Capitol Federal Financial, Inc. · NASDAQ:CFFN
Capitol Federal Financial — Investor Presentation (November 2004)
24 slides from Capitol Federal Financial's investor presentation, Nov 18, 2004
Slide 1: Capitol Federal Financial
Capitol Federal Financial NASDAQ: CFFN
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Except for the historical information contained in this presentation, the matters discussed may be deemed to be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, including changes in ec
Slide 3: Presentation Overview
Presentation Overview • Corporate Organization • Strategies 2004 • Financial Performance 2004 • Management Strategy
Slide 4: Capitol Federal Franchise
Capitol Federal Franchise Topeka Greater Kansas City Manhattan Kansas City, KS Salina Wichita Emporia Olathe Lawrence
Slide 5: Corporate Structure
Corporate Structure Capitol Federal Public Savings Bank Shareholders MHC Capitol Federal Financial Capitol Federal Savings Bank & Subsidiaries
Slide 6: Strategies Fiscal Year 2004
Strategies Fiscal Year 2004 • Entered into Interest Rate Swaps, • Issued $53.6 million of pooled Trust Preferred Securities, • Refinanced $2.4 billion of FHLB advances.
Slide 7: Interest Rate Swaps
Interest Rate Swaps • In December 2003, $800 million of fixed rate advances at 6.16%, • Converted to 1 month LIBOR with an average spread of 248 basis points, • Fiscal year 2004 savings of $15.7 million.
Slide 8: Issued $56 million in Pooled Trust Preferred Securities
Issued $56 million in Pooled Trust Preferred Securities • For general corporate and capital purposes, including the payment of dividends, • CFFN did not down stream proceeds to the Bank, • Priced off 3 month LIBOR plus 275 basis points.
Slide 9: Refinancing of FHLB Advances
Refinancing of FHLB Advances • Refinanced $2.40 billion fixed-rate, non- swapped advances into fixed-rate, fixed- term advances, • Prepayment penalty of $146.6 million, after tax, • New $2.65 billion of advances were structured in a laddered portfolio with terms ranging from 6 to 72 months.
Slide 10: Refinancing of FHLB Advances
Refinancing of FHLB Advances • Average rate on the refinanced advances is 3.78% compared to 6.13% one year ago, • Contributed $9.7 million to 4th quarter pre-tax earnings in FY 2004.
Slide 11: Loan Portfolio
Loan Portfolio Non Real Single- Other Real Estate, 4.2% Family, Estate, 2.1% 93.7% Total Loans at September 30, 2004 - $4.79 billion
Slide 12: Retail Financial Services
Retail Financial Services • Single-Family & Consumer Lending • Transaction & Money Market Accounts • Certificates of Deposit • Retirement Accounts • Insurance Products • Alternative Investment Opportunities
Slide 13: Commitment to Cost Control
Commitment to Cost Control • Efficiency ratio1 55.0 below industry 45.0 average (in percent) 35.0 25.0 2001 2002 2003 2004 • Operating expense1 0.90 ratio has increased 0.80 modestly (in basis 0.70 points) 0.60 2001 2002 2003 2004 1 The 2004 ratios are not presented in accordance with generally acce
Slide 14: Excellent Asset Quality
Excellent Asset Quality 0.15 • Non-performing assets to total assets 0.10 remains very low 0.05 0.00 2001 2002 2003 2004 • Allowance for loan 0.15 losses to total loans 0.10 remains appropriate 0.05 0.00 2001 2002 2003 2004 Data for fiscal years 2001, 2002, 2003 and 2004
Slide 15: Strong Equity Position
Strong Equity Position • Our capital has 13.00 continued to remain 12.00 in excess of 11.00 regulatory 10.00 guidelines. 9.00 8.00 2001 2002 2003 2004 Data for fiscal years 2001, 2002, 2003 and 2004
Slide 16: Shareholder Value
Shareholder Value • In November 2003, the Board adjusted its dividend policy with the intent to pay its calendar year dividend in four equal quarterly installments, • Maintained a balance between adequate capital and shareholder value.
Slide 17: Dividends Paid by Calendar Year
Dividends Paid by Calendar Year • We significantly increased the return to shareholders. $2.00 $1.50 $1.00 $0.50 $0.00 2001 2002 2003 2004 Data for calendar years 2001, 2002, 2003 and 2004
Slide 18: Earning Asset Mix
Earning Asset Mix Other Loans Cash & 4% Investments 12% Mortgage- Related Single-Family Securities Loans 32% 52% Total earning assets at September 30, 2004 $8.38 billion
Slide 19: Costing Liability Mix
Costing Liability Mix Transaction Money Market Certificates 7% 12% 35% Borrowings 46% Total costing liabilities at September 30, 2004 $7.63 billion
Slide 20: Loan Origination Performance
Loan Origination Performance FY 2003 FY 2004 Loan originations and purchases $1,830,216 $1,441,267 Modifications $1,946,341 $241,514 Amounts in thousands Data for fiscal years 2003 and 2004
Slide 21: Financial Performance
Financial Performance 4th Qtr – FY 2003 FY 2004 FY 2004 Net income (loss) $52,031 ($106,275) ($129,988) Prepayment penalty (net of tax) $0.00 $146,565 $146,565 Adjusted net income $52,031 $40,290 $16,577 Diluted EPS based upon Adjusted net income .72 .551 .231 Amounts in thousands 1 The 2004 earning
Slide 22: Financial Performance
Financial Performance 4th Qtr- FY 2003 FY 2004 FY 2004 ROAA 0.60% 0.48%1 0.78%1 ROAE 5.28% 4.16%1 6.82%1 Shares eligible to receive dividends at September 30 19,099,858 19,983,238 19,983,238 1 The 2004 financial ratios are not presented in accordance with GAAP, they exclude the one-time after tax ch
Slide 23: Management Strategy
Management Strategy • Single-Family Portfolio Lender • Retail Financial Services • Commitment to Cost Control • Excellent Asset Quality • Strong Capital Position • Shareholder Value
Slide 24: Capitol Federal Financial
Capitol Federal Financial NASDAQ: CFFN
Capitol Federal Financial — Investor Presentation (November 2004) on 6ix