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Capitol Federal Financial, Inc.® Reports First Quarter Fiscal Year 2023 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, 2022. For best viewing results, please view this release in Portable Document Format (PDF) on our website, http://ir.capfed.com.\n\nHighlights for the quarter include:\n\n\nnet income of $16.2 million;\n\n\nbasic and diluted earnings per share of $0.12;\n\n\nnet interest margin of 1.61% (1.88% excluding the effects of the leverage strategy);\n\n\nannualized loan growth of 17.1%;\n\n\npaid dividends of $0.365 per share; and\n\n\non January 24, 2023, announced a cash dividend of $0.085 per share, payable on February 17, 2023 to stockholders of record as of the close of business on February 3, 2023.\n\n\nComparison of Operating Results for the Three Months Ended December 31, 2022 and September 30, 2022\n\nFor the quarter ended December 31, 2022, the Company recognized net income of $16.2 million, or $0.12 per share, compared to net income of $19.5 million, or $0.14 per share, for the quarter ended September 30, 2022. The decrease in net income was due primarily to lower net interest income in the current quarter. The net interest margin decreased 10 basis points, from 1.71% for the prior quarter to 1.61% for the current quarter. Excluding the effects of the leverage strategy discussed below, the net interest margin decreased 19 basis points, from 2.07% for the prior quarter to 1.88% for the current quarter. The decrease in the net interest margin excluding the effects of the leverage strategy was due mainly to an increase in the cost of borrowings and deposits, partially offset by an increase in loan yields due to higher market interest rates. Management anticipates the reduction in the net interest margin may continue in the near term. See additional discussion in \"Fiscal Year 2023 Projections\" below.\n\nLeverage Strategy\n\nAt times, the Bank has utilized a leverage strategy to increase earnings. The leverage strategy during the current quarter involved borrowing up to $2.60 billion by entering into short-term Federal Home Loan Bank Topeka (\"FHLB\") advances. During the current quarter, the average outstanding balance of leverage strategy borrowings was $1.87 billion. The borrowings were repaid prior to ...