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Capitol Federal Financial, Inc.® Reports Second 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 March 31, 2023. For best viewing results, please view this release in Portable Document Format (PDF) on our website, http://ir.capfed.com.\n\n\nHighlights for the quarter include:\n\n\n\nnet income of $14.2 million;\n\n\n\nbasic and diluted earnings per share of $0.11;\n\n\n\nnet interest margin of 1.56% (1.71% excluding the effects of the leverage strategy);\n\n\n\nannualized loan growth of 9.0%;\n\n\n\npaid dividends of $0.085 per share; and\n\n\n\non April 25, 2023, announced a cash dividend of $0.085 per share, payable on May 19, 2023 to stockholders of record as of the close of business on May 5, 2023.\n\n\n\nComparison of Operating Results for the Three Months Ended March 31, 2023 and December 31, 2022\n\n\nFor the quarter ended March 31, 2023, the Company recognized net income of $14.2 million, or $0.11 per share, compared to net income of $16.2 million, or $0.12 per share, for the quarter ended December 31, 2022. The decrease in net income was due primarily to lower net interest income in the current quarter. The net interest margin decreased five basis points, from 1.61% for the prior quarter to 1.56% for the current quarter. Excluding the effects of the leverage strategy discussed below, the net interest margin decreased 17 basis points, from 1.88% for the prior quarter to 1.71% 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 deposits and borrowings, partially offset by an increase in loan yields due to higher market interest rates and an increase in the average balance of loans. Management anticipates the reduction in the net interest margin will continue in the near term. See additional discussion in \"Fiscal Year 2023 Outlook\" below.\n\n\nLiquidity, Capital, and Uninsured Deposits\n\n\nFor short-term liquidity needs, the Bank has access to a line of credit at the Federal Home Loan Bank Topeka (\"FHLB\") in addition to the Federal Reserve Bank of Kansas City (\"FRB of Kansas City\") discount window and the newly established FRB Bank Term Funding Program. The Bank did not have any borrowings from the...