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Capitol Federal Financial, Inc.® Reports First Quarter Fiscal Year 2024 Results
TOPEKA, Kan.--(BUSINESS WIRE)-- Capitol Federal Financial, Inc.® (NASDAQ: CFFN) (the "Company," "we" or "our"), the parent company of Capitol Federal Savings
About this update from Capitol Federal Financial, Inc.
[{"type":"text","content":" TOPEKA, Kan.--(BUSINESS WIRE)--\nCapitol Federal Financial, Inc.® (NASDAQ: CFFN) (the \"Company,\" \"we\" or \"our\"), the parent company of Capitol Federal Savings Bank (the \"Bank\"), announced results today for the quarter ended December 31, 2023. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com.\n\n\nThe highlights for the quarter include:\n\n\n\nCompleted a strategic securities transaction (\"securities strategy\") to improve earnings;\n\n\n\nnet interest margin of 1.71%, an improvement of 50 basis points from the prior quarter;\n\n\n\nearnings per share of $0.02; excluding the losses from the securities strategy, earnings per share would have been $0.10;\n\n\n\npaid dividends of $0.085 per share;\n\n\n\non January 23, 2024, announced a cash dividend of $0.085 per share, payable on February 16, 2024 to stockholders of record as of the close of business on February 2, 2024.\n\n\n\nSecurities Strategy to Improve Earnings\n\n\nDuring the current quarter, the Company completed a securities strategy by selling $1.30 billion of securities with a weighted average yield of 1.22% and an average duration of 3.6 years and purchased $632.0 million of securities yielding 5.75% and paid down $500.0 million of borrowings with a cost of 4.70%. The Company plans to hold the remaining cash associated with the securities strategy at the Federal Reserve Bank (\"FRB\") earning interest at the reserve balances rate, until such time as it can be used to fund commercial loan activity or other Bank operations. The Company recognized net interest margin benefits in the current quarter associated with the securities strategy and total assets were reduced below $10.0 billion at December 31, 2023 to $9.58 billion.\n\n\nSince the Company did not have the intent to hold the $1.30 billion of securities to maturity at September 30, 2023, the Company recognized an impairment loss on those securities, $192.6 million of which was reflected in the Company's financial statements for the quarter ended September 30, 2023. During the current quarter, $13.3 million, or $0.08 per share, of additional loss related to the sale of the securities was recorded, which reflected the market value loss on these securities generated from October 1, 2023 until the sale of such securities.\n\n\nCompariso...