What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2020-11-25 compared with 2019-11-27 · 45 added, 19 removed, 93 unchanged (41% of the section changed)

7 unchanged sentences

On October 28, 2015, the Company announced a stock repurchase plan for up to $70.0 million of common stock.

The plan does not have an expiration date.

Since the Company completed its second-step conversion in December 2010, $368.0 million worth of shares have been repurchased.

During the current fiscal year, the Company repurchased $23.8 million, or 2,558,100 shares, of common stock.

As of September 30, 2020, there was still $46.2 million authorized under the existing stock repurchase plan for additional purchases of the Company's common stock.

Subsequent to September 30, 2020 through November 24, 2020, the Company repurchased an additional $1.5 million, or 164,400 shares, of common stock.

This plan has no expiration date;

however, the Federal Reserve Bank's approval for the Company to repurchase shares extends through August 2021.

Since the Company completed its second-step conversion in December 2010, $393.4 million worth of shares of common stock have been repurchased.

The following table summarizes our share repurchase activity during the three months ended September 30, 2020 and additional information regarding our share repurchase program.

Total Number of

Approximate Dollar

Shares Purchased as

Value of Shares

Part of Publicly

that May Yet Be

Announced Plans

Purchased Under the

Plans or Programs

Total Number of Approximate Dollar

Total Shares Purchased as Value of Shares

Number of Average Part of Publicly that May Yet Be

Shares Price Paid Announced Plans Purchased Under the

Purchased per Share or Programs Plans or Programs

July 1, 2020 through

4 unchanged sentences

September 30, 2020 2,558,100 9.31 2,558,100 46,196,180

Total 2,558,100 9.31 2,558,100 46,196,180

Stockholders and General Inquiries

4 unchanged sentences

Period Ending

Index 9/30/2015 9/30/2016 9/30/2017 9/30/2018 9/30/2019 9/30/2020

Capitol Federal Financial, Inc.

100.00 123.80 137.11 127.06 148.12 104.91

NASDAQ Composite Index 100.00 116.42 144.00 180.24 181.19 255.40

9 unchanged sentences

The following information is only a summary and should be read in conjunction with our consolidated financial statements.

September 30,

At September 30,

2020 2019 2018 2017 2016

(Dollars in thousands)

Selected Balance Sheet Data:

Total assets $ 9,487,218 $ 9,340,018 $ 9,449,547 $ 9,192,916 $ 9,267,247

Loans receivable, net 7,202,851 7,416,747 7,514,485 7,195,071 6,958,024

AFS 1,560,950 1,204,863 714,614 415,831 527,301

HTM — — 612,318 827,738 1,100,874

FHLB stock 93,862 98,456 99,726 100,954 109,970

Deposits 6,191,408 5,581,867 5,603,354 5,309,868 5,164,018

Borrowings 1,789,313 2,239,989 2,285,033 2,373,808 2,572,389

Stockholders' equity 1,284,859 1,336,326 1,391,622 1,368,313 1,392,964

For the Year Ended September 30,

2020 2019 2018 2017 2016

(Dollars and counts in thousands, except per share amounts)

14 unchanged sentences

Income tax expense 16,090 26,411 24,979 43,783 38,445

Net income $ 64,540 $ 94,243 $ 98,927 $ 84,137 $ 83,494

Basic earnings per share $ 0.47 $ 0.68 $ 0.73 $ 0.63 $ 0.63

2 unchanged sentences

Average diluted shares outstanding 137,901 137,735 134,759 134,244 133,176

2020 2019 2018 2017 2016

Performance Ratios:

Return on average assets (1)

0.69 % 0.99 % 0.94 % 0.75 % 0.74 %

Return on average equity (1)

4.92 6.94 7.25 6.09 5.95

Dividends paid per share $ 0.68 $ 0.98 $ 0.88 $ 0.88 $ 0.84

2 unchanged sentences

Efficiency ratio (1)

50.74 46.83 43.89 41.21 43.76

Ratio of average interest-earning assets

to average interest-bearing liabilities

to average interest-bearing liabilities 1.13x 1.14x 1.13x 1.12x 1.13x

Net interest margin (1)

2.12 % 2.26 % 1.95 % 1.79 % 1.75 %

Interest rate spread information:

Average during period (1)

1.94 2.07 1.80 1.66 1.63

End of period 1.92 2.04 2.18 2.04 1.92

7 unchanged sentences

Average equity to average assets 14.0 14.3 13.0 12.4 12.4

Company Tier 1 leverage ratio

Bank Tier 1 leverage ratio

Company CBLR/Tier 1 leverage ratio (2)

13.7 13.8 14.9 12.3 12.3

Bank CBLR/Tier 1 leverage ratio (2)

12.4 12.1 13.0 10.8 10.9

Number of traditional offices 45 44 48 37 37

Number of in-store offices 9 10 10 10 10

The table below provides a reconciliation between certain performance ratios presented in accordance with GAAP and those same performance ratios excluding the effects of the leverage strategy, which are not presented in accordance with GAAP.

(1) The table below provides a reconciliation between certain performance ratios presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and those same 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 its unique nature.

The leverage strategy reduces some of our performance ratios, even though it increases our net income, due to the amount of earnings associated with the transaction in comparison to the size of the transaction.

The leverage strategy was in place for a shorter period of time during the current fiscal year than in prior fiscal years, so the leverage strategy impact for fiscal year 2019 shown in the table below is minimal.

Management can discontinue the leverage strategy at any point in time.

The leverage strategy reduces some of our performance ratios, even though it increases our net income, due to the small amount of earnings associated with the transaction in comparison to the size of the transaction.

The leverage strategy was not in place during the current fiscal year due to the negative interest rate spreads between the related FHLB borrowings and cash held at the Federal Reserve Bank of Kansas City ("FRB of Kansas City"), making the transaction unprofitable.

For the Year Ended September 30,

Actual Leverage Non- Actual Leverage Non-

(GAAP) Strategy GAAP (GAAP) Strategy GAAP

Return on average assets 0.99 % (0.02) % 1.01 % 0.94 % (0.13) % 1.07 %

4 unchanged sentences

For the Year Ended September 30,

Actual Leverage Non- Actual Leverage Non-

(GAAP) Strategy GAAP (GAAP) Strategy GAAP

Return on average assets 0.75 % (0.14) % 0.89 % 0.74 % (0.14) % 0.88 %

3 unchanged sentences

Average interest rate spread 1.66 (0.32) 1.98 1.63 (0.30) 1.93

(2) The Tier 1 leverage ratio was replaced with the CBLR when the Bank and Company elected to use the CBLR framework beginning in fiscal year 2020.

See "Part I, Item 1.

Business - Regulation and Supervision - Regulatory Capital Requirements" for additional information regarding the CBLR.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity