Capitol Federal Financial(CFFN) - 2019 Q1 - Quarterly Report

Financial Performance - For the quarter ended December 31, 2018, the Company recognized net income of $24.4 million, or$0.18 per share, a decrease of $7.5 million, or 23.4$15,225 million as of December 31, 2018[103]. - The company reported a ratio of net charge-offs to average non-performing assets of (0.68) during the period[109]. - The efficiency ratio improved to 46.40% for the quarter ended December 31, 2018, compared to 47.87% in the previous quarter[132]. - Basic and diluted EPS for the quarter ended December 31, 2018, were both $0.18, up from$0.16 in the previous quarter[132]. Assets and Liabilities - Total assets were $9.30 billion at December 31, 2018, a decrease of$145.8 million from $9.45 billion at September 30, 2018[75]. - Total liabilities were$7.96 billion at December 31, 2018, a decrease of $100.1 million from$8.06 billion at September 30, 2018[75]. - Stockholders' equity was $1.35 billion at December 31, 2018, a decrease of$45.7 million from $1.39 billion at September 30, 2018[75]. - Total deposits decreased to$5,557,864 thousand as of December 31, 2018, from $5,603,354 thousand as of September 30, 2018, reflecting a decrease of about 0.8$7.53 billion at December 31, 2018, compared to $7.51 billion at September 30, 2018[75]. - The commercial loan portfolio grew by$48.2 million, or 8%, during the current quarter[75]. - The total loans receivable portfolio amounted to $7,518,887 thousand with a weighted average rate of 3.78$3,955,975 thousand, with a weighted average credit score of 767 and an average LTV ratio of 62%[89]. Interest Income and Expenses - Total interest and dividend income for the quarter ended December 31, 2018, was $82.421 million, an increase from$77.313 million in the previous quarter[132]. - Net interest income after provision for credit losses was $52.301 million for the quarter ended December 31, 2018, compared to$50.077 million in the previous quarter[132]. - The weighted average yield on total interest-earning assets rose by 58 basis points to 3.56% for the current quarter, despite a decrease in the average balance of interest-earning assets by $1.55 billion[141]. - Total interest expense decreased by$1.15 million, or 3.7%, to $30.12 million compared to the prior year quarter[144]. Capital and Equity - Stockholders' equity decreased by$45.7 million to $1.35 billion at December 31, 2018, primarily due to$65.4 million in cash dividends paid[128]. - The total capital ratio for the Bank was 25.2%, exceeding the minimum regulatory requirement of 8.0%[171]. - The Bank's Tier 1 capital ratio was 25.0%, well above the minimum requirement of 6.0%[171]. Non-Performing Loans and Credit Losses - The Bank's delinquent loans (30 to 89 days) represented 0.20% of total loans receivable, net, as of December 31, 2018[101]. - Total loans 90 or more days delinquent or in foreclosure increased to 0.13% of total loans as of December 31, 2018, compared to 0.12% in September 2018[103]. - The allowance for credit losses (ACL) is maintained through provisions for credit losses, with management considering the overall ACL adequate for the loan portfolio as of December 31, 2018[105]. Deposits and Borrowings - The bank had $2,181,186 thousand in borrowings, with an effective rate of 2.31$5.56 billion at December 31, 2018, down from $5.60 billion at September 30, 2018, reflecting competitive deposit rates[118]. - The average rate paid on FHLB line of credit borrowings during the current quarter was 2.47$(419.2) million, or (4.51)% of total assets as of December 31, 2018, compared to $(394.8) million, or (4.18)$8.76 million, or (4.36)%, as of December 31, 2018[181].