Maryland | 27-2631712 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
700 South Kansas Avenue, Topeka, Kansas | 66603 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ (Do not check if a smaller reporting company) | |
Smaller Reporting Company ¨ | Emerging Growth Company ¨ | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
PART I - FINANCIAL INFORMATION | Page Number | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II - OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
June 30, | September 30, | ||||||
2017 | 2016 | ||||||
ASSETS: | |||||||
Cash and cash equivalents (includes interest-earning deposits of $115,118 and $267,829) | $ | 130,249 | $ | 281,764 | |||
Securities: | |||||||
Available-for-sale ("AFS"), at estimated fair value (amortized cost of $447,018 and $517,791) | 452,894 | 527,301 | |||||
Held-to-maturity ("HTM"), at amortized cost (estimated fair value of $895,542 and $1,122,867) | 891,037 | 1,100,874 | |||||
Loans receivable, net (allowance for credit losses ("ACL") of $8,486 and $8,540) | 7,240,594 | 6,958,024 | |||||
Federal Home Loan Bank Topeka ("FHLB") stock, at cost | 101,039 | 109,970 | |||||
Premises and equipment, net | 83,853 | 83,221 | |||||
Other assets | 203,614 | 206,093 | |||||
TOTAL ASSETS | $ | 9,103,280 | $ | 9,267,247 | |||
LIABILITIES: | |||||||
Deposits | $ | 5,267,685 | $ | 5,164,018 | |||
FHLB borrowings | 2,173,472 | 2,372,389 | |||||
Repurchase agreements | 200,000 | 200,000 | |||||
Advance payments by borrowers for taxes and insurance | 39,668 | 62,643 | |||||
Income taxes payable, net | 1,092 | 310 | |||||
Deferred income tax liabilities, net | 24,512 | 25,374 | |||||
Accounts payable and accrued expenses | 37,865 | 49,549 | |||||
Total liabilities | 7,744,294 | 7,874,283 | |||||
STOCKHOLDERS' EQUITY: | |||||||
Preferred stock, $.01 par value; 100,000,000 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, $.01 par value; 1,400,000,000 shares authorized, 138,206,835 and 137,486,172 | |||||||
shares issued and outstanding as of June 30, 2017 and September 30, 2016, respectively | 1,382 | 1,375 | |||||
Additional paid-in capital | 1,166,908 | 1,156,855 | |||||
Unearned compensation, Employee Stock Ownership Plan ("ESOP") | (38,408 | ) | (39,647 | ) | |||
Retained earnings | 225,449 | 268,466 | |||||
Accumulated other comprehensive income ("AOCI"), net of tax | 3,655 | 5,915 | |||||
Total stockholders' equity | 1,358,986 | 1,392,964 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 9,103,280 | $ | 9,267,247 | |||
See accompanying notes to consolidated financial statements. |
CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||||||
Loans receivable | $ | 64,013 | $ | 60,840 | $ | 189,064 | $ | 181,795 | |||||||
Mortgage-backed securities ("MBS") | 5,821 | 7,401 | 18,374 | 22,934 | |||||||||||
Cash and cash equivalents | 5,619 | 2,730 | 12,720 | 7,057 | |||||||||||
FHLB stock | 3,114 | 3,050 | 9,153 | 9,208 | |||||||||||
Investment securities | 1,063 | 1,506 | 3,301 | 4,524 | |||||||||||
Total interest and dividend income | 79,630 | 75,527 | 232,612 | 225,518 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
FHLB borrowings | 17,884 | 16,361 | 50,772 | 48,829 | |||||||||||
Deposits | 10,895 | 9,749 | 31,655 | 27,761 | |||||||||||
Repurchase agreements | 1,487 | 1,487 | 4,461 | 4,478 | |||||||||||
Total interest expense | 30,266 | 27,597 | 86,888 | 81,068 | |||||||||||
NET INTEREST INCOME | 49,364 | 47,930 | 145,724 | 144,450 | |||||||||||
PROVISION FOR CREDIT LOSSES | — | — | — | — | |||||||||||
NET INTEREST INCOME AFTER | |||||||||||||||
PROVISION FOR CREDIT LOSSES | 49,364 | 47,930 | 145,724 | 144,450 | |||||||||||
NON-INTEREST INCOME: | |||||||||||||||
Retail fees and charges | 3,832 | 3,725 | 11,123 | 11,097 | |||||||||||
Income from bank-owned life insurance ("BOLI") | 573 | 648 | 1,669 | 2,810 | |||||||||||
Other non-interest income | 1,055 | 1,056 | 3,509 | 3,714 | |||||||||||
Total non-interest income | 5,460 | 5,429 | 16,301 | 17,621 | |||||||||||
NON-INTEREST EXPENSE: | |||||||||||||||
Salaries and employee benefits | 11,210 | 10,829 | 32,388 | 31,604 | |||||||||||
Information technology and communications | 2,922 | 2,716 | 8,524 | 7,883 | |||||||||||
Occupancy, net | 2,659 | 2,606 | 8,098 | 7,894 | |||||||||||
Regulatory and outside services | 1,383 | 1,370 | 3,994 | 4,000 | |||||||||||
Deposit and loan transaction costs | 1,304 | 1,449 | 3,918 | 4,119 | |||||||||||
Advertising and promotional | 1,322 | 1,053 | 3,275 | 3,190 | |||||||||||
Federal insurance premium | 879 | 1,377 | 2,651 | 4,158 | |||||||||||
Office supplies and related expense | 492 | 545 | 1,470 | 2,016 | |||||||||||
Low income housing partnerships | — | 721 | — | 2,815 | |||||||||||
Other non-interest expense | 474 | 661 | 1,861 | 2,664 | |||||||||||
Total non-interest expense | 22,645 | 23,327 | 66,179 | 70,343 | |||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 32,179 | 30,032 | 95,846 | 91,728 | |||||||||||
INCOME TAX EXPENSE | 10,809 | 9,481 | 32,311 | 28,932 | |||||||||||
NET INCOME | $ | 21,370 | $ | 20,551 | $ | 63,535 | $ | 62,796 | |||||||
Basic earnings per share ("EPS") | $ | 0.16 | $ | 0.15 | $ | 0.47 | $ | 0.47 | |||||||
Diluted EPS | $ | 0.16 | $ | 0.15 | $ | 0.47 | $ | 0.47 | |||||||
Dividends declared per share | $ | 0.34 | $ | 0.34 | $ | 0.80 | $ | 0.76 | |||||||
Basic weighted average common shares | 134,253,690 | 133,101,960 | 134,004,281 | 132,960,917 | |||||||||||
Diluted weighted average common shares | 134,359,770 | 133,250,711 | 134,189,758 | 133,065,828 | |||||||||||
See accompanying notes to consolidated financial statements. |
CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY | |||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 21,370 | $ | 20,551 | $ | 63,535 | $ | 62,796 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Changes in unrealized holding gains (losses) on AFS securities, | |||||||||||||||
net of taxes of $345, $119, $1,374 and $945 | (567 | ) | (194 | ) | (2,260 | ) | (1,554 | ) | |||||||
Comprehensive income | $ | 20,803 | $ | 20,357 | $ | 61,275 | $ | 61,242 | |||||||
See accompanying notes to consolidated financial statements. |
CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) | |||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||
Additional | Unearned | Total | |||||||||||||||||||||
Common | Paid-In | Compensation | Retained | Stockholders' | |||||||||||||||||||
Stock | Capital | ESOP | Earnings | AOCI | Equity | ||||||||||||||||||
Balance at October 1, 2016 | $ | 1,375 | $ | 1,156,855 | $ | (39,647 | ) | $ | 268,466 | $ | 5,915 | $ | 1,392,964 | ||||||||||
Net income | 63,535 | 63,535 | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | (2,260 | ) | (2,260 | ) | |||||||||||||||||||
ESOP activity, net | 621 | 1,239 | 1,860 | ||||||||||||||||||||
Restricted stock activity, net | 51 | 51 | |||||||||||||||||||||
Stock-based compensation | 419 | 419 | |||||||||||||||||||||
Stock options exercised | 7 | 8,962 | 8,969 | ||||||||||||||||||||
Cash dividends to stockholders ($0.80 per share) | (106,552 | ) | (106,552 | ) | |||||||||||||||||||
Balance at June 30, 2017 | $ | 1,382 | $ | 1,166,908 | $ | (38,408 | ) | $ | 225,449 | $ | 3,655 | $ | 1,358,986 | ||||||||||
See accompanying notes to consolidated financial statements. |
CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
(Dollars in thousands) | |||||||
For the Nine Months Ended | |||||||
June 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 63,535 | $ | 62,796 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
FHLB stock dividends | (9,153 | ) | (9,208 | ) | |||
Amortization and accretion of premiums and discounts on securities | 3,487 | 3,988 | |||||
Depreciation and amortization of premises and equipment | 5,784 | 5,288 | |||||
Amortization of deferred amounts related to FHLB advances, net | 1,083 | 1,505 | |||||
Common stock committed to be released for allocation - ESOP | 1,860 | 1,590 | |||||
Stock-based compensation | 419 | 960 | |||||
Changes in: | |||||||
Other assets, net | 34 | 488 | |||||
Income taxes payable/receivable | 1,672 | 1,467 | |||||
Accounts payable and accrued expenses | (11,612 | ) | (6,815 | ) | |||
Net cash provided by operating activities | 57,109 | 62,059 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of AFS securities | (37,425 | ) | (99,927 | ) | |||
Purchase of HTM securities | — | (144,392 | ) | ||||
Proceeds from calls, maturities and principal reductions of AFS securities | 108,170 | 189,199 | |||||
Proceeds from calls, maturities and principal reductions of HTM securities | 206,378 | 222,700 | |||||
Proceeds from the redemption of FHLB stock | 292,400 | 283,500 | |||||
Purchase of FHLB stock | (274,316 | ) | (238,174 | ) | |||
Net increase in loans receivable | (284,728 | ) | (217,498 | ) | |||
Purchase of premises and equipment | (6,509 | ) | (11,300 | ) | |||
Proceeds from sale of other real estate owned ("OREO") | 4,297 | 3,799 | |||||
Proceeds from BOLI death benefit | — | 783 | |||||
Net cash provided by (used in) investing activities | 8,267 | (11,310 | ) | ||||
(Continued) |
CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
(Dollars in thousands) | |||||||
For the Nine Months Ended | |||||||
June 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Cash dividends paid | (106,552 | ) | (100,441 | ) | |||
Net change in deposits | 103,667 | 252,609 | |||||
Proceeds from borrowings | 2,100,100 | 5,900,100 | |||||
Repayments on borrowings | (2,500,100 | ) | (6,700,100 | ) | |||
Net change in short-term borrowings | 200,000 | — | |||||
Change in advance payments by borrowers for taxes and insurance | (22,975 | ) | (23,916 | ) | |||
Stock options exercised | 8,642 | 1,198 | |||||
Excess tax benefits from stock options | 327 | — | |||||
Net cash used in financing activities | (216,891 | ) | (670,550 | ) | |||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (151,515 | ) | (619,801 | ) | |||
CASH AND CASH EQUIVALENTS: | |||||||
Beginning of period | 281,764 | 772,632 | |||||
End of period | $ | 130,249 | $ | 152,831 | |||
See accompanying notes to consolidated financial statements. | (Concluded) |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
Net income | $ | 21,370 | $ | 20,551 | $ | 63,535 | $ | 62,796 | |||||||
Income allocated to participating securities | (11 | ) | (11 | ) | (36 | ) | (54 | ) | |||||||
Net income available to common stockholders | $ | 21,359 | $ | 20,540 | $ | 63,499 | $ | 62,742 | |||||||
Average common shares outstanding | 134,170,638 | 133,018,908 | 133,962,680 | 132,919,316 | |||||||||||
Average committed ESOP shares outstanding | 83,052 | 83,052 | 41,601 | 41,601 | |||||||||||
Total basic average common shares outstanding | 134,253,690 | 133,101,960 | 134,004,281 | 132,960,917 | |||||||||||
Effect of dilutive stock options | 106,080 | 148,751 | 185,477 | 104,911 | |||||||||||
Total diluted average common shares outstanding | 134,359,770 | 133,250,711 | 134,189,758 | 133,065,828 | |||||||||||
Net EPS: | |||||||||||||||
Basic | $ | 0.16 | $ | 0.15 | $ | 0.47 | $ | 0.47 | |||||||
Diluted | $ | 0.16 | $ | 0.15 | $ | 0.47 | $ | 0.47 | |||||||
Antidilutive stock options, excluded from the diluted average | |||||||||||||||
common shares outstanding calculation | 492,360 | 875,390 | 202,718 | 906,634 |
June 30, 2017 | |||||||||||||||
Gross | Gross | Estimated | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||
Cost | Gains | Losses | Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
AFS: | |||||||||||||||
GSE debentures | $ | 296,283 | $ | 25 | $ | 645 | $ | 295,663 | |||||||
MBS | 147,129 | 6,719 | 52 | 153,796 | |||||||||||
Trust preferred securities | 2,074 | — | 173 | 1,901 | |||||||||||
Municipal bonds | 1,532 | 3 | 1 | 1,534 | |||||||||||
$ | 447,018 | $ | 6,747 | $ | 871 | $ | 452,894 | ||||||||
HTM: | |||||||||||||||
MBS | $ | 863,349 | $ | 10,841 | $ | 6,436 | $ | 867,754 | |||||||
Municipal bonds | 27,688 | 126 | 26 | 27,788 | |||||||||||
$ | 891,037 | $ | 10,967 | $ | 6,462 | $ | 895,542 |
September 30, 2016 | |||||||||||||||
Gross | Gross | Estimated | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||
Cost | Gains | Losses | Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
AFS: | |||||||||||||||
GSE debentures | $ | 346,226 | $ | 815 | $ | 3 | $ | 347,038 | |||||||
MBS | 169,442 | 9,069 | 4 | 178,507 | |||||||||||
Trust preferred securities | 2,123 | — | 367 | 1,756 | |||||||||||
$ | 517,791 | $ | 9,884 | $ | 374 | $ | 527,301 | ||||||||
HTM: | |||||||||||||||
MBS | $ | 1,067,571 | $ | 22,862 | $ | 1,219 | $ | 1,089,214 | |||||||
Municipal bonds | 33,303 | 357 | 7 | 33,653 | |||||||||||
$ | 1,100,874 | $ | 23,219 | $ | 1,226 | $ | 1,122,867 |
June 30, 2017 | |||||||||||||||
Less Than 12 Months | Equal to or Greater Than 12 Months | ||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | ||||||||||||
Fair Value | Losses | Fair Value | Losses | ||||||||||||
(Dollars in thousands) | |||||||||||||||
AFS: | |||||||||||||||
GSE debentures | $ | 249,388 | $ | 578 | $ | 24,933 | $ | 67 | |||||||
MBS | 10,298 | 48 | 612 | 4 | |||||||||||
Trust preferred securities | — | — | 1,901 | 173 | |||||||||||
Municipal bonds | 765 | 1 | — | — | |||||||||||
$ | 260,451 | $ | 627 | $ | 27,446 | $ | 244 | ||||||||
HTM: | |||||||||||||||
MBS | $ | 356,066 | $ | 3,686 | $ | 126,724 | $ | 2,750 | |||||||
Municipal bonds | 8,552 | 24 | 446 | 2 | |||||||||||
$ | 364,618 | $ | 3,710 | $ | 127,170 | $ | 2,752 |
September 30, 2016 | |||||||||||||||
Less Than 12 Months | Equal to or Greater Than 12 Months | ||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | ||||||||||||
Fair Value | Losses | Fair Value | Losses | ||||||||||||
(Dollars in thousands) | |||||||||||||||
AFS: | |||||||||||||||
GSE debentures | $ | 24,997 | $ | 3 | $ | — | $ | — | |||||||
MBS | — | — | 654 | 4 | |||||||||||
Trust preferred securities | — | — | 1,756 | 367 | |||||||||||
$ | 24,997 | $ | 3 | $ | 2,410 | $ | 371 | ||||||||
HTM: | |||||||||||||||
MBS | $ | 147,930 | $ | 538 | $ | 66,646 | $ | 681 | |||||||
Municipal bonds | 4,771 | 6 | 391 | 1 | |||||||||||
$ | 152,701 | $ | 544 | $ | 67,037 | $ | 682 |
AFS | HTM | ||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
One year or less | $ | 146,327 | $ | 146,182 | $ | 5,181 | $ | 5,206 | |||||||
One year through five years | 151,488 | 151,015 | 21,767 | 21,824 | |||||||||||
Five years through ten years | — | — | 740 | 758 | |||||||||||
Ten years and thereafter | 2,074 | 1,901 | — | — | |||||||||||
299,889 | 299,098 | 27,688 | 27,788 | ||||||||||||
MBS | 147,129 | 153,796 | 863,349 | 867,754 | |||||||||||
$ | 447,018 | $ | 452,894 | $ | 891,037 | $ | 895,542 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Taxable | $ | 941 | $ | 1,342 | $ | 2,905 | $ | 4,010 | |||||||
Non-taxable | 122 | 164 | 396 | 514 | |||||||||||
$ | 1,063 | $ | 1,506 | $ | 3,301 | $ | 4,524 |
June 30, 2017 | September 30, 2016 | ||||||
(Dollars in thousands) | |||||||
Public unit deposits | $ | 438,051 | $ | 419,282 | |||
Repurchase agreements | 214,716 | 217,374 | |||||
Federal Reserve Bank of Kansas City ("FRB of Kansas City") | 12,640 | 15,938 | |||||
$ | 665,407 | $ | 652,594 |
June 30, 2017 | September 30, 2016 | ||||||
(Dollars in thousands) | |||||||
Real estate loans: | |||||||
One- to four-family: | |||||||
Originated | $ | 4,005,081 | $ | 4,005,615 | |||
Correspondent purchased | 2,442,557 | 2,206,072 | |||||
Bulk purchased | 367,353 | 416,653 | |||||
Construction | 33,854 | 39,430 | |||||
Total | 6,848,845 | 6,667,770 | |||||
Commercial: | |||||||
Permanent | 148,485 | 110,768 | |||||
Construction | 107,079 | 43,375 | |||||
Total | 255,564 | 154,143 | |||||
Total real estate loans | 7,104,409 | 6,821,913 | |||||
Consumer loans: | |||||||
Home equity | 119,822 | 123,345 | |||||
Other | 4,194 | 4,264 | |||||
Total consumer loans | 124,016 | 127,609 | |||||
Total loans receivable | 7,228,425 | 6,949,522 | |||||
Less: | |||||||
ACL | 8,486 | 8,540 | |||||
Discounts/unearned loan fees | 25,221 | 24,933 | |||||
Premiums/deferred costs | (45,876 | ) | (41,975 | ) | |||
$ | 7,240,594 | $ | 6,958,024 |
June 30, 2017 | |||||||||||||||||||
90 or More Days | Total | Total | |||||||||||||||||
30 to 89 Days | Delinquent or | Delinquent | Current | Recorded | |||||||||||||||
Delinquent | in Foreclosure | Loans | Loans | Investment | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
One- to four-family - originated | $ | 10,421 | $ | 4,253 | $ | 14,674 | $ | 4,009,442 | $ | 4,024,116 | |||||||||
One- to four-family - correspondent | 1,296 | — | 1,296 | 2,475,966 | 2,477,262 | ||||||||||||||
One- to four-family - bulk purchased | 2,524 | 4,854 | 7,378 | 361,802 | 369,180 | ||||||||||||||
Commercial real estate | — | — | — | 254,506 | 254,506 | ||||||||||||||
Consumer - home equity | 412 | 484 | 896 | 118,926 | 119,822 | ||||||||||||||
Consumer - other | 14 | 10 | 24 | 4,170 | 4,194 | ||||||||||||||
$ | 14,667 | $ | 9,601 | $ | 24,268 | $ | 7,224,812 | $ | 7,249,080 |
September 30, 2016 | |||||||||||||||||||
90 or More Days | Total | Total | |||||||||||||||||
30 to 89 Days | Delinquent or | Delinquent | Current | Recorded | |||||||||||||||
Delinquent | in Foreclosure | Loans | Loans | Investment | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
One- to four-family - originated | $ | 13,545 | $ | 8,153 | $ | 21,698 | $ | 4,007,012 | $ | 4,028,710 | |||||||||
One- to four-family - correspondent | 3,389 | 992 | 4,381 | 2,233,941 | 2,238,322 | ||||||||||||||
One- to four-family - bulk purchased | 5,082 | 7,380 | 12,462 | 406,379 | 418,841 | ||||||||||||||
Commercial real estate | — | — | — | 153,082 | 153,082 | ||||||||||||||
Consumer - home equity | 635 | 520 | 1,155 | 122,190 | 123,345 | ||||||||||||||
Consumer - other | 62 | 9 | 71 | 4,193 | 4,264 | ||||||||||||||
$ | 22,713 | $ | 17,054 | $ | 39,767 | $ | 6,926,797 | $ | 6,966,564 |
June 30, 2017 | September 30, 2016 | ||||||
(Dollars in thousands) | |||||||
One- to four-family - originated | $ | 13,721 | $ | 17,086 | |||
One- to four-family - correspondent | 1,608 | 3,788 | |||||
One- to four-family - bulk purchased | 5,896 | 7,411 | |||||
Commercial real estate | — | — | |||||
Consumer - home equity | 734 | 848 | |||||
Consumer - other | 10 | 10 | |||||
$ | 21,969 | $ | 29,143 |
• | Special mention - These loans are performing loans on which known information about the collateral pledged or the possible credit problems of the borrower(s) have caused management to have doubts as to the ability of the borrower(s) to comply with present loan repayment terms and which may result in the future inclusion of such loans in the non-performing loan categories. |
• | Substandard - A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility the Bank will sustain some loss if the deficiencies are not corrected. |
• | Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts and conditions and values highly questionable and improbable. |
• | Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as assets on the books is not warranted. |
June 30, 2017 | September 30, 2016 | ||||||||||||||
Special Mention | Substandard | Special Mention | Substandard | ||||||||||||
(Dollars in thousands) | |||||||||||||||
One- to four-family - originated | $ | 8,087 | $ | 29,641 | $ | 10,242 | $ | 27,818 | |||||||
One- to four-family - correspondent | 963 | 4,423 | 2,496 | 5,168 | |||||||||||
One- to four-family - bulk purchased | 811 | 8,804 | 1,156 | 11,480 | |||||||||||
Commercial real estate | — | — | — | — | |||||||||||
Consumer - home equity | 39 | 1,293 | 54 | 1,431 | |||||||||||
Consumer - other | — | 18 | 8 | 16 | |||||||||||
$ | 9,900 | $ | 44,179 | $ | 13,956 | $ | 45,913 |
June 30, 2017 | September 30, 2016 | ||||||||
Credit Score | LTV | Credit Score | LTV | ||||||
One- to four-family - originated | 767 | 63 | % | 766 | 63 | % | |||
One- to four-family - correspondent | 764 | 68 | 764 | 68 | |||||
One- to four-family - bulk purchased | 755 | 63 | 753 | 64 | |||||
Consumer - home equity | 755 | 20 | 755 | 20 | |||||
765 | 64 | 764 | 64 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||
June 30, 2017 | June 30, 2017 | ||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||
of | Restructured | Restructured | of | Restructured | Restructured | ||||||||||||||||
Contracts | Outstanding | Outstanding | Contracts | Outstanding | Outstanding | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
One- to four-family - originated | 28 | $ | 2,447 | $ | 2,518 | 109 | $ | 11,735 | $ | 12,195 | |||||||||||
One- to four-family - correspondent | 7 | 1,435 | 1,443 | 10 | 1,695 | 1,704 | |||||||||||||||
One- to four-family - purchased | 1 | 344 | 348 | 3 | 1,031 | 1,048 | |||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||
Consumer - home equity | 3 | 51 | 53 | 17 | 368 | 380 | |||||||||||||||
Consumer - other | — | — | — | — | — | — | |||||||||||||||
39 | $ | 4,277 | $ | 4,362 | 139 | $ | 14,829 | $ | 15,327 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||
June 30, 2016 | June 30, 2016 | ||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||
of | Restructured | Restructured | of | Restructured | Restructured | ||||||||||||||||
Contracts | Outstanding | Outstanding | Contracts | Outstanding | Outstanding | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
One- to four-family - originated | 26 | $ | 4,051 | $ | 4,154 | 84 | $ | 10,590 | $ | 10,861 | |||||||||||
One- to four-family - correspondent | 2 | 437 | 449 | 6 | 1,263 | 1,282 | |||||||||||||||
One- to four-family - bulk purchased | — | — | — | 1 | 123 | 122 | |||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||
Consumer - home equity | 8 | 202 | 206 | 13 | 266 | 270 | |||||||||||||||
Consumer - other | — | — | — | 1 | 8 | 8 | |||||||||||||||
36 | $ | 4,690 | $ | 4,809 | 105 | $ | 12,250 | $ | 12,543 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
Contracts | Investment | Contracts | Investment | Contracts | Investment | Contracts | Investment | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
One- to four-family - originated | 14 | $ | 1,439 | 11 | $ | 1,244 | 36 | $ | 3,486 | 38 | $ | 3,846 | |||||||||||||||
One- to four-family - correspondent | 1 | 119 | 1 | 337 | 1 | 119 | 1 | 337 | |||||||||||||||||||
One- to four-family - bulk purchased | 1 | 354 | — | — | 1 | 354 | — | — | |||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | |||||||||||||||||||
Consumer - home equity | 6 | 93 | — | — | 15 | 432 | 4 | 91 | |||||||||||||||||||
Consumer - other | — | — | — | — | — | — | — | — | |||||||||||||||||||
22 | $ | 2,005 | 12 | $ | 1,581 | 53 | $ | 4,391 | 43 | $ | 4,274 |
June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | ||||||||||||||||||
Investment | Balance | ACL | Investment | Balance | ACL | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
One- to four-family - originated | $ | 25,521 | $ | 26,182 | $ | — | $ | 22,982 | $ | 23,640 | $ | — | |||||||||||
One- to four-family - correspondent | 2,874 | 2,850 | — | 2,963 | 2,950 | — | |||||||||||||||||
One- to four-family - bulk purchased | 8,854 | 10,330 | — | 10,985 | 12,684 | — | |||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||
Consumer - home equity | 1,010 | 1,221 | — | 1,014 | 1,230 | — | |||||||||||||||||
Consumer - other | 4 | 23 | — | 10 | 42 | — | |||||||||||||||||
38,263 | 40,606 | — | 37,954 | 40,546 | — | ||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
One- to four-family - originated | 11,520 | 11,556 | 63 | 13,430 | 13,476 | 125 | |||||||||||||||||
One- to four-family - correspondent | 2,098 | 2,097 | 3 | 2,662 | 2,664 | 4 | |||||||||||||||||
One- to four-family - bulk purchased | 685 | 678 | 6 | 1,650 | 1,627 | 49 | |||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||
Consumer - home equity | 451 | 451 | 27 | 548 | 548 | 38 | |||||||||||||||||
Consumer - other | 14 | 14 | — | 6 | 6 | 1 | |||||||||||||||||
14,768 | 14,796 | 99 | 18,296 | 18,321 | 217 | ||||||||||||||||||
Total | |||||||||||||||||||||||
One- to four-family - originated | 37,041 | 37,738 | 63 | 36,412 | 37,116 | 125 | |||||||||||||||||
One- to four-family - correspondent | 4,972 | 4,947 | 3 | 5,625 | 5,614 | 4 | |||||||||||||||||
One- to four-family - bulk purchased | 9,539 | 11,008 | 6 | 12,635 | 14,311 | 49 | |||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||
Consumer - home equity | 1,461 | 1,672 | 27 | 1,562 | 1,778 | 38 | |||||||||||||||||
Consumer - other | 18 | 37 | — | 16 | 48 | 1 | |||||||||||||||||
$ | 53,031 | $ | 55,402 | $ | 99 | $ | 56,250 | $ | 58,867 | $ | 217 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||
One- to four-family - originated | $ | 24,342 | $ | 230 | $ | 11,506 | $ | 110 | $ | 23,478 | $ | 653 | $ | 11,146 | $ | 340 | |||||||||||||||
One- to four-family - correspondent | 3,497 | 32 | 366 | 4 | 3,463 | 91 | 232 | 9 | |||||||||||||||||||||||
One- to four-family - bulk purchased | 9,950 | 49 | 10,958 | 47 | 10,490 | 144 | 11,115 | 147 | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer - home equity | 1,095 | 12 | 622 | 32 | 1,043 | 75 | 598 | 55 | |||||||||||||||||||||||
Consumer - other | 4 | — | 22 | 1 | 8 | — | 15 | 1 | |||||||||||||||||||||||
38,888 | 323 | 23,474 | 194 | 38,482 | 963 | 23,106 | 552 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||
One- to four-family - originated | 12,787 | 117 | 23,677 | 232 | 12,878 | 367 | 25,366 | 740 | |||||||||||||||||||||||
One- to four-family - correspondent | 2,405 | 20 | 3,263 | 29 | 2,150 | 52 | 2,227 | 58 | |||||||||||||||||||||||
One- to four-family - bulk purchased | 1,136 | 7 | 1,805 | 7 | 1,358 | 17 | 2,348 | 21 | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer - home equity | 444 | 4 | 823 | 20 | 525 | 33 | 920 | 46 | |||||||||||||||||||||||
Consumer - other | 12 | — | 14 | — | 12 | — | 15 | — | |||||||||||||||||||||||
16,784 | 148 | 29,582 | 288 | 16,923 | 469 | 30,876 | 865 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||
One- to four-family - originated | 37,129 | 347 | 35,183 | 342 | 36,356 | 1,020 | 36,512 | 1,080 | |||||||||||||||||||||||
One- to four-family - correspondent | 5,902 | 52 | 3,629 | 33 | 5,613 | 143 | 2,459 | 67 | |||||||||||||||||||||||
One- to four-family - bulk purchased | 11,086 | 56 | 12,763 | 54 | 11,848 | 161 | 13,463 | 168 | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer - home equity | 1,539 | 16 | 1,445 | 52 | 1,568 | 108 | 1,518 | 101 | |||||||||||||||||||||||
Consumer - other | 16 | — | 36 | 1 | 20 | — | 30 | 1 | |||||||||||||||||||||||
$ | 55,672 | $ | 471 | $ | 53,056 | $ | 482 | $ | 55,405 | $ | 1,432 | $ | 53,982 | $ | 1,417 |
For the Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||
One- to Four-Family | |||||||||||||||||||||||||||
Correspondent | Bulk | Commercial | |||||||||||||||||||||||||
Originated | Purchased | Purchased | Total | Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 3,351 | $ | 1,940 | $ | 1,000 | $ | 6,291 | $ | 1,885 | $ | 271 | $ | 8,447 | |||||||||||||
Charge-offs | (4 | ) | — | (25 | ) | (29 | ) | — | (12 | ) | (41 | ) | |||||||||||||||
Recoveries | 3 | — | 69 | 72 | — | 8 | 80 | ||||||||||||||||||||
Provision for credit losses | (128 | ) | (24 | ) | (44 | ) | (196 | ) | 204 | (8 | ) | — | |||||||||||||||
Ending balance | $ | 3,222 | $ | 1,916 | $ | 1,000 | $ | 6,138 | $ | 2,089 | $ | 259 | $ | 8,486 |
For the Nine Months Ended June 30, 2017 | |||||||||||||||||||||||||||
One- to Four-Family | |||||||||||||||||||||||||||
Correspondent | Bulk | Commercial | |||||||||||||||||||||||||
Originated | Purchased | Purchased | Total | Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 3,928 | $ | 2,102 | $ | 1,065 | $ | 7,095 | $ | 1,208 | $ | 237 | $ | 8,540 | |||||||||||||
Charge-offs | (45 | ) | — | (73 | ) | (118 | ) | — | (37 | ) | (155 | ) | |||||||||||||||
Recoveries | 3 | — | 69 | 72 | — | 29 | 101 | ||||||||||||||||||||
Provision for credit losses | (664 | ) | (186 | ) | (61 | ) | (911 | ) | 881 | 30 | — | ||||||||||||||||
Ending balance | $ | 3,222 | $ | 1,916 | $ | 1,000 | $ | 6,138 | $ | 2,089 | $ | 259 | $ | 8,486 |
For the Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||
One- to Four-Family | |||||||||||||||||||||||||||
Correspondent | Bulk | Commercial | |||||||||||||||||||||||||
Originated | Purchased | Purchased | Total | Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 4,576 | $ | 2,263 | $ | 1,243 | $ | 8,082 | $ | 837 | $ | 274 | $ | 9,193 | |||||||||||||
Charge-offs | (23 | ) | — | (54 | ) | (77 | ) | — | (49 | ) | (126 | ) | |||||||||||||||
Recoveries | 17 | — | 222 | 239 | — | 6 | 245 | ||||||||||||||||||||
Provision for credit losses | 98 | 36 | (262 | ) | (128 | ) | 96 | 32 | — | ||||||||||||||||||
Ending balance | $ | 4,668 | $ | 2,299 | $ | 1,149 | $ | 8,116 | $ | 933 | $ | 263 | $ | 9,312 |
For the Nine Months Ended June 30, 2016 | |||||||||||||||||||||||||||
One- to Four-Family | |||||||||||||||||||||||||||
Correspondent | Bulk | Commercial | |||||||||||||||||||||||||
Originated | Purchased | Purchased | Total | Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 4,865 | $ | 2,115 | $ | 1,434 | $ | 8,414 | $ | 742 | $ | 287 | $ | 9,443 | |||||||||||||
Charge-offs | (97 | ) | — | (267 | ) | (364 | ) | — | (87 | ) | (451 | ) | |||||||||||||||
Recoveries | 59 | — | 240 | 299 | — | 21 | 320 | ||||||||||||||||||||
Provision for credit losses | (159 | ) | 184 | (258 | ) | (233 | ) | 191 | 42 | — | |||||||||||||||||
Ending balance | $ | 4,668 | $ | 2,299 | $ | 1,149 | $ | 8,116 | $ | 933 | $ | 263 | $ | 9,312 |
June 30, 2017 | |||||||||||||||||||||||||||
One- to Four-Family | |||||||||||||||||||||||||||
Correspondent | Bulk | Commercial | |||||||||||||||||||||||||
Originated | Purchased | Purchased | Total | Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Recorded investment in loans | |||||||||||||||||||||||||||
collectively evaluated for impairment | $ | 3,997,567 | $ | 2,473,146 | $ | 360,326 | $ | 6,831,039 | $ | 254,506 | $ | 122,845 | $ | 7,208,390 | |||||||||||||
Recorded investment in loans | |||||||||||||||||||||||||||
individually evaluated for impairment | 26,549 | 4,116 | 8,854 | 39,519 | — | 1,171 | 40,690 | ||||||||||||||||||||
$ | 4,024,116 | $ | 2,477,262 | $ | 369,180 | $ | 6,870,558 | $ | 254,506 | $ | 124,016 | $ | 7,249,080 | ||||||||||||||
ACL for loans collectively | |||||||||||||||||||||||||||
evaluated for impairment | $ | 3,222 | $ | 1,916 | $ | 1,000 | $ | 6,138 | $ | 2,089 | $ | 259 | $ | 8,486 |
September 30, 2016 | |||||||||||||||||||||||||||
One- to Four-Family | |||||||||||||||||||||||||||
Correspondent | Bulk | Commercial | |||||||||||||||||||||||||
Originated | Purchased | Purchased | Total | Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Recorded investment in loans | |||||||||||||||||||||||||||
collectively evaluated for impairment | $ | 4,003,750 | $ | 2,233,347 | $ | 407,833 | $ | 6,644,930 | $ | 153,082 | $ | 126,504 | $ | 6,924,516 | |||||||||||||
Recorded investment in loans | |||||||||||||||||||||||||||
individually evaluated for impairment | 24,960 | 4,975 | 11,008 | 40,943 | — | 1,105 | 42,048 | ||||||||||||||||||||
$ | 4,028,710 | $ | 2,238,322 | $ | 418,841 | $ | 6,685,873 | $ | 153,082 | $ | 127,609 | $ | 6,966,564 | ||||||||||||||
ACL for loans collectively | |||||||||||||||||||||||||||
evaluated for impairment | $ | 3,928 | $ | 2,102 | $ | 1,065 | $ | 7,095 | $ | 1,208 | $ | 237 | $ | 8,540 |
Amount | |||
(Dollars in thousands) | |||
2017 | $ | — | |
2018 | 100,000 | ||
2019 | — | ||
2020 | 100,000 | ||
2021 | — | ||
Thereafter | — | ||
$ | 200,000 |
• | Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets. |
• | Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
• | Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. |
• | GSE Debentures - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for similar securities. (Level 2) |
• | MBS - Estimated fair values are based on a discounted cash flow method. Cash flows are determined based on prepayment projections of the underlying mortgages and are discounted using current market yields for benchmark securities. (Level 2) |
• | Municipal Bonds - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for securities with similar credit profiles. (Level 2) |
• | Trust Preferred Securities - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking prepayment and underlying credit considerations into account. The discount rates are derived from secondary trades and bid/offer prices. (Level 3) |
June 30, 2017 | |||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||
in Active Markets | Other Observable | Unobservable | |||||||||||||
Carrying | for Identical Assets | Inputs | Inputs | ||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
AFS Securities: | |||||||||||||||
GSE debentures | $ | 295,663 | $ | — | $ | 295,663 | $ | — | |||||||
MBS | 153,796 | — | 153,796 | — | |||||||||||
Municipal bonds | 1,534 | — | 1,534 | — | |||||||||||
Trust preferred securities | 1,901 | — | — | 1,901 | |||||||||||
$ | 452,894 | $ | — | $ | 450,993 | $ | 1,901 |
September 30, 2016 | |||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||
in Active Markets | Other Observable | Unobservable | |||||||||||||
Carrying | for Identical Assets | Inputs | Inputs | ||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
AFS Securities: | |||||||||||||||
GSE debentures | $ | 347,038 | $ | — | $ | 347,038 | $ | — | |||||||
MBS | 178,507 | — | 178,507 | — | |||||||||||
Trust preferred securities | 1,756 | — | — | 1,756 | |||||||||||
$ | 527,301 | $ | — | $ | 525,545 | $ | 1,756 |
June 30, 2017 | |||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||
in Active Markets | Other Observable | Unobservable | |||||||||||||
Carrying | for Identical Assets | Inputs | Inputs | ||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Loans individually evaluated for impairment | $ | 40,657 | $ | — | $ | — | $ | 40,657 | |||||||
OREO | 1,953 | — | — | 1,953 | |||||||||||
$ | 42,610 | $ | — | $ | — | $ | 42,610 |
September 30, 2016 | |||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||
in Active Markets | Other Observable | Unobservable | |||||||||||||
Carrying | for Identical Assets | Inputs | Inputs | ||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Loans individually evaluated for impairment | $ | 41,995 | $ | — | $ | — | $ | 41,995 | |||||||
OREO | 3,734 | — | — | 3,734 | |||||||||||
$ | 45,729 | $ | — | $ | — | $ | 45,729 |
June 30, 2017 | September 30, 2016 | ||||||||||||||
Estimated | Estimated | ||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||
Amount | Value | Amount | Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 130,249 | $ | 130,249 | $ | 281,764 | $ | 281,764 | |||||||
AFS securities | 452,894 | 452,894 | 527,301 | 527,301 | |||||||||||
HTM securities | 891,037 | 895,542 | 1,100,874 | 1,122,867 | |||||||||||
Loans receivable | 7,240,594 | 7,381,322 | 6,958,024 | 7,292,971 | |||||||||||
FHLB stock | 101,039 | 101,039 | 109,970 | 109,970 | |||||||||||
Liabilities: | |||||||||||||||
Deposits | 5,267,685 | 5,278,931 | 5,164,018 | 5,204,251 | |||||||||||
FHLB borrowings | 2,173,472 | 2,187,180 | 2,372,389 | 2,434,151 | |||||||||||
Repurchase agreements | 200,000 | 202,811 | 200,000 | 207,303 |
• | our ability to maintain overhead costs at reasonable levels; |
• | our ability to originate and purchase a sufficient volume of one- to four-family loans in order to maintain the balance of that portfolio at a level desired by management; |
• | our ability to invest funds in wholesale or secondary markets at favorable yields compared to the related funding source; |
• | our ability to access cost-effective funding; |
• | fluctuations in deposit flows; |
• | the future earnings and capital levels of the Bank and the continued non-objection by our primary federal banking regulators, to the extent required, to distribute capital from the Bank to the Company, which could affect the ability of the Company to pay dividends in accordance with its dividend policy; |
• | the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations, including areas where we have purchased large amounts of correspondent loans; |
• | changes in real estate values, unemployment levels, and the level and direction of loan delinquencies and charge-offs may require changes in the estimates of the adequacy of the ACL, which may adversely affect our business; |
• | increases in non-performing assets, which may require the Bank to increase the ACL, charge-off loans and incur elevated collection and carrying costs related to such non-performing assets; |
• | results of examinations of the Bank and the Company by their respective primary federal banking regulators, including the possibility that the regulators may, among other things, require us to increase our ACL; |
• | changes in accounting principles, policies, or guidelines; |
• | the effects of, and changes in, monetary and interest rate policies of the Board of Governors of the Federal Reserve System ("FRB"); |
• | the effects of, and changes in, trade and fiscal policies and laws of the United States government; |
• | the effects of, and changes in, foreign and military policies of the United States government; |
• | inflation, interest rate, market, monetary, and currency fluctuations; |
• | the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing, and quality compared to competitors' products and services; |
• | the willingness of users to substitute competitors' products and services for our products and services; |
• | our success in gaining regulatory approval of our products and services and branching locations, when required; |
• | the impact of interpretations of, and changes in, financial services laws and regulations, including laws concerning taxes, banking, securities, consumer protection and insurance and the impact of other governmental initiatives affecting the financial services industry; |
• | implementing business initiatives may be more difficult or expensive than anticipated; |
• | significant litigation; |
• | technological changes; |
• | acquisitions and dispositions; |
• | changes in consumer spending, borrowing and saving habits; and |
• | our success at managing the risks involved in our business. |
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total assets | $ | 9,103,280 | $ | 9,246,390 | $ | 9,139,510 | $ | 9,267,247 | $ | 9,241,775 | |||||||||
Cash and cash equivalents | 130,249 | 240,587 | 150,560 | 281,764 | 152,831 | ||||||||||||||
AFS securities | 452,894 | 465,083 | 499,792 | 527,301 | 666,313 | ||||||||||||||
HTM securities | 891,037 | 954,110 | 1,022,215 | 1,100,874 | 1,188,913 | ||||||||||||||
Loans receivable, net | 7,240,594 | 7,193,721 | 7,071,410 | 6,958,024 | 6,839,123 | ||||||||||||||
FHLB stock, at cost | 101,039 | 105,475 | 105,364 | 109,970 | 114,425 | ||||||||||||||
Deposits | 5,267,685 | 5,269,234 | 5,192,674 | 5,164,018 | 5,085,129 | ||||||||||||||
FHLB borrowings | 2,173,472 | 2,273,113 | 2,272,754 | 2,372,389 | 2,472,026 | ||||||||||||||
Repurchase agreements | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | ||||||||||||||
Stockholders' equity | 1,358,986 | 1,382,289 | 1,368,175 | 1,392,964 | 1,380,815 | ||||||||||||||
Equity to total assets at end of period | 14.9 | % | 14.9 | % | 15.0 | % | 15.0 | % | 14.9 | % |
June 30, 2017 | September 30, 2016 | ||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
(Dollars in thousands) | |||||||||||||
Real estate loans: | |||||||||||||
One- to four-family: | |||||||||||||
Originated | $ | 4,005,081 | 3.70 | % | $ | 4,005,615 | 3.74 | % | |||||
Correspondent purchased | 2,442,557 | 3.51 | 2,206,072 | 3.50 | |||||||||
Bulk purchased | 367,353 | 2.24 | 416,653 | 2.23 | |||||||||
Construction | 33,854 | 3.36 | 39,430 | 3.45 | |||||||||
Total | 6,848,845 | 3.55 | 6,667,770 | 3.56 | |||||||||
Commercial: | |||||||||||||
Permanent | 148,485 | 4.18 | 110,768 | 4.16 | |||||||||
Construction | 107,079 | 3.99 | 43,375 | 4.13 | |||||||||
Total | 255,564 | 4.10 | 154,143 | 4.15 | |||||||||
Total real estate loans | 7,104,409 | 3.57 | 6,821,913 | 3.58 | |||||||||
Consumer loans: | |||||||||||||
Home equity | 119,822 | 5.27 | 123,345 | 5.01 | |||||||||
Other | 4,194 | 4.03 | 4,264 | 4.21 | |||||||||
Total consumer loans | 124,016 | 5.23 | 127,609 | 4.99 | |||||||||
Total loans receivable | 7,228,425 | 3.60 | 6,949,522 | 3.60 | |||||||||
Less: | |||||||||||||
ACL | 8,486 | 8,540 | |||||||||||
Discounts/unearned loan fees | 25,221 | 24,933 | |||||||||||
Premiums/deferred costs | (45,876 | ) | (41,975 | ) | |||||||||
Total loans receivable, net | $ | 7,240,594 | $ | 6,958,024 |
For the Three Months Ended | |||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 7,182,346 | 3.59 | % | $ | 7,061,557 | 3.58 | % | $ | 6,949,522 | 3.60 | % | $ | 6,832,770 | 3.63 | % | |||||||||||
Originated and refinanced: | |||||||||||||||||||||||||||
Fixed | 116,422 | 3.94 | 115,560 | 3.66 | 176,554 | 3.26 | 176,534 | 3.31 | |||||||||||||||||||
Adjustable | 59,372 | 3.87 | 36,417 | 3.82 | 46,566 | 3.54 | 48,608 | 3.53 | |||||||||||||||||||
Purchased and participations: | |||||||||||||||||||||||||||
Fixed | 135,041 | 3.97 | 143,852 | 3.69 | 187,674 | 3.52 | 190,830 | 3.50 | |||||||||||||||||||
Adjustable | 17,930 | 3.24 | 27,158 | 2.98 | 25,262 | 2.73 | 65,748 | 3.79 | |||||||||||||||||||
Change in undisbursed loan funds | 13,648 | 37,862 | 3,696 | (26,760 | ) | ||||||||||||||||||||||
Repayments | (295,988 | ) | (239,072 | ) | (326,839 | ) | (337,779 | ) | |||||||||||||||||||
Principal recoveries (charge-offs), net | 39 | (74 | ) | (19 | ) | (22 | ) | ||||||||||||||||||||
Other | (385 | ) | (914 | ) | (859 | ) | (407 | ) | |||||||||||||||||||
Ending balance | $ | 7,228,425 | 3.60 | $ | 7,182,346 | 3.59 | $ | 7,061,557 | 3.58 | $ | 6,949,522 | 3.60 |
For the Nine Months Ended | |||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
(Dollars in thousands) | |||||||||||||
Beginning balance | $ | 6,949,522 | 3.60 | % | $ | 6,622,728 | 3.66 | % | |||||
Originations and refinances: | |||||||||||||
Fixed | 408,536 | 3.57 | 429,831 | 3.61 | |||||||||
Adjustable | 142,355 | 3.75 | 117,931 | 3.70 | |||||||||
Purchases and participations: | |||||||||||||
Fixed | 466,567 | 3.70 | 529,423 | 3.69 | |||||||||
Adjustable | 70,350 | 2.96 | 77,931 | 3.00 | |||||||||
Change in undisbursed loan funds | 55,206 | (115,267 | ) | ||||||||||
Repayments | (861,899 | ) | (826,221 | ) | |||||||||
Principal charge-offs, net | (54 | ) | (131 | ) | |||||||||
Other | (2,158 | ) | (3,455 | ) | |||||||||
Ending balance | $ | 7,228,425 | 3.60 | $ | 6,832,770 | 3.63 |
For the Three Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Amount | Rate | % of Total | Amount | Rate | % of Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Fixed-rate: | |||||||||||||||||||
One- to four-family: | |||||||||||||||||||
<= 15 years | $ | 43,684 | 3.39 | % | 13.3 | % | $ | 57,702 | 2.93 | % | 14.3 | % | |||||||
> 15 years | 180,496 | 4.07 | 54.9 | 240,111 | 3.66 | 59.6 | |||||||||||||
Commercial real estate | 26,196 | 4.08 | 8.0 | 34,475 | 4.40 | 8.6 | |||||||||||||
Home equity | 983 | 5.83 | 0.3 | 1,452 | 5.62 | 0.4 | |||||||||||||
Other | 104 | 9.78 | — | 201 | 8.75 | — | |||||||||||||
Total fixed-rate | 251,463 | 3.96 | 76.5 | 333,941 | 3.62 | 82.9 | |||||||||||||
Adjustable-rate: | |||||||||||||||||||
One- to four-family: | |||||||||||||||||||
<= 36 months | 1,140 | 2.94 | 0.3 | 2,433 | 2.56 | 0.6 | |||||||||||||
> 36 months | 56,487 | 3.24 | 17.2 | 48,049 | 2.88 | 11.9 | |||||||||||||
Home equity | 19,322 | 5.19 | 5.9 | 17,833 | 4.72 | 4.4 | |||||||||||||
Other | 353 | 3.43 | 0.1 | 719 | 3.41 | 0.2 | |||||||||||||
Total adjustable-rate | 77,302 | 3.72 | 23.5 | 69,034 | 3.35 | 17.1 | |||||||||||||
Total originated, refinanced and purchased | $ | 328,765 | 3.90 | 100.0 | % | $ | 402,975 | 3.58 | 100.0 | % | |||||||||
Purchased and participation loans included above: | |||||||||||||||||||
Fixed-rate: | |||||||||||||||||||
Correspondent - one- to four-family | $ | 108,845 | 3.95 | $ | 144,287 | 3.55 | |||||||||||||
Participations - commercial real estate | 26,196 | 4.08 | 34,475 | 4.40 | |||||||||||||||
Total fixed-rate purchased/participations | 135,041 | 3.97 | 178,762 | 3.71 | |||||||||||||||
Adjustable-rate: | |||||||||||||||||||
Correspondent - one- to four-family | 17,930 | 3.24 | 24,715 | 2.90 | |||||||||||||||
Total purchased/participation loans | $ | 152,971 | 3.89 | $ | 203,477 | 3.61 |
For the Nine Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Amount | Rate | % of Total | Amount | Rate | % of Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Fixed-rate: | |||||||||||||||||||
One- to four-family: | |||||||||||||||||||
<= 15 years | $ | 180,559 | 3.00 | % | 16.6 | % | $ | 176,597 | 3.00 | % | 15.3 | % | |||||||
> 15 years | 633,436 | 3.78 | 58.2 | 605,575 | 3.73 | 52.4 | |||||||||||||
Commercial real estate | 58,487 | 4.02 | 5.4 | 173,199 | 4.00 | 15.0 | |||||||||||||
Home equity | 2,323 | 5.84 | 0.2 | 3,230 | 5.72 | 0.2 | |||||||||||||
Other | 298 | 10.11 | — | 653 | 9.02 | 0.1 | |||||||||||||
Total fixed-rate | 875,103 | 3.64 | 80.4 | 959,254 | 3.66 | 83.0 | |||||||||||||
Adjustable-rate: | |||||||||||||||||||
One- to four-family: | |||||||||||||||||||
<= 36 months | 3,897 | 2.73 | 0.4 | 4,255 | 2.61 | 0.4 | |||||||||||||
> 36 months | 154,426 | 3.01 | 14.2 | 134,220 | 2.95 | 11.6 | |||||||||||||
Commercial real estate | — | — | — | 3,376 | 4.25 | 0.3 | |||||||||||||
Home equity | 52,602 | 4.95 | 4.8 | 51,803 | 4.63 | 4.5 | |||||||||||||
Other | 1,780 | 3.39 | 0.2 | 2,208 | 3.45 | 0.2 | |||||||||||||
Total adjustable-rate | 212,705 | 3.49 | 19.6 | 195,862 | 3.42 | 17.0 | |||||||||||||
Total originated, refinanced and purchased | $ | 1,087,808 | 3.61 | 100.0 | % | $ | 1,155,116 | 3.62 | 100.0 | % | |||||||||
Purchased and participation loans included above: | |||||||||||||||||||
Fixed-rate: | |||||||||||||||||||
Correspondent - one- to four-family | $ | 408,080 | 3.66 | $ | 386,355 | 3.60 | |||||||||||||
Participations - commercial real estate | 58,487 | 4.02 | 143,068 | 3.93 | |||||||||||||||
Total fixed-rate purchased/participations | 466,567 | 3.70 | 529,423 | 3.69 | |||||||||||||||
Adjustable-rate: | |||||||||||||||||||
Correspondent - one- to four-family | 70,350 | 2.96 | 74,555 | 2.94 | |||||||||||||||
Participations - commercial real estate | — | — | 3,376 | 4.25 | |||||||||||||||
Total adjustable-rate purchased/participations | 70,350 | 2.96 | 77,931 | 3.00 | |||||||||||||||
Total purchased/participation loans | $ | 536,917 | 3.60 | $ | 607,354 | 3.60 |
June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||||||||
% of | Credit | Average | % of | Credit | Average | ||||||||||||||||||||||||||||
Amount | Total | Score | LTV | Balance | Amount | Total | Score | LTV | Balance | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Originated | $ | 4,005,081 | 58.8 | % | 767 | 63 | % | $ | 135 | $ | 4,005,615 | 60.4 | % | 766 | 63 | % | $ | 132 | |||||||||||||||
Correspondent purchased | 2,442,557 | 35.8 | 764 | 68 | 374 | 2,206,072 | 33.3 | 764 | 68 | 360 | |||||||||||||||||||||||
Bulk purchased | 367,353 | 5.4 | 755 | 63 | 305 | 416,653 | 6.3 | 753 | 64 | 308 | |||||||||||||||||||||||
$ | 6,814,991 | 100.0 | % | 765 | 65 | 182 | $ | 6,628,340 | 100.0 | % | 765 | 65 | 175 |
For the Three Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Credit | Credit | ||||||||||||||||||
Amount | LTV | Score | Amount | LTV | Score | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Originated | $ | 135,311 | 77 | % | 764 | $ | 146,590 | 80 | % | 773 | |||||||||
Refinanced by Bank customers | 19,721 | 65 | 751 | 32,703 | 69 | 766 | |||||||||||||
Correspondent purchased | 126,775 | 75 | 767 | 169,002 | 74 | 761 | |||||||||||||
$ | 281,807 | 75 | 764 | $ | 348,295 | 76 | 766 |
For the Nine Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Credit | Credit | ||||||||||||||||||
Amount | LTV | Score | Amount | LTV | Score | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Originated | $ | 390,983 | 77 | % | 768 | $ | 361,651 | 78 | % | 769 | |||||||||
Refinanced by Bank customers | 102,905 | 66 | 763 | 98,086 | 69 | 768 | |||||||||||||
Correspondent purchased | 478,430 | 74 | 766 | 460,910 | 74 | 763 | |||||||||||||
$ | 972,318 | 74 | 767 | $ | 920,647 | 75 | 766 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2017 | |||||||||||||||||||
State | Amount | % of Total | Rate | Amount | % of Total | Rate | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Kansas | $ | 136,937 | 48.6 | % | 3.75 | % | $ | 439,677 | 45.2 | % | 3.46 | % | ||||||||
Texas | 53,840 | 19.1 | 3.81 | 189,558 | 19.5 | 3.54 | ||||||||||||||
Missouri | 40,597 | 14.4 | 3.83 | 149,128 | 15.3 | 3.56 | ||||||||||||||
Other states | 50,433 | 17.9 | 3.85 | 193,955 | 20.0 | 3.54 | ||||||||||||||
$ | 281,807 | 100.0 | % | 3.79 | $ | 972,318 | 100.0 | % | 3.51 |
Fixed-Rate | ||||||||||||||||||
15 years | More than | Adjustable- | Total | |||||||||||||||
or less | 15 years | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Originate/refinance | $ | 7,964 | $ | 35,436 | $ | 14,819 | $ | 58,219 | 3.72 | % | ||||||||
Correspondent | 6,105 | 71,632 | 10,796 | 88,533 | 4.00 | |||||||||||||
$ | 14,069 | $ | 107,068 | $ | 25,615 | $ | 146,752 | 3.89 | ||||||||||
Rate | 3.46 | % | 4.08 | % | 3.33 | % |
Unpaid | Undisbursed | Gross Loan | Outstanding | % of | ||||||||||||||||||
Principal | Amount | Amount | Commitments | Total | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Accommodation and food services | $ | 110,401 | $ | 28,908 | $ | 139,309 | $ | 1,600 | $ | 140,909 | 34.6 | % | ||||||||||
Health care and social assistance | 41,197 | 58,535 | 99,732 | — | 99,732 | 24.5 | ||||||||||||||||
Real estate rental and leasing | 20,030 | 38,817 | 58,847 | 2,645 | 61,492 | 15.1 | ||||||||||||||||
Arts, entertainment, and recreation | 34,345 | — | 34,345 | — | 34,345 | 8.4 | ||||||||||||||||
Multi-family | 10,511 | — | 10,511 | 18,000 | 28,511 | 7.0 | ||||||||||||||||
Retail trade | 25,211 | 2,251 | 27,462 | — | 27,462 | 6.8 | ||||||||||||||||
Other | 13,869 | 883 | 14,752 | — | 14,752 | 3.6 | ||||||||||||||||
$ | 255,564 | $ | 129,394 | $ | 384,958 | $ | 22,245 | $ | 407,203 | 100.0 | % | |||||||||||
Weighted average rate | 4.10 | % | 4.25 | % | 4.15 | % | 3.56 | % | 4.12 | % |
Unpaid | Undisbursed | Gross Loan | Outstanding | % of | ||||||||||||||||||
Principal | Amount | Amount | Commitments | Total | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Texas | $ | 75,494 | $ | 66,971 | $ | 142,465 | $ | 1,600 | $ | 144,065 | 35.4 | % | ||||||||||
Missouri | 73,806 | 60,040 | 133,846 | 995 | 134,841 | 33.1 | ||||||||||||||||
Kansas | 76,272 | — | 76,272 | — | 76,272 | 18.7 | ||||||||||||||||
Nebraska | — | — | — | 18,000 | 18,000 | 4.4 | ||||||||||||||||
Colorado | 14,837 | — | 14,837 | 1,650 | 16,487 | 4.1 | ||||||||||||||||
Arkansas | 8,076 | — | 8,076 | — | 8,076 | 2.0 | ||||||||||||||||
California | 5,617 | 883 | 6,500 | — | 6,500 | 1.6 | ||||||||||||||||
Montana | 1,462 | 1,500 | 2,962 | — | 2,962 | 0.7 | ||||||||||||||||
$ | 255,564 | $ | 129,394 | $ | 384,958 | $ | 22,245 | $ | 407,203 | 100.0 | % |
Count | Amount | |||||
(Dollars in thousands) | ||||||
Greater than $30 million | 4 | $ | 157,581 | |||
>$15 to $30 million | 5 | 115,028 | ||||
>$10 to $15 million | 3 | 37,859 | ||||
>$5 to $10 million | 3 | 22,799 | ||||
$1 to $5 million | 24 | 68,409 | ||||
Less than $1 million | 16 | 5,527 | ||||
55 | $ | 407,203 |
Loans Delinquent for 30 to 89 Days at: | |||||||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
One- to four-family: | |||||||||||||||||||||||||||||||
Originated | 120 | $ | 10,455 | 122 | $ | 10,886 | 130 | $ | 11,232 | 143 | $ | 13,593 | 141 | $ | 12,962 | ||||||||||||||||
Correspondent purchased | 5 | 1,278 | 4 | 739 | 17 | 7,809 | 9 | 3,329 | 10 | 2,561 | |||||||||||||||||||||
Bulk purchased | 15 | 2,511 | 19 | 3,527 | 26 | 4,844 | 21 | 5,008 | 27 | 4,703 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||
Home equity | 30 | 412 | 36 | 761 | 38 | 665 | 36 | 635 | 33 | 548 | |||||||||||||||||||||
Other | 5 | 14 | 7 | 34 | 7 | 17 | 5 | 62 | 11 | 55 | |||||||||||||||||||||
175 | $ | 14,670 | 188 | $ | 15,947 | 218 | $ | 24,567 | 214 | $ | 22,627 | 222 | $ | 20,829 | |||||||||||||||||
Loans 30 to 89 days delinquent | |||||||||||||||||||||||||||||||
to total loans receivable, net | 0.20 | % | 0.22 | % | 0.35 | % | 0.33 | % | 0.30 | % |
Non-Performing Loans and OREO at: | ||||||||||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | Number | Amount | Number | Amount | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Loans 90 or More Days Delinquent or in Foreclosure: | ||||||||||||||||||||||||||||||||||
One- to four-family: | ||||||||||||||||||||||||||||||||||
Originated | 50 | $ | 4,264 | 65 | $ | 5,348 | 79 | $ | 6,647 | 73 | $ | 8,190 | 74 | $ | 8,539 | |||||||||||||||||||
Correspondent purchased | — | — | 3 | 901 | 2 | 553 | 3 | 985 | 2 | 652 | ||||||||||||||||||||||||
Bulk purchased | 18 | 4,805 | 24 | 7,097 | 27 | 7,982 | 28 | 7,323 | 32 | 8,017 | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||
Home equity | 27 | 484 | 22 | 423 | 29 | 456 | 26 | 520 | 20 | 437 | ||||||||||||||||||||||||
Other | 2 | 10 | 3 | 7 | 7 | 18 | 5 | 9 | 6 | 17 | ||||||||||||||||||||||||
97 | 9,563 | 117 | 13,776 | 144 | 15,656 | 135 | 17,027 | 134 | 17,662 | |||||||||||||||||||||||||
Loans 90 or more days delinquent or in foreclosure | ||||||||||||||||||||||||||||||||||
as a percentage of total loans | 0.13 | % | 0.19 | % | 0.22 | % | 0.24 | % | 0.24 | % | ||||||||||||||||||||||||
Nonaccrual loans less than 90 Days Delinquent:(1) | ||||||||||||||||||||||||||||||||||
One- to four-family: | ||||||||||||||||||||||||||||||||||
Originated | 89 | $ | 9,493 | 92 | $ | 10,675 | 82 | $ | 11,393 | 70 | $ | 8,956 | 70 | $ | 6,939 | |||||||||||||||||||
Correspondent purchased | 9 | 1,589 | 4 | 583 | 6 | 1,231 | 9 | 2,786 | 8 | 2,872 | ||||||||||||||||||||||||
Bulk purchased | 3 | 1,023 | 3 | 809 | 2 | 147 | 1 | 31 | — | — | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||
Home equity | 12 | 251 | 14 | 346 | 14 | 371 | 12 | 328 | 11 | 263 | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | 1 | 7 | ||||||||||||||||||||||||
113 | 12,356 | 113 | 12,413 | 104 | 13,142 | 92 | 12,101 | 90 | 10,081 | |||||||||||||||||||||||||
Total non-performing loans | 210 | 21,919 | 230 | 26,189 | 248 | 28,798 | 227 | 29,128 | 224 | 27,743 | ||||||||||||||||||||||||
Non-performing loans as a percentage of total loans | 0.30 | % | 0.36 | % | 0.41 | % | 0.42 | % | 0.41 | % | ||||||||||||||||||||||||
OREO: | ||||||||||||||||||||||||||||||||||
One- to four-family: | ||||||||||||||||||||||||||||||||||
Originated(2) | 9 | $ | 200 | 9 | $ | 831 | 10 | $ | 888 | 12 | $ | 692 | 14 | $ | 1,142 | |||||||||||||||||||
Correspondent purchased | — | — | — | — | — | — | 1 | 499 | 1 | 499 | ||||||||||||||||||||||||
Bulk purchased | 5 | 1,671 | 6 | 1,830 | 3 | 1,196 | 4 | 1,265 | 5 | 1,413 | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||
Home equity | 1 | 82 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other(3) | — | — | — | — | 1 | 1,278 | 1 | 1,278 | 1 | 1,278 | ||||||||||||||||||||||||
15 | 1,953 | 15 | 2,661 | 14 | 3,362 | 18 | 3,734 | 21 | 4,332 | |||||||||||||||||||||||||
Total non-performing assets | 225 | $ | 23,872 | 245 | $ | 28,850 | 262 | $ | 32,160 | 245 | $ | 32,862 | 245 | $ | 32,075 | |||||||||||||||||||
Non-performing assets as a percentage of total assets | 0.26 | % | 0.31 | % | 0.35 | % | 0.35 | % | 0.35 | % |
(1) | Represents loans required to be reported as nonaccrual pursuant to regulatory reporting requirements even if the loans are current. At June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, this amount was comprised of $2.7 million, $2.0 million, $2.0 million, $2.3 million, and $2.8 million, respectively, of loans that were 30 to 89 days delinquent and were reported as such, and $9.7 million, $10.4 million, $11.1 million, $9.8 million, and $7.3 million, respectively, of loans that were current. |
(2) | Real estate-related consumer loans where we also hold the first mortgage are included in the one- to four-family category as the underlying collateral is one- to four-family property. |
(3) | Represents a single property the Bank purchased for a potential branch site. The Bank sold the property during the March 31, 2017 quarter. |
Loans 30 to 89 | Loans 90 or More Days Delinquent | |||||||||||||||||||||||
One- to Four-Family | Days Delinquent | or in Foreclosure | ||||||||||||||||||||||
State | Amount | % of Total | Amount | % of Total | Amount | % of Total | LTV | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Kansas | $ | 3,714,104 | 54.5 | % | $ | 8,566 | 60.1 | % | $ | 4,388 | 48.4 | % | 66 | % | ||||||||||
Missouri | 1,262,649 | 18.5 | 3,022 | 21.2 | 697 | 7.7 | 49 | |||||||||||||||||
Texas | 659,479 | 9.7 | 267 | 1.9 | 110 | 1.2 | 71 | |||||||||||||||||
California | 222,714 | 3.3 | — | — | — | — | n/a | |||||||||||||||||
Tennessee | 217,940 | 3.2 | — | — | — | — | n/a | |||||||||||||||||
Alabama | 107,752 | 1.6 | 601 | 4.2 | — | — | n/a | |||||||||||||||||
Pennsylvania | 95,027 | 1.4 | — | — | — | — | n/a | |||||||||||||||||
Georgia | 85,923 | 1.2 | 413 | 2.9 | 538 | 5.9 | 65 | |||||||||||||||||
Oklahoma | 70,872 | 1.0 | — | — | — | — | n/a | |||||||||||||||||
North Carolina | 67,212 | 1.0 | — | — | 464 | 5.1 | 41 | |||||||||||||||||
Other states | 311,319 | 4.6 | 1,375 | 9.7 | 2,872 | 31.7 | 69 | |||||||||||||||||
$ | 6,814,991 | 100.0 | % | $ | 14,244 | 100.0 | % | $ | 9,069 | 100.0 | % | 65 |
At | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Accruing TDRs | $ | 27,343 | $ | 26,209 | $ | 22,726 | $ | 23,177 | $ | 21,663 | |||||||||
Nonaccrual TDRs(1) | 15,947 | 16,868 | 17,983 | 18,725 | 16,497 | ||||||||||||||
Total TDRs | $ | 43,290 | $ | 43,077 | $ | 40,709 | $ | 41,902 | $ | 38,160 |
(1) | Nonaccrual TDRs are included in the non-performing loan table above. |
At | |||||||||||||||||||||||||||
June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||
% of ACL | % of | % of ACL | % of | ||||||||||||||||||||||||
Amount | to Total | Total | Loans to | Amount | to Total | Total | Loans to | ||||||||||||||||||||
of ACL | ACL | Loans | Total Loans | of ACL | ACL | Loans | Total Loans | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||
One- to four-family: | |||||||||||||||||||||||||||
Originated | $ | 3,196 | 37.6 | % | $ | 4,005,081 | 55.4 | % | $ | 3,892 | 45.6 | % | $ | 4,005,615 | 57.6 | % | |||||||||||
Correspondent purchased | 1,916 | 22.6 | 2,442,557 | 33.8 | 2,102 | 24.6 | 2,206,072 | 31.7 | |||||||||||||||||||
Bulk purchased | 1,000 | 11.8 | 367,353 | 5.1 | 1,065 | 12.5 | 416,653 | 6.0 | |||||||||||||||||||
Construction | 26 | 0.3 | 33,854 | 0.5 | 36 | 0.4 | 39,430 | 0.6 | |||||||||||||||||||
Total | 6,138 | 72.3 | 6,848,845 | 94.8 | 7,095 | 83.1 | 6,667,770 | 95.9 | |||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||
Permanent | 1,018 | 12.0 | 148,485 | 2.0 | 774 | 9.1 | 110,768 | 1.6 | |||||||||||||||||||
Construction | 1,071 | 12.6 | 107,079 | 1.5 | 434 | 5.1 | 43,375 | 0.6 | |||||||||||||||||||
Total | 2,089 | 24.6 | 255,564 | 3.5 | 1,208 | 14.2 | 154,143 | 2.2 | |||||||||||||||||||
Total real estate loans | 8,227 | 96.9 | 7,104,409 | 98.3 | 8,303 | 97.3 | 6,821,913 | 98.1 | |||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||
Home equity | 220 | 2.6 | 119,822 | 1.6 | 187 | 2.1 | 123,345 | 1.8 | |||||||||||||||||||
Other consumer | 39 | 0.5 | 4,194 | 0.1 | 50 | 0.6 | 4,264 | 0.1 | |||||||||||||||||||
Total consumer loans | 259 | 3.1 | 124,016 | 1.7 | 237 | 2.7 | 127,609 | 1.9 | |||||||||||||||||||
$ | 8,486 | 100.0 | % | $ | 7,228,425 | 100.0 | % | $ | 8,540 | 100.0 | % | $ | 6,949,522 | 100.0 | % |
For the Three Months Ended | |||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
ACL beginning balance | $ | 8,447 | $ | 8,521 | $ | 8,540 | $ | 9,312 | $ | 9,193 | |||||||||
Charge-offs | (41 | ) | (82 | ) | (32 | ) | (179 | ) | (126 | ) | |||||||||
Recoveries | 80 | 8 | 13 | 157 | 245 | ||||||||||||||
Provision for credit losses | — | — | — | (750 | ) | — | |||||||||||||
ACL ending balance | $ | 8,486 | $ | 8,447 | $ | 8,521 | $ | 8,540 | $ | 9,312 | |||||||||
ACL to loans receivable, net at end of period | 0.12 | % | 0.12 | % | 0.12 | % | 0.12 | % | 0.14 | % | |||||||||
ACL to non-performing loans at end of period | 38.72 | 32.25 | 29.59 | 29.32 | 33.57 | ||||||||||||||
Ratio of net charge-offs (recoveries) during the | |||||||||||||||||||
period to average loans outstanding | — | — | — | — | — | ||||||||||||||
Ratio of net charge-offs (recoveries) during the | |||||||||||||||||||
period to average non-performing assets | (0.15 | ) | 0.24 | 0.06 | 0.07 | (0.38 | ) | ||||||||||||
ACL to net charge-offs (annualized) | N/M(1) | 28.6x | 111.5x | 95.6x | N/M(1) |
(1) | The ACL coverage ratio is not presented for the time periods noted due to loan recoveries exceeding loan charge-offs during these periods. |
For the Nine Months Ended | |||||||
June 30, 2017 | June 30, 2016 | ||||||
(Dollars in thousands) | |||||||
ACL beginning balance | $ | 8,540 | $ | 9,443 | |||
Charge-offs | (155 | ) | (451 | ) | |||
Recoveries | 101 | 320 | |||||
Provision for credit losses | — | — | |||||
ACL ending balance | $ | 8,486 | $ | 9,312 | |||
Ratio of net charge-offs during the period to | |||||||
average loans outstanding during the period | — | % | — | % | |||
Ratio of net charge-offs during the period to | |||||||
average non-performing assets during the period | 0.19 | 0.42 | |||||
ACL to net charge-offs (annualized) | 118.3x | 53.4x |
June 30, 2017 | March 31, 2017 | September 30, 2016 | |||||||||||||||||||||||||||
Amount | Yield | WAL | Amount | Yield | WAL | Amount | Yield | WAL | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Fixed-rate securities: | |||||||||||||||||||||||||||||
MBS | $ | 682,062 | 2.16 | % | 3.0 | $ | 731,990 | 2.17 | % | 3.0 | $ | 836,852 | 2.16 | % | 2.9 | ||||||||||||||
GSE debentures | 296,283 | 1.25 | 1.4 | 296,266 | 1.25 | 1.7 | 346,226 | 1.15 | 0.9 | ||||||||||||||||||||
Municipal bonds | 29,220 | 1.65 | 2.2 | 30,826 | 1.62 | 2.3 | 33,303 | 1.69 | 2.4 | ||||||||||||||||||||
Total fixed-rate securities | 1,007,565 | 1.87 | 2.5 | 1,059,082 | 1.90 | 2.6 | 1,216,381 | 1.86 | 2.3 | ||||||||||||||||||||
Adjustable-rate securities: | |||||||||||||||||||||||||||||
MBS | 328,416 | 2.49 | 4.8 | 351,243 | 2.42 | 5.6 | 400,161 | 2.25 | 4.7 | ||||||||||||||||||||
Trust preferred securities | 2,074 | 2.50 | 20.0 | 2,080 | 2.39 | 20.2 | 2,123 | 2.11 | 20.7 | ||||||||||||||||||||
Total adjustable-rate securities | 330,490 | 2.49 | 4.9 | 353,323 | 2.42 | 5.7 | 402,284 | 2.24 | 4.8 | ||||||||||||||||||||
Total securities portfolio | $ | 1,338,055 | 2.03 | 3.1 | $ | 1,412,405 | 2.03 | 3.4 | $ | 1,618,665 | 1.95 | 2.9 |
June 30, 2017 | March 31, 2017 | September 30, 2016 | |||||||||
(Dollars in thousands) | |||||||||||
Federal National Mortgage Association ("FNMA") | $ | 620,741 | $ | 664,251 | $ | 752,141 | |||||
Federal Home Loan Mortgage Corporation ("FHLMC") | 330,101 | 356,029 | 413,458 | ||||||||
Government National Mortgage Association | 66,303 | 70,590 | 80,479 | ||||||||
$ | 1,017,145 | $ | 1,090,870 | $ | 1,246,078 |
For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||||||||||||||||
Amount | Yield | WAL | Amount | Yield | WAL | Amount | Yield | WAL | Amount | Yield | WAL | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Beginning balance - carrying value | $ | 1,090,870 | 2.25 | % | 3.9 | $ | 1,166,326 | 2.18 | % | 3.5 | $ | 1,246,078 | 2.19 | % | 3.5 | $ | 1,344,481 | 2.21 | % | 3.9 | |||||||||||||||||||
Maturities and repayments | (71,763 | ) | (73,801 | ) | (88,564 | ) | (96,320 | ) | |||||||||||||||||||||||||||||||
Net amortization of (premiums)/discounts | (992 | ) | (1,015 | ) | (1,290 | ) | (1,345 | ) | |||||||||||||||||||||||||||||||
Purchases: | |||||||||||||||||||||||||||||||||||||||
Fixed | — | — | — | — | — | — | 10,890 | 1.99 | 3.8 | — | — | — | |||||||||||||||||||||||||||
Change in valuation on AFS securities | (970 | ) | (640 | ) | (788 | ) | (738 | ) | |||||||||||||||||||||||||||||||
Ending balance - carrying value | $ | 1,017,145 | 2.26 | 3.6 | $ | 1,090,870 | 2.25 | 3.9 | $ | 1,166,326 | 2.18 | 3.5 | $ | 1,246,078 | 2.19 | 3.5 |
For the Nine Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Amount | Yield | WAL | Amount | Yield | WAL | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Beginning balance - carrying value | $ | 1,246,078 | 2.19 | % | 3.5 | $ | 1,462,539 | 2.24 | % | 3.8 | |||||||||
Maturities and repayments | (234,128 | ) | (254,670 | ) | |||||||||||||||
Net amortization of (premiums)/discounts | (3,297 | ) | (3,666 | ) | |||||||||||||||
Purchases: | |||||||||||||||||||
Fixed | 10,890 | 1.99 | 3.8 | 42,827 | 1.83 | 4.1 | |||||||||||||
Adjustable | — | — | — | 100,133 | 2.02 | 5.4 | |||||||||||||
Change in valuation on AFS securities | (2,398 | ) | (2,682 | ) | |||||||||||||||
Ending balance - carrying value | $ | 1,017,145 | 2.26 | 3.6 | $ | 1,344,481 | 2.21 | 3.9 |
For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||||||||||||||||
Amount | Yield | WAL | Amount | Yield | WAL | Amount | Yield | WAL | Amount | Yield | WAL | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Beginning balance - carrying value | $ | 328,323 | 1.29 | % | 1.9 | $ | 355,681 | 1.27 | % | 2.0 | $ | 382,097 | 1.20 | % | 1.2 | $ | 510,745 | 1.21 | % | 1.1 | |||||||||||||||||||
Maturities and calls | (1,538 | ) | (28,863 | ) | (50,019 | ) | (127,923 | ) | |||||||||||||||||||||||||||||||
Net amortization of (premiums)/discounts | (57 | ) | (61 | ) | (72 | ) | (9 | ) | |||||||||||||||||||||||||||||||
Purchases: | |||||||||||||||||||||||||||||||||||||||
Fixed | — | — | — | 1,535 | 1.30 | 3.4 | 25,000 | 1.70 | 4.0 | — | — | — | |||||||||||||||||||||||||||
Change in valuation on AFS securities | 58 | 31 | (1,325 | ) | (716 | ) | |||||||||||||||||||||||||||||||||
Ending balance - carrying value | $ | 326,786 | 1.29 | 1.6 | $ | 328,323 | 1.29 | 1.9 | $ | 355,681 | 1.27 | 2.0 | $ | 382,097 | 1.20 | 1.2 |
For the Nine Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Amount | Yield | WAL | Amount | Yield | WAL | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Beginning balance - carrying value | $ | 382,097 | 1.20 | % | 1.2 | $ | 566,754 | 1.19 | % | 1.8 | |||||||||
Maturities and calls | (80,420 | ) | (157,229 | ) | |||||||||||||||
Net amortization of (premiums)/discounts | (190 | ) | (322 | ) | |||||||||||||||
Purchases: | |||||||||||||||||||
Fixed | 26,535 | 1.68 | 4.0 | 101,359 | 1.09 | 0.8 | |||||||||||||
Change in valuation on AFS securities | (1,236 | ) | 183 | ||||||||||||||||
Ending balance - carrying value | $ | 326,786 | 1.29 | 1.6 | $ | 510,745 | 1.21 | 1.1 |
June 30, 2017 | March 31, 2017 | September 30, 2016 | |||||||||||||||||||||||||||
% of | % of | % of | |||||||||||||||||||||||||||
Amount | Rate | Total | Amount | Rate | Total | Amount | Rate | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Non-interest-bearing checking | $ | 244,037 | — | % | 4.6 | % | $ | 240,061 | — | % | 4.6 | % | $ | 217,009 | — | % | 4.2 | % | |||||||||||
Interest-bearing checking | 627,905 | 0.05 | 11.9 | 646,634 | 0.05 | 12.3 | 597,319 | 0.05 | 11.6 | ||||||||||||||||||||
Savings | 354,289 | 0.24 | 6.8 | 353,676 | 0.22 | 6.7 | 335,426 | 0.17 | 6.5 | ||||||||||||||||||||
Money market | 1,217,580 | 0.24 | 23.1 | 1,219,499 | 0.24 | 23.1 | 1,186,132 | 0.24 | 23.0 | ||||||||||||||||||||
Retail certificates of deposit | 2,432,867 | 1.48 | 46.2 | 2,461,838 | 1.46 | 46.7 | 2,458,160 | 1.43 | 47.6 | ||||||||||||||||||||
Public units | 391,007 | 1.08 | 7.4 | 347,526 | 0.83 | 6.6 | 369,972 | 0.70 | 7.1 | ||||||||||||||||||||
$ | 5,267,685 | 0.84 | 100.0 | % | $ | 5,269,234 | 0.81 | 100.0 | % | $ | 5,164,018 | 0.80 | 100.0 | % |
Amount Due | |||||||||||||||||||||||
More than | More than | ||||||||||||||||||||||
1 year | 1 year to | 2 years to 3 | More than | Total | |||||||||||||||||||
Rate range | or less | 2 years | years | 3 years | Amount | Rate | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
0.00 – 0.99% | $ | 641,523 | $ | 92,897 | $ | 359 | $ | — | $ | 734,779 | 0.75 | % | |||||||||||
1.00 – 1.99% | 559,682 | 444,901 | 486,754 | 433,813 | 1,925,150 | 1.62 | |||||||||||||||||
2.00 – 2.99% | 166 | 1,335 | 162,332 | — | 163,833 | 2.24 | |||||||||||||||||
3.00 – 3.99% | 112 | — | — | — | 112 | 3.06 | |||||||||||||||||
$ | 1,201,483 | $ | 539,133 | $ | 649,445 | $ | 433,813 | $ | 2,823,874 | 1.43 | |||||||||||||
Percent of total | 42.5 | % | 19.1 | % | 23.0 | % | 15.4 | % | |||||||||||||||
Weighted average rate | 1.03 | 1.42 | 1.85 | 1.91 | |||||||||||||||||||
Weighted average maturity (in years) | 0.4 | 1.5 | 2.5 | 3.8 | 1.6 | ||||||||||||||||||
Weighted average maturity for the retail certificate of deposit portfolio (in years) | 1.8 |
Amount Due | |||||||||||||||||||
Over | Over | ||||||||||||||||||
3 months | 3 to 6 | 6 to 12 | Over | ||||||||||||||||
or less | months | months | 12 months | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Retail certificates of deposit less than $100,000 | $ | 169,970 | $ | 174,022 | $ | 286,301 | $ | 880,974 | $ | 1,511,267 | |||||||||
Retail certificates of deposit of $100,000 or more | 82,682 | 76,467 | 130,523 | 631,928 | 921,600 | ||||||||||||||
Public unit deposits of $100,000 or more | 148,654 | 75,381 | 57,483 | 109,489 | 391,007 | ||||||||||||||
$ | 401,306 | $ | 325,870 | $ | 474,307 | $ | 1,622,391 | $ | 2,823,874 |
For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||||||||||||||||
Effective | Effective | Effective | Effective | ||||||||||||||||||||||||||||||||||||
Amount | Rate | WAM | Amount | Rate | WAM | Amount | Rate | WAM | Amount | Rate | WAM | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,475,000 | 2.35 | % | 2.5 | $ | 2,475,000 | 2.35 | % | 2.7 | $ | 2,575,000 | 2.29 | % | 2.9 | $ | 2,675,000 | 2.24 | % | 3.0 | |||||||||||||||||||
Maturities: | |||||||||||||||||||||||||||||||||||||||
FHLB advances | (300,000 | ) | 3.24 | — | — | (100,000 | ) | 0.78 | (100,000 | ) | 0.83 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,175,000 | 2.23 | 2.5 | $ | 2,475,000 | 2.35 | 2.5 | $ | 2,475,000 | 2.35 | 2.7 | $ | 2,575,000 | 2.29 | 2.9 |
For the Nine Months Ended | |||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||
Effective | Effective | ||||||||||||||||||
Amount | Rate | WAM | Amount | Rate | WAM | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Beginning balance | $ | 2,575,000 | 2.29 | % | 2.9 | $ | 2,775,000 | 2.29 | % | 3.3 | |||||||||
Maturities: | |||||||||||||||||||
FHLB advances | (400,000 | ) | 2.62 | (300,000 | ) | 2.35 | |||||||||||||
New borrowings: | |||||||||||||||||||
FHLB advances | — | — | — | 200,000 | 1.64 | 5.0 | |||||||||||||
Ending balance | $ | 2,175,000 | 2.23 | 2.5 | $ | 2,675,000 | 2.24 | 3.0 |
FHLB | Repurchase | |||||||||||||||||
Maturity by | Advances | Agreements | Total | Contractual | Effective | |||||||||||||
Fiscal Year | Amount | Amount | Amount | Rate | Rate(1) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
2017 | $ | 300,000 | $ | — | $ | 300,000 | 1.87 | % | 1.87 | % | ||||||||
2018 | 375,000 | 100,000 | 475,000 | 2.35 | 2.64 | |||||||||||||
2019 | 400,000 | — | 400,000 | 1.62 | 1.62 | |||||||||||||
2020 | 250,000 | 100,000 | 350,000 | 2.18 | 2.18 | |||||||||||||
2021 | 550,000 | — | 550,000 | 2.27 | 2.27 | |||||||||||||
2022 | 200,000 | — | 200,000 | 2.23 | 2.23 | |||||||||||||
2023 | 100,000 | — | 100,000 | 1.82 | 1.82 | |||||||||||||
$ | 2,175,000 | $ | 200,000 | $ | 2,375,000 | 2.09 | 2.15 |
(1) | The effective rate includes the impact of the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid. |
Retail | Public Unit | Term | ||||||||||||||||||||||||||
Maturity by | Certificate | Repricing | Deposit | Repricing | Borrowings | Repricing | Repricing | |||||||||||||||||||||
Quarter End | Amount | Rate | Amount | Rate | Amount | Rate | Total | Rate | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
September 30, 2017 | $ | 252,652 | 1.03 | % | $ | 148,654 | 0.88 | % | $ | 300,000 | 1.87 | % | $ | 701,306 | 1.36 | % | ||||||||||||
December 31, 2017 | 250,489 | 1.02 | 75,381 | 0.97 | 200,000 | 2.94 | 525,870 | 1.74 | ||||||||||||||||||||
March 31, 2018 | 214,355 | 1.12 | 30,962 | 1.11 | — | — | 245,317 | 1.12 | ||||||||||||||||||||
June 30, 2018 | 202,469 | 1.06 | 26,521 | 1.22 | 100,000 | 2.82 | 328,990 | 1.61 | ||||||||||||||||||||
$ | 919,965 | 1.05 | $ | 281,518 | 0.96 | $ | 600,000 | 2.39 | $ | 1,801,483 | 1.48 |
Calendar Year | |||||||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||
Regular quarterly dividends paid | |||||||||||||||||||||||
Quarter ended March 31 | $ | 11,386 | $ | 0.085 | $ | 11,305 | $ | 0.085 | $ | 11,592 | $ | 0.085 | |||||||||||
Quarter ended June 30 | 11,409 | 0.085 | 11,314 | 0.085 | 11,585 | 0.085 | |||||||||||||||||
Quarter ended September 30 | 11,410 | 0.085 | 11,323 | 0.085 | 11,385 | 0.085 | |||||||||||||||||
Quarter ended December 31 | 11,363 | 0.085 | 11,303 | 0.085 | |||||||||||||||||||
True-up dividends paid | 38,835 | 0.290 | 33,248 | 0.250 | |||||||||||||||||||
True Blue dividends paid | 33,559 | 0.250 | 33,274 | 0.250 | 33,924 | 0.250 | |||||||||||||||||
Calendar year-to-date dividends paid | $ | 67,764 | $ | 0.505 | $ | 117,414 | $ | 0.880 | $ | 113,037 | $ | 0.840 |
For the Three Months Ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Loans receivable | $ | 64,013 | $ | 63,106 | $ | 61,945 | $ | 61,516 | $ | 60,840 | |||||||||
MBS | 5,821 | 6,191 | 6,362 | 6,860 | 7,401 | ||||||||||||||
Cash and cash equivalents | 5,619 | 4,132 | 2,969 | 2,774 | 2,730 | ||||||||||||||
FHLB stock | 3,114 | 3,100 | 2,939 | 3,044 | 3,050 | ||||||||||||||
Investment securities | 1,063 | 1,131 | 1,107 | 1,401 | 1,506 | ||||||||||||||
Total interest and dividend income | 79,630 | 77,660 | 75,322 | 75,595 | 75,527 | ||||||||||||||
Interest expense: | |||||||||||||||||||
FHLB borrowings | 17,884 | 16,771 | 16,117 | 16,262 | 16,361 | ||||||||||||||
Deposits | 10,895 | 10,364 | 10,396 | 10,098 | 9,749 | ||||||||||||||
Repurchase agreements | 1,487 | 1,471 | 1,503 | 1,503 | 1,487 | ||||||||||||||
Total interest expense | 30,266 | 28,606 | 28,016 | 27,863 | 27,597 | ||||||||||||||
Net interest income | 49,364 | 49,054 | 47,306 | 47,732 | 47,930 | ||||||||||||||
Provision for credit losses | — | — | — | (750 | ) | — | |||||||||||||
Net interest income | |||||||||||||||||||
(after provision for credit losses) | 49,364 | 49,054 | 47,306 | 48,482 | 47,930 | ||||||||||||||
Non-interest income | 5,460 | 5,573 | 5,268 | 5,691 | 5,429 | ||||||||||||||
Non-interest expense | 22,645 | 21,937 | 21,597 | 23,962 | 23,327 | ||||||||||||||
Income tax expense | 10,809 | 11,103 | 10,399 | 9,513 | 9,481 | ||||||||||||||
Net income | $ | 21,370 | $ | 21,587 | $ | 20,578 | $ | 20,698 | $ | 20,551 | |||||||||
Efficiency ratio | 41.30 | % | 40.16 | % | 41.08 | % | 44.85 | % | 43.72 | % | |||||||||
Basic EPS | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.16 | $ | 0.15 | |||||||||
Diluted EPS | 0.16 | 0.16 | 0.15 | 0.16 | 0.15 |
For the Nine Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||||||
Loans receivable | $ | 189,064 | $ | 181,795 | $ | 7,269 | 4.0 | % | ||||||
MBS | 18,374 | 22,934 | (4,560 | ) | (19.9 | ) | ||||||||
Cash and cash equivalents | 12,720 | 7,057 | 5,663 | 80.2 | ||||||||||
FHLB stock | 9,153 | 9,208 | (55 | ) | (0.6 | ) | ||||||||
Investment securities | 3,301 | 4,524 | (1,223 | ) | (27.0 | ) | ||||||||
Total interest and dividend income | $ | 232,612 | $ | 225,518 | $ | 7,094 | 3.1 |
For the Nine Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
INTEREST EXPENSE: | ||||||||||||||
FHLB borrowings | $ | 50,772 | $ | 48,829 | $ | 1,943 | 4.0 | % | ||||||
Deposits | 31,655 | 27,761 | 3,894 | 14.0 | ||||||||||
Repurchase agreements | 4,461 | 4,478 | (17 | ) | (0.4 | ) | ||||||||
Total interest expense | $ | 86,888 | $ | 81,068 | $ | 5,820 | 7.2 |
For the Nine Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||
Retail fees and charges | $ | 11,123 | $ | 11,097 | $ | 26 | 0.2 | % | ||||||
Income from BOLI | 1,669 | 2,810 | (1,141 | ) | (40.6 | ) | ||||||||
Other non-interest income | 3,509 | 3,714 | (205 | ) | (5.5 | ) | ||||||||
Total non-interest income | $ | 16,301 | $ | 17,621 | $ | (1,320 | ) | (7.5 | ) |
For the Nine Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||
Salaries and employee benefits | $ | 32,388 | $ | 31,604 | $ | 784 | 2.5 | % | ||||||
Information technology and communications | 8,524 | 7,883 | 641 | 8.1 | ||||||||||
Occupancy, net | 8,098 | 7,894 | 204 | 2.6 | ||||||||||
Regulatory and outside services | 3,994 | 4,000 | (6 | ) | (0.2 | ) | ||||||||
Deposit and loan transaction costs | 3,918 | 4,119 | (201 | ) | (4.9 | ) | ||||||||
Advertising and promotional | 3,275 | 3,190 | 85 | 2.7 | ||||||||||
Federal insurance premium | 2,651 | 4,158 | (1,507 | ) | (36.2 | ) | ||||||||
Office supplies and related expense | 1,470 | 2,016 | (546 | ) | (27.1 | ) | ||||||||
Low income housing partnerships | — | 2,815 | (2,815 | ) | (100.0 | ) | ||||||||
Other non-interest expense | 1,861 | 2,664 | (803 | ) | (30.1 | ) | ||||||||
Total non-interest expense | $ | 66,179 | $ | 70,343 | $ | (4,164 | ) | (5.9 | ) |
At | For the Nine Months Ended | ||||||||||||||||||||||
June 30, | June 30, 2017 | June 30, 2016 | |||||||||||||||||||||
2017 | Average | Interest | Average | Interest | |||||||||||||||||||
Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||
Rate | Amount | Paid | Rate | Amount | Paid | Rate | |||||||||||||||||
Assets: | (Dollars in thousands) | ||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans receivable(1) | 3.58% | $ | 7,126,112 | $ | 189,064 | 3.54 | % | $ | 6,721,845 | $ | 181,795 | 3.61 | % | ||||||||||
MBS(2) | 2.26 | 1,125,689 | 18,374 | 2.18 | 1,391,441 | 22,934 | 2.20 | ||||||||||||||||
Investment securities(2)(3) | 1.29 | 346,035 | 3,301 | 1.27 | 497,794 | 4,524 | 1.21 | ||||||||||||||||
FHLB stock | 6.47 | 194,422 | 9,153 | 6.29 | 205,434 | 9,208 | 5.99 | ||||||||||||||||
Cash and cash equivalents(4) | 1.23 | 2,123,529 | 12,720 | 0.79 | 2,167,680 | 7,057 | 0.43 | ||||||||||||||||
Total interest-earning assets(1)(2) | 3.34 | 10,915,787 | 232,612 | 2.84 | 10,984,194 | 225,518 | 2.74 | ||||||||||||||||
Other non-interest-earning assets | 297,478 | 290,854 | |||||||||||||||||||||
Total assets | $ | 11,213,265 | $ | 11,275,048 | |||||||||||||||||||
Liabilities and stockholders' equity: | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Checking | 0.04 | $ | 824,150 | 226 | 0.04 | $ | 781,509 | 218 | 0.04 | ||||||||||||||
Savings | 0.24 | 344,874 | 567 | 0.22 | 323,300 | 464 | 0.19 | ||||||||||||||||
Money market | 0.24 | 1,209,279 | 2,141 | 0.24 | 1,168,086 | 2,054 | 0.23 | ||||||||||||||||
Retail certificates | 1.48 | 2,439,370 | 26,352 | 1.44 | 2,356,566 | 23,628 | 1.34 | ||||||||||||||||
Wholesale certificates | 1.08 | 386,860 | 2,369 | 0.82 | 370,784 | 1,397 | 0.50 | ||||||||||||||||
Total deposits | 0.84 | 5,204,533 | 31,655 | 0.81 | 5,000,245 | 27,761 | 0.74 | ||||||||||||||||
FHLB borrowings(5) | 2.07 | 4,298,883 | 50,772 | 1.57 | 4,547,984 | 48,829 | 1.43 | ||||||||||||||||
Repurchase agreements | 2.94 | 200,000 | 4,461 | 2.94 | 200,000 | 4,478 | 2.94 | ||||||||||||||||
Total borrowings | 2.15 | 4,498,883 | 55,233 | 1.63 | 4,747,984 | 53,307 | 1.49 | ||||||||||||||||
Total interest-bearing liabilities | 1.25 | 9,703,416 | 86,888 | 1.19 | 9,748,229 | 81,068 | 1.11 | ||||||||||||||||
Other non-interest-bearing liabilities | 122,534 | 118,180 | |||||||||||||||||||||
Stockholders' equity | 1,387,315 | 1,408,639 | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,213,265 | $ | 11,275,048 | |||||||||||||||||||
(Continued) |
At | For the Nine Months Ended | ||||||||||||||||||||||
June 30, | June 30, 2017 | June 30, 2016 | |||||||||||||||||||||
2017 | Average | Interest | Average | Interest | |||||||||||||||||||
Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||
Rate | Amount | Paid | Rate | Amount | Paid | Rate | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Net interest income(6) | $ | 145,724 | $ | 144,450 | |||||||||||||||||||
Net interest rate spread(7)(8) | 2.09% | 1.65 | % | 1.63 | % | ||||||||||||||||||
Net interest-earning assets | $ | 1,212,371 | $ | 1,235,965 | |||||||||||||||||||
Net interest margin(8)(9) | 1.78 | 1.75 | |||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.12x | 1.13x | |||||||||||||||||||||
Selected performance ratios: | |||||||||||||||||||||||
Return on average assets (annualized)(8) | 0.76 | % | 0.74 | % | |||||||||||||||||||
Return on average equity (annualized)(8) | 6.11 | 5.94 | |||||||||||||||||||||
Average equity to average assets | 12.37 | 12.49 | |||||||||||||||||||||
Operating expense ratio(10) | 0.79 | 0.83 | |||||||||||||||||||||
Efficiency ratio(11) | 40.84 | 43.40 | |||||||||||||||||||||
Pre-tax yield on leverage strategy(12) | 0.22 | 0.16 | |||||||||||||||||||||
(Concluded) |
(1) | Calculated net of unearned loan fees, deferred costs, and undisbursed loan funds. Loans that are 90 or more days delinquent are included in the loans receivable average balance with a yield of zero percent. |
(2) | MBS and investment securities classified as AFS are stated at amortized cost, adjusted for unamortized purchase premiums or discounts. |
(3) | The average balance of investment securities includes an average balance of nontaxable securities of $31.3 million and $37.6 million for the nine months ended June 30, 2017 and 2016, respectively. |
(4) | The average balance of cash and cash equivalents includes an average balance of cash related to the leverage strategy of $1.93 billion and $1.96 billion for the nine months ended June 30, 2017 and 2016, respectively. |
(5) | Included in this line are FHLB borrowings related to the leverage strategy with an average outstanding amount of $2.02 billion and $2.05 billion, interest paid of $12.1 million and $7.2 million, at a rate of 0.79% and 0.46% for the nine months ended June 30, 2017 and 2016, respectively. The FHLB advance amounts and rates included in this line are net of deferred gains and deferred prepayment penalties. |
(6) | Net interest income represents the difference between interest income earned on interest-earning assets and interest paid on interest-bearing liabilities. Net interest income depends on the balance of interest-earning assets and interest-bearing liabilities, and the interest rates earned or paid on them. |
(7) | Net interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
(8) | The table below provides a reconciliation between certain performance ratios presented in accordance with GAAP and the performance ratios excluding the effects of the leverage strategy, which are not presented in accordance with GAAP. Management believes it is important for comparability purposes to provide the performance ratios without the leverage strategy because of the unique nature of the leverage strategy. The leverage strategy reduces some of our performance ratios due to the amount of earnings associated with the transaction in comparison to the size of the transaction, while increasing our net income. |
For the Nine Months Ended | |||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||
Actual | Leverage | Adjusted | Actual | Leverage | Adjusted | ||||||||||||
(GAAP) | Strategy | (Non-GAAP) | (GAAP) | Strategy | (Non-GAAP) | ||||||||||||
Return on average assets (annualized) | 0.76 | % | (0.13 | )% | 0.89 | % | 0.74 | % | (0.14 | )% | 0.88 | % | |||||
Return on average equity (annualized) | 6.11 | 0.21 | 5.90 | 5.94 | 0.15 | 5.79 | |||||||||||
Net interest margin | 1.78 | (0.35 | ) | 2.13 | 1.75 | (0.36 | ) | 2.11 | |||||||||
Net interest rate spread | 1.65 | (0.30 | ) | 1.95 | 1.63 | (0.30 | ) | 1.93 |
(9) | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
(10) | The operating expense ratio represents annualized non-interest expense as a percentage of average assets. |
(11) | The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income. |
(12) | The pre-tax yield on the leverage strategy represents annualized pre-tax income resulting from the transaction as a percentage of the average interest-earning assets associated with the transaction. |
For the Nine Months Ended | |||||||||||
June 30, 2017 vs. June 30, 2016 | |||||||||||
Increase (Decrease) Due to | |||||||||||
Volume | Rate | Total | |||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable | $ | 10,635 | $ | (3,366 | ) | $ | 7,269 | ||||
MBS | (4,339 | ) | (221 | ) | (4,560 | ) | |||||
Investment securities | (1,438 | ) | 215 | (1,223 | ) | ||||||
FHLB stock | (522 | ) | 467 | (55 | ) | ||||||
Cash and cash equivalents | (147 | ) | 5,810 | 5,663 | |||||||
Total interest-earning assets | 4,189 | 2,905 | 7,094 | ||||||||
Interest-bearing liabilities: | |||||||||||
Checking | 11 | (3 | ) | 8 | |||||||
Savings | 32 | 71 | 103 | ||||||||
Money market | 67 | 19 | 86 | ||||||||
Certificates of deposit | 906 | 2,791 | 3,697 | ||||||||
FHLB borrowings | (3,995 | ) | 5,938 | 1,943 | |||||||
Repurchase agreements | (9 | ) | (8 | ) | (17 | ) | |||||
Total interest-bearing liabilities | (2,988 | ) | 8,808 | 5,820 | |||||||
Net change in net interest income | $ | 7,177 | $ | (5,903 | ) | $ | 1,274 |
For the Three Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||||||
Loans receivable | $ | 64,013 | $ | 60,840 | $ | 3,173 | 5.2 | % | ||||||
MBS | 5,821 | 7,401 | (1,580 | ) | (21.3 | ) | ||||||||
Cash and cash equivalents | 5,619 | 2,730 | 2,889 | 105.8 | ||||||||||
FHLB stock | 3,114 | 3,050 | 64 | 2.1 | ||||||||||
Investment securities | 1,063 | 1,506 | (443 | ) | (29.4 | ) | ||||||||
Total interest and dividend income | $ | 79,630 | $ | 75,527 | $ | 4,103 | 5.4 |
For the Three Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
INTEREST EXPENSE: | ||||||||||||||
FHLB borrowings | $ | 17,884 | $ | 16,361 | $ | 1,523 | 9.3 | % | ||||||
Deposits | 10,895 | 9,749 | 1,146 | 11.8 | ||||||||||
Repurchase agreements | 1,487 | 1,487 | — | — | ||||||||||
Total interest expense | $ | 30,266 | $ | 27,597 | $ | 2,669 | 9.7 |
For the Three Months Ended | ||||||||||||||
June 30, | Change Expressed in: | |||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||
Salaries and employee benefits | $ | 11,210 | $ | 10,829 | $ | 381 | 3.5 | % | ||||||
Information technology and communications | 2,922 | 2,716 | 206 | 7.6 | ||||||||||
Occupancy, net | 2,659 | 2,606 | 53 | 2.0 | ||||||||||
Regulatory and outside services | 1,383 | 1,370 | 13 | 0.9 | ||||||||||
Deposit and loan transaction costs | 1,304 | 1,449 | (145 | ) | (10.0 | ) | ||||||||
Advertising and promotional | 1,322 | 1,053 | 269 | 25.5 | ||||||||||
Federal insurance premium | 879 | 1,377 | (498 | ) | (36.2 | ) | ||||||||
Office supplies and related expense | 492 | 545 | (53 | ) | (9.7 | ) | ||||||||
Low income housing partnerships | — | 721 | (721 | ) | (100.0 | ) | ||||||||
Other non-interest expense | 474 | 661 | (187 | ) | (28.3 | ) | ||||||||
Total non-interest expense | $ | 22,645 | $ | 23,327 | $ | (682 | ) | (2.9 | ) |
For the Three Months Ended | ||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||
Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||
Amount | Paid | Rate | Amount | Paid | Rate | |||||||||||||||||
Assets: | (Dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans receivable(1) | $ | 7,224,131 | $ | 64,013 | 3.54 | % | $ | 6,797,602 | $ | 60,840 | 3.58 | % | ||||||||||
MBS(2) | 1,051,440 | 5,821 | 2.21 | 1,386,470 | 7,401 | 2.14 | ||||||||||||||||
Investment securities(2)(3) | 327,727 | 1,063 | 1.30 | 501,757 | 1,506 | 1.20 | ||||||||||||||||
FHLB stock | 193,617 | 3,114 | 6.45 | 204,870 | 3,050 | 5.99 | ||||||||||||||||
Cash and cash equivalents(4) | 2,135,014 | 5,619 | 1.04 | 2,160,016 | 2,730 | 0.50 | ||||||||||||||||
Total interest-earning assets(1)(2) | 10,931,929 | 79,630 | 2.91 | 11,050,715 | 75,527 | 2.73 | ||||||||||||||||
Other non-interest-earning assets | 295,602 | 290,258 | ||||||||||||||||||||
Total assets | $ | 11,227,531 | $ | 11,340,973 | ||||||||||||||||||
Liabilities and stockholders' equity: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Checking | $ | 843,997 | 77 | 0.04 | $ | 801,782 | 74 | 0.04 | ||||||||||||||
Savings | 354,835 | 213 | 0.24 | 333,067 | 156 | 0.19 | ||||||||||||||||
Money market | 1,218,900 | 720 | 0.24 | 1,174,471 | 686 | 0.23 | ||||||||||||||||
Retail certificates | 2,444,620 | 8,932 | 1.47 | 2,401,381 | 8,287 | 1.39 | ||||||||||||||||
Wholesale certificates | 396,737 | 953 | 0.96 | 360,026 | 546 | 0.61 | ||||||||||||||||
Total deposits | 5,259,089 | 10,895 | 0.83 | 5,070,727 | 9,749 | 0.77 | ||||||||||||||||
FHLB borrowings(5) | 4,264,448 | 17,884 | 1.67 | 4,548,710 | 16,361 | 1.44 | ||||||||||||||||
Repurchase agreements | 200,000 | 1,487 | 2.94 | 200,000 | 1,487 | 2.94 | ||||||||||||||||
Total borrowings | 4,464,448 | 19,371 | 1.73 | 4,748,710 | 17,848 | 1.51 | ||||||||||||||||
Total interest-bearing liabilities | 9,723,537 | 30,266 | 1.24 | 9,819,437 | 27,597 | 1.13 | ||||||||||||||||
Other non-interest-bearing liabilities | 113,031 | 111,382 | ||||||||||||||||||||
Stockholders' equity | 1,390,963 | 1,410,154 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,227,531 | $ | 11,340,973 | ||||||||||||||||||
(Continued) | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||
Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||
Amount | Paid | Rate | Amount | Paid | Rate | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Net interest income(6) | $ | 49,364 | $ | 47,930 | ||||||||||||||||||
Net interest rate spread(7)(8) | 1.67 | % | 1.60 | % | ||||||||||||||||||
Net interest-earning assets | $ | 1,208,392 | $ | 1,231,278 | ||||||||||||||||||
Net interest margin(8)(9) | 1.81 | 1.73 | ||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.12x | 1.13x | ||||||||||||||||||||
Selected performance ratios: | ||||||||||||||||||||||
Return on average assets (annualized)(8) | 0.76 | % | 0.72 | % | ||||||||||||||||||
Return on average equity (annualized)(8) | 6.15 | 5.83 | ||||||||||||||||||||
Average equity to average assets | 12.39 | 12.43 | ||||||||||||||||||||
Operating expense ratio(10) | 0.81 | 0.82 | ||||||||||||||||||||
Efficiency ratio(11) | 41.30 | 43.72 | ||||||||||||||||||||
Pre-tax yield on leverage strategy(12) | 0.21 | 0.15 | ||||||||||||||||||||
(Concluded) |
(1) | Calculated net of unearned loan fees, deferred costs, and undisbursed loan funds. Loans that are 90 or more days delinquent are included in the loans receivable average balance with a yield of zero percent. |
(2) | MBS and investment securities classified as AFS are stated at amortized cost, adjusted for unamortized purchase premiums or discounts. |
(3) | The average balance of investment securities includes an average balance of nontaxable securities of $29.4 million and $36.6 million for the quarters ended June 30, 2017 and 2016, respectively. |
(4) | The average balance of cash and cash equivalents includes an average balance of cash related to the leverage strategy of $1.94 billion and $1.98 billion for the quarters ended June 30, 2017 and 2016, respectively. |
(5) | Included in this line are FHLB borrowings related to the leverage strategy with an average outstanding amount of $2.03 billion and $2.08 billion, interest paid of $5.3 million and $2.8 million, at a rate of 1.04% and 0.54% for the quarters ended June 30, 2017 and 2016, respectively. The FHLB advance amounts and rates included in this line are net of deferred gains and deferred prepayment penalties. |
(6) | Net interest income represents the difference between interest income earned on interest-earning assets and interest paid on interest-bearing liabilities. Net interest income depends on the balance of interest-earning assets and interest-bearing liabilities, and the interest rates earned or paid on them. |
(7) | Net interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
(8) | The table below provides a reconciliation between certain performance ratios presented in accordance with GAAP and the performance ratios excluding the effects of the leverage strategy, which are not presented in accordance with GAAP. Management believes it is important for comparability purposes to provide the performance ratios without the leverage strategy because of the unique nature of the leverage strategy. The leverage strategy reduces some of our performance ratios due to the amount of earnings associated with the transaction in comparison to the size of the transaction, while increasing our net income. |
For the Three Months Ended | |||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||
Actual | Leverage | Adjusted | Actual | Leverage | Adjusted | ||||||||||||
(GAAP) | Strategy | (Non-GAAP) | (GAAP) | Strategy | (Non-GAAP) | ||||||||||||
Return on average assets (annualized) | 0.76 | % | (0.14 | )% | 0.90 | % | 0.72 | % | (0.14 | )% | 0.86 | % | |||||
Return on average equity (annualized) | 6.15 | 0.21 | 5.94 | 5.83 | 0.15 | 5.68 | |||||||||||
Net interest margin | 1.81 | (0.35 | ) | 2.16 | 1.73 | (0.36 | ) | 2.09 | |||||||||
Net interest rate spread | 1.67 | (0.31 | ) | 1.98 | 1.60 | (0.30 | ) | 1.90 |
(9) | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
(10) | The operating expense ratio represents annualized non-interest expense as a percentage of average assets. |
(11) | The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income. |
(12) | The pre-tax yield on the leverage strategy represents annualized pre-tax income resulting from the transaction as a percentage of the average interest-earning assets associated with the transaction. |
For the Three Months Ended June 30, | |||||||||||
2017 vs. 2016 | |||||||||||
Increase (Decrease) Due to | |||||||||||
Volume | Rate | Total | |||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable | $ | 3,740 | $ | (567 | ) | $ | 3,173 | ||||
MBS | (1,846 | ) | 266 | (1,580 | ) | ||||||
Investment securities | (556 | ) | 113 | (443 | ) | ||||||
FHLB stock | (173 | ) | 237 | 64 | |||||||
Cash and cash equivalents | (32 | ) | 2,921 | 2,889 | |||||||
Total interest-earning assets | 1,133 | 2,970 | 4,103 | ||||||||
Interest-bearing liabilities: | |||||||||||
Checking | 4 | (1 | ) | 3 | |||||||
Savings | 11 | 46 | 57 | ||||||||
Money market | 26 | 8 | 34 | ||||||||
Certificates of deposit | 261 | 791 | 1,052 | ||||||||
FHLB borrowings | (1,529 | ) | 3,052 | 1,523 | |||||||
Repurchase agreements | — | — | — | ||||||||
Total interest-bearing liabilities | (1,227 | ) | 3,896 | 2,669 | |||||||
Net change in net interest income | $ | 2,360 | $ | (926 | ) | $ | 1,434 |
For the Three Months Ended | ||||||||||||||
June 30, | March 31, | Change Expressed in: | ||||||||||||
2017 | 2017 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||||||
Loans receivable | $ | 64,013 | $ | 63,106 | $ | 907 | 1.4 | % | ||||||
MBS | 5,821 | 6,191 | (370 | ) | (6.0 | ) | ||||||||
Cash and cash equivalents | 5,619 | 4,132 | 1,487 | 36.0 | ||||||||||
FHLB stock | 3,114 | 3,100 | 14 | 0.5 | ||||||||||
Investment securities | 1,063 | 1,131 | (68 | ) | (6.0 | ) | ||||||||
Total interest and dividend income | $ | 79,630 | $ | 77,660 | $ | 1,970 | 2.5 |
For the Three Months Ended | ||||||||||||||
June 30, | March 31, | Change Expressed in: | ||||||||||||
2017 | 2017 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
INTEREST EXPENSE: | ||||||||||||||
FHLB borrowings | $ | 17,884 | $ | 16,771 | $ | 1,113 | 6.6 | % | ||||||
Deposits | 10,895 | 10,364 | 531 | 5.1 | ||||||||||
Repurchase agreements | 1,487 | 1,471 | 16 | 1.1 | ||||||||||
Total interest expense | $ | 30,266 | $ | 28,606 | $ | 1,660 | 5.8 |
For the Three Months Ended | ||||||||||||||
June 30, | March 31, | Change Expressed in: | ||||||||||||
2017 | 2017 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||
Retail fees and charges | $ | 3,832 | $ | 3,582 | $ | 250 | 7.0 | % | ||||||
Income from BOLI | 573 | 573 | — | — | ||||||||||
Other non-interest income | 1,055 | 1,418 | (363 | ) | (25.6 | ) | ||||||||
Total non-interest income | $ | 5,460 | $ | 5,573 | $ | (113 | ) | (2.0 | ) |
For the Three Months Ended | ||||||||||||||
June 30, | March 31, | Change Expressed in: | ||||||||||||
2017 | 2017 | Dollars | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||
Salaries and employee benefits | $ | 11,210 | $ | 10,544 | $ | 666 | 6.3 | % | ||||||
Information technology and communications | 2,922 | 2,768 | 154 | 5.6 | ||||||||||
Occupancy, net | 2,659 | 2,764 | (105 | ) | (3.8 | ) | ||||||||
Regulatory and outside services | 1,383 | 1,265 | 118 | 9.3 | ||||||||||
Deposit and loan transaction costs | 1,304 | 1,228 | 76 | 6.2 | ||||||||||
Advertising and promotional | 1,322 | 1,263 | 59 | 4.7 | ||||||||||
Federal insurance premium | 879 | 878 | 1 | 0.1 | ||||||||||
Office supplies and related expense | 492 | 541 | (49 | ) | (9.1 | ) | ||||||||
Other non-interest expense | 474 | 686 | (212 | ) | (30.9 | ) | ||||||||
Total non-interest expense | $ | 22,645 | $ | 21,937 | $ | 708 | 3.2 |
For the Three Months Ended | ||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | |||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||
Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||
Amount | Paid | Rate | Amount | Paid | Rate | |||||||||||||||||
Assets: | (Dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans receivable(1) | $ | 7,224,131 | $ | 64,013 | 3.54 | % | $ | 7,140,433 | $ | 63,106 | 3.54 | % | ||||||||||
MBS(2) | 1,051,440 | 5,821 | 2.21 | 1,124,367 | 6,191 | 2.20 | ||||||||||||||||
Investment securities(2)(3) | 327,727 | 1,063 | 1.30 | 353,722 | 1,131 | 1.28 | ||||||||||||||||
FHLB stock | 193,617 | 3,114 | 6.45 | 193,826 | 3,100 | 6.49 | ||||||||||||||||
Cash and cash equivalents(4) | 2,135,014 | 5,619 | 1.04 | 2,082,180 | 4,132 | 0.79 | ||||||||||||||||
Total interest-earning assets(1)(2) | 10,931,929 | 79,630 | 2.91 | 10,894,528 | 77,660 | 2.85 | ||||||||||||||||
Other non-interest-earning assets | 295,602 | 300,795 | ||||||||||||||||||||
Total assets | $ | 11,227,531 | $ | 11,195,323 | ||||||||||||||||||
Liabilities and stockholders' equity: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Checking | $ | 843,997 | 77 | 0.04 | $ | 828,420 | 75 | 0.04 | ||||||||||||||
Savings | 354,835 | 213 | 0.24 | 344,699 | 199 | 0.23 | ||||||||||||||||
Money market | 1,218,900 | 720 | 0.24 | 1,218,058 | 712 | 0.24 | ||||||||||||||||
Retail certificates | 2,444,620 | 8,932 | 1.47 | 2,428,497 | 8,652 | 1.44 | ||||||||||||||||
Wholesale certificates | 396,737 | 953 | 0.96 | 378,546 | 726 | 0.78 | ||||||||||||||||
Total deposits | 5,259,089 | 10,895 | 0.83 | 5,198,220 | 10,364 | 0.81 | ||||||||||||||||
FHLB borrowings(5) | 4,264,448 | 17,884 | 1.67 | 4,302,878 | 16,771 | 1.57 | ||||||||||||||||
Repurchase agreements | 200,000 | 1,487 | 2.94 | 200,000 | 1,471 | 2.94 | ||||||||||||||||
Total borrowings | 4,464,448 | 19,371 | 1.73 | 4,502,878 | 18,242 | 1.64 | ||||||||||||||||
Total interest-bearing liabilities | 9,723,537 | 30,266 | 1.24 | 9,701,098 | 28,606 | 1.19 | ||||||||||||||||
Other non-interest-bearing liabilities | 113,031 | 115,547 | ||||||||||||||||||||
Stockholders' equity | 1,390,963 | 1,378,678 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,227,531 | $ | 11,195,323 | ||||||||||||||||||
(Continued) | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | |||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||
Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||
Amount | Paid | Rate | Amount | Paid | Rate | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Net interest income(6) | $ | 49,364 | $ | 49,054 | ||||||||||||||||||
Net interest rate spread(7)(8) | 1.67 | % | 1.66 | % | ||||||||||||||||||
Net interest-earning assets | $ | 1,208,392 | $ | 1,193,430 | ||||||||||||||||||
Net interest margin(8)(9) | 1.81 | 1.80 | ||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.12x | 1.12x | ||||||||||||||||||||
Selected performance ratios: | ||||||||||||||||||||||
Return on average assets (annualized)(8) | 0.76 | % | 0.77 | % | ||||||||||||||||||
Return on average equity (annualized)(8) | 6.15 | 6.26 | ||||||||||||||||||||
Average equity to average assets | 12.39 | 12.31 | ||||||||||||||||||||
Operating expense ratio(10) | 0.81 | 0.78 | ||||||||||||||||||||
Efficiency ratio(11) | 41.30 | 40.16 | ||||||||||||||||||||
Pre-tax yield on leverage strategy(12) | 0.21 | 0.25 | ||||||||||||||||||||
(Concluded) |
(1) | Calculated net of unearned loan fees, deferred costs, and undisbursed loan funds. Loans that are 90 or more days delinquent are included in the loans receivable average balance with a yield of zero percent. |
(2) | MBS and investment securities classified as AFS are stated at amortized cost, adjusted for unamortized purchase premiums or discounts. |
(3) | The average balance of investment securities includes an average balance of nontaxable securities of $29.4 million and $31.2 million for the quarters ended June 30, 2017 and March 31, 2017, respectively. |
(4) | The average balance of cash and cash equivalents includes an average balance of cash related to the leverage strategy of $1.94 billion for each of the quarters ended June 30, 2017 and March 31, 2017. |
(5) | Included in this line are FHLB borrowings related to the leverage strategy with an average outstanding amount of $2.03 billion and $2.03 billion, interest paid of $5.3 million and $3.9 million, at a rate of 1.04% and 0.76% for the quarters ended June 30, 2017 and March 31, 2017, respectively. The FHLB advance amounts and rates included in this line are net of deferred gains and deferred prepayment penalties. |
(6) | Net interest income represents the difference between interest income earned on interest-earning assets and interest paid on interest-bearing liabilities. Net interest income depends on the balance of interest-earning assets and interest-bearing liabilities, and the interest rates earned or paid on them. |
(7) | Net interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
(8) | The table below provides a reconciliation between certain performance ratios presented in accordance with GAAP and the performance ratios excluding the effects of the leverage strategy, which are not presented in accordance with GAAP. Management believes it is important for comparability purposes to provide the performance ratios without the leverage strategy because of the unique nature of the leverage strategy. The leverage strategy reduces some of our performance ratios due to the amount of earnings associated with the transaction in comparison to the size of the transaction, while increasing our net income. |
For the Three Months Ended | |||||||||||||||||
June 30, 2017 | March 31, 2017 | ||||||||||||||||
Actual | Leverage | Adjusted | Actual | Leverage | Adjusted | ||||||||||||
(GAAP) | Strategy | (Non-GAAP) | (GAAP) | Strategy | (Non-GAAP) | ||||||||||||
Return on average assets (annualized) | 0.76 | % | (0.14 | )% | 0.90 | % | 0.77 | % | (0.14 | )% | 0.91 | % | |||||
Return on average equity (annualized) | 6.15 | 0.21 | 5.94 | 6.26 | 0.24 | 6.02 | |||||||||||
Net interest margin | 1.81 | (0.35 | ) | 2.16 | 1.80 | (0.35 | ) | 2.15 | |||||||||
Net interest rate spread | 1.67 | (0.31 | ) | 1.98 | 1.66 | (0.30 | ) | 1.96 |
(9) | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
(10) | The operating expense ratio represents annualized non-interest expense as a percentage of average assets. |
(11) | The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income. |
(12) | The pre-tax yield on the leverage strategy represents annualized pre-tax income resulting from the transaction as a percentage of the average interest-earning assets associated with the transaction. |
For the Three Months Ended | |||||||||||
June 30, 2017 vs. March 31, 2017 | |||||||||||
Increase (Decrease) Due to | |||||||||||
Volume | Rate | Total | |||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable | $ | 748 | $ | 159 | $ | 907 | |||||
MBS | (404 | ) | 34 | (370 | ) | ||||||
Investment securities | (84 | ) | 16 | (68 | ) | ||||||
FHLB stock | 2 | 12 | 14 | ||||||||
Cash and cash equivalents | 112 | 1,375 | 1,487 | ||||||||
Total interest-earning assets | 374 | 1,596 | 1,970 | ||||||||
Interest-bearing liabilities: | |||||||||||
Checking | 2 | — | 2 | ||||||||
Savings | 7 | 7 | 14 | ||||||||
Money market | 7 | 1 | 8 | ||||||||
Certificates of deposit | 147 | 360 | 507 | ||||||||
FHLB borrowings | (288 | ) | 1,401 | 1,113 | |||||||
Repurchase agreements | 8 | 8 | 16 | ||||||||
Total interest-bearing liabilities | (117 | ) | 1,777 | 1,660 | |||||||
Net change in net interest income | $ | 491 | $ | (181 | ) | $ | 310 |
Loans(1) | MBS | Investment Securities | Total | ||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Amounts due: | |||||||||||||||||||||||||||
Within one year | $ | 100,135 | 3.93 | % | $ | 464 | 3.36 | % | $ | 151,363 | 1.12 | % | $ | 251,962 | 2.24 | % | |||||||||||
After one year: | |||||||||||||||||||||||||||
Over one to two years | 66,859 | 4.01 | 10,041 | 4.20 | 55,085 | 1.26 | 131,985 | 2.88 | |||||||||||||||||||
Over two to three years | 20,371 | 4.45 | 5,056 | 4.71 | 55,748 | 1.52 | 81,175 | 2.45 | |||||||||||||||||||
Over three to five years | 39,727 | 4.27 | 52,553 | 2.73 | 61,949 | 1.49 | 154,229 | 2.63 | |||||||||||||||||||
Over five to ten years | 542,676 | 3.78 | 474,553 | 2.11 | 740 | 1.94 | 1,017,969 | 3.00 | |||||||||||||||||||
Over ten to fifteen years | 1,428,481 | 3.25 | 138,870 | 1.80 | — | — | 1,567,351 | 3.12 | |||||||||||||||||||
After fifteen years | 5,030,176 | 3.62 | 335,608 | 2.51 | 1,901 | 2.50 | 5,367,685 | 3.55 | |||||||||||||||||||
Total due after one year | 7,128,290 | 3.57 | 1,016,681 | 2.26 | 175,423 | 1.44 | 8,320,394 | 3.37 | |||||||||||||||||||
$ | 7,228,425 | 3.58 | $ | 1,017,145 | 2.26 | $ | 326,786 | 1.29 | $ | 8,572,356 | 3.33 |
(1) | Demand loans, loans having no stated maturity, and overdraft loans are included in the amounts due within one year. Construction loans are presented based on the term to complete construction. The maturity date for home equity loans assumes the customer always makes the required minimum payment. |
Regulatory | |||||||||||
Requirement For | |||||||||||
Minimum | Well-Capitalized | ||||||||||
Bank | Company | Regulatory | Status of Bank | ||||||||
Ratios | Ratios | Requirement | Under PCA Provisions | ||||||||
Tier 1 leverage ratio | 10.7 | % | 12.1 | % | 4.0 | % | 5.0 | % | |||
Common Equity Tier 1 capital ratio | 27.2 | 30.7 | 4.5 | 6.5 | |||||||
Tier 1 capital ratio | 27.2 | 30.7 | 6.0 | 8.0 | |||||||
Total capital ratio | 27.4 | 30.9 | 8.0 | 10.0 |
Bank | Company | ||||||
Total equity as reported under GAAP | $ | 1,205,633 | $ | 1,358,986 | |||
Unrealized gains on AFS securities | (3,655 | ) | (3,655 | ) | |||
Total tier 1 capital | 1,201,978 | 1,355,331 | |||||
ACL | 8,486 | 8,486 | |||||
Total capital | $ | 1,210,464 | $ | 1,363,817 |
More Than | More Than | ||||||||||||||||||
Within | One Year to | Three Years | Over | ||||||||||||||||
One Year | Three Years | to Five Years | Five Years | Total | |||||||||||||||
Interest-earning assets: | (Dollars in thousands) | ||||||||||||||||||
Loans receivable(1) | $ | 1,764,413 | $ | 1,840,846 | $ | 1,118,089 | $ | 2,495,514 | $ | 7,218,862 | |||||||||
Securities(2) | 623,167 | 400,436 | 191,225 | 123,227 | 1,338,055 | ||||||||||||||
Other interest-earning assets | 111,991 | — | — | — | 111,991 | ||||||||||||||
Total interest-earning assets | 2,499,571 | 2,241,282 | 1,309,314 | 2,618,741 | 8,668,908 | ||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Non-maturity deposits(3) | 459,532 | 446,630 | 315,380 | 1,330,530 | 2,552,072 | ||||||||||||||
Certificates of deposit | 1,213,716 | 1,177,320 | 431,495 | 1,343 | 2,823,874 | ||||||||||||||
Borrowings(4) | 600,000 | 825,000 | 850,000 | 143,790 | 2,418,790 | ||||||||||||||
Total interest-bearing liabilities | 2,273,248 | 2,448,950 | 1,596,875 | 1,475,663 | 7,794,736 | ||||||||||||||
Excess (deficiency) of interest-earning assets over | |||||||||||||||||||
interest-bearing liabilities | $ | 226,323 | $ | (207,668 | ) | $ | (287,561 | ) | $ | 1,143,078 | $ | 874,172 | |||||||
Cumulative excess of interest-earning assets over | |||||||||||||||||||
interest-bearing liabilities | $ | 226,323 | $ | 18,655 | $ | (268,906 | ) | $ | 874,172 | ||||||||||
Cumulative excess of interest-earning assets over interest-bearing | |||||||||||||||||||
liabilities as a percent of total Bank assets at: | |||||||||||||||||||
June 30, 2017 | 2.49 | % | 0.20 | % | (2.95 | )% | 9.60 | % | |||||||||||
March 31, 2017 | 2.91 | ||||||||||||||||||
September 30, 2016 | 11.54 | ||||||||||||||||||
Cumulative one-year gap - interest rates +200 bps at: | |||||||||||||||||||
June 30, 2017 | (3.25 | ) | |||||||||||||||||
March 31, 2017 | (2.33 | ) | |||||||||||||||||
September 30, 2016 | 2.25 |
(1) | ARM loans are included in the period in which the rate is next scheduled to adjust or in the period in which repayments are expected to occur, or prepayments are expected to be received, prior to their next rate adjustment, rather than in the period in which the loans are due. Fixed-rate loans are included in the periods in which they are scheduled to be repaid, based on scheduled amortization and prepayment assumptions. Balances are net of undisbursed amounts and deferred fees and exclude loans 90 or more days delinquent or in foreclosure. |
(2) | MBS reflect projected prepayments at amortized cost. Investment securities are presented based on contractual maturities, term to call dates or pre-refunding dates as of June 30, 2017, at amortized cost. |
(3) | Although the Bank's checking, savings, and money market accounts are subject to immediate withdrawal, management considers a substantial amount of these accounts to be core deposits having significantly longer effective maturities. The decay rates (the assumed rates at which the balances of existing accounts decline) used on these accounts is based on assumptions developed from our actual experiences with these accounts. If all of the Bank's checking, savings, and money market accounts had been assumed to be subject to repricing within one year, interest-bearing liabilities which were estimated to mature or reprice within one year would have exceeded interest-earning assets with comparable characteristics by $1.87 billion, for a cumulative one-year gap of (20.5)% of total assets. |
(4) | Borrowings exclude deferred prepayment penalty costs. |
Change | Net Interest Income At | |||||||||||||||||||||
(in Basis Points) | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||
in Interest Rates(1) | Amount ($) | Change ($) | Change (%) | Amount ($) | Change ($) | Change (%) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
-100 bp | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
000 bp | $ | 191,871 | $ | — | — | % | $ | 188,696 | $ | — | — | % | ||||||||||
+100 bp | 191,242 | (629 | ) | (0.33 | ) | 192,921 | 4,225 | 2.24 | ||||||||||||||
+200 bp | 188,430 | (3,441 | ) | (1.79 | ) | 194,919 | 6,223 | 3.30 | ||||||||||||||
+300 bp | 184,033 | (7,838 | ) | (4.09 | ) | 195,187 | 6,491 | 3.44 |
(1) | Assumes an instantaneous, parallel, and permanent change in interest rates at all maturities. |
Change | Market Value of Portfolio Equity At | |||||||||||||||||||||
(in Basis Points) | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||
in Interest Rates(1) | Amount ($) | Change ($) | Change (%) | Amount ($) | Change ($) | Change (%) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
-100 bp | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
000 bp | $ | 1,387,596 | $ | — | — | % | $ | 1,448,758 | $ | — | — | % | ||||||||||
+100 bp | 1,216,158 | (171,438 | ) | (12.36 | ) | 1,364,879 | (83,879 | ) | (5.79 | ) | ||||||||||||
+200 bp | 996,770 | (390,826 | ) | (28.17 | ) | 1,208,130 | (240,628 | ) | (16.61 | ) | ||||||||||||
+300 bp | 764,970 | (622,626 | ) | (44.87 | ) | 1,014,446 | (434,312 | ) | (29.98 | ) |
(1) | Assumes an instantaneous, parallel, and permanent change in interest rates at all maturities. |
June 30, 2017 | |||||||||||||||
Amount | Yield/Rate | WAL | % of Category | % of Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Investment securities | $ | 326,786 | 1.29 | % | 1.6 | 24.3 | % | 3.7 | % | ||||||
MBS - fixed | 683,698 | 2.16 | 3.0 | 50.9 | 7.8 | ||||||||||
MBS - adjustable | 333,447 | 2.49 | 4.8 | 24.8 | 3.8 | ||||||||||
Total securities | 1,343,931 | 2.03 | 3.1 | 100.0 | % | 15.3 | |||||||||
Loans receivable: | |||||||||||||||
Fixed-rate one- to four-family: | |||||||||||||||
<= 15 years | 1,244,468 | 3.09 | 4.1 | 17.2 | % | 14.1 | |||||||||
> 15 years | 4,428,752 | 3.85 | 6.2 | 61.3 | 50.3 | ||||||||||
All other fixed-rate loans | 260,920 | 4.19 | 4.2 | 3.6 | 3.0 | ||||||||||
Total fixed-rate loans | 5,934,140 | 3.71 | 5.7 | 82.1 | 67.4 | ||||||||||
Adjustable-rate one- to four-family: | |||||||||||||||
<= 36 months | 270,722 | 1.75 | 3.6 | 3.7 | 3.1 | ||||||||||
> 36 months | 871,049 | 3.04 | 2.8 | 12.1 | 9.9 | ||||||||||
All other adjustable-rate loans | 152,514 | 4.79 | 3.0 | 2.1 | 1.7 | ||||||||||
Total adjustable-rate loans | 1,294,285 | 2.98 | 3.0 | 17.9 | 14.7 | ||||||||||
Total loans receivable | 7,228,425 | 3.58 | 5.2 | 100.0 | % | 82.1 | |||||||||
FHLB stock | 101,039 | 6.47 | 2.4 | 1.1 | |||||||||||
Cash and cash equivalents | 130,249 | 1.23 | — | 1.5 | |||||||||||
Total interest-earning assets | $ | 8,803,644 | 3.34 | 4.8 | 100.0 | % | |||||||||
Non-maturity deposits | $ | 2,443,811 | 0.17 | 7.8 | 46.4 | % | 32.0 | % | |||||||
Retail certificates of deposit | 2,432,867 | 1.48 | 1.8 | 46.2 | 31.8 | ||||||||||
Public units | 391,007 | 1.08 | 0.8 | 7.4 | 5.1 | ||||||||||
Total deposits | 5,267,685 | 0.84 | 4.5 | 100.0 | % | 68.9 | |||||||||
Term borrowings | 2,375,000 | 2.15 | 2.3 | 31.1 | |||||||||||
Total interest-bearing liabilities | $ | 7,642,685 | 1.25 | 3.8 | 100.0 | % |
Approximate | |||||||||||||
Total | Total Number of | Dollar Value of | |||||||||||
Number of | Average | Shares Purchased as | Shares that May | ||||||||||
Shares | Price Paid | Part of Publicly | Yet Be Purchased | ||||||||||
Purchased | per Share | Announced Plans | Under the Plan | ||||||||||
April 1, 2017 through | |||||||||||||
April 30, 2017 | — | $ | — | — | $ | 70,000,000 | |||||||
May 1, 2017 through | |||||||||||||
May 31, 2017 | — | — | — | 70,000,000 | |||||||||
June 1, 2017 through | |||||||||||||
June 30, 2017 | — | — | — | 70,000,000 | |||||||||
Total | — | — | — | 70,000,000 |
CAPITOL FEDERAL FINANCIAL, INC. | |||
Date: August 9, 2017 | By: | /s/ John B. Dicus | |
John B. Dicus, Chairman, President and Chief Executive Officer | |||
Date: August 9, 2017 | By: | /s/ Kent G. Townsend | |
Kent G. Townsend, Executive Vice President, | |||
Chief Financial Officer and Treasurer |
Exhibit Number | Document | |
3(i) | Charter of Capitol Federal Financial, Inc., as filed on May 6, 2010, as Exhibit 3(i) to Capitol Federal Financial, Inc.'s Registration Statement on Form S-1 (File No. 333-166578) and incorporated herein by reference | |
3(ii) | Bylaws of Capitol Federal Financial, Inc., as amended, filed on September 30, 2016, as Exhibit 3.2 to Form 8-K for Capitol Federal Financial Inc. and incorporated herein by reference | |
10.1(i) | Capitol Federal Financial, Inc.'s Employee Stock Ownership Plan, as amended, filed on May 10, 2011 as Exhibit 10.1(ii) to the March 31, 2011 Form 10-Q for Capitol Federal Financial, Inc., and incorporated herein by reference | |
10.1(ii) | Form of Change of Control Agreement with each of John B. Dicus, Kent G. Townsend, and Rick C. Jackson filed on January 20, 2011 as Exhibit 10.1 to the Registrant's Current Report on Form 8-K and incorporated herein by reference | |
10.1(iii) | Form of Change of Control Agreement with each of Natalie G. Haag and Carlton A. Ricketts filed on November 29, 2012 as Exhibit 10.1(iv) to the Registrant's Annual Report on Form 10-K and incorporated herein by reference | |
10.1(iv) | Form of Change of Control Agreement with Daniel L. Lehman filed on November 29, 2016 as Exhibit 10.1(v) to the Registrant's Annual Report on Form 10-K and incorporated herein by reference | |
10.2 | Capitol Federal Financial's 2000 Stock Option and Incentive Plan (the "Stock Option Plan") filed on April 13, 2000 as Appendix A to Capitol Federal Financial's Revised Proxy Statement (File No. 000-25391) and incorporated herein by reference | |
10.3 | Capitol Federal Financial Deferred Incentive Bonus Plan, as amended, filed on May 5, 2009 as Exhibit 10.4 to the March 31, 2009 Form 10-Q for Capitol Federal Financial and incorporated herein by reference | |
10.4 | Form of Incentive Stock Option Agreement under the Stock Option Plan filed on February 4, 2005 as Exhibit 10.5 to the December 31, 2004 Form 10-Q for Capitol Federal Financial and incorporated herein by reference | |
10.5 | Form of Non-Qualified Stock Option Agreement under the Stock Option Plan filed on February 4, 2005 as Exhibit 10.6 to the December 31, 2004 Form 10-Q for Capitol Federal Financial and incorporated herein by reference | |
10.6 | Description of Named Executive Officer Salary and Bonus Arrangements filed on November 25, 2015 as Exhibit 10.6 to the Registrant's Annual Report on Form 10-K and incorporated herein by reference | |
10.7 | Description of Director Fee Arrangements filed on August 1, 2014 as Exhibit 10.9 to the Registrant's June 30, 2014 Form 10-Q and incorporated herein by reference | |
10.8 | Short-term Performance Plan filed on August 4, 2015 as Exhibit 10.10 to the Registrant's June 30, 2015 Form 10-Q and incorporated herein by reference | |
10.9 | Capitol Federal Financial, Inc. 2012 Equity Incentive Plan (the "Equity Incentive Plan") filed on December 22, 2011 as Appendix A to Capitol Federal Financial, Inc.'s Proxy Statement (File No. 001-34814) and incorporated herein by reference | |
10.10 | Form of Incentive Stock Option Agreement under the Equity Incentive Plan filed on February 6, 2012 as Exhibit 10.12 to the Registrant's December 31, 2011 Form 10-Q and incorporated herein by reference | |
10.11 | Form of Non-Qualified Stock Option Agreement under the Equity Incentive Plan filed on February 6, 2012 as Exhibit 10.13 to the Registrant's December 31, 2011 Form 10-Q and incorporated herein by reference | |
10.12 | Form of Stock Appreciation Right Agreement under the Equity Incentive Plan filed on February 6, 2012 as Exhibit 10.14 to the Registrant's December 31, 2011 Form 10-Q and incorporated herein by reference | |
10.13 | Form of Restricted Stock Agreement under the Equity Incentive Plan filed on February 6, 2012 as Exhibit 10.15 to the Registrant's December 31, 2011 Form 10-Q and incorporated herein by reference | |
11 | Calculations of Basic and Diluted EPS (See "Part I, Item 1. Financial Statements – Notes to Consolidated Financial Statements – Note 2 – Earnings Per Share") | |
31.1 | Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002 made by John B. Dicus, Chairman, President and Chief Executive Officer | |
31.2 | Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002 made by Kent G. Townsend, Executive Vice President, Chief Financial Officer and Treasurer | |
32 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 made by John B. Dicus, Chairman, President and Chief Executive Officer, and Kent G. Townsend, Executive Vice President, Chief Financial Officer and Treasurer |
101 | The following information from the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017, filed with the Securities and Exchange Commission on August 9, 2017, has been formatted in eXtensible Business Reporting Language: (i) Consolidated Balance Sheets at June 30, 2017 and September 30, 2016, (ii) Consolidated Statements of Income for the three and nine months ended June 30, 2017 and 2016, (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2017 and 2016, (iv) Consolidated Statement of Stockholders' Equity for the nine months ended June 30, 2017, (v) Consolidated Statements of Cash Flows for the nine months ended June 30, 2017 and 2016, and (vi) Notes to the Unaudited Consolidated Financial Statements |
1. | I have reviewed this Quarterly Report on Form 10-Q of Capitol Federal Financial, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 9, 2017 | By: | /s/ John B. Dicus |
John B. Dicus | ||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Capitol Federal Financial, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 9, 2017 | By: | /s/ Kent G. Townsend |
Kent G. Townsend | ||
Executive Vice President, Chief Financial Officer and Treasurer |
1. | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report. |
Date: August 9, 2017 | By: | /s/ John B. Dicus |
John B. Dicus | ||
Chairman, President and Chief Executive Officer | ||
Date: August 9, 2017 | By: | /s/ Kent G. Townsend |
Kent G. Townsend | ||
Executive Vice President, Chief Financial Officer and Treasurer |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 03, 2017 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Capitol Federal Financial Inc | |
Trading Symbol | cffn | |
Entity Central Index Key | 0001490906 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 138,212,835 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Interest-earning deposits | $ 115,118 | $ 267,829 |
Available-for-sale securities, amortized cost | 447,018 | 517,791 |
Held-to-maturity securities, estimated fair value | 895,542 | 1,122,867 |
Loans receivable, allowance for credit losses | $ 8,486 | $ 8,540 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,400,000,000 | 1,400,000,000 |
Common stock, shares issued | 138,206,835 | 137,486,172 |
Common stock, shares outstanding | 138,206,835 | 137,486,172 |
Consolidated Statements Of Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
INTEREST AND DIVIDEND INCOME: | ||||
Loans receivable | $ 64,013 | $ 60,840 | $ 189,064 | $ 181,795 |
Mortgage-backed securities (MBS) | 5,821 | 7,401 | 18,374 | 22,934 |
Cash and cash equivalents | 5,619 | 2,730 | 12,720 | 7,057 |
FHLB stock | 3,114 | 3,050 | 9,153 | 9,208 |
Investment securities | 1,063 | 1,506 | 3,301 | 4,524 |
Total interest and dividend income | 79,630 | 75,527 | 232,612 | 225,518 |
INTEREST EXPENSE: | ||||
FHLB borrowings | 17,884 | 16,361 | 50,772 | 48,829 |
Deposits | 10,895 | 9,749 | 31,655 | 27,761 |
Repurchase agreements | 1,487 | 1,487 | 4,461 | 4,478 |
Total interest expense | 30,266 | 27,597 | 86,888 | 81,068 |
NET INTEREST INCOME | 49,364 | 47,930 | 145,724 | 144,450 |
PROVISION FOR CREDIT LOSSES | 0 | 0 | 0 | 0 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 49,364 | 47,930 | 145,724 | 144,450 |
NON-INTEREST INCOME: | ||||
Retail fees and charges | 3,832 | 3,725 | 11,123 | 11,097 |
Income from bank-owned life insurance (BOLI) | 573 | 648 | 1,669 | 2,810 |
Other non-interest income | 1,055 | 1,056 | 3,509 | 3,714 |
Total non-interest income | 5,460 | 5,429 | 16,301 | 17,621 |
NON-INTEREST EXPENSE: | ||||
Salaries and employee benefits | 11,210 | 10,829 | 32,388 | 31,604 |
Information technology and communications | 2,922 | 2,716 | 8,524 | 7,883 |
Occupancy, net | 2,659 | 2,606 | 8,098 | 7,894 |
Regulatory and outside services | 1,383 | 1,370 | 3,994 | 4,000 |
Deposit and loan transaction costs | 1,304 | 1,449 | 3,918 | 4,119 |
Advertising and promotional | 1,322 | 1,053 | 3,275 | 3,190 |
Federal insurance premium | 879 | 1,377 | 2,651 | 4,158 |
Office supplies and related expense | 492 | 545 | 1,470 | 2,016 |
Low income housing partnerships | 0 | 721 | 0 | 2,815 |
Other non-interest expense | 474 | 661 | 1,861 | 2,664 |
Total non-interest expense | 22,645 | 23,327 | 66,179 | 70,343 |
INCOME BEFORE INCOME TAX EXPENSE | 32,179 | 30,032 | 95,846 | 91,728 |
INCOME TAX EXPENSE | 10,809 | 9,481 | 32,311 | 28,932 |
NET INCOME | $ 21,370 | $ 20,551 | $ 63,535 | $ 62,796 |
Basic earnings per share (EPS) | $ 0.16 | $ 0.15 | $ 0.47 | $ 0.47 |
Diluted EPS | 0.16 | 0.15 | 0.47 | 0.47 |
Dividends declared per share | $ 0.34 | $ 0.34 | $ 0.80 | $ 0.76 |
Basic weighted average common shares | 134,253,690 | 133,101,960 | 134,004,281 | 132,960,917 |
Diluted weighted average common shares | 134,359,770 | 133,250,711 | 134,189,758 | 133,065,828 |
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,370 | $ 20,551 | $ 63,535 | $ 62,796 |
Other comprehensive income (loss), net of tax: | ||||
Changes in unrealized holding gains (losses) on AFS securities, net of taxes of $345, $119, $1,374 and $945 | (567) | (194) | (2,260) | (1,554) |
Comprehensive income | $ 20,803 | $ 20,357 | $ 61,275 | $ 61,242 |
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Changes in net unrealized holding gains (losses) on AFS securities, amount of taxes | $ 345 | $ 119 | $ 1,374 | $ 945 |
Consolidated Statements Of Stockholders' Equity - 9 months ended Jun. 30, 2017 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Unearned Compensation ESOP [Member] |
Retained Earnings [Member] |
AOCI [Member] |
---|---|---|---|---|---|---|
Balance at Sep. 30, 2016 | $ 1,392,964 | $ 1,375 | $ 1,156,855 | $ (39,647) | $ 268,466 | $ 5,915 |
Net income | 63,535 | 63,535 | ||||
Other comprehensive income (loss), net of tax | (2,260) | (2,260) | ||||
ESOP activity, net | 1,860 | 621 | 1,239 | |||
Restricted stock activity, net | 51 | 51 | ||||
Stock-based compensation | 419 | 419 | ||||
Stock options exercised | 8,969 | 7 | 8,962 | |||
Cash dividends to stockholders ($0.80 per share) | (106,552) | (106,552) | ||||
Balance at Jun. 30, 2017 | $ 1,358,986 | $ 1,382 | $ 1,166,908 | $ (38,408) | $ 225,449 | $ 3,655 |
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends to stockholders | $ 0.34 | $ 0.34 | $ 0.80 | $ 0.76 |
Summary Of Significant Accounting Policies |
9 Months Ended |
---|---|
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The consolidated financial statements include the accounts of Capitol Federal® Financial, Inc. (the "Company") and its wholly-owned subsidiary, Capitol Federal Savings Bank (the "Bank"). The Bank has a wholly-owned subsidiary, Capitol Funds, Inc. Capitol Funds, Inc. has a wholly-owned subsidiary, Capitol Federal Mortgage Reinsurance Company. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016, filed with the Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year. Net Presentation of Cash Flows Related to Borrowings - During the current fiscal year, the Bank entered into certain FHLB advances with contractual maturities of 90 days or less. Cash flows related to these advances are reported on a net basis in the "Net change in short-term borrowings" line within the consolidated statements of cash flows. Low Income Housing Partnerships - As part of the Bank's community reinvestment initiatives, the Bank invests in affordable housing limited partnerships ("low income housing partnerships") that make equity investments in affordable housing properties. The Bank is a limited partner in each partnership in which it invests. A separate, unrelated third party is the general partner. The Bank receives affordable housing tax credits and other tax benefits for these investments. Prior to October 1, 2016, the Bank accounted for its low income housing partnership investments using the equity method of accounting, as two of the Bank's officers were involved in the operational management of the low income housing partnership investment group. On October 1, 2016, due to both officers' resignation from operational management, the Bank began using the proportional method of accounting for its low income housing partnership investments. Recent Accounting Pronouncements - In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. The ASU, as amended, clarifies principles for recognizing revenue and provides a common revenue standard for GAAP and International Financial Reporting Standards. Additionally, the ASU provides implementation guidance on several topics and requires entities to disclose both quantitative and qualitative information regarding contracts with customers. ASU 2014-09 will become effective for the Company on October 1, 2018. The scope of the amended ASU explicitly excludes interest income from loans and securities; therefore, the Company anticipates that the majority of its revenue will not be within the scope of the amended ASU. The Company is continuing to evaluate the amended ASU and its impact on the Company's consolidated financial condition, results of operations, and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments, Recognition and Measurement of Financial Assets and Liabilities. The ASU supersedes certain accounting guidance related to equity securities with readily determinable fair values and the related impairment assessment. An entity's equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this ASU. The ASU requires public business entities to utilize the exit price notation in determining fair value for financial instruments measured at amortized cost on the balance sheet. The ASU requires additional reporting in other comprehensive income for financial liabilities measured at fair value in accordance with the fair value option. The ASU also requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balances or in the notes to the financial statements. ASU 2016-01 will become effective for the Company on October 1, 2018. Early adoption is not permitted except in certain circumstances. The Company is currently evaluating the impact that this ASU may have on the Company's consolidated financial condition, results of operations and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU amends lease accounting guidance by requiring that lessees recognize the assets and liabilities arising from leases on the balance sheet. Additionally, the ASU requires entities to disclose both quantitative and qualitative information regarding their leasing activities. ASU 2016-02 will become effective for the Company on October 1, 2019. Early adoption is permitted. The Company is currently in the process of accumulating lease data and developing an inventory of leases. The Company expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption. The Company is continuing to evaluate the impact this ASU may have on the Company's consolidated financial condition, results of operations and disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, along with simplifying the classification in the statement of cash flows. The ASU will become effective for the Company on October 1, 2017. Upon adoption, the Company intends to elect to account for forfeitures of stock-based compensation awards when they occur. The Company plans to recognize excess tax benefits and tax deficiencies in income tax expense on the consolidated statements of income and present them within operating activities on the consolidated statements of cash flows. While this ASU is not expected to have a material impact on the Company's consolidated financial condition or results of operations at the time of adoption, the impact of tax benefits and the timing of their recognition within income tax expense is unpredictable, as these benefits are recognized primarily as a result of stock options being exercised. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU replaces the incurred loss impairment methodology in current GAAP, which requires credit losses to be recognized when it is probable that a loss has incurred, with a new impairment methodology. The new impairment methodology requires an entity to measure, at each reporting date, the expected credit losses of financial assets not measured at fair value, such as loans, HTM debt securities, and loan commitments, over their contractual lives. Under the new impairment methodology, expected credit losses will be measured at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, the ASU amends the current credit loss measurements for AFS debt securities. Credit losses related to AFS debt securities will be recorded through the ACL rather than as a direct write-down as per current GAAP. The ASU also requires enhanced disclosures related to credit quality and significant estimates and judgments used by management when estimating credit losses. The ASU will become effective for the Company on October 1, 2020. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the ASU and is in the process of reviewing its systems and processes to support the data required to implement the ASU. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. Under current GAAP, premiums on callable debt securities generally are amortized to the maturity date. The Company adopted this ASU during the current quarter. The ASU did not have a material impact on the Company's consolidated financial condition or results of operations. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE Shares acquired by the ESOP are not considered in the basic average shares outstanding until the shares are committed for allocation or vested to an employee's individual account. Unvested shares awarded pursuant to the Company's restricted stock benefit plans are treated as participating securities in the computation of EPS pursuant to the two-class method as they contain nonforfeitable rights to dividends. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security.
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Securities |
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | SECURITIES The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS and HTM securities at the dates presented. The majority of the MBS and investment securities portfolios are composed of securities issued by United States government-sponsored enterprises ("GSEs").
The following tables summarize the estimated fair value and gross unrealized losses of those securities on which an unrealized loss at the dates presented was reported and the continuous unrealized loss position for less than 12 months and equal to or greater than 12 months as of the dates presented.
The unrealized losses at June 30, 2017 and September 30, 2016 were primarily a result of an increase in market yields from the time the securities were purchased. In general, as market yields rise, the fair value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. The impairment is also considered temporary because scheduled coupon payments have been made, it is anticipated that the entire principal balance will be collected as scheduled, and management neither intends to sell the securities, nor is it more likely than not that the Company will be required to sell the securities before the recovery of the remaining amortized cost amount, which could be at maturity. As a result of the analysis, management has concluded that no other-than-temporary impairments existed at June 30, 2017 or September 30, 2016. The amortized cost and estimated fair value of debt securities as of June 30, 2017, by contractual maturity, are shown below. Actual principal repayments may differ from contractual maturities due to prepayment or early call privileges by the issuer. In the case of MBS, borrowers on the underlying loans generally have the right to prepay their loans without prepayment penalty. For this reason, MBS are not included in the maturity categories.
The following table presents the taxable and non-taxable components of interest income on investment securities for the periods presented.
The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented.
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Loans Receivable And Allowance For Credit Losses |
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Loans Receivable And Allowance For Credit Losses | LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Loans receivable, net at the dates presented is summarized as follows:
Lending Practices and Underwriting Standards - Originating and purchasing one- to four-family loans is the Bank's primary lending business, resulting in a loan concentration in residential first mortgage loans. The Bank purchases one- to four-family loans, on a loan-by-loan basis, from a select group of correspondent lenders. The Bank also originates consumer loans primarily secured by one- to four-family residential properties and originates and participates in commercial real estate loans. As a result of our one- to four-family lending activities, the Bank has a concentration of loans secured by real property located in Kansas and Missouri. One- to four-family loans - Full documentation to support an applicant's credit and income, and sufficient funds to cover all applicable fees and reserves at closing, are required on all loans. Generally, loans are underwritten according to the "ability to repay" and "qualified mortgage" standards, as issued by the Consumer Financial Protection Bureau ("CFPB"). Properties securing one- to four-family loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function and approved by our Board of Directors. The underwriting standards for loans purchased from correspondent and nationwide lenders are generally similar to the Bank's internal underwriting standards. The underwriting of loans purchased from correspondent lenders on a loan-by-loan basis is performed by the Bank's underwriters. The Bank also originates construction-to-permanent loans secured by one- to four-family residential real estate. Construction loans are obtained by homeowners who will occupy the property when construction is complete. Construction loans to builders for speculative purposes are not permitted by the Bank's lending policies. Construction draw requests and the supporting documentation are reviewed and approved by designated personnel. The Bank also performs regular documented inspections of the construction project to ensure the funds are being used for the intended purpose and the project is being completed according to the plans and specifications provided. Commercial real estate loans - The Bank's commercial real estate loans are originated by the Bank or are in participation with a lead bank. When underwriting a commercial real estate loan, several factors are considered, such as the income producing potential of the property, cash equity provided by the borrower, the financial strength of the borrower, managerial expertise of the borrower or tenant, feasibility studies, lending experience with the borrower and the marketability of the property. For commercial real estate participation loans, the Bank performs the same underwriting procedures as if the loan was being originated by the Bank. At the time of origination, loan-to-value ("LTV") ratios on commercial real estate loans generally do not exceed 80% of the appraised value of the property securing the loans and the minimum debt service coverage ratio is generally 1.25. Appraisals on properties securing these loans are performed by independent state certified fee appraisers. Consumer loans - The Bank offers a variety of secured consumer loans, including home equity loans and lines of credit, home improvement loans, auto loans, and loans secured by savings deposits. The Bank also originates a very limited amount of unsecured loans. The Bank does not originate any consumer loans on an indirect basis, such as contracts purchased from retailers of goods or services which have extended credit to their customers. The majority of the consumer loan portfolio is comprised of home equity lines of credit for which the Bank also has the first mortgage or the home equity line of credit is in the first lien position. The underwriting standards for consumer loans include a determination of an applicant's payment history on other debts and an assessment of an applicant's ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of an applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security in relation to the proposed loan amount. Credit Quality Indicators - Based on the Bank's lending emphasis and underwriting standards, management has segmented the loan portfolio into three segments: (1) one- to four-family; (2) consumer; and (3) commercial real estate. The one- to four-family and consumer loan portfolios are further segmented into classes for purposes of providing disaggregated information about the credit quality of the loan portfolio. The classes are: one- to four-family - originated, one- to four-family - correspondent purchased, one- to four-family - bulk purchased, consumer - home equity, and consumer - other. The one- to four-family - correspondent purchased class was segregated from the one- to four-family originated class in the current fiscal year due to the size of the portfolio along with the loan product composition, geographic locations and inherent credit risks within the portfolio. The prior period information presented within this note has been conformed to the new loan class presentation. The Bank's primary credit quality indicators for the one- to four-family and consumer - home equity loan portfolios are delinquency status, asset classifications, LTV ratios, and borrower credit scores. The Bank's primary credit quality indicators for the commercial real estate and consumer - other loan portfolios are delinquency status and asset classifications. The following tables present the recorded investment, by class, in loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total recorded investment at the dates presented. The recorded investment in loans is defined as the unpaid principal balance of a loan, less charge-offs and inclusive of unearned loan fees and deferred costs. At June 30, 2017 and September 30, 2016, all loans 90 or more days delinquent were on nonaccrual status.
The recorded investment of mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of June 30, 2017 and September 30, 2016 was $5.0 million and $5.7 million, respectively, which is included in loans 90 or more days delinquent or in foreclosure in the table above. The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure was $2.0 million at June 30, 2017 and $2.5 million at September 30, 2016. The following table presents the recorded investment, by class, in loans classified as nonaccrual at the dates presented.
In accordance with the Bank's asset classification policy, management regularly reviews the problem loans in the Bank's portfolio to determine whether any loans require classification. Loan classifications are defined as follows:
The following table sets forth the recorded investment in loans classified as special mention or substandard, by class, at the dates presented. Special mention and substandard loans are included in the ACL formula analysis model if the loans are not individually evaluated for loss. Loans classified as doubtful or loss are individually evaluated for loss. At the dates presented, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.
The following table shows the weighted average credit score and weighted average LTV for one- to four-family loans and consumer home equity loans at the dates presented. Borrower credit scores are intended to provide an indication as to the likelihood that a borrower will repay their debts. Credit scores are updated at least semiannually, with the last update in March 2017, from a nationally recognized consumer rating agency. The LTV ratios provide an estimate of the extent to which the Bank may incur a loss on any given loan that may go into foreclosure. The consumer - home equity LTV does not take into account the first lien position, if applicable. The LTV ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available. In most cases, the most recent appraisal was obtained at the time of origination.
Troubled Debt Restructurings ("TDRs") - The following tables present the recorded investment prior to restructuring and immediately after restructuring in all loans restructured during the periods presented. These tables do not reflect the recorded investment at the end of the periods indicated. Any increase in the recorded investment at the time of the restructuring was generally due to the capitalization of delinquent interest and/or escrow balances.
The following table provides information on TDRs that became delinquent during the periods presented within 12 months after being restructured.
Impaired loans - The following information pertains to impaired loans, by class, as of the dates presented. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement.
The following information pertains to impaired loans, by class, for the periods presented.
Allowance for Credit Losses - The following is a summary of ACL activity, by loan portfolio segment, for the periods presented, and the ending balance of ACL based on the Company's impairment methodology.
The following is a summary of the loan portfolio and related ACL balances, at the dates presented, by loan portfolio segment disaggregated by the Company's impairment method. There was no ACL for loans individually evaluated for impairment at either date as all losses were charged-off.
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Low Income Housing Partnerships |
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Jun. 30, 2017 | |
Investments in Affordable Housing Projects [Abstract] | |
Low Income Housing Partnerships | LOW INCOME HOUSING PARTNERSHIPS The Bank's investment in low income housing partnerships, which is included in other assets in the consolidated balance sheets, was $54.7 million and $58.0 million at June 30, 2017 and September 30, 2016, respectively. The Bank's obligations related to unfunded commitments, which are included in accounts payable and accrued expenses in the consolidated balance sheets, were $20.4 million and $27.2 million at June 30, 2017 and September 30, 2016, respectively. The majority of the commitments at June 30, 2017 are projected to be funded through the end of calendar year 2019. For the nine months ended June 30, 2017, the net income tax benefit associated with these investments, which consists of proportional amortization expense and affordable housing tax credits and other related tax benefits, was reported in income tax expense in the consolidated statements of income. The amount of proportional amortization expense during the three and nine months ended June 30, 2017 was $1.1 million and $3.3 million, respectively, and the amount of affordable housing tax credits and other related tax benefits was $1.8 million and $5.3 million, respectively, resulting in a net income tax benefit of $677 thousand and $2.0 million, respectively. For the three and nine months ended June 30, 2016, the expenses were reported in the low income housing partnerships line of the consolidated statements of income, and the amount of affordable housing tax credits and other related tax benefits was $1.5 million and $4.5 million, respectively. There were no impairment losses during the nine months ended June 30, 2017 and 2016 resulting from the forfeiture or ineligibility of tax credits or other circumstances. |
Repurchase Agreements |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements | REPURCHASE AGREEMENTS At both June 30, 2017 and September 30, 2016, the Company had repurchase agreements outstanding in the amount of $200.0 million with a weighted average contractual rate of 2.94%. All of the Company's repurchase agreements at June 30, 2017 and September 30, 2016 were fixed-rate. See Note 3 for information regarding the amount of securities pledged as collateral in conjunction with repurchase agreements. Securities are delivered to the party with whom each transaction is executed and the party agrees to resell the same securities to the Bank at the maturity of the agreement. The Bank retains the right to substitute similar or like securities throughout the terms of the agreements. The repurchase agreements and collateral are subject to valuation at current market levels and the Bank may ask for the return of excess collateral or be required to post additional collateral due to changes in the market values of these items. The Bank may also be required to post additional collateral as a result of principal payments received on the securities pledged. The following table presents the scheduled maturity of repurchase agreements by fiscal year as of June 30, 2017:
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Fair Value Of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurements - The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures in accordance with Accounting Standards Codification ("ASC") 820 and ASC 825. The Company did not have any liabilities that were measured at fair value at June 30, 2017 or September 30, 2016. The Company's AFS securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as OREO and loans individually evaluated for impairment. These non-recurring fair value adjustments involve the application of lower of cost or fair value accounting or write-downs of individual assets. The Company groups its assets at fair value in three levels based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:
The Company bases its fair values on the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date under current market conditions. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The following is a description of valuation methodologies used for assets measured at fair value on a recurring basis. AFS Securities - The Company's AFS securities portfolio is carried at estimated fair value, with any unrealized gains and losses, net of taxes, reported as AOCI in stockholders' equity. The majority of the securities within the AFS portfolio were issued by GSEs. The Company primarily uses prices obtained from third party pricing services to determine the fair value of its securities. On a quarterly basis, management corroborates a sample of prices obtained from the third party pricing service for Level 2 securities by comparing them to an independent source. If the price provided by the independent source varies by more than a predetermined percentage from the price received from the third party pricing service, then the variance is researched by management. The Company did not have to adjust prices obtained from the third party pricing service when determining the fair value of its securities during the nine months ended June 30, 2017 or during fiscal year 2016. The Company's major security types, based on the nature and risks of the securities, are:
The following tables provide the level of valuation assumption used to determine the carrying value of the Company's assets measured at fair value on a recurring basis at the dates presented.
The Company's Level 3 AFS securities had no activity during the three and nine months ended June 30, 2017, except for principal repayments of $13 thousand and $75 thousand, respectively, an increase in net unrealized losses of $4 thousand for the three months ended June 30, 2017 and a decrease in net unrealized losses of $121 thousand for the nine months ended June 30, 2017, which are included in other comprehensive income. The Company's Level 3 AFS securities had no activity during the three and nine months ended June 30, 2016, except for principal repayments of $13 thousand and $44 thousand, respectively, and increases in net unrealized losses included in other comprehensive income of $19 thousand and $87 thousand, respectively. The following is a description of valuation methodologies used for significant assets measured at fair value on a non-recurring basis. Loans Receivable - The balance of loans individually evaluated for impairment at June 30, 2017 and September 30, 2016 was $40.7 million and $42.0 million, respectively. Substantially all of these loans were secured by residential real estate and were individually evaluated to determine if the carrying value of the loan was in excess of the fair value of the collateral, less estimated selling costs of 10%. When no impairment is indicated, the carrying amount is considered to approximate fair value. Fair values were estimated through current appraisals or current Federal Housing Finance Agency ("FHFA") housing price indices, which is a broad based measure of the movement of single-family house prices and is a weighted, repeat-sales index. Management does not adjust or apply a discount to the appraised value or FHFA housing price indices, except for the estimated sales costs noted above. The primary significant unobservable input for loans individually evaluated for impairment using appraisals to determine the estimated fair value was the appraisal. Fair values of loans individually evaluated for impairment cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the loan, and, as such are classified as Level 3. Based on this evaluation, the Bank charged-off all loss amounts as of June 30, 2017 and September 30, 2016; therefore, there was no ACL related to these loans. OREO - OREO primarily represents real estate acquired as a result of foreclosure or by deed in lieu of foreclosure and is carried at lower of cost or fair value. Fair value is estimated through current appraisals or listing prices, less estimated selling costs of 10%. Management does not adjust or apply a discount to the appraised value or listing price, except for the estimated sales costs noted above. The primary significant unobservable input for OREO was the appraisal or listing price. Fair values of foreclosed property cannot be determined with precision and may not be realized in an actual sale of the property and, as such, are classified as Level 3. The fair value of OREO at June 30, 2017 and September 30, 2016 was $2.0 million and $3.7 million, respectively. The following tables provide the level of valuation assumptions used to determine the carrying value of the Company's assets measured at fair value on a non-recurring basis at the dates presented.
Fair Value Disclosures - The Company determined estimated fair value amounts using available market information and a variety of valuation methodologies as of the dates presented. Considerable judgment is required to interpret market data to develop the estimates of fair value. The estimates presented are not necessarily indicative of amounts the Company would realize from a current market exchange at subsequent dates. The carrying amounts and estimated fair values of the Company's financial instruments, at the dates presented, were as follows:
The following methods and assumptions were used to estimate the fair value of the financial instruments: Cash and Cash Equivalents - The carrying amounts of cash and cash equivalents are considered to approximate their fair value due to the nature of the financial assets. (Level 1) HTM Securities - Estimated fair values of securities are based on one of three methods: (1) quoted market prices where available; (2) quoted market prices for similar instruments if quoted market prices are not available; (3) unobservable data that represents the Bank's assumptions about items that market participants would consider in determining fair value where no market data is available. HTM securities are carried at amortized cost. (Level 2) Loans Receivable - The fair value of one- to four-family loans and home equity loans are generally estimated using the present value of expected future cash flows, assuming future prepayments and using discount factors determined by prices obtained from securitization markets, less a discount for the cost of servicing and lack of liquidity. The estimated fair value of the Bank's commercial and consumer loans are based on the expected future cash flows assuming future prepayments and discount factors based on current offering rates. (Level 3) FHLB stock - The carrying value and estimated fair value of FHLB stock equals cost, which is based on redemption at par value. (Level 1) Deposits - The estimated fair value of demand deposits, savings, and money market accounts is the amount payable on demand at the reporting date. The estimated fair value of these deposits at June 30, 2017 and September 30, 2016 was $2.44 billion and $2.34 billion, respectively. (Level 1) The fair value of certificates of deposit is estimated by discounting future cash flows using current London Interbank Offered Rates ("LIBOR"). The estimated fair value of certificates of deposit at June 30, 2017 and September 30, 2016 was $2.84 billion and $2.87 billion, respectively. (Level 2) FHLB borrowings and Repurchase Agreements - The fair value of fixed-maturity borrowed funds is estimated by discounting estimated future cash flows using current offer rates. (Level 2) |
Summary Of Significant Accounting Policies (Policies) |
9 Months Ended |
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Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Capitol Federal® Financial, Inc. (the "Company") and its wholly-owned subsidiary, Capitol Federal Savings Bank (the "Bank"). The Bank has a wholly-owned subsidiary, Capitol Funds, Inc. Capitol Funds, Inc. has a wholly-owned subsidiary, Capitol Federal Mortgage Reinsurance Company. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016, filed with the Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year. |
Net Presentation of Cash Flows Related to Borrowings | During the current fiscal year, the Bank entered into certain FHLB advances with contractual maturities of 90 days or less. Cash flows related to these advances are reported on a net basis in the "Net change in short-term borrowings" line within the consolidated statements of cash flows. |
Low Income Housing Partnerships | As part of the Bank's community reinvestment initiatives, the Bank invests in affordable housing limited partnerships ("low income housing partnerships") that make equity investments in affordable housing properties. The Bank is a limited partner in each partnership in which it invests. A separate, unrelated third party is the general partner. The Bank receives affordable housing tax credits and other tax benefits for these investments. Prior to October 1, 2016, the Bank accounted for its low income housing partnership investments using the equity method of accounting, as two of the Bank's officers were involved in the operational management of the low income housing partnership investment group. On October 1, 2016, due to both officers' resignation from operational management, the Bank began using the proportional method of accounting for its low income housing partnership investments. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. The ASU, as amended, clarifies principles for recognizing revenue and provides a common revenue standard for GAAP and International Financial Reporting Standards. Additionally, the ASU provides implementation guidance on several topics and requires entities to disclose both quantitative and qualitative information regarding contracts with customers. ASU 2014-09 will become effective for the Company on October 1, 2018. The scope of the amended ASU explicitly excludes interest income from loans and securities; therefore, the Company anticipates that the majority of its revenue will not be within the scope of the amended ASU. The Company is continuing to evaluate the amended ASU and its impact on the Company's consolidated financial condition, results of operations, and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments, Recognition and Measurement of Financial Assets and Liabilities. The ASU supersedes certain accounting guidance related to equity securities with readily determinable fair values and the related impairment assessment. An entity's equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this ASU. The ASU requires public business entities to utilize the exit price notation in determining fair value for financial instruments measured at amortized cost on the balance sheet. The ASU requires additional reporting in other comprehensive income for financial liabilities measured at fair value in accordance with the fair value option. The ASU also requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balances or in the notes to the financial statements. ASU 2016-01 will become effective for the Company on October 1, 2018. Early adoption is not permitted except in certain circumstances. The Company is currently evaluating the impact that this ASU may have on the Company's consolidated financial condition, results of operations and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU amends lease accounting guidance by requiring that lessees recognize the assets and liabilities arising from leases on the balance sheet. Additionally, the ASU requires entities to disclose both quantitative and qualitative information regarding their leasing activities. ASU 2016-02 will become effective for the Company on October 1, 2019. Early adoption is permitted. The Company is currently in the process of accumulating lease data and developing an inventory of leases. The Company expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption. The Company is continuing to evaluate the impact this ASU may have on the Company's consolidated financial condition, results of operations and disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, along with simplifying the classification in the statement of cash flows. The ASU will become effective for the Company on October 1, 2017. Upon adoption, the Company intends to elect to account for forfeitures of stock-based compensation awards when they occur. The Company plans to recognize excess tax benefits and tax deficiencies in income tax expense on the consolidated statements of income and present them within operating activities on the consolidated statements of cash flows. While this ASU is not expected to have a material impact on the Company's consolidated financial condition or results of operations at the time of adoption, the impact of tax benefits and the timing of their recognition within income tax expense is unpredictable, as these benefits are recognized primarily as a result of stock options being exercised. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU replaces the incurred loss impairment methodology in current GAAP, which requires credit losses to be recognized when it is probable that a loss has incurred, with a new impairment methodology. The new impairment methodology requires an entity to measure, at each reporting date, the expected credit losses of financial assets not measured at fair value, such as loans, HTM debt securities, and loan commitments, over their contractual lives. Under the new impairment methodology, expected credit losses will be measured at each reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, the ASU amends the current credit loss measurements for AFS debt securities. Credit losses related to AFS debt securities will be recorded through the ACL rather than as a direct write-down as per current GAAP. The ASU also requires enhanced disclosures related to credit quality and significant estimates and judgments used by management when estimating credit losses. The ASU will become effective for the Company on October 1, 2020. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the ASU and is in the process of reviewing its systems and processes to support the data required to implement the ASU. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. Under current GAAP, premiums on callable debt securities generally are amortized to the maturity date. The Company adopted this ASU during the current quarter. The ASU did not have a material impact on the Company's consolidated financial condition or results of operations |
Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Earnings Per Share, Basic And Diluted | Shares acquired by the ESOP are not considered in the basic average shares outstanding until the shares are committed for allocation or vested to an employee's individual account. Unvested shares awarded pursuant to the Company's restricted stock benefit plans are treated as participating securities in the computation of EPS pursuant to the two-class method as they contain nonforfeitable rights to dividends. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security.
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Securities (Tables) |
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Estimated Fair Value, And Gross Unrealized Gains And Losses Of AFS Securities | The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS and HTM securities at the dates presented. The majority of the MBS and investment securities portfolios are composed of securities issued by United States government-sponsored enterprises ("GSEs").
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Amortized Cost, Estimated Fair Value, And Gross Unrealized Gains And Losses Of HTM Securities | The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS and HTM securities at the dates presented. The majority of the MBS and investment securities portfolios are composed of securities issued by United States government-sponsored enterprises ("GSEs").
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Schedule Of Estimated Fair Value And Gross Unrealized Losses Of Securities In Continuous Unrealized Loss Position | The following tables summarize the estimated fair value and gross unrealized losses of those securities on which an unrealized loss at the dates presented was reported and the continuous unrealized loss position for less than 12 months and equal to or greater than 12 months as of the dates presented.
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Schedule Of Contractual Maturities | The amortized cost and estimated fair value of debt securities as of June 30, 2017, by contractual maturity, are shown below. Actual principal repayments may differ from contractual maturities due to prepayment or early call privileges by the issuer. In the case of MBS, borrowers on the underlying loans generally have the right to prepay their loans without prepayment penalty. For this reason, MBS are not included in the maturity categories.
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Schedule Of Taxable And Non-taxable Components Of Interest Income | The following table presents the taxable and non-taxable components of interest income on investment securities for the periods presented.
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Schedule Of Carrying Value Of Securities Pledged As Collateral | The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented.
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Loans Receivable And Allowance For Credit Losses (Tables) |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans Receivable | Loans receivable, net at the dates presented is summarized as follows:
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Recorded Investment in Loans, Past Due | The following tables present the recorded investment, by class, in loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total recorded investment at the dates presented. The recorded investment in loans is defined as the unpaid principal balance of a loan, less charge-offs and inclusive of unearned loan fees and deferred costs. At June 30, 2017 and September 30, 2016, all loans 90 or more days delinquent were on nonaccrual status.
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Recorded Investment in Loans, Nonaccrual | The following table presents the recorded investment, by class, in loans classified as nonaccrual at the dates presented.
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Recorded Investment in Classified Loans | The following table sets forth the recorded investment in loans classified as special mention or substandard, by class, at the dates presented. Special mention and substandard loans are included in the ACL formula analysis model if the loans are not individually evaluated for loss. Loans classified as doubtful or loss are individually evaluated for loss. At the dates presented, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.
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Weighted Average Loan-to-Value and Credit Score Information | The following table shows the weighted average credit score and weighted average LTV for one- to four-family loans and consumer home equity loans at the dates presented. Borrower credit scores are intended to provide an indication as to the likelihood that a borrower will repay their debts. Credit scores are updated at least semiannually, with the last update in March 2017, from a nationally recognized consumer rating agency. The LTV ratios provide an estimate of the extent to which the Bank may incur a loss on any given loan that may go into foreclosure. The consumer - home equity LTV does not take into account the first lien position, if applicable. The LTV ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available. In most cases, the most recent appraisal was obtained at the time of origination.
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Troubled Debt Restructurings on Financing Receivables | The following tables present the recorded investment prior to restructuring and immediately after restructuring in all loans restructured during the periods presented. These tables do not reflect the recorded investment at the end of the periods indicated. Any increase in the recorded investment at the time of the restructuring was generally due to the capitalization of delinquent interest and/or escrow balances.
The following table provides information on TDRs that became delinquent during the periods presented within 12 months after being restructured.
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Impaired Loans by Class | The following information pertains to impaired loans, by class, as of the dates presented. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement.
The following information pertains to impaired loans, by class, for the periods presented.
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Allowance for Credit Losses | The following is a summary of ACL activity, by loan portfolio segment, for the periods presented, and the ending balance of ACL based on the Company's impairment methodology.
The following is a summary of the loan portfolio and related ACL balances, at the dates presented, by loan portfolio segment disaggregated by the Company's impairment method. There was no ACL for loans individually evaluated for impairment at either date as all losses were charged-off.
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Repurchase Agreements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Maturity of Repurchase Agreements | The following table presents the scheduled maturity of repurchase agreements by fiscal year as of June 30, 2017:
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Fair Value Of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Fair Value Assets Measured On A Recurring Basis | The following tables provide the level of valuation assumption used to determine the carrying value of the Company's assets measured at fair value on a recurring basis at the dates presented.
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Schedule Of Fair Value Assets Measured On A Non-recurring Basis | The following tables provide the level of valuation assumptions used to determine the carrying value of the Company's assets measured at fair value on a non-recurring basis at the dates presented.
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Schedule Of Carrying Amounts And Estimated Fair Values Of Financial Instruments | The carrying amounts and estimated fair values of the Company's financial instruments, at the dates presented, were as follows:
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Securities (Narrative) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2017 |
Sep. 30, 2016 |
|
Marketable Securities [Abstract] | ||
Other than temporary impairments, amount | $ 0 | $ 0 |
Securities (Schedule Of Taxable And Non-taxable Components Of Interest Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Marketable Securities [Abstract] | ||||
Taxable | $ 941 | $ 1,342 | $ 2,905 | $ 4,010 |
Non-taxable | 122 | 164 | 396 | 514 |
Interest income on investment securities | $ 1,063 | $ 1,506 | $ 3,301 | $ 4,524 |
Securities (Schedule Of Carrying Value Of Securities Pledged As Collateral) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Marketable Securities [Abstract] | ||
Public unit deposits | $ 438,051 | $ 419,282 |
Repurchase agreements | 214,716 | 217,374 |
Federal Reserve Bank of Kansas City (FRB of Kansas City) | 12,640 | 15,938 |
Total securities pledged as collateral | $ 665,407 | $ 652,594 |
Loans Receivable And Allowance For Credit Losses (Narrative) (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
---|---|---|
Loans Receivable [Line Items] | ||
Loan-to-value ratio securing commercial real estate loans, maximum | 80.00% | |
Debt service coverage ratio for commercial real estate loans, minimum | 1.25 | |
Recorded investment of loans in process of foreclosure | $ 5,000 | $ 5,700 |
Carrying value of residential OREO | 2,000 | 2,500 |
Loans receivable | 7,240,594 | 6,958,024 |
ACL maintained for individually evaluated impaired loans | 0 | 0 |
Doubtful [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable | $ 0 | $ 0 |
Low Income Housing Partnerships (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Sep. 30, 2016 |
|
Investments in Affordable Housing Projects [Abstract] | |||||
Investment In affordable housing limited partnerships | $ 54,700 | $ 54,700 | $ 58,000 | ||
Obligations related to investments in affordable housing limited partnerships | 20,400 | $ 20,400 | $ 27,200 | ||
Affordable housing tax credits commitment, year to be paid | 2019 | ||||
Proportional amortization expense, amount | 1,100 | $ 3,300 | |||
Affordable housing tax credits, amount | 1,800 | $ 1,500 | 5,300 | $ 4,500 | |
Net income tax benefit, low income housing partnerships | $ 677 | 2,000 | |||
Impairment losses from the forfeiture or ineligibility of tax credits or other circumstances, amount | $ 0 | $ 0 |
Repurchase Agreements (Narrative) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Sep. 30, 2016 |
|
Disclosure of Repurchase Agreements [Abstract] | ||
Repurchase Agreements, Description of Potential Risks | Securities are delivered to the party with whom each transaction is executed and the party agrees to resell the same securities to the Bank at the maturity of the agreement. The Bank retains the right to substitute similar or like securities throughout the terms of the agreements. The repurchase agreements and collateral are subject to valuation at current market levels and the Bank may ask for the return of excess collateral or be required to post additional collateral due to changes in the market values of these items. The Bank may also be required to post additional collateral as a result of principal payments received on the securities pledged. |
|
Repurchase agreements | $ 200,000 | $ 200,000 |
Weighted average rate of repurchase agreements | 2.94% | 2.94% |
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Assets: | ||
AFS securities | $ 452,894 | $ 527,301 |
HTM securities | 895,542 | 1,122,867 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 130,249 | 281,764 |
AFS securities | 452,894 | 527,301 |
HTM securities | 891,037 | 1,100,874 |
Loans receivable | 7,240,594 | 6,958,024 |
FHLB stock | 101,039 | 109,970 |
Liabilities: | ||
Deposits | 5,267,685 | 5,164,018 |
FHLB borrowings | 2,173,472 | 2,372,389 |
Repurchase agreements | 200,000 | 200,000 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 130,249 | 281,764 |
AFS securities | 452,894 | 527,301 |
HTM securities | 895,542 | 1,122,867 |
Loans receivable | 7,381,322 | 7,292,971 |
FHLB stock | 101,039 | 109,970 |
Liabilities: | ||
Deposits | 5,278,931 | 5,204,251 |
FHLB borrowings | 2,187,180 | 2,434,151 |
Repurchase agreements | $ 202,811 | $ 207,303 |
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