Capitol Federal Financial, Inc. · NASDAQ:CFFN
Capitol Federal Financial — Investor Presentation (February 2006)
20 slides from Capitol Federal Financial's investor presentation, Feb 17, 2006
Slide 1: Capitol Federal Financial (CFFN)
Capitol Federal Financial (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: Capitol Federal Franchise
Capitol Federal Franchise Topeka (6) Greater Kansas City (13) Manhattan (2) Kansas City, KS (1) Salina (1) Wichita (6) Olathe (3) Emporia (1) Lawrence (4)
Slide 4: Corporate Structure
Corporate Structure Capitol Federal Savings Bank MHC Public Shareholders Capitol Federal Financial | Capitol Federal Savings Bank & Subsidiaries
Slide 5: Management Strategy
Management Strategy • Single-Family Portfolio Lender • Retail Financial Services • Commitment to Cost Control • Excellent Asset Quality • Shareholder Value
Slide 6: Loan Portfolio
Loan Portfolio Other Real Non Real Estate Estate 2% 4% Single Family 94%
Slide 7: Earning Asset Mix
Earning Asset Mix Other Loans Cash & 4% Investments 8% Mortgage- Related Single-Family Securities Loans 24% 64%
Slide 8: Retail Financial Services
Retail Financial Services • Transaction & Money Market Accounts • Certificates of Deposit • Retirement Accounts • Insurance Products • Alternative Investment Opportunities • Consumer Lending
Slide 9: Costing Liability Mix
Costing Liability Mix Transaction Money Certificates 7% Market 34% 12% Borrowings 47%
Slide 10: Commitment to Cost Control
Commitment to Cost Control • Efficiency ratio below 55.0 industry average 45.0 (in percent) 35.0 25.0 1 2001 2002 2003 2004 2005 • Operating expense ratio 0.90 has increased modestly 0.80 (in basis points) 0.70 0.60 1 2001 2002 2003 2004 2005 As of fiscal year end 1 The 2004 ratios are not presented
Slide 11: Excellent Asset Quality
Excellent Asset Quality • Non-performing assets 0.15 to total assets remains 0.10 very low 0.05 0.00 2001 2002 2003 2004 2005 • Allowance for loan 0.15 losses to total loans 0.10 remains appropriate 0.05 0.00 2001 2002 2003 2004 2005 As of fiscal year end.
Slide 12: Financial Performance
Financial Performance QTR FY FY FY Dec 31, 2003 2004 2005 2005 Net income $52,031 $40,2901 $65,059 $13,313 Diluted EPS $0.72 $0.551 $0.89 $0.18 Assets $8,582,733 $8,541,124 $8,409,687 $8,318,836 Liabilities $7,606,288 $7,708,710 $7,544,624 $7,456,598 Equity $976,445 $832,414 $865,063 $862,238 Amount
Slide 13: Financial Performance
Financial Performance QTR FY FY FY Dec 31, 2003 2004 2005 2005 ROAA 0.60% 0.48%1 0.77% 0.64% ROAE 5.28% 4.16%1 7.62% 6.15% Shares eligible for dividends 19,099,858 19,983,238 20,480,964 20,430,075 1 The 2004 ratios are not presented in accordance with GAAP, they exclude the one- time after tax charg
Slide 14: FY 2005 Results
FY 2005 Results The following two strategies that began in fiscal year 2004 primarily increased our net interest margin in fiscal year 2005 by 48 basis points: • Refinance of the FHLB advances, • Purchase of mortgage loans instead of securities which increased the loan portfolio. Comparison to the p
Slide 15: Net Interest Margin
Net Interest Margin 2.50% 2.00% 1.50% 1.00% 0.50% FY 2001 FY 2002 FY 2003 FY 2004 FY 2005
Slide 16: Shareholder Value
Shareholder Value • In November 2003, the Board adjusted its dividend policy with the intent to pay its $2.00 per share calendar year dividend in four equal quarterly installments, • In January 2005, the board enhanced this strategy by committing to pay out 25% of the prior year’s reported net incom
Slide 17: Shareholder Value
Shareholder Value • CFFN paid a $0.30 per share special dividend in December 2005 under the enhanced dividend policy. • Paid a $0.50 per share regular quarterly dividend in February 2006.
Slide 18: Shareholder Value
Shareholder Value • Cumulative dividends paid since our IPO in March 1999 total $10.18, providing a return to participants in our IPO of their investment. • Cumulative buy backs approximately 21.1 million shares. • We have maintained a balance between adequate capital and shareholder value.
Slide 19: Calendar Year Dividend History
Calendar Year Dividend History $2.50 $2.00 $1.50 $1.00 $0.50 $- CY 99 CY 00 CY 01 CY 02 CY 03 CY 04 CY 05
Slide 20: Capitol Federal Financial (CFFN)
Capitol Federal Financial (CFFN)
Capitol Federal Financial — Investor Presentation (February 2006) on 6ix