Capitol Federal Financial (CFFN) risk factors, FY2024 10-K

Capitol Federal Financial's FY2024 10-K, filed Nov 27, 2024, lists 14 risk factors in 6 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
146 groups
Section length
5k wordsItem 1A

Capitol Federal Financial's biggest risks in the FY2024 10-K

  • Interest rate sensitivity and net interest income dependence dominate Capitol Federal Financial's risk profile.
  • Commercial loan expansion and technology reliance create significant operational risks.
  • Regulatory oversight by the OCC, FRB, and FDIC heavily restricts business activities.

The risks most specific to Capitol Federal Financial

  • Risks Related to Macroeconomic Conditions

    Changes in interest rates could have an adverse impact on our results of operations and financial condition

    Net interest income depends heavily on fluctuating interest rates affecting loans, securities, cash at the Federal Reserve, and FHLB stock dividends.

  • Risks Related to Lending Activities

    The increase in commercial loans in our loan portfolio exposes us to increased lending and credit risks, which could adversely impact our financial condition and results of operations

    Growing commercial loan portfolios expose the Bank to larger, out-of-market loans with greater credit risks than traditional residential mortgages.

  • Risks Related to Competition

    Strong competition may limit our growth and profitability

    Competition from local, regional, and national financial institutions and online competitors may limit growth and profitability in Kansas markets.

  • Risks Related to Regulation

    We operate in a highly regulated environment, which limits the manner and scope of our business activities, and we may be adversely affected by new and/or changes in laws and regulations or interpretation of existing laws and regulations

    Extensive regulation by the OCC, FRB, and FDIC limits business activities and allows agencies to restrict operations or determine capital adequacy.

  • Other Risks

    The Bank's bad debt recapture amount may impact the amount and timing of capital distributions to the Company

    The Bank will report a fiscal year 2024 tax net loss from securities sales, resulting in negative earnings and profits.

  • Other Risks

    during fiscal year 2024. The Bank had $75.9 million in pre-1988 bad debt reserves at September 30, 2024, which equates to an unrecorded deferred tax liability of $15.9 million

    Management intends to withhold Bank earnings distributions to the holding company in fiscal year 2025 to minimize taxes on $75.9 million in pre-1988 bad debt reserves.

All 14 risk factors

Headings as the filing states them, in filing order.

Risks Related to Macroeconomic Conditions

  1. 01Changes in interest rates could have an adverse impact on our results of operations and financial condition
  2. 02Company's control, including general economic conditions, inflationary trends and/or monetary policies of the FRB and fiscal policies of the United States federal government

Risks Related to Lending Activities

  1. 03The increase in commercial loans in our loan portfolio exposes us to increased lending and credit risks, which could adversely impact our financial condition and results of operations

Risks Related to Cybersecurity, Third Parties, and Technology

  1. 04The occurrence of any information system failure or interruption, breach of security or cyberattack, at the Company, at its third-party service providers or counterparties may have an adverse effect on our business, reputation, financial condition and results of operations
  2. 05Third-party vendors subject the Company to potential business, reputation and financial risks
  3. 06We are heavily reliant on technology, and a failure to effectively implement technology initiatives or anticipate future technology needs or demands could adversely affect our business or performance

Risks Related to Competition

  1. 07Strong competition may limit our growth and profitability

Risks Related to Regulation

  1. 08We operate in a highly regulated environment, which limits the manner and scope of our business activities, and we may be adversely affected by new and/or changes in laws and regulations or interpretation of existing laws and regulations

Other Risks

  1. 09The Company's ability to pay dividends and repurchase shares is subject to the ability of the Bank to make capital distributions to the Company
  2. 10The Bank's bad debt recapture amount may impact the amount and timing of capital distributions to the Company
  3. 11during fiscal year 2024. The Bank had $75.9 million in pre-1988 bad debt reserves at September 30, 2024, which equates to an unrecorded deferred tax liability of $15.9 million
  4. 12Our risk management and compliance programs and functions may not be effective in mitigating risk and loss
  5. 13The Company may not be able to attract and retain skilled employees
  6. 14The Company may be adversely affected by an increasing prevalence of fraud and other financial crimes

Other Capitol Federal Financial 10-Ks

  • FY2025 10-K risk factors
    13 risks1 new2 dropped8 reworded

    Capitol Federal Financial updated risks regarding cybersecurity threats, commercial loan portfolio growth, competitive pressures, and technology investments including artificial intelligence.

    Filed Nov 26, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.