−Removed: The Company is a Maryland corporation with common stock traded on the Global Select tier of the NASDAQ Stock Market.
+Added: The Company is a Maryland corporation with its common stock traded on the Global Select tier of the NASDAQ Stock Market.
The Bank is a wholly-owned subsidiary of the Company and is a federally chartered and insured savings bank headquartered in Topeka, Kansas.
We have been, and intend to continue to be, a community-oriented financial institution offering a variety of financial services to meet the needs of the communities we serve.
−Removed: We attract deposits primarily from the general public and from businesses, and invest those funds primarily in permanent loans secured by first mortgages on owner-occupied, one- to four-family residences.
−Removed: We also originate and participate with other lenders in commercial loans, originate consumer loans primarily secured by mortgages on one- to four-family residences, and invest in certain investment securities and mortgage-backed securities ("MBS") using funding from deposits and Federal Home Loan Bank Topeka ("FHLB") borrowings.
+Added: We attract deposits primarily from the general public and from businesses, and invest those funds primarily in permanent loans secured by first mortgages on owner-occupied, one- to four-family residences and in commercial loans, either secured by real estate or for commercial and industrial purposes.
+Added: We also participate with other lenders in commercial loans, originate consumer loans primarily secured by mortgages on one- to four-family residences, and invest in certain investment securities and mortgage-backed securities ("MBS") using funding from deposits and Federal Home Loan Bank Topeka ("FHLB") borrowings.
We offer a variety of deposit accounts having a wide range of interest rates and terms, which generally include savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit with terms ranging from 91 days to 120 months.
−Removed: In August 2018, the Company completed the acquisition of Capital City Bancshares, Inc.
−Removed: and its wholly-owned subsidiary Capital City Bank, a commercial bank with $450 million in assets that was headquartered in Topeka, Kansas.
−Removed: The acquisition of Capital City Bank allowed us to advance our commercial banking strategy while staying under $10 billion in assets, and allowed us to offer trust and brokerage services.
−Removed: The Bank competes for commercial banking business through a wide variety of commercial deposit and expanded lending products.
The Company's results of operations are primarily dependent on net interest income, which is the difference between the interest earned on loans, securities, and cash, and the interest paid on deposits and borrowings.
−Removed: On a weekly basis, management reviews deposit flows, loan demand, cash levels, and changes in several market rates to assess all pricing strategies.
+Added: On a weekly basis, management reviews deposit flows, loan demand, cash levels, and changes in several market interest rates to assess all pricing strategies.
The Bank's pricing strategy for first mortgage loan products includes setting interest rates based on secondary market prices and competitor pricing for our local lending markets, and secondary market prices and competitor pricing for our correspondent lending markets.
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Generally, deposit pricing is based upon a survey of competitors in the Bank's market areas, and the need to attract funding and retain maturing deposits.
−Removed: The majority of our loans are fixed-rate products with maturities up to 30 years, while the majority of our retail deposits are either non-maturity deposits or have stated maturities of less than two years.
The Company is significantly affected by prevailing economic conditions, including federal monetary and fiscal policies and federal regulation of financial institutions.
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We rely on our marketing efforts and customer service reputation to attract business from walk-in customers, customers that apply online, and existing customers.
+Added: Our business development efforts help to bring new business relationships to the Bank.
• Deposit Services.
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We recognize it is more expensive to offer a full suite of commercial products and services, but we will continue our efforts to control those costs.
+Added: The Bank continues to invest in its infrastructure, which can increase costs.
+Added: Following the pandemic and with high rates of inflation, there is also pressure to increase compensation for the Bank's staff.
• Asset Quality.
−Removed: We utilize underwriting standards for our lending products, including the loans we purchase and participate in, that are designed to limit our exposure to credit risk.
+Added: We utilize underwriting standards for all of our lending products, including the loans we purchase and participate in, that are designed to limit our exposure to credit risk.
We require complete documentation for both originated and purchased loans, and make credit decisions based on our assessment of the borrower's ability to repay the loan in accordance with its terms.
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Our policy has always been to protect the safety and soundness of the Bank through credit and operational risk management, balance sheet strength, and sound operations.
−Removed: The end result of these activities has been capital ratios in excess of the well-capitalized standards set by the Office of the Comptroller of the Currency (the "OCC").
+Added: The end result of these activities has been capital ratios that meet or exceed the well-capitalized standards set by the Office of the Comptroller of the Currency (the "OCC").
We believe that maintaining a strong capital position safeguards the long-term interests of the Bank, the Company, and our stockholders.
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Total dividends declared and paid during fiscal year 2022 were $103.1 million, including a $0.20 per share, or $27.1 million, True Blue® Capitol Dividend paid in June 2022.
−Removed: The True Blue Capitol Dividend represented a $0.20 per share cash dividend for fiscal year 2020 and a $0.20 per share cash dividend for fiscal year 2021.
The Company's cash dividend payout policy is reviewed quarterly by management and the Board of Directors, and the ability to pay dividends under the policy depends upon a number of factors, including the Company's financial condition and results of operations, anticipated growth opportunities and market and economic conditions, 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.
For fiscal year 2023, it is the current intention of the Board of Directors to continue the payout of 100% of the Company's earnings to its stockholders through regular quarterly dividends and a true-up dividend.
−Removed: Stockholder value is also enhanced through common stock repurchases.
−Removed: During fiscal year 2021, the Company repurchased $1.5 million, or 164,400 shares, of common stock.
+Added: Stockholder value has also been enhanced through stock repurchases.
• Interest Rate Risk Management.
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Our corporate office is located in Topeka, Kansas.
−Removed: We currently have a network of 54 branches (45 traditional branches and nine in-store branches) located in nine counties throughout Kansas and two counties in Missouri.
+Added: We currently have a network of 54 branches (45 traditional branches and nine in-store branches) located in nine counties throughout Kansas and three counties in Missouri.
We primarily serve the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas and a portion of the metropolitan area of greater Kansas City.
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In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices.
−Removed: Other actions or inactions may provide the basis for enforcement action, including misleading or untimely reports filed.
+Added: Other actions or inactions may provide the basis for enforcement action, including misleading or untimely filed reports.
Except under certain circumstances, public disclosure of final enforcement actions by the OCC or the FRB is required by law.
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An institution that fails to do so is immediately subject to restrictions on its operations, including a prohibition against capital distributions, except with the prior approval of both the OCC and the FRB.
−Removed: meet this qualification is a statutory violation subject to enforcement action.
+Added: Failure to meet this qualification is a statutory violation subject to enforcement action.
As of September 30, 2022, the Bank met the qualification.
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The OCC has not imposed any such requirements on the Bank.
−Removed: The OCC is authorized and, under certain circumstances, required to take certain actions against federal savings banks that are considered not to be adequately capitalized because they fail to meet the minimum requirements associated with their elected capital framework.
+Added: The OCC is authorized and, under certain circumstances, required to take certain actions against federal savings banks that are not adequately capitalized because they fail to meet the minimum requirements associated with their elected capital framework.
Any such institution must submit a capital restoration plan for OCC approval and may be restricted in, among other things, increasing its assets, acquiring another institution, establishing a branch or engaging in any new activities, and may not make capital distributions.
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The long-term ability of the Company to pay dividends to its stockholders is based primarily upon the ability of the Bank to make capital distributions to the Company.
−Removed: So long as the Bank remains well capitalized after each capital distribution (as evidenced by maintaining a CBLR greater than the required percentage), and operates in a safe and sound manner, it is management's belief that the OCC and FRB will continue to allow the Bank to distribute its earnings to the Company, although no assurance can be given in this regard.
−Removed: The Bank also is subject to regulation and examination by the FDIC, which insures the deposits of the Bank to the maximum extent permitted by law.
+Added: So long as the Bank remains well capitalized after each capital distribution, and operates in a safe and sound manner, it is management's belief that the OCC and FRB will continue to allow the Bank to distribute its earnings to the Company, although no assurance can be given in this regard.
Insurance of Accounts and Regulation by the FDIC.
+Added: The Bank also is subject to regulation and examination by the FDIC, which insures the deposits of the Bank to the maximum extent permitted by law.
The DIF of the FDIC insures deposit accounts in the Bank up to applicable limits, with a maximum amount of deposit insurance for banks, savings institutions, and credit unions of $250 thousand per separately insured deposit ownership right or category.
The FDIC assesses deposit insurance premiums on all FDIC-insured institutions quarterly based on annualized rates.
−Removed: Under these rules, assessment rates for an institution with total assets of less than $10 billion are determined by weighted average CAMELS composite ratings and certain financial ratios, and range from 1.5 to 30.0 basis points, subject to certain adjustments.
+Added: Under these rules, assessment rates for an institution with total assets of less than $10 billion are determined by weighted average capital adequacy, asset quality, management, earnings, liquidity, and sensitivity (CAMELS) composite ratings and certain financial ratios, and range from 1.5 to 30.0 basis points, subject to certain adjustments.
For the fiscal year ended September 30, 2022, the Bank paid $3.0 million in FDIC premiums.
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In a banking industry emergency, the FDIC may also impose a special assessment.
+Added: In October 2022, the FDIC announced that the assessment rate will be increasing from three basis points to five basis points beginning in January 2023.
Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.
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The FRB requires all depository institutions to maintain reserves at specified levels against their transaction accounts, primarily checking accounts.
−Removed: In response to the COVID-19 pandemic, the FRB reduced reserve requirement ratios to zero percent effective on March 26, 2020, to support lending to households and businesses.
+Added: In response to the Coronavirus Disease 2019 ("COVID-19") pandemic, the FRB reduced reserve requirement ratios to zero percent effective on March 26, 2020, to support lending to households and businesses.
At September 30, 2022, the reserve requirement of zero percent was still in place.
−Removed: The Bank is authorized to borrow from the Federal Reserve Bank "discount window." An eligible institution need not exhaust other sources of funds before going to the discount window, nor are there restrictions on the purposes for which the institution can use primary credit.
+Added: The Bank is authorized to borrow from the Federal Reserve Bank "discount window." An eligible institution need not exhaust other sources of funds before going to the discount window, nor are there restrictions on the purposes for which the
+Added: institution can use primary credit.
At September 30, 2022, the Bank had no outstanding borrowings from the discount window.
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To assist in expanding diversity, the Company recruits employees through sources and organizations targeted at diverse communities.
−Removed: The Company also provides multiple opportunities for professional development and growth, including continuing education when applicable and specialty education within banking, using universities that offer banking management programs.
+Added: The Company also provides multiple opportunities for professional development and growth, including continuing education when applicable and specialty education within banking.
Leadership development is supported through our Leadership Forum services, on a biannual basis, for mid-level leaders within the organization.
−Removed: We have also used outside consultants for business simulations for training purposes, and this is expected to continue.
−Removed: During fiscal year 2021, the annual employee educational requirements included targeted diversity, equity and inclusion training for all managers.
+Added: Education for this program is provided by Washburn University's Center for Leadership.
+Added: Annual employee educational requirements include targeted diversity, equity and inclusion training for all managers.
All employees receive annual training on providing fair service, which is targeted at addressing implicit bias in providing customer service.
2 unchanged sentences
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.