034,121 | $1,044,054 | - The loan portfolio is shifting, with one-to-four family loans decreasing by **$88.0 million** and commercial loans increasing by **$20.3 million** during the current quarter[121](index=121&type=chunk) - Asset quality remains strong: At March 31, 2024, loans 30 to 89 days delinquent were **0.19%** of total loans, and net charge-offs were only **$1 thousand** for the six-month period[105](index=105&type=chunk) - During the six months ended March 31, 2024, the Company repurchased **3,280,110 shares** of common stock for **$19.3 million**, and a new **$75 million** share repurchase plan was approved by the FRB in February 2024[171](index=171&type=chunk) [Operating Results](index=51&type=section&id=Operating%20Results) This section provides a detailed comparative analysis of operating results, showing net income rising to $13.8 million from $2.5 million for Q2'24 vs Q1'24, mainly due to the prior quarter's $13.3 million loss from the securities strategy, and a decrease in net income for the six months ended March 31, 2024 vs 2023, from $30.4 million to $16.3 million, also due to the securities loss, with the net interest margin improving to 1.76% from 1.59% YoY due to the absence of a low-margin leverage strategy, and highlighting the expected tax recapture of pre-1988 bad debt reserves due to an anticipated tax loss in FY2024 - **Q2'24 vs Q1'24:** Net income increased to **$13.8 million** from **$2.5 million**, with the prior quarter including a **$13.3 million** loss on securities sales, and absent this loss, EPS would have been **$0.10** in Q1'24 vs **$0.11** in Q2'24, while the net interest margin improved **11 basis points** to **1.82%**[181](index=181&type=chunk) - **6M'24 vs 6M'23:** Net income decreased to **$16.3 million** from **$30.4 million**, driven by the **$13.3 million** securities loss, and net interest margin increased **17 bps** to **1.76%**, primarily because a low-margin leverage strategy was not used in the current period[196](index=196&type=chunk)[203](index=203&type=chunk) - **Tax Impact:** An anticipated taxable net loss for FY2024 will cause any capital distributions from the Bank to the Company to trigger a recapture of pre-1988 bad debt reserves, resulting in additional income tax expense[198](index=198&type=chunk) Rate/Volume Analysis of Net Interest Income Change (6M'24 vs 6M'23, in thousands) | Component | Change Due to Volume | Change Due to Rate | Total Change | | :--- | :--- | :--- | :--- | | **Interest Income** | $(33,159) | $37,254 | $4,095 | | **Interest Expense** | $(27,779) | $38,748 | $10,969 | | **Net Interest Income** | **$(5,380)** | **$(1,494)** | **$(6,874)** | [Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by analyzing the impact of hypothetical rate changes on Net Interest Income (NII) and the Market Value of Portfolio Equity (MVPE), with the one-year interest rate gap at $(1.10) billion, or (11.3)% of total assets, as of March 31, 2024, and projections showing NII increasing by 8.9% in a +200 bps rate shock scenario while MVPE would decrease by 20.4%, indicating increased balance sheet sensitivity to rate changes due to a higher cash balance following the recent securities strategy - The company's most significant market risk is interest rate risk, managed through Net Interest Income (NII) and Market Value of Portfolio Equity (MVPE) analysis[257](index=257&type=chunk)[258](index=258&type=chunk) - The one-year interest rate sensitivity gap was **$(1.10) billion**, or **(11.3)%** of total assets, at March 31, 2024[262](index=262&type=chunk) Interest Rate Sensitivity Analysis (at March 31, 2024) | Change in Rates (bps) | Change in Net Interest Income (next 4 qtrs) | Change in Market Value of Portfolio Equity (MVPE) | | :--- | :--- | :--- | | +300 | +13.2% | -31.5% | | +200 | +8.9% | -20.4% | | +100 | +4.6% | -9.9% | | -100 | -5.0% | +9.4% | | -200 | -10.0% | +16.5% | | -300 | -15.6% | +16.5% | [Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the company's disclosure controls and procedures as of March 31, 2024, concluding their effectiveness in ensuring timely recording, processing, and reporting of information required for SEC filings, with no material changes to internal control over financial reporting occurring during the quarter - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[276](index=276&type=chunk) - There were no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[277](index=277&type=chunk) [PART II -- OTHER INFORMATION](index=77&type=section&id=PART%20II%20--%20OTHER%20INFORMATION) [Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative class action lawsuit concerning overdraft fees, which was dismissed with prejudice by the court in April 2023 but is currently under appeal by the plaintiffs, though management does not believe this or any other pending legal action will have a material adverse effect on the company's financial condition or operations - A putative class action lawsuit regarding overdraft fees, filed against the Bank, was dismissed with prejudice on April 5, 2023, but the plaintiffs have appealed this decision[285](index=285&type=chunk) - Management believes it is unlikely that any pending legal actions will have a material adverse effect on the company's financial condition, results of operations, or liquidity[278](index=278&type=chunk) [Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) This section supplements the risk factors from the annual report, highlighting that the company's ability to pay dividends and repurchase shares depends on the Bank's ability to make capital distributions, which is subject to regulatory approval, and a significant new risk has emerged where the Bank's anticipated tax loss for fiscal year 2024 will cause capital distributions to the holding company to trigger a recapture of pre-1988 bad debt reserves, resulting in additional tax expense that could impact future dividends and share repurchases - The Company's ability to pay dividends and repurchase shares is primarily dependent on the Bank's ability to make capital distributions, which are subject to regulatory oversight[280](index=280&type=chunk) - A key risk is that the Bank's anticipated net loss for tax purposes in FY2024 will cause capital distributions to the holding company to trigger the recapture of pre-1988 bad debt reserves, resulting in additional tax expense, reducing earnings available for distribution[286](index=286&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity for the quarter ended March 31, 2024, where a total of 1,246,110 shares were repurchased at an average price of $6.00 per share, with $2.0 million remaining under the existing repurchase plan, and a new, larger $75 million repurchase plan approved by the FRB set to become active after the completion of the current program Stock Repurchase Activity (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2024 | 199,400 | $6.53 | | Feb 2024 | 572,289 | $5.99 | | Mar 2024 | 474,421 | $5.78 | | **Total** | **1,246,110** | **$6.00** | - As of March 31, 2024, approximately **$2.0 million** remained available for repurchase under the existing plan[289](index=289&type=chunk) - In February 2024, the FRB approved a new share repurchase plan of up to **$75 million**, which will commence after the existing plan is completed, with the FRB's approval for this new plan expiring in February 2025[289](index=289&type=chunk)

Capitol Federal Financial (CFFN) came out with quarterly earnings of $0.11 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this holding company for Capitol Federal Savings Bank would post earnings of $0.06 per share when it actually produced earnings of $0.10, delivering a surprise of 66.67%.Over the last four quarters, the company has surpassed consensus EPS ...

NEWS RELEASE FOR IMMEDIATE RELEASE April 24, 2024 ® CAPITOL FEDERAL FINANCIAL, INC. REPORTS SECOND QUARTER FISCAL YEAR 2024 RESULTS Topeka, KS - Capitol Federal Financial, Inc. (NASDAQ: CFFN) (the "Company," "we" or "our"), the parent company of Capitol Federal Savings Bank (the "Bank"), announced results today for the quarter ended March 31, 2024. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com. The highlights for the quarter includ ...

Investors might want to bet on Capitol Federal Financial (CFFN) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual inve ...

| --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------|------------| | | Unrealized \nGains (Losses) on AFS Securities | Unrealized \nGains (Losses) on Cash Flow Hedges \n(Dollars in thousands) | Total AOCI | | Beginning balance | (1,142) | 9,842 | 8,700 ...

Capitol Federal Financial (CFFN) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this holding company for Capitol Federal Savings Bank would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise ...

TOPEKA, Kan.--(BUSINESS WIRE)--Capitol Federal Financial, Inc. (NASDAQ: CFFN) (the "Company") announced today that its Board of Directors has declared a quarterly cash dividend of $0.085 per share on outstanding CFFN common stock. The dividend is payable on February 16, 2024 to stockholders of record as of the close of business on February 2, 2024. The Company will release financial results for the quarter ended December 31, 2023 on January 24, 2024 before the market opens. Capitol Federal Financial, Inc ...

TOPEKA, Kan.--(BUSINESS WIRE)--Capitol Federal Financial, Inc. (NASDAQ: CFFN) (the "Company") will have available on its website at https://ir.capfed.com/news-market-data/presentations/default.aspx, at 10:00 a.m. Central time on January 23, 2024, the slide presentation for its annual meeting of stockholders being held at that same time. Capitol Federal Financial, Inc. is the holding company for Capitol Federal Savings Bank (the "Bank"). The Bank has 49 branch locations in Kansas and Missouri, and is one of ...

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Capitol Federal Financial, Inc. operates as a community-oriented financial institution, primarily attracting public deposits to fund residential mortgage and commercial loans through its subsidiary, Capitol Federal Savings Bank - The company's core business involves attracting deposits from the public and businesses to primarily invest in first mortgage loans for one- to four-family residences and commercial loans[115](index=115&type=chunk) - The company operates a network of **51 branches** (46 traditional, 5 in-store) across Kansas and Missouri, serving metropolitan areas like Topeka, Wichita, and Kansas City[6](index=6&type=chunk) - Management's strategy focuses on six key areas: Lending, Deposit Services, Cost Control, Asset Quality, Capital Position, and Stockholder Value, which includes a regular quarterly cash dividend of **$0.085 per share** for fiscal year 2024[17](index=17&type=chunk) - As a federally chartered savings bank, the Bank is regulated by the Office of the Comptroller of the Currency (OCC), with deposits insured by the FDIC, and the holding company is regulated by the Federal Reserve Board (FRB)[19](index=19&type=chunk)[20](index=20&type=chunk) - As of September 30, 2023, the company had **632 full-time equivalent employees**, a decrease from 707 in the prior year, largely due to efficiencies gained from a new core processing system and natural attrition[159](index=159&type=chunk) [Item 1A. Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company identifies several material risks to its business, including macroeconomic factors, lending-specific risks, operational risks from cybersecurity and third-party vendors, strong competition, and a highly regulated environment - Changes in interest rates are a primary risk, as the company's long-term, fixed-rate assets may not reprice as quickly as its shorter-term liabilities, potentially compressing net interest income[162](index=162&type=chunk)[150](index=150&type=chunk) - An economic downturn, particularly in its geographic markets, could increase loan delinquencies and losses, as the business is concentrated in one- to four-family and commercial real estate loans[165](index=165&type=chunk) - The company faces significant cybersecurity risks, including potential system failures, security breaches, and cyberattacks on its own systems or those of its third-party service providers, which could lead to financial loss and reputational damage[53](index=53&type=chunk)[38](index=38&type=chunk) - A security incident at a third-party service provider (MOVEit) in June 2023 compromised personally identifiable information of some Bank customers, highlighting vendor-related risks[167](index=167&type=chunk) - The company operates in a highly regulated environment, and changes in laws or regulations by the OCC, FRB, FDIC, and CFPB could adversely impact operations and profitability[58](index=58&type=chunk)[69](index=69&type=chunk) [Item 1B. Unresolved Staff Comments](index=17&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[63](index=63&type=chunk) [Item 2. Properties](index=17&type=section&id=Item%202.%20Properties) As of September 30, 2023, the company operates 46 traditional branch offices and five in-store branches, with the Bank owning its home office and 35 branch offices - The company's physical footprint consists of **51 locations**, with the majority (**36**, including the home office) being owned properties[64](index=64&type=chunk) [Item 3. Legal Proceedings](index=17&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal actions in the normal course of business but does not expect them to have a material adverse effect, with a putative class action lawsuit regarding overdraft fees dismissed in the Bank's favor but currently under appeal - Management believes that pending legal actions are unlikely to have a material adverse effect on the company's financial condition or results[71](index=71&type=chunk) - A class action lawsuit alleging improper overdraft fees was dismissed with prejudice on April 5, 2023, but the decision is currently under appeal by the plaintiffs[175](index=175&type=chunk) [Item 4. Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[84](index=84&type=chunk) Part II [Item 5. Market for Registrant%27s Common Equity%2C Related Stockholder Matters and Issuer Purchases of Equity Securities](index=18&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock (CFFN) is traded on the NASDAQ Global Select Market, with **250,594 shares** repurchased in Q4 FY2023 and **$21.2 million** remaining for repurchase, while its stock performance has underperformed relevant indices over the last five years - The company's common stock is listed on the NASDAQ under the symbol **CFFN**[72](index=72&type=chunk) Share Repurchase Activity (Q4 FY2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Sep 1 - Sep 30, 2023 | 250,594 | $4.97 | | **Total Q4 2023** | **250,594** | **$4.97** | - As of September 30, 2023, **$21.2 million** was available for share repurchases under the current plan, with Federal Reserve approval extending through August 2024[73](index=73&type=chunk) Stock Performance Comparison ($100 Investment on 9/30/2018) | Index | 9/30/2018 | 9/30/2023 | | :--- | :--- | :--- | | Capitol Federal Financial, Inc. | $100.00 | $53.25 | | NASDAQ Composite Index | $100.00 | $171.65 | | S&P U.S. BMI Banks Index | $100.00 | $99.73 | [Item 7. Management%27s Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2023, the company executed a strategic securities transaction, selling **$1.30 billion** of its portfolio, resulting in a **$192.6 million** impairment loss and a net loss of **$101.7 million**, while facing net interest margin compression to **1.43%** and growing total assets to **$10.18 billion** with strong asset quality - In October 2023, the company initiated a strategic sale of **$1.30 billion** in securities, representing **94%** of its portfolio, which led to a **$192.6 million** impairment loss recognized in FY2023[79](index=79&type=chunk) - The securities strategy is expected to increase FY2024 EPS by approximately **$0.30** and net interest margin by **60 basis points** by allowing reinvestment into higher-yielding assets and repayment of debt[79](index=79&type=chunk)[91](index=91&type=chunk) FY 2023 Key Financial Results vs. FY 2022 | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net (Loss) Income | ($101.7 million) | $84.5 million | | Diluted EPS | ($0.76) | $0.62 | | Diluted EPS (ex-securities strategy) | $0.33 | N/A | | Net Interest Margin | 1.43% | 1.79% | Balance Sheet Summary (as of Sep 30) | Item | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $10.18 billion | $9.62 billion | +5.7% | | Loans Receivable, net | $7.97 billion | $7.46 billion | +6.8% | | Deposits | $6.05 billion | $6.19 billion | -2.3% | | Borrowings | $2.88 billion | $2.13 billion | +35.0% | | Stockholders' Equity | $1.04 billion | $1.10 billion | -4.8% | - Asset quality remained strong at September 30, 2023, with loans 30-89 days delinquent at **0.21%** of total loans and net charge-offs at **0.00%** for the year[44](index=44&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with a liability-sensitive position indicated by a one-year cumulative gap of **$(1.19) billion** or **(11.7)%** of total assets, projecting a **4.0%** increase in net interest income in a **+200 bp** rate shock but a **25.7%** decrease in MVPE - Interest rate risk is the company's most significant market risk, managed by the Board and ALCO through forecasting the impact of various rate scenarios on net interest income and Market Value of Portfolio Equity (MVPE)[495](index=495&type=chunk)[496](index=496&type=chunk) - The one-year cumulative gap was **$(1.19) billion**, or **(11.7)%** of total assets, at September 30, 2023, indicating a liability-sensitive position where more liabilities than assets will reprice in the next 12 months[45](index=45&type=chunk)[502](index=502&type=chunk) Net Interest Income Sensitivity Analysis (as of Sep 30, 2023) | Rate Change (bps) | Estimated Change in NII ($ thousand) | Estimated Change in NII (%) | | :--- | :--- | :--- | | +300 | +8,036 | +6.0% | | +200 | +5,346 | +4.0% | | +100 | +2,689 | +2.0% | | 0 (Base) | 133,458 | 0.0% | | -100 | -3,084 | -2.3% | | -200 | -6,963 | -5.2% | Market Value of Portfolio Equity (MVPE) Sensitivity Analysis (as of Sep 30, 2023) | Rate Change (bps) | Estimated Change in MVPE ($ thousand) | Estimated Change in MVPE (%) | | :--- | :--- | :--- | | +300 | -386,972 | -38.0% | | +200 | -261,818 | -25.7% | | +100 | -131,046 | -12.9% | | 0 (Base) | 1,019,688 | 0.0% | | -100 | +125,716 | +12.3% | | -200 | +283,093 | +27.8% | [Item 8. Financial Statements and Supplementary Data](index=55&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2021-2023, with Deloitte & Touche LLP providing an unqualified opinion on both the financial statements and internal controls, highlighting the Allowance for Credit Losses (ACL) as a critical audit matter - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting as of September 30, 2023[549](index=549&type=chunk)[542](index=542&type=chunk) - The auditor identified the Allowance for Credit Losses (ACL) as a critical audit matter due to the significant management estimates and judgments required, particularly regarding economic forecasts and qualitative factor adjustments[313](index=313&type=chunk)[330](index=330&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$10,177,461** | **$9,624,897** | | Loans receivable, net | $7,970,949 | $7,464,208 | | AFS securities | $1,384,482 | $1,563,307 | | **Total Liabilities** | **$9,133,407** | **$8,528,398** | | Deposits | $6,051,220 | $6,194,866 | | Borrowings | $2,879,125 | $2,132,154 | | **Total Stockholders' Equity** | **$1,044,054** | **$1,096,499** | Consolidated Income Statement Highlights (in thousands) | Account | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Net Interest Income | $153,272 | $192,594 | $175,001 | | Provision for Credit Losses | $6,838 | ($4,630) | ($8,510) | | Non-Interest Income | ($171,455) | $22,830 | $28,086 | | Non-Interest Expense | $113,934 | $112,851 | $115,569 | | **Net (Loss) Income** | **($101,659)** | **$84,453** | **$76,082** | [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=105&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure - None[515](index=515&type=chunk) [Item 9A. Controls and Procedures](index=105&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of September 30, 2023, with no material changes during the fourth quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the fiscal year-end[516](index=516&type=chunk) - Management concluded that the company maintained an effective system of internal control over financial reporting as of September 30, 2023[520](index=520&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended September 30, 2023, that materially affected, or are reasonably likely to materially affect, internal controls[522](index=522&type=chunk) [Item 9B. Other Information](index=105&type=section&id=Item%209B.%20Other%20Information) During the quarter ended September 30, 2023, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the fourth fiscal quarter[522](index=522&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=106&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[524](index=524&type=chunk) Part III [Item 10. Directors%2C Executive Officers and Corporate Governance](index=106&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding the company's directors, executive officers, corporate governance, and audit committee is incorporated by reference from the company's definitive proxy statement for its upcoming Annual Meeting of Stockholders - Required information for this item is incorporated by reference from the company's definitive proxy statement to be filed for its January 2024 Annual Meeting of Stockholders[525](index=525&type=chunk)[526](index=526&type=chunk) - The company has adopted a written code of ethics applicable to all employees and directors, which is available on its website[527](index=527&type=chunk) [Item 11. Executive Compensation](index=106&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive proxy statement for its upcoming Annual Meeting of Stockholders - Required information concerning compensation is incorporated by reference from the company's definitive proxy statement[528](index=528&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=106&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership by certain beneficial owners and management is incorporated by reference from the company's definitive proxy statement, with **349,374 shares** to be issued upon option exercise and **5,938,504 shares** remaining available for future issuance under equity compensation plans as of September 30, 2023 - Required information concerning security ownership is incorporated by reference from the company's definitive proxy statement[552](index=552&type=chunk) Equity Compensation Plan Information (as of Sep 30, 2023) | Category | Shares to be Issued Upon Exercise | Weighted-Average Exercise Price | Shares Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | Approved by stockholders | 349,374 | $12.50 | 5,938,504 | [Item 13. Certain Relationships and Related Transactions%2C and Director Independence](index=107&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related party transactions, and director independence is incorporated by reference from the company's definitive proxy statement for its upcoming Annual Meeting of Stockholders - Required information for this item is incorporated by reference from the company's definitive proxy statement[554](index=554&type=chunk) [Item 14. Principal Accountant Fees and Services](index=107&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement for its upcoming Annual Meeting of Stockholders - Required information concerning principal accountant fees and services is incorporated by reference from the company's definitive proxy statement[555](index=555&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=107&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the Form 10-K report, including the financial statements, notes, and various exhibits such as the company's charter, bylaws, and certifications - This item lists the financial statements, financial statement schedules (all of which were omitted as not applicable), and exhibits filed with the report[556](index=556&type=chunk)[557](index=557&type=chunk) [Item 16. Form 10-K Summary](index=107&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[557](index=557&type=chunk)