On February 16, 2009,   John B. Dicus, President, CEO, and newly elected Chairman of Capitol Federal Financial, joined the APM class to explain how Capitol Federal Savings has managed to escape the roiling financial crisis relatively unscathed. Joining Mr. Dicus was Kent Townsend, CFO of Capitol Federal, and Jim Wempe, VP of Investor Relations.
 

According to Mr. Dicus, who received undergraduate and MBA degrees from the University of Kansas, the key to Capitol Federal's success has been to avoid the toxic assets plaguing many banks' balance sheets. Rather than striving for extra return without regard to risk, Capitol Federal maintained its tried-and-true approach to banking: conservative and disciplined mortgage lending to individuals in the Midwest. Rather than following the industry into underwriting low-doc and no-doc loans, Capitol Federal remained committed to requiring full documentation for all borrowers.
These prudent practices have paid off handsomely as the economy has shifted direction. Non-current loans to total assets was 0.2% for Capitol Federal at the end of 2008, while the thrift industry as a whole stood at 2.2%. And while many banks were forced to slash dividends to strengthen their capital position, Capitol Federal paid $2.00 per share in regular dividends in 2008, plus an 11 cent per share special dividend. Management expects to pay a $0.50 per quarter dividend for the foreseeable future.
 
Mr. Dicus and Mr. Townsend said they felt very comfortable with bank's position in the current economic environment. Unfortunately, Mr. Dicus added, in its position of strength, Capitol Federal is now paying for the reckless behavior of peer institutions through higher deposit insurance. Although this will negatively impact the bank's profits in the near term, investors can be sure Capitol Federal is one bank that can thrive without a government bailout.