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Capitol Federal Financial, Inc.® Reports Third 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 June 30, 2024. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com.\n\n\nHighlights for the quarter include:\n\n\n\nnet income of $9.6 million;\n\n\n\nbasic and diluted earnings per share of $0.07;\n\n\n\nnet interest margin of 1.77%;\n\n\n\npaid dividends of $0.085 per share; and\n\n\n\non July 23, 2024, announced a cash dividend of $0.085 per share, payable on August 16, 2024 to stockholders of record as of the close of business on August 2, 2024\n\n\n\nThe Company's Board of Directors is committed to paying the $0.085 per share cash dividend each quarter for the foreseeable future. As a result of the income tax on the quarterly earnings distribution from the Bank to the Company due to the recapture of the Bank's bad debt reserves, the Company's quarterly earnings may not be sufficient to fully cover the amount of the quarterly dividend payment. Because of that, the Company is retaining cash balances to support future dividend payments. The amount of cash held by the Company at June 30, 2024 was $49.1 million.\n\n\nComparison of Operating Results for the Three Months Ended June 30, 2024 and March 31, 2024\n\n\nFor the quarter ended June 30, 2024, the Company recognized net income of $9.6 million, or $0.07 per share, compared to net income of $13.8 million, or $0.11 per share, for the quarter ended March 31, 2024. The lower net income in the current quarter was due primarily to higher income tax expense, mainly from income tax expense on the quarterly earnings distribution from the Bank to the holding company due to the Bank's pre-1988 bad debt recapture, and a higher provision for credit losses due largely to commercial loan growth. The income tax expense associated with the pre-1988 bad debt recapture negatively impacted earnings by $0.03 per share in the current quarter. See additional discussion regarding the Bank's pre-1988 bad debt recapture in the \"Income Tax Expense\" section below. The net interest margin decreased five basis points, from 1.82% for the prior quarter to 1.77% for the current quarter due mainly to increase...