UNITED
STATES
|
||||||
SECURITIES
AND EXCHANGE COMMISSION
|
||||||
Washington,
D.C. 20549
|
||||||
FORM
10-K
|
||||||
þ
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|||||
For
the fiscal year ended September 30, 2006 OR
|
||||||
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE
|
|||||
ACT
OF 1934
|
||||||
For
the transition period from
_____________________to_____________________
|
||||||
Commission
file number 000-25391
|
||||||
CAPITOL
FEDERAL FINANCIAL
|
||||||
(Exact
name of registrant as specified in its charter)
|
||||||
United
States
|
48-1212142
|
|||||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|||||
700
Kansas Avenue, Topeka, Kansas
|
66603
|
|||||
(Address
of principal executive offices)
|
(Zip
Code)
|
|||||
Registrant’s
telephone number, including area code:
(785) 235-1341
|
||||||
Securities
Registered Pursuant to Section 12(b) of the Act:
|
||||||
Common
Stock, par value $.01 per share The
Nasdaq Stock Market LLC
|
||||||
(Title
of class) (Exchange
on
which registered)
|
||||||
Securities
Registered Pursuant to Section 12(g)
of the Act:
None
|
||||||
|
||||||
Indicate
by check mark if the registrant is a well-known seasoned issuer,
as
defined in Rule 405 of the Securities Act. þ
Yes ¨
No
|
||||||
Indicate
by check mark if the registrant is not required to file reports pursuant
to Section 13 of Section 15(d) of the Act. ¨
Yes þ
No
|
||||||
Indicate
by check mark whether the registrant (1) has filed all reports required
to
be filed by Section 13 or 15(d) of the
|
||||||
Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter
period that the registrant was required to file
|
||||||
such
reports) and (2) has been subject to such filing requirements for
the past
90 days. þ
Yes ¨
No
|
||||||
Indicate
by check mark if disclosure of delinquent filers pursuant to Item
405 of
Regulation S-K is not contained herein, and
|
||||||
will
not be contained, to the best of registrant’s knowledge, in definitive
proxy or information statements incorporated by
reference
|
||||||
in
Part III of this Form 10-K or any amendment to this Form 10-K.
þ
|
||||||
Indicate
by check mark whether the registrant is a large accelerated filer,
an
accelerated filer, or a non-accelerated filer. See definition of
|
||||||
“accelerated
filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
(Check one):
|
||||||
Large
accelerated filer þ
Accelerated filer ¨
Non-accelerated filer ¨
|
||||||
Indicate
by check mark whether the registrant is a shell company (as defined
in
Rule 12b-2 of the Act). ¨
Yes þ
No
|
||||||
The
aggregate market value of the voting
and non-voting stock held by non-affiliates of the registrant, computed
by
reference to the
|
||||||
average
of the closing bid and asked price of such stock on the
NASDAQ Stock Market as of March 31, 2006, was $707.5 million.
|
||||||
The
exclusion from such amount of the market value of the shares owned
by any
person shall not be deemed an admission by the
|
||||||
Registrant
that such person is an affiliate of the registrant.
|
||||||
As
of December 1, 2006, there were issued and outstanding 74,113,855
shares
of the Registrant’s common stock.
|
||||||
DOCUMENTS
INCORPORATED BY REFERENCE
|
||||||
Parts
II and IV of Form 10-K - Portions of the Annual Report to Stockholders
for
the year ended September 30, 2006.
|
||||||
Part
III of Form 10-K - Portions of the proxy statement for the Annual
Meeting
of Stockholders for the year ended September
30, 2006.
|
|
||||||
|
|
|
|
|
Page No.
|
|
PART
I
|
|
Item
1.
|
|
4
|
||
Item
1A.
|
36
|
|||||
Item
1B.
|
38
|
|||||
|
|
Item
2.
|
|
38
|
||
|
|
|
||||
|
|
Item
3.
|
|
38
|
||
|
|
|
||||
|
|
Item
4.
|
|
38
|
||
|
|
|
||||
PART
II
|
|
Item
5.
|
|
39
|
||
|
|
|
||||
|
|
Item
6.
|
|
39
|
||
|
|
|
||||
|
|
Item
7.
|
|
39
|
||
|
|
|
||||
|
|
Item
7A.
|
|
39
|
||
|
|
|
||||
|
|
Item
8.
|
|
39
|
||
|
|
|
||||
|
|
Item
9.
|
|
39
|
||
|
|
|
||||
|
|
Item 9A.
|
|
40
|
||
|
|
|
||||
|
|
Item
9B.
|
|
40
|
||
|
|
|
||||
PART
III
|
|
Item
10.
|
|
40
|
||
|
|
|
||||
|
|
Item
11.
|
|
40
|
||
|
|
|
||||
|
|
Item
12.
|
|
41
|
||
|
|
|
||||
|
|
Item
13.
|
|
41
|
||
|
|
|
||||
|
|
Item
14.
|
|
41
|
||
|
|
|
||||
PART IV
|
|
Item
15.
|
|
42
|
||
43
|
||||||
|
||||||
|
||||||
· |
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
area;
|
· |
our
ability to acquire funds from or invest funds in wholesale or secondary
markets;
|
· |
the
future earnings and capital levels of the Bank, which could affect
the
ability of the Company to pay dividends in accordance with its dividend
policies;
|
· |
the
credit risks of lending and investing activities, including changes
in the
level and direction of loan delinquencies and write-offs and changes
in
estimates of the adequacy of the allowance for loan
losses;
|
· |
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;
|
· |
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 of 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,
when
required;
|
· |
the
impact of changes in financial services laws and regulations, including
laws concerning taxes, banking, securities and
insurance;
|
· |
technological
changes;
|
· |
acquisitions
and dispositions;
|
· |
changes
in consumer spending and saving habits;
and
|
· |
our
success at managing the risks involved in our
business.
|
September
30,
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
Real
Estate Loans:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
$
|
4,931,505
|
93.80
|
%
|
$
|
5,189,006
|
94.44
|
%
|
$
|
4,492,205
|
93.70
|
%
|
$
|
4,069,197
|
93.43
|
%
|
$
|
4,612,543
|
93.94
|
%
|
|||||||||||
Multi-family
|
48,331
|
0.92
|
40,636
|
0.74
|
35,421
|
0.74
|
38,464
|
0.88
|
45,985
|
0.94
|
|||||||||||||||||||||
Commercial
|
8,443
|
0.16
|
8,927
|
0.16
|
8,698
|
0.18
|
7,881
|
0.18
|
5,514
|
0.11
|
|||||||||||||||||||||
Construction
and development(1)
|
45,452
|
0.87
|
45,312
|
0.83
|
54,782
|
1.14
|
48,537
|
1.11
|
48,023
|
0.98
|
|||||||||||||||||||||
Total
real estate loans
|
5,033,731
|
95.75
|
5,283,881
|
96.17
|
4,591,106
|
95.76
|
4,164,079
|
95.60
|
4,712,065
|
95.97
|
|||||||||||||||||||||
Other
Loans:
|
|||||||||||||||||||||||||||||||
Consumer
Loans:
|
|||||||||||||||||||||||||||||||
Savings
|
6,250
|
0.12
|
8,377
|
0.15
|
9,141
|
0.19
|
10,963
|
0.25
|
11,931
|
0.24
|
|||||||||||||||||||||
Automobile
|
3,660
|
0.07
|
2,555
|
0.05
|
2,274
|
0.05
|
3,798
|
0.09
|
6,913
|
0.14
|
|||||||||||||||||||||
Home
equity
|
210,008
|
3.99
|
197,626
|
3.60
|
189,861
|
3.96
|
173,656
|
3.99
|
175,551
|
3.58
|
|||||||||||||||||||||
Other
|
3,762
|
0.07
|
1,878
|
0.03
|
1,931
|
0.04
|
2,484
|
0.07
|
3,474
|
0.07
|
|||||||||||||||||||||
Total
consumer loans
|
223,680
|
4.25
|
210,436
|
3.83
|
203,207
|
4.24
|
190,901
|
4.40
|
197,869
|
4.03
|
|||||||||||||||||||||
Commercial
business loans
|
62
|
--
|
70
|
--
|
129
|
--
|
201
|
--
|
151
|
--
|
|||||||||||||||||||||
Total
other loans
|
223,742
|
4.25
|
210,506
|
3.83
|
203,336
|
4.24
|
191,102
|
4.40
|
198,020
|
4.03
|
|||||||||||||||||||||
Total
loans receivable
|
5,257,473
|
100.00
|
%
|
5,494,387
|
100.00
|
%
|
4,794,442
|
100.00
|
%
|
4,355,181
|
100.00
|
%
|
4,910,085
|
100.00
|
%
|
||||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Loans
in process
|
22,605
|
14,803
|
23,623
|
27,039
|
21,764
|
||||||||||||||||||||||||||
Net
deferred fees and discounts
|
9,318
|
10,856
|
18,794
|
15,896
|
15,678
|
||||||||||||||||||||||||||
Allowance
for losses
|
4,433
|
4,598
|
4,495
|
4,550
|
4,825
|
||||||||||||||||||||||||||
Total
loans receivable, net
|
$
|
5,221,117
|
$
|
5,464,130
|
$
|
4,747,530
|
$
|
4,307,696
|
$
|
4,867,818
|
September
30,
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
Fixed-Rate
Loans:
|
|||||||||||||||||||||||||||||||
Real
estate:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
$
|
3,031,734
|
57.67
|
%
|
$
|
3,273,627
|
59.58
|
%
|
$
|
3,118,912
|
65.06
|
%
|
$
|
3,005,475
|
69.01
|
%
|
$
|
3,418,360
|
69.62
|
%
|
|||||||||||
Multi-family
|
47,669
|
0.91
|
40,100
|
0.73
|
34,828
|
0.73
|
37,819
|
0.87
|
44,494
|
0.91
|
|||||||||||||||||||||
Commercial
|
8,407
|
0.16
|
8,887
|
0.16
|
8,654
|
0.18
|
7,834
|
0.18
|
4,996
|
0.10
|
|||||||||||||||||||||
Construction
and development(1)
|
30,685
|
0.58
|
26,418
|
0.49
|
38,058
|
0.79
|
36,588
|
0.84
|
31,944
|
0.65
|
|||||||||||||||||||||
Total
real estate loans
|
3,118,495
|
59.32
|
3,349,032
|
60.96
|
3,200,452
|
66.76
|
3,087,716
|
70.90
|
3,499,794
|
71.28
|
|||||||||||||||||||||
Consumer
|
67,021
|
1.27
|
39,617
|
0.72
|
26,439
|
0.55
|
26,817
|
0.62
|
38,828
|
0.79
|
|||||||||||||||||||||
Commercial
business
|
62
|
--
|
70
|
--
|
129
|
--
|
201
|
--
|
151
|
--
|
|||||||||||||||||||||
Total
fixed-rate loans
|
3,185,578
|
60.59
|
3,388,719
|
61.68
|
3,227,020
|
67.31
|
3,114,734
|
71.52
|
3,538,773
|
72.07
|
|||||||||||||||||||||
Adjustable-Rate
Loans:
|
|||||||||||||||||||||||||||||||
Real
estate:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
1,899,771
|
36.13
|
1,915,379
|
34.86
|
1,373,293
|
28.64
|
1,063,722
|
24.42
|
1,194,183
|
24.32
|
|||||||||||||||||||||
Multi-family
|
662
|
0.02
|
536
|
0.01
|
593
|
0.01
|
645
|
0.01
|
1,491
|
0.03
|
|||||||||||||||||||||
Commercial
|
36
|
--
|
40
|
--
|
44
|
--
|
47
|
--
|
518
|
0.01
|
|||||||||||||||||||||
Construction
and development(1)
|
14,767
|
0.28
|
18,894
|
0.34
|
16,724
|
0.35
|
11,949
|
0.28
|
16,079
|
0.33
|
|||||||||||||||||||||
Total
real estate loans
|
1,915,236
|
36.43
|
1,934,849
|
35.21
|
1,390,654
|
29.00
|
1,076,363
|
24.71
|
1,212,271
|
24.69
|
|||||||||||||||||||||
Consumer
|
156,659
|
2.98
|
170,819
|
3.11
|
176,768
|
3.69
|
164,084
|
3.77
|
159,041
|
3.24
|
|||||||||||||||||||||
Total
adjustable-rate loans
|
2,071,895
|
39.41
|
2,105,668
|
38.32
|
1,567,422
|
32.69
|
1,240,447
|
28.48
|
1,371,312
|
27.93
|
|||||||||||||||||||||
Total
loans
|
5,257,473
|
100.00
|
%
|
5,494,387
|
100.00
|
%
|
4,794,442
|
100.00
|
%
|
4,355,181
|
100.00
|
%
|
4,910,085
|
100.00
|
%
|
||||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Loans
in process
|
22,605
|
14,803
|
23,623
|
27,039
|
21,764
|
||||||||||||||||||||||||||
Net
deferred fees and discounts
|
9,318
|
10,856
|
18,794
|
15,896
|
15,678
|
||||||||||||||||||||||||||
Allowance
for loan losses
|
4,433
|
4,598
|
4,495
|
4,550
|
4,825
|
||||||||||||||||||||||||||
Total
loans receivable, net
|
$
|
5,221,117
|
$
|
5,464,130
|
$
|
4,747,530
|
$
|
4,307,696
|
$
|
4,867,818
|
|
Multi-family
and
|
Commercial
|
|||||||||||||||||||||||||||||||||||
One-
to Four-Family
|
Commercial
|
Construction
(2)
|
Consumer
|
Business
|
Total
|
||||||||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
||||||||||||||||||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
||||||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||||||||
Amounts
due:
|
|||||||||||||||||||||||||||||||||||||
Within
one year(1)
|
$
|
827
|
6.80
|
%
|
$
|
--
|
--
|
%
|
$
|
22,037
|
5.80
|
%
|
$
|
3,551
|
6.26
|
%
|
$
|
--
|
--
|
%
|
$
|
26,415
|
5.89
|
%
|
|||||||||||||
|
|||||||||||||||||||||||||||||||||||||
After
one year:
|
|||||||||||||||||||||||||||||||||||||
One
through five years
|
29,257
|
6.11
|
554
|
7.64
|
810
|
6.38
|
10,316
|
7.21
|
27
|
7.00
|
40,964
|
6.41
|
|||||||||||||||||||||||||
After
five years
|
4,901,421
|
5.41
|
56,220
|
6.47
|
--
|
--
|
209,813
|
8.40
|
35
|
6.50
|
5,167,489
|
5.54
|
|||||||||||||||||||||||||
Total
due after one year
|
4,930,678
|
5.41
|
56,774
|
6.48
|
810
|
6.38
|
220,129
|
8.34
|
62
|
6.72
|
5,208,453
|
5.55
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||
Total
loans
|
$
|
4,931,505
|
5.41
|
%
|
$
|
56,774
|
6.48
|
%
|
$
|
22,847
|
5.82
|
%
|
$
|
223,680
|
8.31
|
%
|
$
|
62
|
6.72
|
%
|
5,234,868
|
5.55
|
%
|
||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||||||||
Deferred
loan fees
|
9,318
|
||||||||||||||||||||||||||||||||||||
Allowance
for loan losses
|
4,433
|
||||||||||||||||||||||||||||||||||||
Total
loans receivable, net
|
$
|
5,221,117
|
Fixed
|
Adjustable
|
Total
|
||||||||
Real
Estate Loans:
|
||||||||||
One-
to four-family
|
$
|
3,030,953
|
$
|
1,899,725
|
$
|
4,930,678
|
||||
Multi-family
and Commercial
|
56,075
|
699
|
56,774
|
|||||||
Construction
|
810
|
--
|
810
|
|||||||
Consumer
|
63,722
|
156,407
|
220,129
|
|||||||
Commercial
Business
|
62
|
--
|
62
|
|||||||
Total
|
$
|
3,151,622
|
$
|
2,056,831
|
$
|
5,208,453
|
Year
Ended September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
in thousands)
|
||||||||||
Originations
by type:
|
||||||||||
Adjustable-rate:
|
||||||||||
Real
estate - one- to four-family
|
$
|
147,959
|
$
|
194,802
|
$
|
248,024
|
||||
-
multi-family
|
--
|
--
|
--
|
|||||||
-
commercial
|
--
|
--
|
--
|
|||||||
Non-real
estate - consumer
|
101,956
|
119,527
|
131,639
|
|||||||
-
commercial business
|
--
|
--
|
--
|
|||||||
Total
adjustable-rate loans originated
|
249,915
|
314,329
|
379,663
|
|||||||
Fixed-rate:
|
||||||||||
Real
estate - one- to four-family
|
497,458
|
514,023
|
490,963
|
|||||||
-
multi-family
|
9,688
|
4,418
|
4,233
|
|||||||
-
commercial
|
3,107
|
4,950
|
1,200
|
|||||||
Non-real
estate - consumer
|
51,078
|
29,802
|
17,761
|
|||||||
-
commercial business
|
--
|
--
|
12
|
|||||||
Total
fixed-rate originated
|
561,331
|
553,193
|
514,169
|
|||||||
Total
loans originated
|
811,246
|
867,522
|
893,832
|
|||||||
Purchases:
|
||||||||||
Real
estate - one- to four-family
|
329,319
|
857,207
|
537,065
|
|||||||
-
multi-family
|
--
|
--
|
--
|
|||||||
-
commercial
|
--
|
--
|
--
|
|||||||
Non-real
estate - consumer
|
--
|
--
|
--
|
|||||||
Total
loans purchased
|
329,319
|
857,207
|
537,065
|
|||||||
Sales,
Swaps and Repayments:
|
||||||||||
Real
estate - one- to four-family
|
--
|
--
|
--
|
|||||||
Total
loans sold
|
--
|
--
|
--
|
|||||||
Principal
balance of loans related to loan swap transaction
|
404,819
|
--
|
--
|
|||||||
Total
sales and swaps
|
404,819
|
--
|
--
|
|||||||
Principal
repayments
|
973,054
|
1,026,175
|
992,425
|
|||||||
Total
reductions
|
1,377,873
|
1,026,175
|
992,425
|
|||||||
Increase
in other items, net
|
394
|
1,391
|
789
|
|||||||
Net
(decrease) increase
|
$
|
(236,914
|
)
|
$
|
699,945
|
$
|
439,261
|
Loans
Delinquent for 30-89 Days
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Real
Estate Loans:
|
|||||||||||||||||||
One-
to four-family
|
256
|
$
|
19,612
|
267
|
$
|
25,111
|
310
|
$
|
22,252
|
||||||||||
Multi-family
|
1
|
222
|
--
|
--
|
--
|
--
|
|||||||||||||
Consumer
|
34
|
644
|
35
|
407
|
49
|
349
|
|||||||||||||
Total
|
291
|
$
|
20,478
|
302
|
$
|
25,518
|
359
|
$
|
22,601
|
||||||||||
Loans
30-89 days delinquent to total loans
|
0.39
|
%
|
0.47
|
%
|
0.48
|
%
|
September
30,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Non-accruing
loans:
|
||||||||||||||||
One-
to four-family
|
$
|
5,391
|
$
|
5,034
|
$
|
5,761
|
$
|
8,686
|
$
|
7,701
|
||||||
Consumer
|
218
|
124
|
310
|
258
|
273
|
|||||||||||
Total
non-accruing loans
|
5,609
|
5,158
|
6,071
|
8,944
|
7,974
|
|||||||||||
Real
estate owned:
|
||||||||||||||||
One-
to four-family
|
2,401
|
1,613
|
3,976
|
3,773
|
2,886
|
|||||||||||
Construction
and development(1)
|
--
|
--
|
273
|
273
|
--
|
|||||||||||
Consumer
|
8
|
40
|
--
|
--
|
--
|
|||||||||||
Total
real estate owned
|
2,409
|
1,653
|
4,249
|
4,046
|
2,886
|
|||||||||||
Total
non-performing assets
|
$
|
8,018
|
$
|
6,811
|
$
|
10,320
|
$
|
12,990
|
$
|
10,860
|
||||||
Non-performing
assets as a percentage of total assets
|
0.10
|
%
|
0.08
|
%
|
0.12
|
%
|
0.15
|
%
|
0.12
|
%
|
||||||
Non-performing
loans as a percentage of total loans
|
0.11
|
%
|
0.09
|
%
|
0.13
|
%
|
0.21
|
%
|
0.16
|
%
|
Special
Mention
|
Substandard
|
Doubtful
|
|||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
||||||
(Dollars
in thousands)
|
|||||||||||
One-
to four-family real estate
|
20
|
$
1,238
|
102
|
$
6,689
|
--
|
$
--
|
|||||
Real
estate owned
|
--
|
--
|
36
|
2,409
|
--
|
--
|
|||||
Total
classified assets
|
20
|
$
1,238
|
138
|
$
9,098
|
--
|
$
--
|
Year
Ended September 30,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Balance
at beginning of period
|
$
|
4,598
|
$
|
4,495
|
$
|
4,550
|
$
|
4,825
|
$
|
4,837
|
||||||
Charge-offs:
|
||||||||||||||||
One-
to four-family
|
95
|
91
|
84
|
153
|
114
|
|||||||||||
Consumer
|
37
|
56
|
77
|
144
|
85
|
|||||||||||
Total
charge-offs
|
132
|
147
|
161
|
297
|
199
|
|||||||||||
Recoveries
|
1
|
35
|
42
|
22
|
3
|
|||||||||||
Net
charge-offs
|
131
|
112
|
119
|
275
|
196
|
|||||||||||
Allowance
on loans in the loan swap transaction
|
(281
|
)
|
--
|
--
|
--
|
--
|
||||||||||
Provisions
charged to operations
|
247
|
215
|
64
|
--
|
184
|
|||||||||||
Balance
at end of period
|
$
|
4,433
|
$
|
4,598
|
$
|
4,495
|
$
|
4,550
|
$
|
4,825
|
||||||
Ratio
of net charge-offs during the period to average
|
||||||||||||||||
loans
outstanding during the period (1)
|
--
|
%
|
--
|
%
|
--
|
%
|
--
|
%
|
--
|
%
|
||||||
Ratio
of net charge-offs during the period to average
|
||||||||||||||||
non-performing
assets
|
1.77
|
%
|
1.31
|
%
|
1.02
|
%
|
2.31
|
%
|
2.11
|
%
|
||||||
Allowance
as a percentage of non-accruing loans
|
79.03
|
%
|
89.14
|
%
|
74.04
|
%
|
50.87
|
%
|
60.51
|
%
|
||||||
Allowance
as a percentage of total loans (end of period)
|
0.08
|
%
|
0.08
|
%
|
0.09
|
%
|
0.11
|
%
|
0.10
|
%
|
September
30,
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Percent
|
Percent
|
Percent
|
Percent
|
Percent
|
|||||||||||||||||||||||||||
of
Loans
|
of
Loans
|
of
Loans
|
of
Loans
|
of
Loans
|
|||||||||||||||||||||||||||
in
Each
|
in
Each
|
in
Each
|
in
Each
|
in
Each
|
|||||||||||||||||||||||||||
Amount
of
|
Category
|
Amount
of
|
Category
|
Amount
of
|
Category
|
Amount
of
|
Category
|
Amount
of
|
Category
|
||||||||||||||||||||||
Loan
Loss
|
to
Total
|
Loan
Loss
|
to
Total
|
Loan
Loss
|
to
Total
|
Loan
Loss
|
to
Total
|
Loan
Loss
|
to
Total
|
||||||||||||||||||||||
Allowance
|
Loans
|
Allowance
|
Loans
|
Allowance
|
Loans
|
Allowance
|
Loans
|
Allowance
|
Loans
|
||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
$
|
3,796
|
94.18
|
%
|
$
|
3,866
|
94.78
|
%
|
$
|
3,561
|
94.19
|
%
|
$
|
3,468
|
93.99
|
%
|
$
|
3,792
|
94.13
|
%
|
|||||||||||
Multi-family
|
46
|
0.92
|
203
|
0.74
|
177
|
0.74
|
272
|
0.89
|
322
|
0.91
|
|||||||||||||||||||||
Commercial
real estate
|
8
|
0.16
|
67
|
0.16
|
65
|
0.18
|
59
|
0.18
|
38
|
0.11
|
|||||||||||||||||||||
Construction
and
|
|||||||||||||||||||||||||||||||
development(1)
|
258
|
0.46
|
129
|
0.47
|
197
|
0.60
|
143
|
0.52
|
177
|
0.53
|
|||||||||||||||||||||
Consumer
|
321
|
4.28
|
333
|
3.85
|
488
|
4.29
|
412
|
4.42
|
467
|
4.32
|
|||||||||||||||||||||
Commercial
business
|
4
|
--
|
--
|
--
|
7
|
--
|
11
|
--
|
8
|
--
|
|||||||||||||||||||||
Unallocated
|
--
|
--
|
--
|
--
|
--
|
--
|
185
|
--
|
21
|
--
|
|||||||||||||||||||||
Total
|
$
|
4,433
|
100.00
|
%
|
$
|
4,598
|
100.00
|
%
|
$
|
4,495
|
100.00
|
%
|
$
|
4,550
|
100.00
|
%
|
$
|
4,825
|
100.00
|
%
|
September
30,
|
|||||||||||||||||
2006
|
|
2005
|
|
2004
|
|||||||||||||
Carrying
Value
|
%
of
Total
|
Fair
Value
|
Carrying
Value
|
%
of
Total
|
Fair
Value
|
Carrying
Value
|
%
of
Total
|
Fair
Value
|
|||||||||
(Dollars
in thousands)
|
|||||||||||||||||
Trading
Securities
|
$ 396,904
|
|
100.00
|
%
|
$ 396,904
|
|
$ --
|
|
--
|
%
|
$ --
|
|
$ --
|
|
--
|
%
|
$ --
|
Securities
available-for-sale:
|
|||||||||||||||||
Mortgage-related
securities
|
$ 556,248
|
74.59
|
%
|
$ 556,248
|
$ 737,638
|
100.00
|
%
|
$ 737,638
|
$ 1,201,800
|
100.00
|
%
|
$ 1,201,800
|
|||||
U.S.
government and agency securities
|
188,264
|
25.25
|
188,264
|
--
|
--
|
--
|
--
|
--
|
--
|
||||||||
Municipal
investments
|
1,216
|
0.16
|
1,216
|
--
|
--
|
--
|
--
|
--
|
|
--
|
|||||||
Total
securities available-for-sale
|
$ 745,728
|
|
100.00
|
%
|
$ 745,728
|
|
$ 737,638
|
|
100.00
|
%
|
$ 737,638
|
|
$ 1,201,800
|
|
100.00
|
%
|
$ 1,201,800
|
Securities
held-to-maturity:
|
|||||||||||||||||
Mortgage-related
securities
|
$ 1,131,634
|
82.50
|
%
|
$ 1,101,159
|
$ 1,407,616
|
76.58
|
%
|
$ 1,383,268
|
$ 1,446,908
|
69.40
|
%
|
$ 1,443,168
|
|||||
U.S.
government and agency securities
|
240,000
|
17.50
|
233,525
|
430,499
|
23.42
|
424,952
|
638,079
|
30.60
|
645,601
|
||||||||
Total
securities held-to-maturity
|
$ 1,371,634
|
|
100.00
|
%
|
$ 1,334,684
|
|
$ 1,838,115
|
|
100.00
|
%
|
$ 1,808,220
|
|
$ 2,084,987
|
|
100.00
|
%
|
$ 2,088,769
|
Total
securities
|
$ 2,514,266
|
$ 2,477,316
|
$ 2,575,753
|
$ 2,545,858
|
$ 3,286,787
|
$ 3,290,569
|
September
30, 2006
|
||||||||||||||||
Less
than 1 year
|
1
to 5 years
|
5
to 10 years
|
Over
10 years
|
Total
Securities
|
||||||||||||
Weighted
|
Weighted
|
Weighted
|
Weighted
|
Weighted
|
||||||||||||
Carrying
|
Average
|
Carrying
|
Average
|
Carrying
|
Average
|
Carrying
|
Average
|
Carrying
|
Average
|
Fair
|
||||||
Value
|
Yield
|
Value
|
Yield
|
Value
|
Yield
|
Value
|
Yield
|
Value
|
Yield
|
Value
|
||||||
(Dollars
in thousands)
|
||||||||||||||||
Trading
securities
|
$ --
|
--
|
%
|
$ --
|
--
|
%
|
$ 8,077
|
4.50
|
%
|
$ 388,827
|
5.28
|
%
|
$ 396,904
|
5.26
|
%
|
$ 396,904
|
Securities
available-for-sale:
|
||||||||||||||||
Mortgage-related
securities
|
$ 5
|
8.00
|
%
|
$ 14,281
|
6.37
|
%
|
$ 11,251
|
6.00
|
%
|
$ 530,711
|
5.20
|
%
|
$ 556,248
|
5.25
|
%
|
$ 556,248
|
U.S.
government and agency securities
|
45,213
|
5.22
|
143,051
|
4.99
|
--
|
--
|
--
|
--
|
188,264
|
5.05
|
188,264
|
|||||
Municipal
investments
|
--
|
--
|
|
--
|
--
|
--
|
--
|
1,216
|
5.25
|
1,216
|
5.25
|
1,216
|
||||
Total
securities available-for-sale
|
$ 45,218
|
5.22
|
%
|
$ 157,332
|
5.12
|
%
|
$ 11,251
|
6.00
|
%
|
$ 531,927
|
5.20
|
%
|
$ 745,728
|
5.20
|
%
|
$ 745,728
|
Securities
held-to-maturity:
|
||||||||||||||||
Mortgage-related
securities
|
$ --
|
--
|
%
|
$ 56,938
|
3.50
|
%
|
$ --
|
--
|
%
|
$ 1,074,696
|
4.29
|
%
|
$ 1,131,634
|
4.25
|
%
|
$ 1,101,159
|
U.S.
government and agency securities
|
--
|
--
|
190,000
|
3.23
|
--
|
--
|
50,000
|
5.83
|
240,000
|
3.77
|
233,525
|
|||||
Total
securities held-to-maturity
|
$ --
|
--
|
%
|
$ 246,938
|
3.29
|
%
|
$ --
|
--
|
%
|
$ 1,124,696
|
4.36
|
%
|
$ 1,371,634
|
4.17
|
%
|
$ 1,334,684
|
Total
securities
|
$ 45,218
|
5.22
|
%
|
$ 404,270
|
4.00
|
%
|
$ 19,328
|
5.37
|
%
|
$ 2,045,450
|
4.75
|
%
|
$ 2,514,266
|
4.64
|
%
|
$ 2,477,316
|
Year
Ended September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
in thousands)
|
||||||||||
Opening
balance
|
$
|
3,960,297
|
$
|
4,127,774
|
$
|
4,238,145
|
||||
Deposits
|
7,422,474
|
6,935,934
|
6,507,746
|
|||||||
Withdrawals
|
7,594,727
|
7,190,694
|
6,700,409
|
|||||||
Interest
credited
|
112,387
|
87,283
|
82,292
|
|||||||
Ending
balance
|
$
|
3,900,431
|
$
|
3,960,297
|
$
|
4,127,774
|
||||
Net
decrease
|
$
|
(59,866
|
)
|
$
|
(167,477
|
)
|
$
|
(110,371
|
)
|
|
Percent
decrease
|
(1.51
|
)%
|
(4.06
|
)%
|
(2.60
|
)%
|
Year
Ended September 30,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Percent
|
Percent
|
Percent
|
|||||||||||||||||
Amount
|
of
Total
|
Amount
|
of
Total
|
Amount
|
of
Total
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Transactions
and Savings
|
|||||||||||||||||||
Deposits:
|
|||||||||||||||||||
Checking
|
$
|
402,898
|
10.33
|
%
|
$
|
398,490
|
10.06
|
%
|
$
|
380,765
|
9.22
|
%
|
|||||||
Passbook
and Passcard
|
106,347
|
2.73
|
121,133
|
3.06
|
125,992
|
3.05
|
|||||||||||||
Money
market
|
808,910
|
20.74
|
873,570
|
22.06
|
929,862
|
22.53
|
|||||||||||||
Total
non-certificates
|
1,318,155
|
33.80
|
1,393,193
|
35.18
|
1,436,619
|
34.80
|
|||||||||||||
Certificates
(by rate):
|
|||||||||||||||||||
0.00
- 0.99%
|
125
|
--
|
123
|
--
|
5,109
|
0.12
|
|||||||||||||
1.00
- 1.99%
|
--
|
--
|
137,442
|
3.47
|
636,282
|
15.41
|
|||||||||||||
2.00
- 2.99%
|
215,891
|
5.53
|
863,948
|
21.82
|
1,236,086
|
29.95
|
|||||||||||||
3.00
- 3.99%
|
541,236
|
13.88
|
905,058
|
22.85
|
449,464
|
10.89
|
|||||||||||||
4.00
- 4.99%
|
1,323,434
|
33.93
|
600,367
|
15.16
|
228,475
|
5.54
|
|||||||||||||
5.00
- 5.99%
|
497,453
|
12.75
|
2,611
|
0.07
|
22,221
|
0.54
|
|||||||||||||
6.00
- 6.99%
|
4,137
|
0.11
|
57,555
|
1.45
|
113,518
|
2.75
|
|||||||||||||
Total
certificates
|
2,582,276
|
66.20
|
2,567,104
|
64.82
|
2,691,155
|
65.20
|
|||||||||||||
Total
deposits
|
$
|
3,900,431
|
100.00
|
%
|
$
|
3,960,297
|
100.00
|
%
|
$
|
4,127,774
|
100.00
|
%
|
Amount
|
Rate
|
||||||
Certificates
maturing:
|
(Dollars
in thousands)
|
||||||
Within
three months
|
$
|
518,974
|
4.40
|
%
|
|||
Over
three to six months
|
314,279
|
4.04
|
|||||
Over
six months to one year
|
825,885
|
4.45
|
|||||
Over
one to two years
|
695,580
|
4.38
|
|||||
Over
two to three years
|
143,703
|
4.22
|
|||||
Over
three to four years
|
47,735
|
4.10
|
|||||
Over
four to five years
|
34,466
|
4.47
|
|||||
Thereafter
|
1,654
|
4.37
|
|||||
$
|
2,582,276
|
4.35
|
%
|
Amount
|
Rate
|
||||||
(Dollars
in thousands)
|
|||||||
Certificates
maturing:
|
|||||||
Three
months or less
|
$
|
235,949
|
5.00
|
%
|
|||
Over
three months through six months
|
67,286
|
4.43
|
|||||
Over
six months through twelve months
|
147,097
|
4.60
|
|||||
Over
twelve months
|
164,017
|
4.52
|
|||||
$
|
614,349
|
4.71
|
%
|
(Dollars
in thousands)
|
|
Balance
at September 30, 2006
|
$
750,000
|
Maximum
balance during fiscal year 2006
|
1,019,000
|
Average
balance during fiscal year 2006
|
817,332
|
Weighted
average interest rate during fiscal year 2006
|
3.56%
|
Weighted
average interest rate at September 30, 2006
|
3.52%
|
· |
invest
in the stock of a savings
institution;
|
· |
acquire
a mutual institution through the merger of such institution into
a savings
institution subsidiary of such mutual holding
company;
|
· |
merge
with or acquire another mutual holding company of a savings
institution;
|
· |
acquire
non-controlling amounts of the stock of savings institutions and
savings
institution holding companies, subject to certain
restrictions;
|
· |
invest
in a corporation the capital stock of which is available for purchase
by a
savings institution under Federal law or under the law of any state
where
a subsidiary savings institution has its home
office;
|
· |
furnish
or perform management services for a savings institution subsidiary
of
such company;
|
· |
hold,
manage or liquidate assets owned or acquired from a savings institution
subsidiary of such company;
|
· |
hold
or manage properties used or occupied by a savings institution subsidiary
of such company; and
|
· |
act
as a trustee under deed or trust.
|
· |
establishment
of anti-money laundering programs;
|
· |
establishment
of a program specifying procedures for obtaining identifying information
from customers seeking to open new accounts, including verifying
the
identity of customers within a reasonable period of
time;
|
· |
establishment
of enhanced due diligence policies, procedures and controls designed
to
detect and report money laundering;
|
· |
prohibitions
on correspondent accounts for foreign shell banks and compliance
with
record keeping obligations with respect to correspondent accounts
of
foreign banks.
|
· |
a
lending test, to evaluate the institution’s record of making loans in its
service areas;
|
· |
an
investment test, to evaluate the institution’s record of investing in
community development projects, affordable housing, and programs
benefiting low or moderate income individuals and businesses;
and
|
· |
a
service test, to evaluate the institution’s delivery of services through
its branches, ATMs and other
offices.
|
· |
increased
responsibility for Chief Executive Officers and Chief Financial Officers
with respect to the content of filings with the
SEC;
|
· |
enhanced
requirements for audit committees, including independence and disclosure
of expertise;
|
· |
enhanced
requirements for auditor independence and the types of non-audit
services
that auditors can provide;
|
· |
enhanced
requirements for controls and
procedures;
|
· |
accelerated
filing requirements for SEC
reports;
|
· |
disclosure
of a code of ethics; and
|
· |
increased
disclosure and reporting obligations for companies, their directors
and
their executive officers.
|
Total
|
Total
Number of
|
Maximum
Number
|
||
Number
of
|
Average
|
Shares
Purchased as
|
Of
Shares that May
|
|
Shares
|
Price
Paid
|
Part
of Publicly
|
Yet
Be Purchased
|
|
Period
|
Purchased
|
per
Share(1)
|
Announced
Plans
|
Under
the Plan
|
July
1, 2006 through
|
|
|||
July
31, 2006
|
7,289
|
33.81
|
7,289
|
545,065
|
August
1, 2006 through
|
||||
August
31, 2006
|
29,697
|
33.71
|
29,697
|
515,368
|
September
1, 2006 through
|
||||
September
30, 2006
|
15,707
|
35.11
|
15,707
|
499,661
|
Total
|
52,693
|
34.14
|
52,693
|
499,661
|
(1) |
Reflects
the average price paid per share to purchase the shares acquired
in the
open market.
|
Equity
Compensation Plan Information
|
|||
Number
of Shares
|
|||
Remaining
Available
|
|||
for
Future Issuance
|
|||
Number
of Shares
|
Under
Equity
|
||
to
be issued upon
|
Weighted
Average
|
Compensation
Plans
|
|
Exercise
of
|
Exercise
Price of
|
(Excluding
Shares
|
|
Outstanding
Options,
|
Outstanding
Options,
|
Reflected
in the
|
|
Plan
Category
|
Warrants
and Rights
|
Warrants
and Rights
|
First
Column)
|
Equity
compensation plans approved
|
|||
by
stockholders
|
668,457
|
$20.43
|
563,305(1)
|
Equity
compensation plans not approved
|
|||
by
stockholders
|
N/A
|
N/A
|
N/A
|
Total
|
668,457
|
$20.43
|
563,305
|
1. Report
of Independent Registered Public Accounting Firm.
|
2. Consolidated
Balance Sheets as of September 30, 2006 and 2005.
|
3. Consolidated
Statements of Income for the Years Ended September 30, 2006, 2005
and
2004.
|
4. Consolidated Statements of Stockholders’ Equity
for the Years Ended September 30, 2006, 2005 and 2004.
|
5. Consolidated
Statements of Cash Flows for the Years Ended September 30, 2006,
2005 and
2004.
|
6. Notes
to Consolidated Financial Statements for the Years Ended September
30,
2006, 2005 and 2004.
|
CAPITOL
FEDERAL FINANCIAL
|
|||
|
Date:
December 14, 2006
|
By:
|
/s/
John B. Dicus
|
John
B. Dicus, President and
|
|||
Chief
Executive Officer
|
|||
(Principal
Executive Officer)
|
Pursuant
to the requirements of the Securities Exchange Act of 1934, this
report
has been signed below by the
|
|||
following
persons on behalf of the Registrant and in the capacities and on
the date
indicated.
|
|||
By:
|
/s/
John B. Dicus
|
By:
|
/s/
B. B. Andersen
|
John
B. Dicus, President
|
B.
B. Andersen, Director
|
||
and
Chief Executive Officer
|
Date:
December 14, 2006
|
||
(Principal
Executive Officer)
|
|||
Date:
December 14, 2006
|
|||
By:
|
/s/
John C. Dicus
|
By:
|
/s/
Michael T. McCoy, M.D.
|
John
C. Dicus, Chairman of the Board
|
Michael
T. McCoy, M.D., Director
|
||
Date:
December 14, 2006
|
Date:
December 14, 2006
|
||
By:
|
/s/
Kent G. Townsend
|
By:
|
/s/
Marilyn S. Ward
|
Kent
G. Townsend, Executive Vice President,
|
Marilyn
S. Ward, Director
|
||
Chief
Financial Officer and Treasurer
|
Date:
December 14, 2006
|
||
(Principal
Financial Officer)
|
|||
Date:
December 14, 2006
|
|||
By:
|
/s/
Jeffrey R.
Thompson
|
By:
|
/s/
Tara D. Van Houweling
|
Jeffrey
R. Thompson, Director
|
Tara
D. Van Houweling, First Vice President
|
||
Date:
December 14, 2006
|
and
Reporting Director
|
||
(Principal
Accounting Officer)
|
|||
By:
|
/s/
Jeffrey M. Johnson
|
Date:
December 14, 2006
|
|
Jeffrey
M. Johnson, Director
|
|||
Date:
December 14, 2006
|
|||
Exhibit
Number
|
Document
|
|
2.0
|
|
Plan
of Reorganization and Stock Issuance Plan*
|
3(i)
|
Federal
Stock Charter of Capitol Federal Financial*
|
|
3(ii)
|
Bylaws
of Capitol Federal Financial filed on August 4, 2004 as Exhibit 3(ii)
to
|
|
the
June 30, 2004 Form 10-Q
|
||
4(i)
|
Form
of Stock Certificate of Capitol Federal Financial*
|
|
4(ii)
|
The
Registrant agrees to furnish to the Securities and Exchange Commission,
upon request, the
|
|
instruments
defining the rights of the holders of the Registrant’s long-term debt.
|
||
10.1
|
Registrant’s
Thrift and Stock Ownership Plan filed on December 14, 2005 as Exhibit
10.1
to
|
|
the
Annual Report on Form 10-K
|
||
10.2
|
Registrant’s
2000 Stock Option and Incentive Plan (the “Stock Option Plan”) filed on
April 13,
|
|
2000
as Appendix A to Registrant’s Revised Proxy Statement (File No.
000-25391)
|
||
10.3
|
Registrant’s
2000 Recognition and Retention Plan (the “RRP) filed on April 13, 2000 as
|
|
Appendix
B to Registrant’s Revised Proxy Statement (File No.
000-25391)
|
||
10.4
|
Capitol
Federal Financial Deferred Incentive Bonus Plan
|
|
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
|
||
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
|
||
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
|
||
10.8
|
Description
of Named Executive Officer Salary and Bonus Arrangements
|
|
10.9
|
Description
of Director Fee Arrangements filed on February 6, 2006 as Exhibit
10.9 to
the
|
|
December
31, 2005 Form 10-Q
|
||
10.10
|
Short-term
Performance Plan filed on December 14, 2005 as Exhibit 10.10 to the
Annual
|
|
Report
on Form 10-K for the fiscal year ended September 30,
2005
|
||
11
|
Statement
re: computation of earnings per share**
|
|
13
|
Annual
Report to Stockholders
|
|
14
|
Code
of Ethics***
|
|
21
|
Subsidiaries
of the Registrant
|
|
23
|
Consent
of Independent Registered Public Accounting Firm
|
|
31.1
|
Certification
pursuant to section 302 of the Sarbanes-Oxley Act of 2002 made by
John B.
Dicus, 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, Chief Executive
Officer and President, and Kent G. Townsend, Executive Vice President,
Chief Financial Officer and Treasurer
|