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CORRECTING and REPLACING Capitol Federal Financial, Inc.® Revises Its Fiscal Year 2023 Results Reducing Its Net Loss
TOPEKA, Kan.--(BUSINESS WIRE)-- Please replace the release issued October 25, 2023 at 09:00 AM ET with the following corrected version due to multiple
About this update from Capitol Federal Financial, Inc.
[{"type":"text","content":" TOPEKA, Kan.--(BUSINESS WIRE)--\nPlease replace the release issued October 25, 2023 at 09:00 AM ET with the following corrected version due to multiple revisions.\n\n\nThe updated release reads:\n\n\nCAPITOL FEDERAL FINANCIAL, INC.® REVISES ITS FISCAL YEAR 2023 RESULTS REDUCING ITS NET LOSS\n\n\nCapitol Federal Financial, Inc.® (NASDAQ: CFFN) (the \"Company,\" \"we\" or \"our\"), the parent company of Capitol Federal Savings Bank (the \"Bank\"), revised the Company's fiscal year-end September 30, 2023 earnings release, which was issued on October 25, 2023, to correct the accounting treatment for the net realized losses associated with the Company's sale of securities in October 2023. All of the net losses realized were originally recorded in fiscal year 2023. Following continued review, we have determined that $13.3 million of the net pre-tax losses realized on the sale of securities should not have been reported in fiscal year 2023 net income. Rather, this amount of the loss, which was attributable to the change in valuation after September 30, 2023, should be recorded in the first quarter of fiscal year 2024. The impact to the Company’s income statement as a result of correcting the accounting treatment for the net losses on the securities sale reduced the Company’s net loss for fiscal year 2023 by $10.0 million, resulting in a net loss of $101.7 million, or $(0.76) per share, for the year, compared to a net loss of $111.7 million, or $(0.84) per share as was reported on October 25, 2023. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com.\n\n\nStrategic Securities Transaction to Improve Future Earnings\n\n\nOther than of the $13.3 million loss now being reflected in fiscal year 2024 instead of fiscal year 2023, all of the financial results of the securities transaction remain the same as reported on October 25, 2023.\n\n\nIn October 2023, the Company initiated a strategic securities transaction (“securities strategy”) by selling $1.30 billion of securities, representing 94% of its securities portfolio. Since 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, which is being reflected in our September 30, 2023 financial statements. The...