|
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
|
|
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
|
|
OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Page
Number
|
Item 1. Financial Statements (Unaudited):
|
|
Consolidated Balance Sheets
at December 31, 2011 and September 30, 2011
|
3
|
Consolidated Statements of Operations
for the three months ended
|
|
December 31, 2011 and 2010
|
4
|
Consolidated Statement of Stockholders’ Equity
for the three months ended
|
|
December 31, 2011
|
6
|
Consolidated Statements of Cash Flows
for the three months ended
|
|
December 31, 2011 and 2010
|
7
|
9
|
|
Item 2.
Management’s Discussion and Analysis
of Financial Condition and
|
|
Results of Operations
|
33
|
76
|
|
Item 4.
Controls and Procedures
|
81
|
PART II -- OTHER INFORMATION
|
|
Item 1.
Legal Proceedings
|
81
|
Item 1A.
Risk Factors
|
81
|
Item 2.
Unregistered
Sales of Equity Securities and Use of Proceeds
|
81
|
Item 3.
Defaults Upon Senior Securities
|
81
|
Item 4. (Removed and Reserved)
|
81
|
Item 5.
Other Information
|
81
|
Item 6.
Exhibits
|
81
|
82
|
|
INDEX TO EXHIBITS
|
83
|
For the Three Months Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
INTEREST AND DIVIDEND INCOME:
|
||||||||
Loans receivable
|
$ | 60,675 | $ | 65,943 | ||||
Mortgage-backed securities (“MBS”)
|
18,373 | 15,440 | ||||||
Investment securities
|
4,637 | 4,775 | ||||||
Capital stock of FHLB
|
1,091 | 902 | ||||||
Cash and cash equivalents
|
51 | 187 | ||||||
Total interest and dividend income
|
84,827 | 87,247 | ||||||
INTEREST EXPENSE:
|
||||||||
FHLB advances
|
22,339 | 23,131 | ||||||
Deposits
|
12,787 | 17,381 | ||||||
Other borrowings
|
4,327 | 6,730 | ||||||
Total interest expense
|
39,453 | 47,242 | ||||||
NET INTEREST INCOME
|
45,374 | 40,005 | ||||||
PROVISION FOR CREDIT LOSSES
|
540 | 650 | ||||||
NET INTEREST INCOME AFTER
|
||||||||
PROVISION FOR CREDIT LOSSES
|
44,834 | 39,355 | ||||||
OTHER INCOME:
|
||||||||
Retail fees and charges
|
4,164 | 3,943 | ||||||
Loan fees
|
575 | 655 | ||||||
Insurance commissions
|
569 | 818 | ||||||
Income from BOLI
|
412 | 332 | ||||||
Other income, net
|
432 | 569 | ||||||
Total other income
|
6,152 | 6,317 | ||||||
OTHER EXPENSES:
|
||||||||
Salaries and employee benefits
|
10,587 | 9,991 | ||||||
Communications, information technology, and occupancy
|
3,909 | 3,876 | ||||||
Regulatory and outside services
|
1,435 | 1,189 | ||||||
Deposit and loan transaction costs
|
1,230 | 1,352 | ||||||
Federal insurance premium
|
1,092 | 1,858 | ||||||
Advertising and promotional
|
910 | 831 | ||||||
Contribution to Capitol Federal Foundation (“Foundation”)
|
-- | 40,000 | ||||||
Other expenses, net
|
2,904 | 4,241 | ||||||
Total other expenses
|
22,067 | 63,338 | ||||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
|
28,919 | (17,666 | ) | |||||
INCOME TAX EXPENSE (BENEFIT)
|
10,130 | (6,408 | ) | |||||
NET INCOME (LOSS)
|
$ | 18,789 | $ | (11,258 | ) |
Basic earnings (loss) per common share
|
$ | 0.12 | $ | (0.07 | ) | |||
Diluted earnings (loss) per common share
|
$ | 0.12 | $ | (0.07 | ) | |||
Dividends declared per public share
|
$ | 0.18 | $ | 0.80 | ||||
Basic weighted average common shares
|
161,922,633 | 165,540,789 | ||||||
Diluted weighted average common shares
|
161,930,727 | 165,540,789 |
Additional
|
Unearned
|
Total
|
||||||||||||||||||||||||||
Common
|
Paid-In
|
Compensation -
|
Retained
|
AOCI
|
Stockholders'
|
|||||||||||||||||||||||
Stock
|
Capital
|
ESOP
|
RRP
|
Earnings
|
(Loss)
|
Equity
|
||||||||||||||||||||||
Balance at October 1, 2011
|
$ | 1,675 | $ | 1,392,691 | $ | (50,547 | ) | $ | (124 | ) | $ | 569,127 | $ | 26,707 | $ | 1,939,529 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
18,789 | 18,789 | ||||||||||||||||||||||||||
Changes in unrealized gain/losses on
|
||||||||||||||||||||||||||||
securities AFS, net of deferred
|
||||||||||||||||||||||||||||
income taxes of $115
|
(256 | ) | (256 | ) | ||||||||||||||||||||||||
Total comprehensive income
|
18,533 | |||||||||||||||||||||||||||
ESOP activity, net
|
790 | 743 | 1,533 | |||||||||||||||||||||||||
Stock based compensation - stock options and RRP
|
27 | 26 | 53 | |||||||||||||||||||||||||
Dividends on common stock to
|
||||||||||||||||||||||||||||
stockholders ($0.175 per share)
|
(28,339 | ) | (28,339 | ) | ||||||||||||||||||||||||
Balance at December 31, 2011
|
$ | 1,675 | $ | 1,393,508 | $ | (49,804 | ) | $ | (98 | ) | $ | 559,577 | $ | 26,451 | $ | 1,931,309 |
For the Three Months Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income (loss)
|
$ | 18,789 | $ | (11,258 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
||||||||
FHLB stock dividends
|
(1,091 | ) | (902 | ) | ||||
Provision for credit losses
|
540 | 650 | ||||||
Originations of loans receivable held-for-sale (“LHFS”)
|
(1,641 | ) | (5,424 | ) | ||||
Proceeds from sales of LHFS
|
1,595 | 6,895 | ||||||
Amortization and accretion of premiums and discounts on securities
|
2,065 | 1,431 | ||||||
Depreciation and amortization of premises and equipment
|
1,199 | 1,108 | ||||||
Amortization of deferred amounts related to FHLB advances, net
|
1,842 | 1,755 | ||||||
Common stock committed to be released for allocation - ESOP
|
1,533 | 1,260 | ||||||
Stock based compensation - stock options and RRP
|
53 | 74 | ||||||
Changes in:
|
||||||||
Prepaid federal insurance premium
|
964 | 1,738 | ||||||
Accrued interest receivable
|
1,031 | 1,284 | ||||||
Other assets, net
|
70 | 394 | ||||||
Income taxes payable/receivable
|
6,998 | (6,410 | ) | |||||
Accounts payable and accrued expenses
|
(4,995 | ) | 662 | |||||
Net cash provided by (used in) operating activities
|
28,952 | (6,743 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of AFS securities
|
(273,634 | ) | -- | |||||
Purchase of HTM securities
|
(149,706 | ) | (486,425 | ) | ||||
Proceeds from calls, maturities and principal reductions of AFS securities
|
187,947 | 130,673 | ||||||
Proceeds from calls, maturities and principal reductions of HTM securities
|
389,366 | 245,632 | ||||||
Proceeds from the redemption of capital stock of FHLB
|
2,117 | -- | ||||||
Purchases of capital stock of FHLB
|
(3,652 | ) | -- | |||||
Loan originations and purchases, net of principal collected
|
||||||||
and deferred loan fees
|
(77,848 | ) | 42,438 | |||||
Purchases of premises and equipment
|
(1,546 | ) | (1,633 | ) | ||||
Proceeds from sales of REO
|
2,330 | 2,665 | ||||||
Net cash provided by (used in) investing activities
|
75,374 | (66,650 | ) |
For the Three Months Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Dividends paid
|
(28,339 | ) | (16,956 | ) | ||||
Deposits, net of withdrawals
|
5,971 | 313,481 | ||||||
Proceeds from borrowings
|
250,000 | 300,000 | ||||||
Repayments of borrowings
|
(250,000 | ) | (300,000 | ) | ||||
Change in advance payments by borrowers for taxes and insurance
|
(32,853 | ) | (34,074 | ) | ||||
Net proceeds from common stock offering
|
-- | 1,075,585 | ||||||
Excess tax benefits from stock options
|
-- | 1 | ||||||
Net cash (used in) provided by financing activities
|
(55,221 | ) | 1,338,037 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
49,105 | 1,264,644 | ||||||
CASH AND CASH EQUIVALENTS:
|
||||||||
Beginning of period
|
121,070 | 65,217 | ||||||
End of period
|
$ | 170,175 | $ | 1,329,861 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Income tax payments
|
$ | 3,197 | $ | -- | ||||
Interest payments
|
$ | 38,471 | $ | 46,412 | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH
|
||||||||
INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Note received from ESOP in exchange for common stock
|
$ | -- | $ | 47,260 | ||||
Customer deposit holds related to common stock offering
|
$ | -- | $ | 17,690 |
For the Three Months Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
(Dollars in thousands, except per share data)
|
||||||||
Net income (loss)
(1)
|
$ | 18,789 | $ | (11,258 | ) | |||
Average common shares outstanding
|
161,921,133 | 165,539,517 | ||||||
Average committed ESOP shares outstanding
|
1,500 | 1,272 | ||||||
Total basic average common shares outstanding
|
161,922,633 | 165,540,789 | ||||||
Effect of dilutive RRP shares
(2)
|
4,351 | -- | ||||||
Effect of dilutive stock options
(2)
|
3,743 | -- | ||||||
Total diluted average common shares outstanding
|
161,930,727 | 165,540,789 | ||||||
Net earnings (loss) per share:
|
||||||||
Basic
|
$ | 0.12 | $ | (0.07 | ) | |||
Diluted
|
$ | 0.12 | $ | (0.07 | ) | |||
Antidilutive stock options and RRP shares, excluded
|
||||||||
from the diluted average common shares
|
||||||||
outstanding calculation
|
897,136 | -- |
(1)
|
Net income (loss) available to participating securities (unvested RRP shares) was inconsequential for the three months ended December 31, 2011 and 2010.
|
(2)
|
RRP shares totaling 4,753 and options totaling 4,743 which were outstanding at December 31, 2010 were not included in the computation of diluted earnings per share as the effect on earnings per share would be antidilutive, due to the net loss for the three months ended December 31, 2010.
|
December 31, 2011
|
||||||||||||||||
|
Gross
|
Gross
|
Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
AFS:
|
||||||||||||||||
GSE debentures
|
$ | 879,175 | $ | 3,264 | $ | 111 | $ | 882,328 | ||||||||
Municipal bonds
|
2,450 | 117 | -- | 2,567 | ||||||||||||
Trust preferred securities
|
3,547 | -- | 545 | 3,002 | ||||||||||||
MBS
|
643,019 | 39,814 | -- | 682,833 | ||||||||||||
1,528,191 | 43,195 | 656 | 1,570,730 | |||||||||||||
HTM:
|
||||||||||||||||
GSE debentures
|
349,922 | 1,498 | -- | 351,420 | ||||||||||||
Municipal bonds
|
56,643 | 2,130 | -- | 58,773 | ||||||||||||
MBS
|
1,722,852 | 61,092 | 193 | 1,783,751 | ||||||||||||
2,129,417 | 64,720 | 193 | 2,193,944 | |||||||||||||
$ | 3,657,608 | $ | 107,915 | $ | 849 | $ | 3,764,674 | |||||||||
September 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
AFS:
|
||||||||||||||||
GSE debentures
|
$ | 746,545 | $ | 1,996 | $ | 233 | $ | 748,308 | ||||||||
Municipal bonds
|
2,628 | 126 | -- | 2,754 | ||||||||||||
Trust preferred securities
|
3,681 | -- | 740 | 2,941 | ||||||||||||
MBS
|
690,675 | 41,764 | 3 | 732,436 | ||||||||||||
1,443,529 | 43,886 | 976 | 1,486,439 | |||||||||||||
HTM:
|
||||||||||||||||
GSE debentures
|
633,483 | 3,171 | -- | 636,654 | ||||||||||||
Municipal bonds
|
56,994 | 2,190 | 4 | 59,180 | ||||||||||||
MBS
|
1,679,640 | 59,071 | 153 | 1,738,558 | ||||||||||||
2,370,117 | 64,432 | 157 | 2,434,392 | |||||||||||||
$ | 3,813,646 | $ | 108,318 | $ | 1,133 | $ | 3,920,831 |
December 31, 2011
|
||||||||||||||||||||||||
Less Than
|
Equal to or Greater
|
|||||||||||||||||||||||
12 Months
|
Than 12 Months
|
|||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||||
Count
|
Fair Value
|
Losses
|
Count
|
Fair Value
|
Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
AFS:
|
||||||||||||||||||||||||
GSE debentures
|
3 | $ | 56,712 | $ | 111 | -- | $ | -- | $ | -- | ||||||||||||||
Trust preferred securities
|
-- | -- | -- | 1 | 3,002 | 545 | ||||||||||||||||||
MBS
|
-- | -- | -- | -- | -- | -- | ||||||||||||||||||
3 | $ | 56,712 | $ | 111 | 1 | $ | 3,002 | $ | 545 | |||||||||||||||
HTM:
|
||||||||||||||||||||||||
GSE debentures
|
-- | $ | -- | $ | -- | -- | $ | -- | $ | -- | ||||||||||||||
Municipal bonds
|
-- | -- | -- | -- | -- | -- | ||||||||||||||||||
MBS
|
1 | 24,356 | 193 | -- | -- | -- | ||||||||||||||||||
1 | $ | 24,356 | $ | 193 | -- | $ | -- | $ | -- | |||||||||||||||
September 30, 2011
|
||||||||||||||||||||||||
Less Than
|
Equal to or Greater
|
|||||||||||||||||||||||
12 Months
|
Than 12 Months
|
|||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||||
Count
|
Fair Value
|
Losses
|
Count
|
Fair Value
|
Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
AFS:
|
||||||||||||||||||||||||
GSE debentures
|
7 | $ | 230,848 | $ | 233 | -- | $ | -- | $ | -- | ||||||||||||||
Trust preferred securities
|
-- | -- | -- | 1 | 2,941 | 740 | ||||||||||||||||||
MBS
|
5 | 1,189 | 3 | -- | -- | -- | ||||||||||||||||||
12 | $ | 232,037 | $ | 236 | 1 | $ | 2,941 | $ | 740 | |||||||||||||||
HTM:
|
||||||||||||||||||||||||
GSE debentures
|
-- | $ | -- | $ | -- | -- | $ | -- | $ | -- | ||||||||||||||
Municipal bonds
|
2 | 615 | 4 | -- | -- | -- | ||||||||||||||||||
MBS
|
1 | 25,142 | 153 | -- | -- | -- | ||||||||||||||||||
3 | $ | 25,757 | $ | 157 | -- | $ | -- | $ | -- |
AFS
|
HTM
|
|||||||||||||||
|
Estimated
|
Estimated
|
||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
One year or less
|
$ | 271,316 | $ | 271,821 | $ | 2,429 | $ | 2,445 | ||||||||
One year through five years
|
585,866 | 588,643 | 381,204 | 383,871 | ||||||||||||
Five years through ten years
|
170,854 | 182,375 | 452,046 | 470,494 | ||||||||||||
Ten years and thereafter
|
500,155 | 527,891 | 1,293,738 | 1,337,134 | ||||||||||||
$ | 1,528,191 | $ | 1,570,730 | $ | 2,129,417 | $ | 2,193,944 | |||||||||
December 31, 2011
|
September 30, 2011
|
|||||||||
(Dollars in thousands)
|
||||||||||
Federal National Mortgage Association (“FNMA”)
|
$ | 1,346,180 | $ | 1,384,396 | ||||||
Federal Home Loan Mortgage Corporation (“FHLMC”)
|
859,644 | 823,728 | ||||||||
Government National Mortgage Association
|
198,505 | 202,340 | ||||||||
Private Issuer
|
1,356 | 1,612 | ||||||||
$ | 2,405,685 | $ | 2,412,076 |
For the Three Months Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
Taxable
|
$ | 4,196 | $ | 4,271 | ||||
Non-taxable
|
441 | 504 | ||||||
$ | 4,637 | $ | 4,775 |
December 31, 2011
|
September 30, 2011
|
|||||||||||||||
|
Estimated
|
Estimated
|
||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Repurchase agreements
|
$ | 408,804 | $ | 429,311 | $ | 571,016 | $ | 597,286 | ||||||||
Retail deposits
|
-- | -- | 44,429 | 44,991 | ||||||||||||
Public unit deposits
|
126,161 | 133,683 | 116,472 | 124,785 | ||||||||||||
Federal Reserve Bank
|
61,486 | 63,752 | 26,666 | 27,939 | ||||||||||||
$ | 596,451 | $ | 626,746 | $ | 758,583 | $ | 795,001 |
December 31, 2011
|
September 30, 2011
|
|||||||
(Dollars in thousands)
|
||||||||
Real estate loans:
|
||||||||
One- to four-family
|
$ | 5,003,708 | $ | 4,918,778 | ||||
Multi-family and commercial
|
52,524 | 57,965 | ||||||
Construction
|
58,869 | 47,368 | ||||||
Total real estate loans
|
5,115,101 | 5,024,111 | ||||||
Consumer loans:
|
||||||||
Home equity
|
160,029 | 164,541 | ||||||
Other
|
7,355 | 7,224 | ||||||
Total consumer loans
|
167,384 | 171,765 | ||||||
Total loans receivable
|
5,282,485 | 5,195,876 | ||||||
Less:
|
||||||||
Undisbursed loan funds
|
33,239 | 22,531 | ||||||
ACL
|
15,605 | 15,465 | ||||||
Discounts/unearned loan fees
|
20,315 | 19,093 | ||||||
Premiums/deferred costs
|
(11,616 | ) | (10,947 | ) | ||||
$ | 5,224,942 | $ | 5,149,734 |
December 31, 2011
|
||||||||||||||||||||
Total
|
Total
|
|||||||||||||||||||
30 to 89 Days
|
90 or More Days
|
Delinquent
|
Current
|
Recorded
|
||||||||||||||||
Delinquent
|
Delinquent
|
Loans
|
Loans
|
Investment
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
One- to four-family loans - originated
|
$ | 18,136 | $ | 13,793 | $ | 31,929 | $ | 4,449,883 | $ | 4,481,812 | ||||||||||
One- to four-family loans - purchased
|
6,854 | 14,220 | 21,074 | 516,739 | 537,813 | |||||||||||||||
Multi-family and commercial loans
|
-- | -- | -- | 53,538 | 53,538 | |||||||||||||||
Consumer - home equity
|
518 | 520 | 1,038 | 158,991 | 160,029 | |||||||||||||||
Consumer - other
|
225 | 8 | 233 | 7,122 | 7,355 | |||||||||||||||
$ | 25,733 | $ | 28,541 | $ | 54,274 | $ | 5,186,273 | $ | 5,240,547 | |||||||||||
September 30, 2011
|
||||||||||||||||||||
Total
|
Total
|
|||||||||||||||||||
30 to 89 Days
|
90 or More Days
|
Delinquent
|
Current
|
Recorded
|
||||||||||||||||
Delinquent
|
Delinquent
|
Loans
|
Loans
|
Investment
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
One- to four-family loans - originated
|
$ | 19,682 | $ | 12,363 | $ | 32,045 | $ | 4,362,498 | $ | 4,394,543 | ||||||||||
One- to four-family loans - purchased
|
6,243 | 13,836 | 20,079 | 520,876 | 540,955 | |||||||||||||||
Multi-family and commercial loans
|
-- | -- | -- | 57,936 | 57,936 | |||||||||||||||
Consumer - home equity
|
759 | 380 | 1,139 | 163,402 | 164,541 | |||||||||||||||
Consumer - other
|
92 | 3 | 95 | 7,129 | 7,224 | |||||||||||||||
$ | 26,776 | $ | 26,582 | $ | 53,358 | $ | 5,111,841 | $ | 5,165,199 |
·
|
Special mention - These loans are performing loans on which known information about the collateral pledged or the possible credit problems of the borrowers have caused management to have doubts as to the ability of the borrowers 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 as 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 loans without the establishment of specific loss allowance is not warranted.
|
December 31, 2011
|
September 30, 2011
|
|||||||||||||||
Special Mention
|
Substandard
|
Special Mention
|
Substandard
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
One- to four-family - originated
|
$ | 28,825 | $ | 22,697 | $ | 32,673 | $ | 18,419 | ||||||||
One- to four-family - purchased
|
435 | 16,481 | 447 | 15,987 | ||||||||||||
Multi-family and commercial
|
2,864 | -- | 7,683 | -- | ||||||||||||
Consumer - home equity
|
237 | 631 | 50 | 592 | ||||||||||||
Consumer - other
|
-- | 9 | -- | 5 | ||||||||||||
$ | 32,361 | $ | 39,818 | $ | 40,853 | $ | 35,003 |
December 31, 2011
|
September 30, 2011
|
|||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Average
|
Weighted
|
Average
|
Weighted
|
|||||||||||||
Credit
|
Average
|
Credit
|
Average
|
|||||||||||||
Score
|
LTV
|
Score
|
LTV
|
|||||||||||||
One- to four-family - originated
|
763 | 66 | % | 762 | 66 | % | ||||||||||
One- to four-family - purchased
|
740 | 60 | 740 | 60 | ||||||||||||
Consumer - home equity
|
744 | 19 | 742 | 20 | ||||||||||||
760 | 64 | % | 759 | 64 | % |
December 31, 2011
|
||||||||||||
Restructurings
|
||||||||||||
Due to
|
Loan
|
|||||||||||
Financial
|
Endorsement
|
|||||||||||
Difficulties
|
Program
|
Total
|
||||||||||
(Dollars in thousands)
|
||||||||||||
One- to four-family loans - originated
|
$ | 25,617 | $ | 26,458 | $ | 52,075 | ||||||
One- to four-family loans - purchased
|
5,998 | -- | 5,998 | |||||||||
Multi-family and commercial loans
|
554 | -- | 554 | |||||||||
Consumer - home equity
|
416 | -- | 416 | |||||||||
Consumer - other
|
2 | -- | 2 | |||||||||
$ | 32,587 | $ | 26,458 | $ | 59,045 |
September 30, 2011
|
||||||||||||
Restructurings
|
||||||||||||
Due to
|
Loan
|
|||||||||||
Financial
|
Endorsement
|
|||||||||||
Difficulties
|
Program
|
Total
|
||||||||||
(Dollars in thousands)
|
||||||||||||
One- to four-family loans - originated
|
$ | 23,534 | $ | 19,624 | $ | 43,158 | ||||||
One- to four-family loans - purchased
|
6,155 | -- | 6,155 | |||||||||
Multi-family and commercial loans
|
563 | -- | 563 | |||||||||
Consumer - home equity
|
413 | -- | 413 | |||||||||
Consumer - other
|
2 | -- | 2 | |||||||||
$ | 30,667 | $ | 19,624 | $ | 50,291 |
Number
|
Pre-
|
Post-
|
||||||||||
of
|
Restructured
|
Restructured
|
||||||||||
Contracts
|
Outstanding
|
Outstanding
|
||||||||||
(Dollars in thousands)
|
||||||||||||
One- to four-family loans - originated
|
70 | $ | 10,331 | $ | 10,370 | |||||||
One- to four-family loans - purchased
|
-- | -- | -- | |||||||||
Multi-family and commercial loans
|
-- | -- | -- | |||||||||
Consumer - home equity
|
1 | -- | 10 | |||||||||
Consumer - other
|
-- | -- | -- | |||||||||
71 | $ | 10,331 | $ | 10,380 |
Number
|
||||||||
of
|
Recorded
|
|||||||
Contracts
|
Investment
|
|||||||
(Dollars in thousands)
|
||||||||
One- to four-family loans - originated
|
1 | $ | 76 | |||||
One- to four-family loans - purchased
|
1 | 401 | ||||||
Multi-family and commercial loans
|
-- | -- | ||||||
Consumer - home equity
|
-- | -- | ||||||
Consumer - other
|
-- | -- | ||||||
2 | $ | 477 |
December 31, 2011
|
|||||||||||||||||||||
Current
|
Current
|
||||||||||||||||||||
Quarter
|
Quarter
|
||||||||||||||||||||
Unpaid
|
Average
|
Interest
|
|||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||||
Investment
|
Balance
|
ACL
|
Investment
|
Recognized
|
|||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
With no related allowance recorded
|
|||||||||||||||||||||
One- to four-family - originated
|
$ | 48,392 | $ | 48,541 | $ | -- | $ | 48,051 | $ | 385 | |||||||||||
One- to four-family - purchased
|
7,549 | 7,512 | -- | 6,812 | 25 | ||||||||||||||||
Multi-family and commercial
|
554 | 555 | -- | 558 | 9 | ||||||||||||||||
Consumer - home equity
|
585 | 585 | -- | 526 | 5 | ||||||||||||||||
Consumer - other
|
9 | 9 | -- | 7 | -- | ||||||||||||||||
57,089 | 57,202 | -- | 55,954 | 424 | |||||||||||||||||
With an allowance recorded
|
|||||||||||||||||||||
One- to four-family - originated
|
2,705 | 2,713 | 280 | 3,001 | 25 | ||||||||||||||||
One- to four-family - purchased
|
12,554 | 12,446 | 3,154 | 13,097 | 30 | ||||||||||||||||
Multi-family and commercial
|
-- | -- | -- | -- | -- | ||||||||||||||||
Consumer - home equity
|
110 | 110 | 64 | 187 | 1 | ||||||||||||||||
Consumer - other
|
-- | -- | -- | -- | -- | ||||||||||||||||
15,369 | 15,269 | 3,498 | 16,285 | 56 | |||||||||||||||||
Total
|
|||||||||||||||||||||
One- to four-family - originated
|
51,097 | 51,254 | 280 | 51,052 | 410 | ||||||||||||||||
One- to four-family - purchased
|
20,103 | 19,958 | 3,154 | 19,909 | 55 | ||||||||||||||||
Multi-family and commercial
|
554 | 555 | -- | 558 | 9 | ||||||||||||||||
Consumer - home equity
|
695 | 695 | 64 | 713 | 6 | ||||||||||||||||
Consumer - other
|
9 | 9 | -- | 7 | -- | ||||||||||||||||
$ | 72,458 | $ | 72,471 | $ | 3,498 | $ | 72,239 | $ | 480 |
September 30, 2011
|
|||||||||||||
Unpaid
|
|||||||||||||
Recorded
|
Principal
|
Related
|
|||||||||||
Investment
|
Balance
|
ACL
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||
With no related allowance recorded
|
|||||||||||||
One- to four-family - originated
|
$ | 47,710 | $ | 47,845 | $ | -- | |||||||
One- to four-family - purchased
|
6,075 | 6,056 | -- | ||||||||||
Multi-family and commercial
|
563 | 565 | -- | ||||||||||
Consumer - home equity
|
468 | 468 | -- | ||||||||||
Consumer - other
|
5 | 5 | -- | ||||||||||
54,821 | 54,939 | -- | |||||||||||
With an allowance recorded
|
|||||||||||||
One- to four-family - originated
|
3,297 | 3,299 | 335 | ||||||||||
One- to four-family - purchased
|
13,640 | 13,546 | 3,280 | ||||||||||
Multi-family and commercial
|
-- | -- | -- | ||||||||||
Consumer - home equity
|
264 | 264 | 140 | ||||||||||
Consumer - other
|
-- | -- | -- | ||||||||||
17,201 | 17,109 | 3,755 | |||||||||||
Total
|
|||||||||||||
One- to four-family - originated
|
51,007 | 51,144 | 335 | ||||||||||
One- to four-family - purchased
|
19,715 | 19,602 | 3,280 | ||||||||||
Multi-family and commercial
|
563 | 565 | -- | ||||||||||
Consumer - home equity
|
732 | 732 | 140 | ||||||||||
Consumer - other
|
5 | 5 | -- | ||||||||||
$ | 72,022 | $ | 72,048 | $ | 3,755 |
For the Three Months Ended September 30, 2011
|
||||||||||||||||||||||||
One- to Four-
|
One- to Four-
|
One- to Four-
|
Multi-family
|
|||||||||||||||||||||
Family -
|
Family -
|
Family -
|
and
|
|||||||||||||||||||||
Originated
|
Purchased
|
Total
|
Commercial
|
Consumer
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Beginning balance
|
$ | 4,458 | $ | 9,912 | $ | 14,370 | $ | 272 | 214 | $ | 14,856 | |||||||||||||
Charge-offs
|
(115 | ) | (922 | ) | (1,037 | ) | -- | (4 | ) | (1,041 | ) | |||||||||||||
Recoveries
|
-- | -- | -- | -- | -- | -- | ||||||||||||||||||
Provision (recovery) for credit losses
|
572 | 911 | 1,483 | (18 | ) | 185 | 1,650 | |||||||||||||||||
Ending balance
|
$ | 4,915 | $ | 9,901 | $ | 14,816 | $ | 254 | $ | 395 | $ | 15,465 | ||||||||||||
Ratio of net charge-offs to average loans outstanding during the quarter
|
0.02 | % | ||||||||||||||||||||||
Ratio of net charge-offs during the quarter to average non-performing assets
|
2.74 | % | ||||||||||||||||||||||
ACL for loans collectively
|
||||||||||||||||||||||||
evaluated for impairment
|
$ | 4,580 | $ | 6,621 | $ | 11,201 | $ | 254 | $ | 255 | $ | 11,710 | ||||||||||||
ACL for loans individually
|
||||||||||||||||||||||||
evaluated for impairment
|
$ | 335 | $ | 3,280 | $ | 3,615 | $ | -- | $ | 140 | $ | 3,755 |
December 31, 2011
|
||||||||||||||||||||||||
One- to Four-
|
One- to Four-
|
One- to Four-
|
Multi-family
|
|||||||||||||||||||||
Family -
|
Family -
|
Family -
|
and
|
|||||||||||||||||||||
Originated
|
Purchased
|
Total
|
Commercial
|
Consumer
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Recorded investment of loans
|
||||||||||||||||||||||||
collectively evaluated for impairment
|
$ | 4,430,715 | $ | 517,710 | $ | 4,948,425 | $ | 52,984 | $ | 166,680 | $ | 5,168,089 | ||||||||||||
Recorded investment of loans
|
||||||||||||||||||||||||
individually evaluated for impairment
|
51,097 | 20,103 | 71,200 | 554 | 704 | 72,458 | ||||||||||||||||||
$ | 4,481,812 | $ | 537,813 | $ | 5,019,625 | $ | 53,538 | $ | 167,384 | $ | 5,240,547 |
September 30, 2011
|
||||||||||||||||||||||||
One- to Four-
|
One- to Four-
|
One- to Four-
|
Multi-family
|
|||||||||||||||||||||
Family -
|
Family -
|
Family -
|
and
|
|||||||||||||||||||||
Originated
|
Purchased
|
Total
|
Commercial
|
Consumer
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Recorded investment of loans
|
||||||||||||||||||||||||
collectively evaluated for impairment
|
$ | 4,343,536 | $ | 521,240 | $ | 4,864,776 | $ | 57,373 | $ | 171,028 | $ | 5,093,177 | ||||||||||||
Recorded investment of loans
|
||||||||||||||||||||||||
individually evaluated for impairment
|
51,007 | 19,715 | 70,722 | 563 | 737 | 72,022 | ||||||||||||||||||
$ | 4,394,543 | $ | 540,955 | $ | 4,935,498 | $ | 57,936 | $ | 171,765 | $ | 5,165,199 |
•
|
|
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.
|
December 31, 2011
|
||||||||||||||||
Quoted Prices
|
Significant
|
Significant
|
||||||||||||||
in Active Markets
|
Other Observable
|
Unobservable
|
||||||||||||||
Carrying
|
for Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
(1)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
AFS Securities:
|
||||||||||||||||
GSE debentures
|
$ | 882,328 | $ | -- | $ | 882,328 | $ | -- | ||||||||
Municipal bonds
|
2,567 | -- | 2,567 | -- | ||||||||||||
Trust preferred securities
|
3,002 | -- | -- | 3,002 | ||||||||||||
MBS
|
682,833 | -- | 682,833 | -- | ||||||||||||
|
$ | 1,570,730 | $ | -- | $ | 1,567,728 | $ | 3,002 | ||||||||
September 30, 2011
|
||||||||||||||||
Quoted Prices
|
Significant
|
Significant
|
||||||||||||||
in Active Markets
|
Other Observable
|
Unobservable
|
||||||||||||||
Carrying
|
for Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
(2)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
AFS Securities:
|
||||||||||||||||
GSE debentures
|
$ | 748,308 | $ | -- | $ | 748,308 | $ | -- | ||||||||
Municipal bonds
|
2,754 | -- | 2,754 | -- | ||||||||||||
Trust preferred securities
|
2,941 | -- | -- | 2,941 | ||||||||||||
MBS
|
732,436 | -- | 732,436 | -- | ||||||||||||
|
$ | 1,486,439 | $ | -- | $ | 1,483,498 | $ | 2,941 |
(1)
|
The Company’s Level 3 AFS securities had no activity from September 30, 2011 to December 31, 2011, except for principal repayments of $178 thousand and reductions in net unrealized losses recognized in other comprehensive income. Reductions of net unrealized losses included in other comprehensive income for the three months ended December 31, 2011 were $121 thousand.
|
(2)
|
The Company’s Level 3 AFS securities had no activity from September 30, 2010 to September 30, 2011, except for principal repayments of $87 thousand and reductions in net unrealized losses recognized in other comprehensive income. Reductions of net unrealized losses included in other comprehensive income for the year ended September 30, 2011 were $115 thousand.
|
December 31, 2011
|
||||||||||||||||
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)
|
||||||||||||||||
Impaired loans
|
$ | 72,471 | $ | -- | $ | -- | $ | 72,471 | ||||||||
REO, net
|
11,189 | -- | -- | 11,189 | ||||||||||||
|
$ | 83,660 | $ | -- | $ | -- | $ | 83,660 | ||||||||
September 30, 2011
|
||||||||||||||||
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)
|
||||||||||||||||
Impaired loans
|
$ | 72,048 | $ | -- | $ | -- | $ | 72,048 | ||||||||
REO, net
|
11,321 | -- | -- | 11,321 | ||||||||||||
|
$ | 83,369 | $ | -- | $ | -- | $ | 83,369 |
December 31, 2011
|
September 30, 2011
|
|||||||||||||||
Estimated
|
Estimated
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 170,175 | $ | 170,175 | $ | 121,070 | $ | 121,070 | ||||||||
AFS securities
|
1,570,730 | 1,570,730 | 1,486,439 | 1,486,439 | ||||||||||||
HTM securities
|
2,129,417 | 2,193,944 | 2,370,117 | 2,434,392 | ||||||||||||
Loans receivable
|
5,224,942 | 5,533,163 | 5,149,734 | 5,475,150 | ||||||||||||
BOLI
|
56,947 | 56,947 | 56,534 | 56,534 | ||||||||||||
Capital stock of FHLB
|
129,503 | 129,503 | 126,877 | 126,877 | ||||||||||||
Liabilities:
|
||||||||||||||||
Deposits
|
4,501,144 | 4,553,531 | 4,495,173 | 4,553,516 | ||||||||||||
Advances from FHLB
|
2,531,304 | 2,717,330 | 2,379,462 | 2,569,958 | ||||||||||||
Other borrowings
|
365,000 | 391,439 | 515,000 | 545,096 |
·
|
our ability to continue to maintain overhead costs at reasonable levels;
|
·
|
our ability to continue to originate a significant volume of one- to four-family mortgage loans in our market areas or to purchase loans through correspondents;
|
·
|
our ability to acquire funds from or invest funds in wholesale or secondary markets;
|
·
|
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 policies;
|
·
|
fluctuations in deposit flows, loan demand, and/or real estate values, as well as unemployment levels, which may adversely affect our business;
|
·
|
the credit risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs, changes in property values, and changes in estimates of the adequacy of the ACL;
|
·
|
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;
|
·
|
the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations;
|
·
|
the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (“FRB”);
|
·
|
the effects of, and changes in, foreign and military policies of the United States government;
|
·
|
inflation, interest rate, market and monetary fluctuations;
|
·
|
our ability to access cost-effective funding;
|
·
|
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 changes in financial services laws and regulations, including laws concerning taxes, banking, securities 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;
|
·
|
technological changes;
|
·
|
acquisitions and dispositions;
|
·
|
changes in consumer spending and saving habits; and
|
·
|
our success at managing the risks involved in our business.
|
Balance at
|
||||||||||||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||||||||||||
2011
|
2011
|
2011
|
2011
|
2010
|
||||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||||
Total assets
|
$ | 9,421,040 | $ | 9,450,799 | $ | 9,602,457 | $ | 9,733,111 | $ | 9,798,294 | ||||||||||
Cash and cash equivalents
|
170,175 | 121,070 | 161,872 | 122,002 | 1,329,861 | |||||||||||||||
AFS securities
|
1,570,730 | 1,486,439 | 1,269,987 | 1,250,153 | 923,125 | |||||||||||||||
HTM securities
|
2,129,417 | 2,370,117 | 2,693,719 | 2,953,661 | 2,119,826 | |||||||||||||||
Loans receivable, net
|
5,224,942 | 5,149,734 | 5,162,846 | 5,096,615 | 5,121,018 | |||||||||||||||
Capital stock of FHLB
|
129,503 | 126,877 | 125,797 | 122,651 | 121,768 | |||||||||||||||
Deposits
|
4,501,144 | 4,495,173 | 4,558,574 | 4,711,189 | 4,682,101 | |||||||||||||||
Advances from FHLB
|
2,531,304 | 2,379,462 | 2,453,642 | 2,351,863 | 2,350,126 | |||||||||||||||
Other borrowings
|
365,000 | 515,000 | 565,000 | 643,609 | 668,609 | |||||||||||||||
Stockholders' equity
|
1,931,309 | 1,939,529 | 1,934,011 | 1,926,409 | 2,018,973 | |||||||||||||||
Equity to total assets at end of period
|
20.5 | % | 20.5 | % | 20.1 | % | 19.8 | % | 20.6 | % | ||||||||||
Bank tangible equity ratio
(1)
|
15.0 | % | 15.1 | % | 14.7 | % | 14.7 | % | 13.9 | % |
(1)
|
December 31, 2011
|
September 30, 2011
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real Estate Loans:
|
||||||||||||||||
One-to four-family
|
$ | 5,003,708 | 4.49 | % | $ | 4,918,778 | 4.65 | % | ||||||||
Multi-family and commercial
|
52,524 | 6.15 | 57,965 | 6.13 | ||||||||||||
Construction
|
58,869 | 4.35 | 47,368 | 4.27 | ||||||||||||
Total real estate loans
|
5,115,101 | 4.51 | 5,024,111 | 4.66 | ||||||||||||
Consumer Loans:
|
||||||||||||||||
Home equity
|
160,029 | 5.46 | 164,541 | 5.48 | ||||||||||||
Other
|
7,355 | 4.89 | 7,224 | 5.10 | ||||||||||||
Total consumer loans
|
167,384 | 5.44 | 171,765 | 5.46 | ||||||||||||
Total loans receivable
|
5,282,485 | 4.53 | % | 5,195,876 | 4.69 | % | ||||||||||
Less:
|
||||||||||||||||
Undisbursed loan funds
|
33,239 | 22,531 | ||||||||||||||
ACL
|
15,605 | 15,465 | ||||||||||||||
Discounts/unearned loan fees
|
20,315 | 19,093 | ||||||||||||||
Premiums/deferred costs
|
(11,616 | ) | (10,947 | ) | ||||||||||||
Total loans receivable, net
|
$ | 5,224,942 | $ | 5,149,734 |
December 31, 2011
|
||||||||||||||||
Principal Balance
|
Credit Score
|
LTV
|
Average Balance
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Originated
|
$ | 4,030,538 | 763 | 65 | % | $ | 124 | |||||||||
Correspondent purchases
|
440,721 | 760 | 64 | 301 | ||||||||||||
Bulk purchases
|
532,449 | 740 | 60 | 254 | ||||||||||||
$ | 5,003,708 | 761 | 65 | % | $ | 138 | ||||||||||
September 30, 2011
|
||||||||||||||||
Principal Balance
|
Credit Score
|
LTV
|
Average Balance
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Originated
|
$ | 3,986,957 | 763 | 66 | % | $ | 123 | |||||||||
Correspondent purchases
|
396,063 | 759 | 64 | 290 | ||||||||||||
Bulk purchases
|
535,758 | 740 | 60 | 252 | ||||||||||||
$ | 4,918,778 | 760 | 65 | % | $ | 137 |
Principal
|
Average
|
|||||||
Balance
|
WAL (years)
|
|||||||
(Dollars in thousands)
|
||||||||
Fixed-Rate
|
$ | 4,148,691 | 3.20 | |||||
Adjustable-Rate
|
827,096 | 2.94 | ||||||
$ | 4,975,788 | 3.16 | ||||||
Weighted average rate
|
4.49 | % | ||||||
Average remaining contractual term (in years)
|
21 |
Original Term
|
||||||||||||||||||||||||||
15 years or less
|
More than 15 years
|
|||||||||||||||||||||||||
Prepayment Speed (annualized)
|
Prepayment Speed (annualized)
|
|||||||||||||||||||||||||
Rate
|
Principal
|
Including
|
Excluding
|
Principal
|
Including
|
Excluding
|
||||||||||||||||||||
Range
|
Balance
|
Endorsements
|
Endorsements
|
Balance
|
Endorsements
|
Endorsements
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||
< =4.50
|
% | $ | 647,031 | 30.17 | % | 10.76 | % | $ | 1,283,611 | 17.12 | % | 5.35 | % | |||||||||||||
4.51 - 4.99 | % | 176,825 | 68.41 | 27.99 | 376,253 | 47.17 | 12.60 | |||||||||||||||||||
5.00 - 5.50 | % | 171,425 | 33.84 | 20.91 | 966,124 | 73.39 | 16.35 | |||||||||||||||||||
5.51 - 5.99 | % | 36,682 | 56.01 | 27.21 | 247,898 | 53.74 | 17.03 | |||||||||||||||||||
6.00 - 6.50 | % | 19,207 | 32.24 | 19.03 | 199,688 | 46.59 | 16.88 | |||||||||||||||||||
6.51 - 6.99 | % | 5,424 | 20.00 | 17.86 | 34,851 | 35.92 | 16.39 | |||||||||||||||||||
>=7.00
|
% | 1,760 | 205.81 | 13.49 | 27,770 | 25.98 | 13.55 | |||||||||||||||||||
$ | 1,058,354 | 39.82 | % | 16.89 | % | $ | 3,136,195 | 46.54 | % | 12.22 | % |
For the Three Months Ended
|
||||||||||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
June 30, 2011
|
March 31, 2011
|
|||||||||||||||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 5,195,876 | 4.69 | % | $ | 5,211,991 | 4.79 | % | $ | 5,144,050 | 4.81 | % | $ | 5,163,319 | 4.87 | % | ||||||||||||||||
Originations and refinances:
|
||||||||||||||||||||||||||||||||
Fixed
|
180,198 | 3.77 | 141,123 | 4.11 | 118,438 | 4.55 | 153,272 | 4.33 | ||||||||||||||||||||||||
Adjustable
|
57,321 | 3.52 | 47,009 | 3.77 | 37,721 | 4.12 | 43,434 | 3.91 | ||||||||||||||||||||||||
Purchases and Participations:
|
||||||||||||||||||||||||||||||||
Fixed
|
44,800 | 4.03 | 29,585 | 4.47 | 102,030 | 5.49 | 16,468 | 4.47 | ||||||||||||||||||||||||
Adjustable
|
53,206 | 3.79 | 13,864 | 3.49 | 5,114 | 3.65 | 5,979 | 3.57 | ||||||||||||||||||||||||
Repayments
|
(247,935 | ) | (244,607 | ) | (192,682 | ) | (233,473 | ) | ||||||||||||||||||||||||
Other
(1)
|
(981 | ) | (3,089 | ) | (2,680 | ) | (4,949 | ) | ||||||||||||||||||||||||
Ending balance
|
$ | 5,282,485 | 4.53 | % | $ | 5,195,876 | 4.69 | % | $ | 5,211,991 | 4.79 | % | $ | 5,144,050 | 4.81 | % |
For the Three Months Ended
|
||||||||||||||||||||||||
December 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Amount
|
Rate
|
% of Total
|
Amount
|
Rate
|
% of Total
|
|||||||||||||||||||
Fixed-Rate:
|
(Dollars in thousands)
|
|||||||||||||||||||||||
One- to four-family:
|
||||||||||||||||||||||||
<= 15 years
|
$ | 113,116 | 3.44 | % | 33.7 | % | $ | 105,951 | 3.75 | % | 34.7 | % | ||||||||||||
> 15 years
|
110,831 | 4.18 | 33.0 | 142,533 | 4.30 | 46.7 | ||||||||||||||||||
Multi-family and commercial real estate
|
-- | -- | -- | 892 | 6.00 | 0.3 | ||||||||||||||||||
Home equity
|
607 | 7.01 | 0.2 | 585 | 6.89 | 0.2 | ||||||||||||||||||
Other
|
444 | 6.87 | 0.1 | 267 | 8.24 | 0.1 | ||||||||||||||||||
Total fixed-rate
|
224,998 | 3.82 | 67.0 | 250,228 | 4.09 | 82.0 | ||||||||||||||||||
Adjustable-Rate:
|
||||||||||||||||||||||||
One- to four-family:
|
||||||||||||||||||||||||
<= 36 months
|
2,759 | 2.57 | 0.8 | 1,303 | 2.96 | 0.4 | ||||||||||||||||||
> 36 months
|
75,617 | 3.17 | 22.5 | 34,803 | 3.51 | 11.4 | ||||||||||||||||||
Multi-family and commercial real estate
|
13,975 | 5.00 | 4.2 | -- | -- | -- | ||||||||||||||||||
Home equity
|
17,336 | 4.83 | 5.2 | 18,281 | 4.79 | 6.0 | ||||||||||||||||||
Other
|
840 | 3.28 | 0.3 | 564 | 4.22 | 0.2 | ||||||||||||||||||
Total adjustable-rate
|
110,527 | 3.65 | 33.0 | 54,951 | 3.93 | 18.0 | ||||||||||||||||||
Total originations, refinances and purchases
|
$ | 335,525 | 3.77 | % | 100.0 | % | $ | 305,179 | 4.06 | % | 100.0 | % | ||||||||||||
Purchased and participation loans included above:
|
||||||||||||||||||||||||
Fixed-Rate:
|
||||||||||||||||||||||||
Correspondent - one- to four-family
|
$ | 44,275 | 4.04 | % | $ | 4,977 | 4.38 | % | ||||||||||||||||
Bulk - one- to four-family
|
392 | 3.25 | -- | -- | ||||||||||||||||||||
Participations - commercial real estate
|
-- | -- | -- | -- | ||||||||||||||||||||
Participations - other
|
133 | 2.57 | -- | -- | ||||||||||||||||||||
Total fixed-rate purchases/participation
|
44,800 | 4.03 | 4,977 | 4.38 | ||||||||||||||||||||
Adjustable-Rate:
|
||||||||||||||||||||||||
Correspondent - one- to four-family
|
19,363 | 3.16 | 3,954 | 3.96 | ||||||||||||||||||||
Bulk - one- to four-family
|
19,868 | 3.55 | -- | -- | ||||||||||||||||||||
Participations - commercial real estate
|
13,975 | 5.00 | -- | -- | ||||||||||||||||||||
Participations - other
|
-- | -- | -- | -- | ||||||||||||||||||||
Total adjustable-rate purchases/participations
|
53,206 | 3.79 | 3,954 | 3.96 | ||||||||||||||||||||
Total purchased/participation loans
|
$ | 98,006 | 3.90 | % | $ | 8,931 | 4.20 | % |
For the Three Months Ended
|
||||||||||||
December 31,
|
||||||||||||
Amount
|
LTV
|
Credit Score
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Originations
|
$ | 125,192 | 73 | % | 764 | |||||||
Refinances by Bank customers
|
93,233 | 67 | 774 | |||||||||
Correspondent purchases
|
63,638 | 66 | 771 | |||||||||
Bulk purchases
|
20,260 | 60 | 763 | |||||||||
$ | 302,323 | 69 | % | 769 |
December 31,
|
September 30,
|
December 31,
|
||||||||||
2011
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Originate/refinance fixed-rate
|
$ | 79,627 | $ | 89,059 | $ | 116,996 | ||||||
Originate/refinance adjustable-rate
|
18,253 | 24,047 | 25,230 | |||||||||
Purchase/participate fixed-rate
|
27,232 | 30,650 | 11,504 | |||||||||
Purchase/participate adjustable-rate
|
19,070 | 26,556 | 8,888 | |||||||||
$ | 144,182 | $ | 170,312 | $ | 162,618 |
(1)
|
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.
|
(2)
|
The $1.5 million property classified as Other REO represents a single property the Bank purchased for a potential branch site but now intends to sell.
|
30 to 89 Days
|
Non-
|
|||||||||||||||||||||||
Paid Off
|
Performing
|
Delinquent
|
Performing
|
REO
|
Total
|
|||||||||||||||||||
Originated
|
3.4 | % | 38.5 | % | 41.9 | % | 15.0 | % | 1.2 | % | 100.0 | % | ||||||||||||
Correspondent
|
5.2 | 25.4 | 43.7 | 21.0 | 4.7 | 100.0 | ||||||||||||||||||
Bulk
|
2.3 | 38.2 | 39.1 | 19.6 | 0.8 | 100.0 | ||||||||||||||||||
Total portfolio average
|
3.2 | % | 38.0 | % | 41.2 | % | 16.3 | % | 1.3 | % | 100.0 | % |
Total
|
||||||||||||||||||||||||
Origination
|
Originated
|
Purchased
|
Non-
|
|||||||||||||||||||||
Calendar
|
Originated
|
Purchased
|
Non-Performing
|
Non-Performing
|
Performing
|
|||||||||||||||||||
Year
|
Loans
|
Loans
|
Total Loans
|
Loans
|
Loans
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2002 and prior
|
$ | 483,858 | $ | 51,731 | $ | 535,589 | $ | 2,819 | $ | 305 | $ | 3,124 | ||||||||||||
2003
|
271,865 | 50,626 | 322,491 | 2,144 | 362 | 2,506 | ||||||||||||||||||
2004
|
214,229 | 168,553 | 382,782 | 1,715 | 6,645 | 8,360 | ||||||||||||||||||
2005
|
271,458 | 163,397 | 434,855 | 1,341 | 6,055 | 7,396 | ||||||||||||||||||
2006
|
295,919 | 24,214 | 320,133 | 1,862 | -- | 1,862 | ||||||||||||||||||
2007
|
405,131 | 14,580 | 419,711 | 1,659 | 213 | 1,872 | ||||||||||||||||||
2008
|
452,528 | 30,199 | 482,727 | 1,166 | 526 | 1,692 | ||||||||||||||||||
2009
|
705,245 | 8,906 | 714,151 | 663 | -- | 663 | ||||||||||||||||||
2010
|
595,897 | -- | 595,897 | 445 | -- | 445 | ||||||||||||||||||
2011
|
775,129 | 20,243 | 795,372 | -- | -- | -- | ||||||||||||||||||
$ | 4,471,259 | $ | 532,449 | $ | 5,003,708 | $ | 13,814 | $ | 14,106 | $ | 27,920 |
Loans 30 to 89
|
||||||||||||||||||||||||||||
One- to Four-Family
|
Days Delinquent
|
Non-Performing Loans
|
||||||||||||||||||||||||||
State
|
Balance
|
% of Total
|
Balance
|
% of Total
|
Balance
|
% of Total
|
Average LTV
|
|||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Kansas
|
$ | 3,695,960 | 73.8 | % | $ | 13,933 | 55.8 | % | $ | 11,500 | 41.2 | % | 79 | % | ||||||||||||||
Missouri
|
784,059 | 15.7 | 5,195 | 20.8 | 2,350 | 8.4 | 82 | |||||||||||||||||||||
Nebraska
|
59,160 | 1.2 | 644 | 2.6 | 40 | 0.1 | 65 | |||||||||||||||||||||
Illinois
|
48,652 | 1.0 | 281 | 1.1 | 1,712 | 6.1 | 91 | |||||||||||||||||||||
Florida
|
33,962 | 0.7 | 296 | 1.2 | 3,259 | 11.7 | 129 | |||||||||||||||||||||
Texas
|
32,559 | 0.6 | 333 | 1.3 | -- | -- | n/a | |||||||||||||||||||||
New York
|
29,143 | 0.6 | 203 | 0.8 | 1,101 | 4.0 | 85 | |||||||||||||||||||||
Minnesota
|
28,412 | 0.6 | 490 | 2.0 | 1,345 | 4.8 | 134 | |||||||||||||||||||||
Colorado
|
25,295 | 0.5 | 668 | 2.7 | 204 | 0.7 | 89 | |||||||||||||||||||||
Arizona
|
22,671 | 0.5 | 69 | 0.3 | 1,331 | 4.8 | 149 | |||||||||||||||||||||
Connecticut
|
21,111 | 0.4 | -- | -- | -- | -- | n/a | |||||||||||||||||||||
Virginia
|
20,293 | 0.4 | -- | -- | 473 | 1.7 | 108 | |||||||||||||||||||||
Other states
|
202,431 | 4.0 | 2,852 | 11.4 | 4,605 | 16.5 | 99 | |||||||||||||||||||||
$ | 5,003,708 | 100.0 | % | $ | 24,964 | 100.0 | % | $ | 27,920 | 100.0 | % | 96 | % |
December 31, 2011
|
September 30, 2011
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans
|
$ | 25,363 | $ | 23,609 | ||||
Performing TDRs
|
41,855 | 43,301 | ||||||
Nonaccrual TDRs
|
3,085 | 2,898 | ||||||
Other impaired loans
|
2,169 | 2,240 | ||||||
Total impaired loans
|
$ | 72,472 | $ | 72,048 |
At
|
At
|
|||||||||||||||||||||||||||||||
December 31, 2011
|
|
September 30, 2011
|
||||||||||||||||||||||||||||||
% of
|
% of
|
|||||||||||||||||||||||||||||||
ACL to
|
ACL to
|
|||||||||||||||||||||||||||||||
Amount of
|
Total
|
Total
|
% of Loans
|
Amount of
|
Total
|
Total
|
% of Loans
|
|||||||||||||||||||||||||
ACL
|
ACL
|
Loans
|
to Total Loans
|
ACL
|
ACL
|
Loans
|
to Total Loans
|
|||||||||||||||||||||||||
One- to four-family:
|
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Originated
|
$ | 4,901 | 31.4 | % | $ | 4,471,259 | 84.7 | % |
|
$ | 4,898 | 31.7 | % | $ | 4,383,020 | 84.4 | % | |||||||||||||||
Purchased
|
10,342 | 66.4 | 532,449 | 10.1 | 9,899 | 64.0 | 535,758 | 10.3 | ||||||||||||||||||||||||
Multi-family and commercial
|
83 | 0.5 | 52,524 | 1.0 | 254 | 1.6 | 57,965 | 1.1 | ||||||||||||||||||||||||
Construction
|
20 | 0.1 | 58,869 | 1.1 | 19 | 0.1 | 47,368 | 0.9 | ||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Home equity
|
210 | 1.3 | 160,029 | 3.0 | 354 | 2.3 | 164,541 | 3.2 | ||||||||||||||||||||||||
Other consumer
|
49 | 0.3 | 7,355 | 0.1 | 41 | 0.3 | 7,224 | 0.1 | ||||||||||||||||||||||||
$ | 15,605 | 100.0 | % | $ | 5,282,485 | 100.0 | % | $ | 15,465 | 100.0 | % | $ | 5,195,876 | 100.0 | % |
For the Three Months Ended
|
||||
December 31, 2011
|
||||
Ratio of net charge-offs during the period to average loans
|
||||
outstanding during the period
|
0.01 | % | ||
Ratio of net charge-offs during the period to average loans
|
||||
outstanding during the period – adjusted for SVAs
(1)
|
0.08 | |||
Ratio of net charge-offs during the period to
|
||||
average non-performing assets
|
1.03 | |||
Ratio of net charge-offs during the period to
|
||||
average non-performing assets – adjusted for SVAs
(1)
|
10.40 | |||
At December 31, 2011
|
||||
ACL to non-performing loans at period end
|
54.86 | % | ||
ACL to non-performing loans at period end – adjusted for SVAs
(1)
|
46.69 | |||
ACL to loans receivable, net at period end
|
0.30 | |||
ACL to loans receivable, net at period end – adjusted for SVAs
(1)
|
0.23 |
December 31, 2011
|
September 30, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||||||||||
Balance
|
Yield
|
WAL
|
Balance
|
Yield
|
WAL
|
Balance
|
Yield
|
WAL
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Fixed-rate securities:
|
||||||||||||||||||||||||||||||||||||
MBS
|
$ | 1,490,889 | 3.23 | % | 3.60 | $ | 1,476,660 | 3.51 | % | 4.23 | $ | 943,876 | 4.02 | % | 2.75 | |||||||||||||||||||||
GSE debentures
|
1,229,098 | 1.16 | 0.85 | 1,380,028 | 1.09 | 0.86 | 1,279,130 | 1.24 | 1.46 | |||||||||||||||||||||||||||
Municipal bonds
|
59,091 | 3.01 | 2.07 | 59,622 | 3.02 | 2.29 | 65,624 | 2.96 | 2.84 | |||||||||||||||||||||||||||
Total fixed-rate securities
|
2,779,078 | 2.31 | 2.35 | 2,916,310 | 2.36 | 2.59 | 2,288,630 | 2.43 | 2.03 | |||||||||||||||||||||||||||
Adjustable-rate securities:
|
||||||||||||||||||||||||||||||||||||
MBS
|
874,983 | 2.87 | 7.45 | 893,655 | 2.85 | 7.07 | 705,640 | 3.35 | 6.16 | |||||||||||||||||||||||||||
Trust preferred securities
|
3,547 | 1.80 | 25.48 | 3,681 | 1.60 | 25.73 | 3,715 | 1.56 | 26.47 | |||||||||||||||||||||||||||
Total adjustable-rate securities
|
878,530 | 2.87 | 7.52 | 897,336 | 2.85 | 7.17 | 709,355 | 3.34 | 6.26 | |||||||||||||||||||||||||||
Total securities portfolio, at amortized cost
|
$ | 3,657,608 | 2.44 | % | 3.59 | $ | 3,813,646 | 2.47 | % | 3.67 | $ | 2,997,985 | 2.65 | % | 3.04 |
For the Three Months Ended
|
||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
June 30, 2011
|
March 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
WAL
|
Amount
|
Yield
|
WAL
|
Amount
|
Yield
|
WAL
|
Amount
|
Yield
|
WAL
|
|||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance - carrying value
|
$ | 2,412,076 | 3.26 | % | 5.31 | $ | 2,342,545 | 3.41 | % | 5.09 | $ | 2,355,899 | 3.44 | % | 4.45 | $ | 1,695,294 | 3.73 | % | 4.21 | ||||||||||||||||||||||||||||
Maturities and repayments
|
(152,322 | ) | (130,137 | ) | (105,142 | ) | (121,283 | ) | ||||||||||||||||||||||||||||||||||||||||
Net amortization of premiums/(discounts)
|
(1,507 | ) | (1,168 | ) | (781 | ) | (689 | ) | ||||||||||||||||||||||||||||||||||||||||
Purchases:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Fixed-rate
|
126,498 | 2.12 | 4.18 | 157,720 | 2.65 | 4.05 | 92,010 | 2.88 | 4.39 | 501,748 | 3.17 | 4.64 | ||||||||||||||||||||||||||||||||||||
Adjustable-rate
|
22,887 | 2.20 | 4.50 | 45,564 | 2.12 | 6.24 | -- | -- | -- | 282,957 | 2.59 | 4.98 | ||||||||||||||||||||||||||||||||||||
Change in valuation on AFS securities
|
(1,947 | ) | (2,448 | ) | 559 | (2,128 | ) | |||||||||||||||||||||||||||||||||||||||||
Ending balance - carrying value
|
$ | 2,405,685 | 3.10 | % | 5.03 | $ | 2,412,076 | 3.26 | % | 5.31 | $ | 2,342,545 | 3.41 | % | 5.09 | $ | 2,355,899 | 3.44 | % | 4.45 |
Original Term
|
||||||||||||||||||||||||||
15 years or less
|
More than 15 years
|
|||||||||||||||||||||||||
Prepayment
|
Prepayment
|
Net
|
||||||||||||||||||||||||
Amortized
|
Speed
|
Amortized
|
Speed
|
Premium/
|
||||||||||||||||||||||
Rate Range
|
Cost
|
(annualized)
|
Cost
|
(annualized)
|
Total
|
(Discount)
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||
< =3.99
|
% | $ | 803,330 | 12.33 | % | $ | 51,067 | 6.49 | % | $ | 854,397 | $ | 7,705 | |||||||||||||
4.00 - 4.50 | % | 166,714 | 30.83 | 24,196 | 13.28 | 190,910 | 3,907 | |||||||||||||||||||
4.51 - 4.99 | % | 170,024 | 23.61 | 5,723 | 9.29 | 175,747 | (180 | ) | ||||||||||||||||||
5.00 - 5.50 | % | 105,436 | 23.78 | 7,907 | 27.42 | 113,343 | (52 | ) | ||||||||||||||||||
5.51 - 5.99 | % | 69,066 | 24.00 | 42,338 | 28.35 | 111,404 | 44 | |||||||||||||||||||
6.00 - 6.50 | % | 11,756 | 26.82 | 17,887 | 16.95 | 29,643 | 63 | |||||||||||||||||||
6.51 - 6.99 | % | 2,182 | 21.24 | 8,975 | 19.21 | 11,157 | 103 | |||||||||||||||||||
>=7.00
|
% | -- | -- | 4,288 | 20.86 | 4,288 | 8 | |||||||||||||||||||
Total
|
$ | 1,328,508 | 17.75 | % | $ | 162,381 | 16.55 | % | $ | 1,490,889 | $ | 11,598 | ||||||||||||||
Average rate
|
4.13 | % |
|
5.07 | % | 4.24 | % | |||||||||||||||||||
Average remaining
contractual term (years)
|
11 | 18 | 12 | |||||||||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
June 30, 2011
|
March 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
WAL
|
Amount
|
Yield
|
WAL
|
Amount
|
Yield
|
WAL
|
Amount
|
Yield
|
WAL
|
|||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance - carrying value
|
$ | 1,444,480 | 1.17 | % | 1.00 | $ | 1,621,161 | 1.16 | % | 1.05 | $ | 1,847,915 | 1.17 | % | 1.55 | $ | 1,347,657 | 1.32 | % | 1.61 | ||||||||||||||||||||||||||||
Maturities and calls
|
(424,991 | ) | (486,853 | ) | (326,009 | ) | (291,693 | ) | ||||||||||||||||||||||||||||||||||||||||
Net amortization of premiums/(discounts)
|
(558 | ) | (1,385 | ) | (1,391 | ) | (1,255 | ) | ||||||||||||||||||||||||||||||||||||||||
Purchases:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Fixed-rate
|
273,955 | 1.29 | 2.21 | 310,338 | 1.21 | 1.73 | 99,974 | 1.51 | 2.62 | 793,136 | 0.99 | 1.20 | ||||||||||||||||||||||||||||||||||||
Change in valuation of AFS securities
|
1,576 | 1,219 | 672 | 70 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance - carrying value
|
$ | 1,294,462 | 1.25 | % | 0.99 | $ | 1,444,480 | 1.17 | % | 1.00 | $ | 1,621,161 | 1.16 | % | 1.05 | $ | 1,847,915 | 1.17 | % | 1.55 |
December 31, 2011
|
September 30, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||||||||||
Average
|
% of
|
Average
|
% of
|
Average
|
% of
|
|||||||||||||||||||||||||||||||
Amount
|
Rate
|
Total
|
Amount
|
Rate
|
Total
|
Amount
|
Rate
|
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Checking
|
$ | 574,854 | 0.08 | % | 12.8 | % | $ | 551,632 | 0.08 | % | 12.3 | % | $ | 524,208 | 0.08 | % | 11.2 | % | ||||||||||||||||||
Savings
|
252,223 | 0.15 | 5.6 | 253,184 | 0.41 | 5.6 | 234,810 | 0.53 | 5.0 | |||||||||||||||||||||||||||
Money market
|
1,090,510 | 0.35 | 24.2 | 1,066,065 | 0.35 | 23.7 | 1,014,451 | 0.58 | 21.7 | |||||||||||||||||||||||||||
Certificates of deposit less than $100,000
|
1,702,129 | 1.75 | 37.8 | 1,741,485 | 1.91 | 38.8 | 1,821,819 | 2.30 | 38.9 | |||||||||||||||||||||||||||
Certificates of deposit of $100,000 or more
|
881,428 | 1.65 | 19.6 | 882,807 | 1.80 | 19.6 | 1,086,813 | 1.71 | 23.2 | |||||||||||||||||||||||||||
$ | 4,501,144 | 1.09 | % | 100.0 | % | $ | 4,495,173 | 1.21 | % | 100.0 | % | $ | 4,682,101 | 1.45 | % | 100.0 | % |
Maturity
|
||||||||||||||||||||
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
|
$ | 241,738 | $ | 226,790 | $ | 381,349 | $ | 852,252 | $ | 1,702,129 | ||||||||||
Retail certificates of deposit of $100,000 or more
|
88,757 | 73,771 | 149,514 | 359,469 | 671,511 | |||||||||||||||
Public units/brokered deposits of $100,000 or more
|
83,455 | 7,000 | 12,102 | 107,360 | 209,917 | |||||||||||||||
Total certificates of deposit
|
$ | 413,950 | $ | 307,561 | $ | 542,965 | $ | 1,319,081 | $ | 2,583,557 |
For the Three Months Ended
|
||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
June 30, 2011
|
March 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||
Amount
|
Rate
|
WAM
|
Amount
|
Rate
|
WAM
|
Amount
|
Rate
|
WAM
|
Amount
|
Rate
|
WAM
|
|||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Beginning principal balance
|
$ | 2,915,000 | 3.48 | % | 36.02 | $ | 3,041,000 | 3.53 | % | 37.48 | $ | 2,966,000 | 3.55 | % | 38.60 | $ | 2,991,000 | 3.54 | % | 41.23 | ||||||||||||||||||||||||||||
Maturities and prepayments:
|
||||||||||||||||||||||||||||||||||||||||||||||||
FHLB advances
|
(100,000 | ) | 3.94 | (76,000 | ) | 5.31 | -- | -- | -- | -- | ||||||||||||||||||||||||||||||||||||||
Repurchase agreements
|
(150,000 | ) | 4.41 | (50,000 | ) | 3.83 | (25,000 | ) | 2.79 | (25,000 | ) | 2.94 | ||||||||||||||||||||||||||||||||||||
New borrowings:
|
||||||||||||||||||||||||||||||||||||||||||||||||
FHLB advances (fixed-rate)
|
250,000 | 0.84 | 35.23 | -- | -- | -- | 100,000 | 2.82 | 84.00 | -- | -- | -- | ||||||||||||||||||||||||||||||||||||
Repurchase agreements
|
-- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||||||||||||||||
Ending principal balance
|
$ | 2,915,000 | 3.19 | % | 36.10 | $ | 2,915,000 | 3.48 | % | 36.02 | $ | 3,041,000 | 3.53 | % | 37.48 | $ | 2,966,000 | 3.55 | % | 38.60 |
Weighted
|
Weighted
|
|||||||||||||||
FHLB
|
Repurchase
|
Average
|
Average
|
|||||||||||||
Maturity by
|
Advances
|
Agreements
|
Contractual
|
Effective
|
||||||||||||
Fiscal year
|
Amount
|
Amount
|
Rate
|
Rate
(1)
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
2012
|
$ | 250,000 | $ | - | 3.12 | % | 3.12 | % | ||||||||
2013
|
525,000 | 145,000 | 3.74 | 4.00 | ||||||||||||
2014
|
450,000 | 100,000 | 3.33 | 3.96 | ||||||||||||
2015
|
450,000 | 20,000 | 2.08 | 2.40 | ||||||||||||
2016
|
275,000 | -- | 3.86 | 4.39 | ||||||||||||
2017
|
400,000 | -- | 3.17 | 3.21 | ||||||||||||
2018
|
200,000 | 100,000 | 2.90 | 2.90 | ||||||||||||
$ | 2,550,000 | $ | 365,000 | 3.19 | % | 3.47 | % |
Weighted
|
||||||||
Average
|
||||||||
Maturity by
|
Contractual
|
|||||||
Quarter End
|
Amount
|
Rate
|
||||||
(Dollars in thousands)
|
||||||||
March 31, 2012
|
$ | 150,000 | 2.35 | % | ||||
June 30, 2012
|
-- | -- | ||||||
September 30, 2012
|
100,000 | 4.27 | ||||||
December 31, 2012
|
100,000 | 3.06 | ||||||
$ | 350,000 | 3.10 | % |
Calendar Year
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Quarter ended March 31
|
||||||||||||
Total dividends paid
|
$ | 12,145 | $ | 12,105 | $ | 10,739 | ||||||
Quarter ended June 30
|
||||||||||||
Total dividends paid
|
12,105 | 10,496 | ||||||||||
Quarter ended September 30
|
||||||||||||
Total dividends paid
|
12,106 | 10,496 | ||||||||||
Quarter ended December 31
|
||||||||||||
Total dividends paid
|
12,145 | 10,597 | ||||||||||
Welcome dividend
|
||||||||||||
Total dividends paid
|
96,838 | -- | ||||||||||
Special year end dividend
|
||||||||||||
Total dividends paid
|
16,193 | 6,359 | ||||||||||
Calendar year-to-date dividends paid
|
$ | 12,145 | $ | 161,492 | $ | 48,687 |
For the Three Months Ended
|
||||||||||||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||||||||||||
2011
|
2011
|
2011
|
2011
|
2010
|
||||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||||
Interest and dividend income:
|
||||||||||||||||||||
Loans receivable
|
$ | 60,675 | $ | 62,019 | $ | 62,393 | $ | 61,554 | $ | 65,943 | ||||||||||
MBS
|
18,373 | 18,953 | 19,619 | 17,320 | 15,440 | |||||||||||||||
Investment securities
|
4,637 | 4,456 | 5,103 | 4,743 | 4,775 | |||||||||||||||
Other interest and dividend income
|
1,142 | 1,166 | 968 | 1,324 | 1,089 | |||||||||||||||
Total interest and dividend income
|
84,827 | 86,594 | 88,083 | 84,941 | 87,247 | |||||||||||||||
Interest expense:
|
||||||||||||||||||||
FHLB advances
|
22,339 | 22,660 | 22,539 | 21,968 | 23,131 | |||||||||||||||
Deposits
|
12,787 | 14,602 | 15,516 | 16,069 | 17,381 | |||||||||||||||
Other borrowings
|
4,327 | 5,467 | 5,720 | 6,348 | 6,730 | |||||||||||||||
Total interest expense
|
39,453 | 42,729 | 43,775 | 44,385 | 47,242 | |||||||||||||||
Provision for credit losses
|
540 | 1,650 | 1,240 | 520 | 650 | |||||||||||||||
Net interest income
|
||||||||||||||||||||
(after provision for credit losses)
|
44,834 | 42,215 | 43,068 | 40,036 | 39,355 | |||||||||||||||
Other income
|
6,152 | 6,434 | 6,100 | 6,144 | 6,317 | |||||||||||||||
Other expenses
|
22,067 | 23,022 | 23,102 | 22,855 | 63,338 | |||||||||||||||
Income tax expense (benefit)
|
10,130 | 8,861 | 8,807 | 7,689 | (6,408 | ) | ||||||||||||||
Net income (loss)
|
$ | 18,789 | $ | 16,766 | $ | 17,259 | $ | 15,636 | $ | (11,258 | ) | |||||||||
Efficiency ratio
|
42.83 | % | 45.77 | % | 45.83 | % | 48.94 | % | 136.73 | % | ||||||||||
Basic earnings (loss) per share
|
$ | 0.12 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | (0.07 | ) | |||||||||
Diluted earnings (loss) per share
|
0.12 | 0.10 | 0.10 | 0.10 | (0.07 | ) |
For the Three Months Ended
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
December 31,
|
Actual
|
Contribution
|
Adjusted
(1)
|
|||||||||||||
2011
|
(GAAP)
|
to Foundation
|
(Non-GAAP)
|
|||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||
Net income (loss)
|
$ | 18,789 | $ | (11,258 | ) | $ | (26,000 | ) | $ | 14,742 | ||||||
Operating expenses
|
22,067 | 63,338 | 40,000 | 23,338 | ||||||||||||
Basic earnings (loss) per share
|
0.12 | (0.07 | ) | (0.16 | ) | 0.09 | ||||||||||
Diluted earnings (loss) per share
|
0.12 | (0.07 | ) | (0.16 | ) | 0.09 | ||||||||||
Return on average assets (annualized)
|
0.80 | % | (0.51 | ) % | (1.18 | ) % | 0.67 | % | ||||||||
Return on average equity (annualized)
|
3.87 | (4.13 | ) | (9.54 | ) | 5.41 | ||||||||||
Operating expense ratio
|
0.94 | 2.89 | 1.83 | 1.07 | ||||||||||||
Efficiency ratio
|
42.83 | % | 136.73 | % | 86.35 | % | 50.38 | % |
At
|
For the Three Months Ended
|
|||||||||||||||||||||||||||
December 31, 2011
|
December 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||||||
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
||||||||||||||||||||||
Rate
|
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Net interest income
(5)
|
$ | 45,374 | $ | 40,005 | ||||||||||||||||||||||||
Net interest rate spread
(6)
|
1.81 | % | 1.57 | % | 1.60 | % | ||||||||||||||||||||||
Net interest-earning assets
|
$ | 1,834,276 | $ | 1,022,464 | ||||||||||||||||||||||||
Net interest margin
(7)
|
1.98 | 1.88 | ||||||||||||||||||||||||||
Ratio of interest-earning assets
|
||||||||||||||||||||||||||||
to interest-bearing liabilities
|
1.25 | 1.14 | ||||||||||||||||||||||||||
Selected performance ratios:
|
||||||||||||||||||||||||||||
Return on average assets (annualized)
|
0.80 | % | (0.51 | ) % | ||||||||||||||||||||||||
Return on average equity (annualized)
|
3.87 | (4.13 | ) | |||||||||||||||||||||||||
Average equity to average assets
|
20.64 | 12.44 | ||||||||||||||||||||||||||
Operating expense ratio
|
0.94 | 2.89 | ||||||||||||||||||||||||||
Efficiency ratio
|
42.83 | 136.73 | ||||||||||||||||||||||||||
(Concluded) |
Quarter Ended December 31,
|
||||||||||||
2011 vs. 2010
|
||||||||||||
Increase (Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans receivable
|
$ | 667 | $ | (5,935 | ) | $ | (5,268 | ) | ||||
MBS
|
6,416 | (3,483 | ) | 2,933 | ||||||||
Investment securities
|
138 | (276 | ) | (138 | ) | |||||||
Capital stock of FHLB
|
44 | 145 | 189 | |||||||||
Cash equivalents
|
(129 | ) | (7 | ) | (136 | ) | ||||||
Total interest-earning assets
|
7,136 | (9,556 | ) | (2,420 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||
Checking
|
9 | (13 | ) | (4 | ) | |||||||
Savings
|
22 | (190 | ) | (168 | ) | |||||||
Money market
|
146 | (635 | ) | (489 | ) | |||||||
Certificates
|
(994 | ) | (2,939 | ) | (3,933 | ) | ||||||
FHLB advances
|
793 | (1,585 | ) | (792 | ) | |||||||
Other borrowings
|
(1,897 | ) | (506 | ) | (2,403 | ) | ||||||
Total interest-bearing liabilities
|
(1,921 | ) | (5,868 | ) | (7,789 | ) | ||||||
Net change in net interest income
|
$ | 9,057 | $ | (3,688 | ) | $ | 5,369 |
For the Three Months Ended
|
||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|||||||||||||||||||
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|||||||||||||||||||
Assets:
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
(1)
|
$ | 5,191,834 | $ | 60,675 | 4.67 | % | $ | 5,168,560 | $ | 62,019 | 4.80 | % | ||||||||||||
MBS
(2)
|
2,381,545 | 18,373 | 3.09 | 2,326,183 | 18,953 | 3.26 | ||||||||||||||||||
Investment securities
(2)(3)
|
1,389,228 | 4,637 | 1.34 | 1,534,364 | 4,456 | 1.16 | ||||||||||||||||||
Capital stock of FHLB
|
126,491 | 1,091 | 3.42 | 125,809 | 1,081 | 3.41 | ||||||||||||||||||
Cash and cash equivalents
|
83,148 | 51 | 0.24 | 137,114 | 85 | 0.25 | ||||||||||||||||||
Total interest-earning assets
|
9,172,246 | 84,827 | 3.70 | 9,292,030 | 86,594 | 3.73 | ||||||||||||||||||
Other noninterest-earning assets
|
230,366 | 235,016 | ||||||||||||||||||||||
Total assets
|
$ | 9,402,612 | $ | 9,527,046 | ||||||||||||||||||||
Liabilities and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Checking
|
$ | 535,058 | $ | 107 | 0.08 | % | $ | 530,779 | $ | 110 | 0.08 | % | ||||||||||||
Savings
|
252,626 | 150 | 0.24 | 254,515 | 282 | 0.44 | ||||||||||||||||||
Money market
|
1,075,119 | 945 | 0.35 | 1,063,417 | 1,112 | 0.41 | ||||||||||||||||||
Certificates
|
2,594,016 | 11,585 | 1.77 | 2,672,814 | 13,098 | 1.94 | ||||||||||||||||||
Total deposits
|
4,456,819 | 12,787 | 1.14 | 4,521,525 | 14,602 | 1.28 | ||||||||||||||||||
FHLB advances
(4)
|
2,447,129 | 22,339 | 3.62 | 2,414,028 | 22,660 | 3.72 | ||||||||||||||||||
Repurchase agreements
|
434,022 | 4,327 | 3.90 | 536,468 | 5,467 | 3.99 | ||||||||||||||||||
Total borrowings
|
2,881,151 | 26,666 | 3.66 | 2,950,496 | 28,127 | 3.77 | ||||||||||||||||||
Total interest-bearing liabilities
|
7,337,970 | 39,453 | 2.13 | 7,472,021 | 42,729 | 2.26 | ||||||||||||||||||
Other noninterest-bearing liabilities
|
123,889 | 113,391 | ||||||||||||||||||||||
Stockholders' equity
|
1,940,753 | 1,941,634 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 9,402,612 | $ | 9,527,046 | ||||||||||||||||||||
|
||||||||||||||||||||||||
(Continued) |
For the Three Months Ended
|
||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|||||||||||||||||||
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Net interest income
(5)
|
$ | 45,374 | $ | 43,865 | ||||||||||||||||||||
Net interest rate spread
(6)
|
1.57 | % | 1.47 | % | ||||||||||||||||||||
Net interest-earning assets
|
$ | 1,834,276 | $ | 1,820,009 | ||||||||||||||||||||
Net interest margin
(7)
|
1.98 | 1.89 | ||||||||||||||||||||||
Ratio of interest-earning assets
|
||||||||||||||||||||||||
to interest-bearing liabilities
|
1.25 | 1.24 | ||||||||||||||||||||||
Selected performance ratios:
|
||||||||||||||||||||||||
Return on average assets (annualized)
|
0.80 | % | 0.70 | % | ||||||||||||||||||||
Return on average equity (annualized)
|
3.87 | 3.45 | ||||||||||||||||||||||
Average equity to average assets
|
20.64 | 20.38 | ||||||||||||||||||||||
Operating expense ratio
|
0.94 | 0.97 | ||||||||||||||||||||||
Efficiency ratio
|
42.83 | 45.77 | ||||||||||||||||||||||
(Concluded) |
Quarter Ended
|
||||||||||||
December 31, 2011 vs. September 30, 2011
|
||||||||||||
Increase (Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans receivable
|
$ | 276 | $ | (1,620 | ) | $ | (1,344 | ) | ||||
MBS
|
438 | (1,018 | ) | (580 | ) | |||||||
Investment securities
|
(454 | ) | 635 | 181 | ||||||||
Capital stock of FHLB
|
6 | 4 | 10 | |||||||||
Cash and cash equivalents
|
(31 | ) | (3 | ) | (34 | ) | ||||||
Total interest-earning assets
|
235 | (2,002 | ) | (1,767 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||
Checking
|
1 | -- | 1 | |||||||||
Savings
|
(2 | ) | (130 | ) | (132 | ) | ||||||
Money market
|
12 | (165 | ) | (153 | ) | |||||||
Certificates
|
(386 | ) | (1,145 | ) | (1,531 | ) | ||||||
FHLB advances
|
251 | (572 | ) | (321 | ) | |||||||
Other borrowings
|
(1,019 | ) | (121 | ) | (1,140 | ) | ||||||
Total interest-bearing liabilities
|
(1,143 | ) | (2,133 | ) | (3,276 | ) | ||||||
Net change in net interest income
|
$ | 1,378 | $ | 131 | $ | 1,509 |
Loans
(1)
|
MBS
|
Investment Securities
|
Total
|
|||||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Amounts due:
|
||||||||||||||||||||||||||||||||
Within one year
|
$ | 34,525 | 4.62 | % | $ | -- | -- | % | $ | 274,250 | 1.56 | % | $ | 308,775 | 1.90 | % | ||||||||||||||||
|
||||||||||||||||||||||||||||||||
After one year:
|
||||||||||||||||||||||||||||||||
Over one to two
|
41,427 | 4.64 | -- | -- | 30,586 | 1.35 | 72,013 | 3.24 | ||||||||||||||||||||||||
Over two to three
|
8,279 | 5.32 | -- | -- | 155,596 | 1.38 | 163,875 | 1.58 | ||||||||||||||||||||||||
Over three to five
|
50,778 | 5.41 | 2,364 | 6.00 | 781,301 | 1.46 | 834,443 | 1.71 | ||||||||||||||||||||||||
Over five to ten
|
377,056 | 4.90 | 592,101 | 3.84 | 42,320 | 2.58 | 1,011,477 | 4.18 | ||||||||||||||||||||||||
Over 10 to 15
|
1,327,122 | 4.16 | 800,865 | 3.33 | 3,284 | 5.24 | 2,131,271 | 3.85 | ||||||||||||||||||||||||
After 15 years
|
3,443,298 | 4.62 | 1,010,355 | 3.15 | 7,125 | 3.35 | 4,460,778 | 4.29 | ||||||||||||||||||||||||
Total due after one year
|
5,247,960 | 4.53 | 2,405,685 | 3.38 | 1,020,212 | 1.52 | 8,673,857 | 3.86 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
$ | 5,282,485 | 4.53 | % | $ | 2,405,685 | 3.38 | % | $ | 1,294,462 | 1.53 | % | $ | 8,982,632 | 3.79 | % |
(1)
|
Demand
loans, loans having no stated maturity, and overdraft loans are included in the amounts due within one year. Construction loans are reported based on the term to complete construction. The maturity date for home equity loans assumes the customer always makes the required minimum payment.
|
·
|
the origination, purchase, or sale of loans,
|
·
|
the purchase or sale of investment securities and MBS,
|
·
|
extensions of credit on home equity loans and construction loans,
|
·
|
terms and conditions of operating leases, and
|
·
|
funding withdrawals of deposit accounts at maturity.
|
Maturity Range
|
||||||||||||||||||||
Less than
|
1 - 3 | 3 - 5 |
More than
|
|||||||||||||||||
Total
|
1 year
|
years
|
years
|
5 years
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Operating leases
|
$ | 13,181 | $ | 1,274 | $ | 2,288 | $ | 1,849 | $ | 7,770 | ||||||||||
Certificates of deposit
|
$ | 2,583,557 | $ | 1,264,476 | $ | 934,820 | $ | 381,503 | $ | 2,758 | ||||||||||
Weighted average rate
|
1.71 | % | 1.38 | % | 1.92 | % | 2.33 | % | 2.59 | % | ||||||||||
FHLB advances
|
$ | 2,550,000 | $ | 350,000 | $ | 1,125,000 | $ | 475,000 | $ | 600,000 | ||||||||||
Weighted average rate
|
3.10 | % | 3.10 | % | 2.90 | % | 3.67 | % | 3.01 | % | ||||||||||
Repurchase agreements
|
$ | 365,000 | $ | -- | $ | 245,000 | $ | 20,000 | $ | 100,000 | ||||||||||
Weighted average rate
|
3.83 | % | -- | % | 3.97 | % | 4.45 | % | 3.35 | % | ||||||||||
Commitments to originate and
|
||||||||||||||||||||
purchase loans
|
$ | 144,182 | $ | 144,182 | $ | -- | $ | -- | $ | -- | ||||||||||
Weighted average rate
|
3.81 | % | 3.81 | % | -- | % | -- | % | -- | % | ||||||||||
Commitments to fund unused home
|
||||||||||||||||||||
equity lines of credit and
|
||||||||||||||||||||
commercial commitments
|
$ | 265,092 | $ | 265,092 | $ | -- | $ | -- | $ | -- | ||||||||||
Weighted average rate
|
4.53 | % | 4.53 | % | -- | % | -- | % | -- | % | ||||||||||
Unadvanced portion of
|
||||||||||||||||||||
construction loans
|
$ | 33,239 | $ | 33,239 | $ | -- | $ | -- | $ | -- | ||||||||||
Weighted average rate
|
4.37 | % | 4.37 | % | -- | % | -- | % | -- | % |
Regulatory
|
||||||||
Requirement
|
||||||||
Bank
|
For “Well-
|
|||||||
Ratios
|
Capitalized” Status
|
|||||||
Tangible equity
|
15.0 | % | N/A | |||||
Tier 1 (core) capital
|
15.0 | % | 5.0 | % | ||||
Tier 1 (core) risk-based capital
|
37.7 | % | 6.0 | % | ||||
Total risk-based capital
|
38.1 | % | 10.0 | % |
Total Bank equity as reported under GAAP
|
$ | 1,398,724 | ||
Unrealized gains on AFS securities
|
(26,145 | ) | ||
Other
|
(228 | ) | ||
Total tangible and core capital
|
1,372,351 | |||
ACL
(1)
|
12,107 | |||
Total risk-based capital
|
$ | 1,384,458 |
Change
|
Percentage Change in Net Interest Income
|
|||||||||
(in Basis Points)
|
At
|
|||||||||
in Interest Rates
(1)
|
December 31, 2011
|
September 30, 2011
|
||||||||
-100 bp | N/A | N/A | ||||||||
000 bp | -- | -- | ||||||||
+100 bp | 3.28 | % | 4.46 | % | ||||||
+200 bp | 2.38 | % | 3.75 | % | ||||||
+300 bp | -0.29 | % | -0.33 | % |
(1)
|
Assumes an instantaneous, permanent and parallel change in interest rates at all maturities.
|
Change
|
Percentage Change in MVPE
|
|||||||||
(in Basis Points)
|
At
|
|||||||||
in Interest Rates
(1)
|
December 31, 2011
|
September 30, 2011
|
||||||||
-100 bp | N/A | N/A | ||||||||
000 bp | -- | -- | ||||||||
+100 bp | 0.28 | % | 0.61 | % | ||||||
+200 bp | -6.30 | % | -5.69 | % | ||||||
+300 bp | -15.75 | % | -14.91 | % |
(1)
|
Assumes an instantaneous, permanent and parallel change in interest rates at all maturities.
|
Within
|
Three to
|
More Than
|
More Than
|
|||||||||||||||||||||
Three
|
Twelve
|
One Year to
|
Three Years
|
Over
|
||||||||||||||||||||
Months
|
Months
|
Three Years
|
to Five Years
|
Five Years
|
Total
|
|||||||||||||||||||
Interest-earning assets:
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Loans receivable:
(1)
|
||||||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||||||
Fixed-rate
|
$ | 318,806 | $ | 1,107,382 | $ | 1,451,367 | $ | 514,302 | $ | 834,321 | $ | 4,226,178 | ||||||||||||
Adjustable-rate
|
52,414 | 512,207 | 216,417 | 58,403 | 12,995 | 852,436 | ||||||||||||||||||
Other loans
|
126,349 | 15,868 | 15,085 | 4,601 | 4,821 | 166,724 | ||||||||||||||||||
Investment securities
(2)
|
237,312 | 220,225 | 128,059 | 431,355 | 3,469 | 1,020,420 | ||||||||||||||||||
MBS
(3)
|
243,502 | 818,517 | 772,001 | 276,546 | 255,305 | 2,365,871 | ||||||||||||||||||
Other interest-earning assets
|
140,054 | -- | -- | -- | -- | 140,054 | ||||||||||||||||||
Total interest-earning assets
|
1,118,437 | 2,674,199 | 2,582,929 | 1,285,207 | 1,110,911 | 8,771,683 | ||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Checking
(4)
|
80,315 | 41,913 | 94,472 | 72,968 | 285,186 | 574,854 | ||||||||||||||||||
Savings
(4)
|
86,666 | 11,033 | 25,438 | 19,730 | 109,356 | 252,223 | ||||||||||||||||||
Money market
(4)
|
56,757 | 172,995 | 360,174 | 182,517 | 514,005 | 1,286,448 | ||||||||||||||||||
Certificates
|
432,310 | 841,521 | 926,821 | 380,692 | 2,213 | 2,583,557 | ||||||||||||||||||
Borrowings
(5)
|
150,000 | 200,000 | 1,375,499 | 495,000 | 747,260 | 2,967,759 | ||||||||||||||||||
Total interest-bearing liabilities
|
806,048 | 1,267,462 | 2,782,404 | 1,150,907 | 1,658,020 | 7,664,841 | ||||||||||||||||||
Excess (deficiency) of interest-earning assets over
|
||||||||||||||||||||||||
interest-bearing liabilities
|
$ | 312,389 | $ | 1,406,737 | $ | (199,475 | ) | $ | 134,300 | $ | (547,109 | ) | $ | 1,106,842 | ||||||||||
Cumulative excess of interest-earning
|
||||||||||||||||||||||||
assets over interest-bearing liabilities
|
$ | 312,389 | $ | 1,719,126 | $ | 1,519,651 | $ | 1,653,951 | $ | 1,106,842 | ||||||||||||||
Cumulative excess of interest-earning
|
||||||||||||||||||||||||
assets over interest-bearing liabilities as a
|
||||||||||||||||||||||||
percent of total Bank assets at
|
||||||||||||||||||||||||
December 31, 2011
|
3.41 | % | 18.79 | % | 16.61 | % | 18.08 | % | 12.10 | % | ||||||||||||||
September 30, 2011
|
0.84 | 18.60 | 18.18 | 18.21 | 12.51 |
(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 have been reduced for non-performing loans, which totaled $28.4 million at December 31, 2011.
|
(2)
|
Based on contractual maturities, terms to call date or pre-refunding dates as of December 31, 2011, and excludes the unrealized gain adjustment of $2.2 million on AFS investment securities.
|
(3)
|
Reflects estimated prepayments of MBS in our portfolio, and excludes the unrealized gain adjustment of $39.8 million on AFS MBS.
|
(4)
|
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 rate at which the balance of existing accounts would decline) used on these accounts are based on assumptions developed from our actual experience 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-earning assets which were estimated to mature or reprice within one year would have exceeded interest-bearing liabilities with comparable characteristics by $55.3 million, for a cumulative one-year gap of 0.60% of total assets.
|
(5)
|
Borrowings exclude $19.1 million of deferred prepayment penalty costs and $412 thousand of deferred gain on the terminated interest rate swap agreements.
|
Exhibit
Number
|
Document
|
|
2.0
|
|
Amended Plan of Conversion and Reorganization filed on October 27, 2010 as Exhibit 2 to Capitol Federal Financial, Inc.’s Post Effective Amendment No. 2 Registration Statement on Form S-1 (File No. 333-166578) and incorporated herein by reference
|
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 filed on May 6, 2010, as Exhibit 3(ii) to Capitol Federal Financial Inc.’s Registration Statement on Form S-1 (File No. 333-166578) and incorporated herein by reference
|
|
10.1(i)
|
Capitol Federal Financial’s Thrift Plan filed on November 29, 2007 as Exhibit 10.1(i) to
|
|
the Annual Report on Form 10-K for Capitol Federal Financial and incorporated herein by reference
|
||
10.1(ii)
|
Capitol Federal Financial, Inc.’s 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(iii)
|
Form of Change of Control Agreement with each of John B. Dicus, Kent G. Townsend, R. Joe Aleshire, Larry Brubaker, 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
|
|
10.2
|
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’s 2000 Recognition and Retention Plan filed on April 13, 2000 as Appendix B to Capitol Federal Financial’s Revised Proxy Statement (File No. 000-25391) and incorporated herein by reference
|
|
10.4
|
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
|
|
10.5
|
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
|
||
10.6
|
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
|
||
10.7
|
Form of Restricted Stock Agreement under the RRP filed on February 4, 2005 as Exhibit 10.7 to the
|
|
December 31, 2004 Form 10-Q for Capitol Federal Financial and incorporated herein by reference
|
||
10.8
|
Description of Named Executive Officer Salary and Bonus Arrangements filed on November 29,
|
|
2011 as Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K and incorporated herein by reference
|
||
10.9
|
Description of Director Fee Arrangements filed on February 9, 2011 as Exhibit 10.9 to the
|
|
December 31, 2010 Form 10-Q and incorporated herein by reference
|
||
10.10
|
Short-term Performance Plan filed on August 4, 2011 as Exhibit 10.10 to the June 30, 2011
|
|
Form 10-Q and incorporated herein by reference
|
||
10.11
|
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
|
||
10.12
|
Form of Incentive Stock Option Agreement under the Equity Incentive Plan
|
|
10.13
|
Form of Non-Qualified Stock Option Agreement under the Equity Incentive Plan
|
|
10.14
|
Form of Stock Appreciation Right Agreement under the Equity Incentive Plan
|
|
10.15
|
Form of Restricted Stock Agreement under the Equity Incentive Plan
|
|
11
|
Statement re: computation of 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 quarter ended December 31, 2011, filed with the SEC on February 6, 2012, has been formatted in eXtensible Business Reporting Language: (i) Consolidated Balance Sheets at December 31, 2011 and September 30, 2011, (ii) Consolidated Statements of Operations for the three months ended December 31, 2011 and 2010, (iii) Consolidated Statement of Stockholders’ Equity for the three months ended December 31, 2011, (iv) Consolidated Statements of Cash Flows for the three months ended December 31, 2011 and 2010, and (v) Notes to the Unaudited Consolidated Financial Statements **
|
1.
|
ISO Award
. The Corporation grants to Option Holder ISOs to purchase
[
Number
]
Shares at an Exercise Price of
$
[
Number
]
per Share. These ISOs are subject to forfeiture and to limits on transferability until they vest, as provided in Sections 5 and 6 of this Agreement and in Article V of the Plan.
|
2.
|
Vesting Dates
. The ISOs shall vest as follows, subject to earlier vesting in the event of a termination of Service as provided in Section 6:
|
3.
|
Exercise
. The Option Holder (or in the case of the death of the Option Holder, the designated legal representative or heir of the Option Holder) may exercise the ISOs during the Exercise Period by giving written notice to the Vice President of Investor Relations in the form required by the Committee (“Exercise Notice”). The Exercise Notice must specify the number of Shares to be purchased, which shall be at least 100 unless fewer shares remain unexercised. The exercise date is the date the Exercise Notice is received by the Corporation. The Exercise Period commences on the Vesting Date and expires at 5:00 p.m., Topeka, Kansas time, on the date 10 years
[five years for over 10% owners of Corporation on the Grant Date]
after the Grant Date, such later time and date being hereinafter referred to as the “Expiration Date,” subject to earlier expiration in the event of a termination of Service as provided in Section 6. Any ISOs not exercised as of the close of business on the last day of the Exercise Period shall be cancelled without consideration at that time.
|
4.
|
Related Awards
. These ISOs
[are not
related to any other Award under the Plan.]
or
[are related to stock appreciation rights granted on the Grant Date and designated SAR No. ___
.
Any related stock appreciation rights do not receive the special tax treatment afforded the ISOs. To the extent any of the related stock appreciation rights are exercised, the ISOs shall terminate with respect to the same number of Shares.]
|
5.
|
Transferability
. The Option Holder may not sell, assign, transfer, pledge or otherwise encumber any ISOs, except in the event of the Option Holder’s death, by will or by the laws of descent and distribution or pursuant to a Domestic Relations Order.
|
6.
|
Termination
of Service
. If the Option Holder terminates Service for any reason other than in connection with a Change in Control or the death or Disability of the Option Holder, any ISOs that have not vested as of the date of that termination shall be forfeited to the Corporation, and the Exercise Period of any vested ISOs shall expire three months after that termination of Service (but in no event after the Expiration Date), except in the case of a Termination for Cause, in which case all ISOs held by the Option Holder shall expire immediately. If the Option Holder’s Service terminates on account of the Option Holder’s death or Disability, the Vesting Date for all ISOs that have not vested or been forfeited shall be accelerated to the date of that termination of Service, and the Exercise Period of all vested ISOs shall expire one year after that termination of Service (but in no event after the Expiration Date).
|
7.
|
Effect of Change in Control
. Upon a Change in Control, the Vesting Date for all ISOs that have not vested or been forfeited shall be accelerated to the date of the earliest event constituting a Change in Control.
[May be modified at Committee’s election for 280G planning purposes for executive officers.]
|
8.
|
Option Holder’s Rights
. The ISOs awarded hereby do not entitle the Option Holder to any rights of a shareholder of the Corporation.
|
9.
|
Delivery of Shares to Option Holder
. Promptly after receipt of an Exercise Notice and full payment of the Exercise Price for the Shares being acquired, the Corporation shall issue and deliver to the Option Holder (or other person validly exercising the ISO) a certificate or certificates representing the Shares of Common Stock being purchased, or evidence of the issuance of such Shares in book-entry form, registered in the name of the Option Holder (or such other person), or, upon request, in the name of the Option Holder (or such other person) and in the name of another person in such form of joint ownership as requested by the Option Holder (or such other person) pursuant to applicable state law. The Corporation’s obligation to deliver a stock certificate or evidence of the issuance of Shares in book-entry form for Shares purchased upon the exercise of an ISO can be conditioned upon the receipt of a representation of investment intent from the Option Holder (or the Option Holder’s Beneficiary) in such form as the Committee requires. The Corporation shall not be required to deliver stock certificates or evidence of the issuance of Shares in book-entry form for Shares purchased prior to: (a) the listing of those Shares on the Nasdaq; or (b) the completion of any registration or qualification of those Shares required under applicable law.
|
10.
|
Notice of Sale of Shares
. The Option Holder (or other person who received Shares from the exercise of the ISOs) shall give written notice to the Corporation promptly in the event of the sale or other disposition of Shares received from the exercise of the ISOs within either: (a) two years from the Grant Date; or (b) one year from the exercise date for the ISOs exercised.
|
11.
|
Adjustments in Shares
. In the event of any recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend, special or recurring dividend or distribution, liquidation, dissolution or other similar corporate transaction or event, the Committee, in its sole discretion, shall adjust the number of Shares or class of securities of the Corporation covered by the ISOs or the Exercise Price of the ISOs. The Option Holder agrees to execute any documents required by the Committee in connection with an adjustment under this Section 11.
|
12.
|
Tax Withholding
. The Corporation shall have the right to require the Option Holder to pay to the Corporation the amount of any tax that the Corporation is required to withhold with respect to such Shares, or in lieu thereof, to retain or sell without notice, a sufficient number of Shares to cover the minimum amount required to be withheld. The Corporation shall have the right to deduct from all dividends paid with respect to the Shares the amount of any taxes that the Corporation is required to withhold with respect to such dividend payments.
|
13.
|
Plan and Committee Decisions are Controlling
. This Agreement, the award of ISOs to the Option Holder and the issuance of Shares upon the exercise of the ISOs are subject in all respects to the provisions of the Plan, which are controlling. Capitalized terms herein not defined in this Agreement shall have the meaning ascribed to them in the Plan. All decisions, determinations and interpretations by the Committee respecting the Plan, this Agreement, the award of ISOs or the issuance of Shares upon the exercise of the ISOs shall be binding and conclusive upon the Option Holder, any Beneficiary of the Option Holder or the legal representative thereof.
|
14.
|
Option Holder’s Employment
. Nothing in this Agreement shall limit the right of the Corporation or any of its Affiliates to terminate the Option Holder’s service or employment as a director, advisory director, director emeritus, officer or employee, or otherwise impose upon the Corporation or any of its Affiliates any obligation to employ or accept the services or employment of the Option Holder.
|
15.
|
Amendment
. The Committee may waive any conditions of or rights of the Corporation or modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision of this Agreement if such action may adversely affect the Option Holder without the Option Holder’s written consent. To the extent permitted by applicable laws and regulations, the Committee shall have the authority, in its sole discretion but with the permission of the Option Holder, to accelerate the vesting of the Shares or remove any other restrictions imposed on the Option Holder with respect to the Shares, whenever the Committee may determine that such action is appropriate.
|
16.
|
Loss of ISO Status
. If any of the ISOs fail, for any reason, to qualify for the special tax treatment afforded the ISOs, they shall be treated as Non-Qualified Stock Options under the Plan. The ISOs will lose ISO status: (a) if the Option Holder is not an employee of the Corporation or its Affiliates from the Grant date through the date three months before the exercise date; or (b) if the Shares acquired upon the exercise of the ISO are sold or disposed of within one of the time periods described in Section 10.
|
17.
|
Option Holder Acceptance
. The Option Holder shall signify acceptance of the terms and conditions of this Agreement and acknowledge receipt of a copy of the Plan by signing in the space provided below and returning the signed copy to the Corporation.
|
1.
|
NQSO Award
. The Corporation grants to Option Holder NQSOs to purchase
[
Number
]
Shares at an Exercise Price of
$
[
Number
]
per Share. These NQSOs are subject to forfeiture and to limits on transferability until they vest, as provided in Sections 5 and 6 of this Agreement and in Article V of the Plan.
|
2.
|
Vesting Dates
. The NQSOs shall vest as follows, subject to earlier vesting in the event of a termination of Service as provided in Section 6:
|
3.
|
Exercise
. The Option Holder (or in the case of the death of the Option Holder, the designated legal representative or heir of the Option Holder) may exercise the NQSOs during the Exercise Period by giving written notice to the Vice President of Investor Relations in the form required by the Committee (“Exercise Notice”). The Exercise Notice must specify the number of Shares to be purchased, which shall be at least 100 unless fewer shares remain unexercised. The exercise date is the date the Exercise Notice is received by the Corporation. The Exercise Period commences on the Vesting Date and expires at 5:00 p.m., Topeka, Kansas time, on the date 15 years after the Grant Date, such later time and date being hereinafter referred to as the “Expiration Date,” subject to earlier expiration in the event of a termination of Service as provided in Section 6. Any NQSOs not exercised as of the close of business on the last day of the Exercise Period shall be cancelled without consideration at that time.
|
4.
|
Related Awards
: These NQSOs
[are not
related to any other Award under the Plan.]
or
[are related to stock appreciation rights granted on the Grant Date and designated SAR No . ___. To the extent any of the related stock appreciation rights is exercised, the NQSOs shall terminate with respect to the same number of Shares.]
|
5.
|
Transferability
. The Option Holder may not sell, assign, transfer, pledge or otherwise encumber any NQSOs, except in the event of the Option Holder’s death, by will or by the laws of descent and distribution or pursuant to a Domestic Relations Order. The Committee, in its sole and absolute discretion, may allow the Option Holder to transfer one or more NQSOs to the Option Holder’s Family Members, as provided in the Plan.
|
6.
|
Termination
of Service
. If the Option Holder terminates Service for any reason other than in connection with a Change in Control or the death or Disability of the Option Holder, any NQSOs that have not vested as of the date of that termination shall be forfeited to the Corporation, and the Exercise Period of any vested NQSOs shall expire three months after that termination of Service (but in no event after the Expiration Date), except in the case of a Termination for Cause, in which case all NQSOs held by the Option Holder shall expire immediately. If the Option Holder’s Service terminates on account of the Option Holder’s death or Disability, the Vesting Date for all NQSOs that have not vested or been forfeited shall be accelerated to the date of that termination of Service, and the Exercise Period of all vested NQSOs shall expire one year after that termination of Service (but in no event after the Expiration Date).
|
7.
|
Effect of Change in Control
. Upon a Change in Control, the Vesting Date for all NQSOs that have not vested or been forfeited shall be accelerated to the date of the earliest event constituting a Change in Control.
[May be modified at Committee’s election for 280G planning purposes for executive officers, or for directors holding 1% or more of the Corporation’s outstanding stock.]
|
8.
|
Option Holder’s Rights
. The NQSOs awarded hereby do not entitle the Option Holder to any rights of a shareholder of the Corporation.
|
9.
|
Delivery of Shares to Option Holder
. Promptly after receipt of an Exercise Notice and full payment of the Exercise Price for the Shares being acquired, the Corporation shall issue and deliver to the Option Holder (or other person validly exercising the NQSO) a certificate or certificates representing the Shares of Common Stock being purchased, or evidence of the issuance of such Shares in book-entry form, registered in the name of the Option Holder (or such other person), or, upon request, in the name of the Option Holder (or such other person) and in the name of another person in such form of joint ownership as requested by the Option Holder (or such other person) pursuant to applicable state law. The Corporation’s obligation to deliver a stock certificate or evidence of the issuance of Shares in book-entry form for Shares purchased upon the exercise of an NQSO can be conditioned upon the receipt of a representation of investment intent from the Option Holder (or the Option Holder’s Beneficiary) in such form as the Committee requires. The Corporation shall not be required to deliver stock certificates or evidence of the issuance of Shares in book-entry form for Shares purchased prior to: (a) the listing of those Shares on the Nasdaq; or (b) the completion of any registration or qualification of those Shares required under applicable law.
|
10.
|
Adjustments in Shares
. In the event of any recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend, special or recurring dividend or distribution, liquidation, dissolution or other similar corporate transaction or event, the Committee, in its sole discretion, shall adjust the number of Shares or class of securities of the Corporation covered by the NQSOs or the Exercise Price of the NQSOs. The Option Holder agrees to execute any documents required by the Committee in connection with an adjustment under this Section 10.
|
11.
|
Tax Withholding
. The Corporation shall have the right to require the Option Holder to pay to the Corporation the amount of any tax that the Corporation is required to withhold with respect to such Shares, or in lieu thereof, to retain or sell without notice, a sufficient number of Shares to cover the minimum amount required to be withheld. The Corporation shall have the right to deduct from all dividends paid with respect to the Shares the amount of any taxes that the Corporation is required to withhold with respect to such dividend payments.
|
12.
|
Plan and Committee Decisions are Controlling
. This Agreement, the award of NQSOs to the Option Holder and the issuance of Shares upon the exercise of the NQSOs are subject in all respects to the provisions of the Plan, which are controlling. Capitalized terms herein not defined in this Agreement shall have the meaning ascribed to them in the Plan. All decisions, determinations and interpretations by the Committee respecting the Plan, this Agreement, the award of NQSOs or the issuance of Shares upon the exercise of the NQSOs shall be binding and conclusive upon the Option Holder, any Beneficiary of the Option Holder or the legal representative thereof.
|
13.
|
Option Holder’s Employment
. Nothing in this Agreement shall limit the right of the Corporation or any of its Affiliates to terminate the Option Holder’s service or employment as a director, advisory director, director emeritus, officer or employee, or otherwise impose upon the Corporation or any of its Affiliates any obligation to employ or accept the services or employment of the Option Holder.
|
14.
|
Amendment
. The Committee may waive any conditions of or rights of the Corporation or modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision of this Agreement if such action may adversely affect the Option Holder without the Option Holder’s written consent. To the extent permitted by applicable laws and regulations, the Committee shall have the authority, in its sole discretion but with the permission of the Option Holder, to accelerate the vesting of the Shares or remove any other restrictions imposed on the Option Holder with respect to the Shares, whenever the Committee may determine that such action is appropriate.
|
15.
|
Option Holder Acceptance
. The Option Holder shall signify acceptance of the terms and conditions of this Agreement and acknowledge receipt of a copy of the Plan by signing in the space provided below and returning the signed copy to the Corporation.
|
1.
|
SAR Award
. The Corporation grants to SAR Holder SARs to purchase
[
Number
]
Shares at an Exercise Price of
$
[
Number
]
per Share. Each SAR gives the SAR Holder a right to receive a payment in Shares with an aggregate Fair Market Value on the exercise date equal to the amount by which the Fair Market Value of a Share on the exercise date exceeds the Exercise Price of the SAR. No fractional shares or cash in lieu of fractional shares shall be issued. These SARs are subject to forfeiture and to limits on transferability until they vest, as provided in Sections 5 and 6 of this Agreement and in Article VI of the Plan.
|
2.
|
Vesting Dates
: The SARs shall vest as follows, subject to earlier vesting in the event of a termination of Service as provided in Section 6:
|
3.
|
Exercise
: The SAR Holder (or in the case of the death of the SAR Holder, the designated legal representative or heir of the SAR Holder) may exercise the SARs during the Exercise Period by giving written notice to the Vice President of Investor Relations in the form required by the Committee (“Exercise Notice”). The Exercise Notice must specify the number of Shares to be purchased, which shall be at least 100 unless fewer shares remain unexercised. The exercise date is the date the Exercise Notice is received by the Corporation. The Exercise Period commences on the Vesting Date and expires at 5:00 p.m., Topeka, Kansas time, on the date 15 years after the Grant Date, subject to earlier expiration in the event of a termination of Service as provided in Section 6. Any SARs not exercised as of the close of business on the last day of the Exercise Period shall be canceled without consideration at that time.
|
4.
|
Related Awards
: These SARs
[are not
related to any other Award under the Plan.]
or
[are related to stock options granted on the Grant Date and designated ISO or NQSO Nos. ___. To the extent any of the related stock options are exercised, the SARs shall terminate with respect to the same number of Shares.]
|
5.
|
Transferability
. The SAR Holder may not sell, assign, transfer, pledge or otherwise encumber any SARs, except in the event of the SAR Holder’s death, by will or by the laws of descent and distribution or pursuant to a Domestic Relations Order. The Committee, in its sole and absolute discretion, may allow the SAR Holder to transfer one or more SARs to the SAR Holder’s Family Members, as provided in the Plan.
|
6.
|
Termination
of Service
. If the SAR Holder terminates Service for any reason other than in connection with a Change in Control or the death or Disability of the SAR Holder, any SARs that have not vested as of the date of that termination shall be forfeited to the Corporation, and the Exercise Period shall expire three months after that termination of Service, except in the case of a Termination for Cause, when it shall expire immediately. If the SAR Holder’s Service terminates on account of the SAR Holder’s death or Disability, the Vesting Date for all SARs that have not vested or been forfeited shall be accelerated to the date of that termination of Service, and the Exercise Period shall expire one year after that termination of Service.
|
7.
|
Effect of Change in Control
. Upon a Change in Control, the Vesting Date for all SARs that have not vested or been forfeited shall be accelerated to the date of the earliest event constituting a Change in Control.
[May be modified at Committee’s election for 280G planning purposes for executive officers, or for directors holding 1% or more of the Corporation’s outstanding stock.]
|
8.
|
SAR Holder’s Rights
. The SARs awarded hereby do not entitle the SAR Holder to any rights of a shareholder of the Corporation.
|
9.
|
Delivery of Shares to SAR Holder
. Promptly after receipt of an Exercise Notice, the Corporation shall issue and deliver to the SAR Holder (or other person validly exercising the SAR) a certificate or certificates representing the Shares of Common Stock being purchased, or evidence of the issuance of such Shares in book-entry form, registered in the name of the SAR Holder (or such other person), or, upon request, in the name of the SAR Holder (or such other person) and in the name of another person in such form of joint ownership as requested by the SAR Holder (or such other person) pursuant to applicable state law. The Corporation’s obligation to deliver a stock certificate or evidence of the issuance of Shares in book-entry form for Shares purchased upon the exercise of an SAR can be conditioned upon the receipt of a representation of investment intent from the SAR Holder (or the SAR Holder’s Beneficiary) in such form as the Committee requires. The Corporation shall not be required to deliver stock certificates or evidence of the issuance of Shares in book-entry form for Shares purchased prior to: (a) the listing of those Shares on the Nasdaq; or (b) the completion of any registration or qualification of those Shares required under applicable law.
|
10.
|
Adjustments in Shares
. In the event of any recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend, special or recurring dividend or distribution, liquidation, dissolution or other similar corporate transaction or event, the Committee, in its sole discretion, shall adjust the number of Shares or class of securities of the Corporation covered by the SARs or the Exercise Price of the SARs. The SAR Holder agrees to execute any documents required by the Committee in connection with an adjustment under this Section 10.
|
11.
|
Tax Withholding
. The Corporation shall retain or sell without notice, a sufficient number of Shares to cover the minimum amount of any tax that the Corporation is required to withhold. The Corporation shall have the right to deduct from all dividends paid with respect to the Shares the amount of any taxes that the Corporation is required to withhold with respect to such dividend payments.
|
12.
|
Plan and Committee Decisions are Controlling
. This Agreement, the award of SARs to the SAR Holder and the issuance of Shares upon the exercise of the SARs are subject in all respects to the provisions of the Plan, which are controlling. Capitalized terms herein not defined in this Agreement shall have the meaning ascribed to them in the Plan. All decisions, determinations and interpretations by the Committee respecting the Plan, this Agreement, the award of SARs or the issuance of Shares upon the exercise of the SARs shall be binding and conclusive upon the SAR Holder, any Beneficiary of the SAR Holder or the legal representative thereof.
|
13.
|
SAR Holder’s Employment
. Nothing in this Agreement shall limit the right of the Corporation or any of its Affiliates to terminate the SAR Holder’s service or employment as a director, advisory director, director emeritus, officer or employee, or otherwise impose upon the Corporation or any of its Affiliates any obligation to employ or accept the services or employment of the SAR Holder.
|
14.
|
Tax Status
. The SARs are intended to comply with the provisions of Treasury Regulations Section 1.409A-1(b)(5)(i)(B), so as to not be subject to Section 409A of the Code.
|
15.
|
Amendment
. The Committee may waive any conditions of or rights of the Corporation or modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision of this Agreement if such action may adversely affect the SAR Holder without the SAR Holder’s written consent. To the extent permitted by applicable laws and regulations, the Committee shall have the authority, in its sole discretion but with the permission of the SAR Holder, to accelerate the vesting of the Shares or remove any other restrictions imposed on the SAR Holder with respect to the Shares, whenever the Committee may determine that such action is appropriate.
|
16.
|
SAR Holder Acceptance
. The SAR Holder shall signify acceptance of the terms and conditions of this Agreement and acknowledge receipt of a copy of the Plan by signing in the space provided below and returning the signed copy to the Corporation.
|
1.
|
Restricted Stock Award
. The Corporation makes this Restricted Stock Award of
[
Number
]
Shares to Grantee
[in exchange for a payment of $________]
. These Shares are subject to forfeiture and to limits on transferability until they vest, as provided in Sections 2, 3 and 4 of this Agreement and in Article VII of the Plan.
|
2.
|
Vesting Dates
: The Shares shall vest as follows:
|
3.
|
Transferability
. The Grantee may not sell, assign, transfer, pledge or otherwise encumber any Shares that have not vested, except in the event of the Grantee’s death, by will or by the laws of descent and distribution or pursuant to a Domestic Relations Order. The Committee, in its sole and absolute discretion, may allow the Grantee to transfer all or any portion of this Restricted Stock Award to the Grantee’s Family Members, as provided in the Plan.
|
4.
|
Termination
of Service
. If the Grantee terminates Service for any reason other than in connection with a Change in Control or the death or Disability of the Grantee, any Shares that have not vested as of the date of that termination shall be forfeited to the Corporation. If the Grantee’s Service terminates on account of the Grantee’s death or Disability, the Vesting Date for all Shares that have not vested or been forfeited shall be accelerated to the date of that termination of Service.
|
5.
|
Effect of Change in Control
. Upon a Change in Control, the Vesting Date for all Shares that have not vested or been forfeited shall be accelerated to the date of the earliest event constituting a Change in Control.
[May be modified at Committee’s election for 280G planning purposes for executive officers, or for directors that hold 1% or more of the Corporation’s outstanding stock.]
|
6.
|
Stock Power
. The Grantee agrees to execute a stock power with respect to each stock certificate reflecting the Shares, or other evidence of book-entry stock ownership, in favor of the Corporation. The Shares shall not be issued by the Corporation until the required stock powers are delivered to the Corporation.
|
7.
|
Delivery of Shares
. The Corporation shall issue stock certificates or evidence of the issuance of such Shares in book-entry form, in the name of the Grantee reflecting the Shares vesting on each Vesting Date in Section 2. The Corporation shall retain these certificates or evidence of the issuance of Shares in book-entry form until the Shares represented thereby become vested. Prior to vesting, the Shares shall be subject to the following restriction, communicated in writing to the Corporation’s stock transfer agent:
|
8.
|
Grantee’s Rights
. As the owner of all Shares that have not vested, the Grantee shall be paid dividends by the Corporation with respect to those Shares at the same time as they are paid to other holders of the Corporation’s common stock. The Grantee may exercise all voting rights appurtenant to the Shares.
[May be modified at Committee’s election, if desired.]
|
9.
|
Delivery of Shares to Grantee
. Upon the vesting of any Shares, the restrictions in Sections 3 and 4 shall terminate, and the Corporation shall deliver only to the Grantee (or, if applicable, the Grantee’s Beneficiary, estate or Family Member) a certificate (without the legend referenced in Section 7) or evidence of the issuance of Shares in book-entry form, and the related stock power in respect of the vesting Shares. The Corporation’s obligation to deliver a stock certificate for vested Shares, or evidence of the issuance of Shares in book-entry form, can be conditioned upon the receipt of a representation of investment intent from the Grantee (or the Grantee’s Beneficiary, estate or Family Member) in such form as the Committee requires. The Corporation shall not be required to deliver stock certificates for vested Shares, or evidence of the issuance of Shares in book-entry form, prior to: (a) the listing of those Shares on the Nasdaq; or (b) the completion of any registration or qualification of those Shares required under applicable law.
|
10.
|
Adjustments in Shares
. In the event of any recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend, special or recurring dividend or distribution, liquidation, dissolution or other similar corporate transaction or event, the Committee, in its sole discretion, shall adjust the number of Shares or class of securities of the Corporation covered by this Agreement. Any additional Shares or other securities received by the Grantee as a result of any such adjustment shall be subject to all restrictions and requirements applicable to Shares that have not vested. The Grantee agrees to execute any documents required by the Committee in connection with an adjustment under this Section 10.
|
11.
|
Tax Election
. The Grantee understands that an election may be made under Section 83(b) of the Code to accelerate the Grantee’s tax obligation with respect to receipt of the Shares from the Vesting Dates to the Grant Date by submitting an election to the Internal Revenue Service substantially in the form attached hereto.
|
12.
|
Tax Withholding
. The Corporation shall have the right to require the Grantee to pay to the Corporation the amount of any tax that the Corporation is required to withhold with respect to such Shares, or in lieu thereof, to retain or sell without notice, a sufficient number of Shares to cover the minimum amount required to be withheld. The Corporation shall have the right to deduct from all dividends paid with respect to the Shares the amount of any taxes that the Corporation is required to withhold with respect to such dividend payments.
|
13.
|
Plan and Committee Decisions are Controlling
. This Agreement and the award of Shares to the Grantee are subject in all respects to the provisions of the Plan, which are controlling. Capitalized terms herein not defined in this Agreement shall have the meaning ascribed to them in the Plan. All decisions, determinations and interpretations by the Committee respecting the Plan, this Agreement or the award of Shares shall be binding and conclusive upon the Grantee, any Beneficiary of the Grantee or the legal representative thereof.
|
14.
|
Grantee’s Employment
. Nothing in this Agreement shall limit the right of the Corporation or any of its Affiliates to terminate the Grantee’s service or employment as a director, advisory director, director emeritus, officer or employee, or otherwise impose upon the Corporation or any of its Affiliates any obligation to employ or accept the services or employment of the Grantee.
|
15.
|
Amendment
. The Committee may waive any conditions of or rights of the Corporation or modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision of this Agreement if such action may adversely affect the Grantee without the Grantee’s written consent. To the extent permitted by applicable laws and regulations, the Committee shall have the authority, in its sole discretion but with the permission of the Grantee, to accelerate the vesting of the Shares or remove any other restrictions imposed on the Grantee with respect to the Shares, whenever the Committee may determine that such action is appropriate.
|
16.
|
Grantee Acceptance
. The Grantee shall signify acceptance of the terms and conditions of this Agreement and acknowledge receipt of a copy of the Plan by signing in the space provided below and returning the signed copy to the Corporation.
|
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-l5(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: February 6, 2012
|
By:
|
/s/ John B. Dicus
|
|
|
|
John B. Dicus
|
|
|
|
Chairman, President and Chief Executive Officer
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|
1.
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I have reviewed this Quarterly Report on Form 10-Q of Capitol Federal Financial, Inc.;
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2.
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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;
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3.
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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;
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4.
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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-l5(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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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):
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a.
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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
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b.
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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.
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Date: February 6, 2012
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By:
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s/ Kent G. Townsend
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Kent G. Townsend
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Executive Vice President, Chief Financial Officer and Treasurer
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1)
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the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
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the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report.
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