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Capitol Federal Financial, Inc.® Reports First Quarter Fiscal Year 2020 Results
TOPEKA, Kan.--(BUSINESS WIRE)-- Capitol Federal Financial, Inc.® (NASDAQ: CFFN) (the "Company"), the parent company of Capitol Federal Savings Bank (the
About this update from Capitol Federal Financial, Inc.
[{"type":"text","content":" TOPEKA, Kan.--(BUSINESS WIRE)--\nCapitol Federal Financial, Inc.® (NASDAQ: CFFN) (the \"Company\"), the parent company of Capitol Federal Savings Bank (the \"Bank\"), announced results today for the quarter ended December 31, 2019. Detailed results will be available in the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, which will be filed with the Securities and Exchange Commission (\"SEC\") on or about February 7, 2020 and posted on our website, http://ir.capfed.com. For best viewing results, please view this release in Portable Document Format (PDF) on our website.\n\n\nHighlights for the quarter include:\n\n\n\nnet income of $22.5 million;\n\n\nbasic and diluted earnings per share of $0.16;\n\n\nnet interest margin of 2.18%;\n\n\npaid dividends of $58.7 million, or $0.425 per share; and\n\n\non January 28, 2020, announced a cash dividend of $0.085 per share, payable on February 21, 2020 to stockholders of record as of the close of business on February 7, 2020.\n\n\n\nComparison of Operating Results for the Three Months Ended December 31, 2019 and September 30, 2019\n\n\nFor the quarter ended December 31, 2019, the Company recognized net income of $22.5 million, or $0.16 per share, compared to net income of $22.4 million, or $0.16 per share, for the quarter ended September 30, 2019. Income tax expense decreased $1.6 million from the prior quarter largely offset by a $1.1 million, or 2.2%, decrease in net interest income. The net interest margin increased three basis points from 2.15% for the prior quarter to 2.18% for the current quarter. Excluding the effects of the leverage strategy, the net interest margin would have decreased six basis points, from 2.24% for the prior quarter to 2.18% for the current quarter. The leverage strategy was in place during a portion of the prior quarter, and was not in place during the current quarter. The leverage strategy was suspended at certain times during the prior quarter and during all of the current quarter due to the negative interest rate spreads between the related Federal Home Loan Bank Topeka (\"FHLB\") borrowings and cash held at the Federal Reserve Bank of Kansas City (the \"FRB of Kansas City\"), making the transaction unprofitable. See additional discussion regarding the leverage strategy in the Financial Condition section below. When the leve...