Capitol Federal Financial (CFFN) risk factors, FY2025 10-K

Capitol Federal Financial's FY2025 10-K, filed Nov 26, 2025, lists 13 risk factors in 6 groups. Against the prior year's 14: 1 new, 2 dropped, 8 substantially reworded.

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Risk factors listed
136 groups
New this year
1vs 14 last year
Dropped
2since the prior 10-K
Substantially reworded
8of those kept
Section length
5k wordsItem 1A

What the changes say

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

What changed since the prior 10-K

New

  • NewRisks Related to Cybersecurity, Third Parties, and Technology

    processed and stored in, and transmitted through, such information systems could be jeopardized, or could otherwise cause interruptions or malfunctions in our operations or the operations of our customers, employees, or others

    The company faces vulnerabilities from internal and external security breaches, cyberattacks, and operational disruptions across its information systems and third-party service providers.

Dropped

  • DroppedRisks Related to Macroeconomic Conditions

    Company's control, including general economic conditions, inflationary trends and/or monetary policies of the FRB and fiscal policies of the United States federal government

  • DroppedOther 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

    Impact of macroeconomic conditions and monetary policies on net interest income.

Reworded

  • 94% rewrittenRisks Related to Competition

    Strong competition may limit our growth and profitability

    Expanded the competitive landscape to include commercial finance companies, insurance companies, farm credit lenders, and non-bank lenders offering specialized loan structures.

  • 90% rewrittenRisks Related to Macroeconomic Conditions

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

    Clarified that interest rate risk is driven by long-term fixed-rate loans funded by shorter-term liabilities, removing mention of prevailing economic and competitive conditions.

  • 70% rewrittenOther Risks

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

    Updated to reflect that the Bank actually reported a net loss on its fiscal year 2024 federal tax return due to the October 2023 securities strategy.

  • 66% rewrittenOther Risks

    The Company's ability to pay dividends and repurchase shares is subject to the ability of the Bank to make capital distributions to the Company

    Added a statement regarding the Board's commitment to acting in the best interests of stockholders and valuing their constructive input.

  • 61% rewrittenRisks Related to Cybersecurity, Third Parties, and Technology

    The 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

    No substantive textual changes were made to the core text regarding information system failures and cyberattack risks.

  • 54% rewrittenOther Risks

    The Bank and the Company may be adversely affected by an increasing prevalence of fraud and other financial crimes

    Expanded fraud liability references to explicitly include the Bank alongside the Company.

    Was: The Company may be adversely affected by an increasing prevalence of fraud and other financial crimes

  • 52% rewrittenRisks 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

    Emphasized strategic commercial banking growth, disciplined underwriting, and ongoing monitoring of collateral and geographic concentrations while highlighting higher credit risks compared to residential mortgages.

  • 51% rewrittenRisks Related to Cybersecurity, Third Parties, and Technology

    We 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

    Added a disclosure noting that the company and its third-party vendors may incorporate artificial intelligence technology into business processes, services, or products.

All 13 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 condition90% rewritten

Risks Related to Lending Activities

  1. 02The 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 operations52% rewritten

Risks Related to Cybersecurity, Third Parties, and Technology

  1. 03The 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 operations61% rewritten
  2. 04processed and stored in, and transmitted through, such information systems could be jeopardized, or could otherwise cause interruptions or malfunctions in our operations or the operations of our customers, employees, or othersNew
  3. 05Third-party vendors subject the Bank and the Company to potential business, reputation and financial risks
  4. 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 performance51% rewritten

Risks Related to Competition

  1. 07Strong competition may limit our growth and profitability94% rewritten

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 Company66% rewritten
  2. 10The Bank's bad debt recapture amount may impact the amount and timing of capital distributions to the Company70% rewritten
  3. 11Our risk management and compliance programs and functions may not be effective in mitigating risk and loss
  4. 12The Company may not be able to attract and retain skilled employees
  5. 13The Bank and the Company may be adversely affected by an increasing prevalence of fraud and other financial crimes54% rewritten

Other Capitol Federal Financial 10-Ks

  • FY2024 10-K risk factors
    14 risks

    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.

    Filed Nov 27, 2024

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.