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Item 5. Market for Registrant’s Common Equity

2021-11-24 compared with 2020-11-25 · 6 added, 100 removed, 38 unchanged (74% of the section changed)

6 unchanged sentences

Share Repurchases

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

During the current fiscal year, the Company repurchased $1.5 million, or 164,400 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.

There is $44.7 million of common stock that may be purchased under the Company's current plan, which was approved in October 2015 for $70.0 million.

This plan has no expiration date;

18 unchanged sentences

The information presented below assumes $100 invested on September 30, 2016 in the Company's common stock and in each of the indices, and assumes the reinvestment of all dividends.

In prior years, the Company compared its stock price performance to the SNL U.S.

Bank & Thrift index;

however, this index is no longer available from the Company's service provider, and has been replaced with the S&P U.S.

BMI Banks index.

Historical stock price performance is not necessarily indicative of future stock price performance.

4 unchanged sentences

NASDAQ Composite Index 100.00 123.68 154.82 155.63 219.37 285.75

Bank & Thrift Index 100.00 103.39 145.42 156.32 154.40 113.66

BMI Banks Index 100.00 142.24 154.22 154.71 113.59 206.67

S&P Global Market Intelligence

2 unchanged sentences

The dividend policy of the Company is subject to the discretion of the Board of Directors and will depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital requirements, regulatory limitations on the Bank's ability to make capital distributions to the Company, and the amount of cash at the holding company level.

See "Part II, Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Limitations on Dividends and Other Capital Distributions" for additional information regarding the Company's ability to pay dividends.

Selected Financial Data

The summary information presented below under "Selected Balance Sheet Data" and "Selected Operations Data" for, and as of the end of, each of the years ended September 30 is derived from our audited consolidated financial statements.

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

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)

Selected Operations Data:

Total interest and dividend income $ 304,978 $ 329,954 $ 321,892 $ 313,186 $ 301,113

Total interest expense 115,643 123,564 123,119 117,804 108,931

Net interest and dividend income 189,335 206,390 198,773 195,382 192,182

Provision for credit losses 22,300 750 — — (750)

Net interest and dividend income after

provision for credit losses 167,035 205,640 198,773 195,382 192,932

Deposit service fees 11,285 12,740 15,636 15,053 14,835

Other non-interest income 8,314 9,218 6,399 7,143 8,477

Total non-interest income 19,599 21,958 22,035 22,196 23,312

Salaries and employee benefits 52,996 53,145 46,563 43,437 42,378

Other non-interest expense 53,008 53,799 50,339 46,221 51,927

Total non-interest expense 106,004 106,944 96,902 89,658 94,305

Income before income tax expense 80,630 120,654 123,906 127,920 121,939

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

Average basic shares outstanding 137,897 137,677 134,698 134,082 133,045

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

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

Dividend payout ratio 145.43 % 143.17 % 119.60 % 140.20 % 133.86 %

Operating expense ratio 1.13 1.12 0.92 0.80 0.84

Efficiency ratio (1)

50.74 46.83 43.89 41.21 43.76

Ratio of average interest-earning assets

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

Asset Quality Ratios:

Non-performing assets to total assets 0.13 0.10 0.14 0.20 0.35

Non-performing loans to total loans 0.17 0.10 0.15 0.23 0.42

ACL to non-performing loans 252.42 121.99 77.01 50.58 29.32

ACL to loans receivable, net 0.44 0.12 0.11 0.12 0.12

Capital Ratios:

Equity to total assets at end of period 13.5 14.3 14.7 14.9 15.0

Average equity to average assets 14.0 14.3 13.0 12.4 12.4

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

(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 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 %

Return on average equity 6.94 — 6.94 7.25 0.13 7.12

Efficiency ratio 46.83 — 46.83 43.89 (0.30) 44.19

Net interest margin 2.26 (0.04) 2.30 1.95 (0.29) 2.24

Average interest rate spread 2.07 (0.03) 2.10 1.80 (0.26) 2.06

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 %

Return on average equity 6.09 0.21 5.88 5.95 0.17 5.78

Efficiency ratio 41.21 (0.63) 41.84 43.76 (0.42) 44.18

Net interest margin 1.79 (0.36) 2.15 1.75 (0.35) 2.10

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