Capitol Federal Financial(US:CFFN)2023-08-08 16:00Financial Position - As of June 30, 2023, the company had $22.5 million of common stock authorized under its existing stock repurchase plan, with approximately $22.47 million worth of shares yet to be purchased[186]. - The total interest-earning assets amounted to $9.91 billion, while total interest-bearing liabilities were $9.21 billion as of June 30, 2023[145]. - The balance of cash and cash equivalents was $329.4 million with an average yield of 4.82% as of June 30, 2023, compared to $49.2 million with an average yield of 1.75% at September 30, 2022[152]. - The company had $1.72 billion in cumulative excess of interest-earning assets over interest-bearing liabilities as of June 30, 2023[145]. - The Bank's CBLR was 9.6% as of June 30, 2023, exceeding the minimum requirement of 9%[160]. Interest Rate Risk - The gap between interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(1.00) billion, or (9.7)% of total assets, as of June 30, 2023, compared to $(803.5) million, or (8.0)% at March 31, 2023[146]. - The cumulative one-year gap in interest rates was (11.6)% as of June 30, 2023, indicating a negative impact on earnings in a rising rate environment[146]. - The Bank's one-year gap is projected to be $(1.19) billion, or (11.6)% of total assets, if interest rates increase by 200 basis points as of June 30, 2023[164]. - The estimated change in the Bank's net interest income for a +200 basis point increase in interest rates is projected to be a decrease of $(282,317) thousand, or (29.65)%, as of June 30, 2023[165]. - The Bank's interest rate risk management program aims to maximize net interest income while managing exposure to changes in market interest rates[163]. Interest Income and Expense - The net interest income projection was lower at June 30, 2023, primarily due to higher interest expense projections on the Bank's liabilities compared to the increase in interest income projections on the Bank's assets[151]. - The company experienced a significant increase in the cost of liabilities, driven by higher balances and rates on certificates of deposit and money market accounts since September 30, 2022[151]. - The total interest-earning assets amount to $9,865,028 thousand with a weighted average yield of 3.43%[168]. - The total interest-bearing liabilities amount to $8,515,322 thousand with a weighted average rate of 2.47%[168]. - Fixed-rate loans receivable total $6,169,564 thousand, with a weighted average yield of 3.35%[168]. Market Value of Portfolio Equity - As of June 30, 2023, the Market Value of Portfolio Equity (MVPE) decreased by $292,679 thousand (30.74%) under a -200 basis point interest rate scenario compared to the base case[154]. - The sensitivity of the Bank's MVPE to interest rate changes is significant, with a larger increase in the market value of assets compared to liabilities in decreasing interest rate scenarios[167]. - The Bank's Market Value of Portfolio Equity (MVPE) at June 30, 2023, showed a negative percentage change compared to September 30, 2022, in all rising interest rate scenarios[174]. - The negative impact on MVPE was slightly lower at June 30, 2023, due to a higher MVPE resulting from an increase in the balance of certificates of deposit and borrowings[174]. - The increase in the loan portfolio balance contributed to the higher MVPE, while long-term rates remained relatively unchanged, leading to muted impacts on the market value of the loan portfolio[174]. Stock Repurchase - The average price paid per share for stock repurchases was not disclosed, but the company may repurchase shares based on market conditions and available liquidity[186].