Capitol Federal Financial ( CFFN ) released its Q1 2026 results on January 28. It followed with a more detailed description of its operations with its latest 10-Q on February 6. Earnings per share of $0.16I have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual st ...

Core Viewpoint - Capitol Federal Financial (CFFN) reported earnings per share of $0.16 for Q1 2026, indicating its financial performance during this period [1]. Financial Performance - The earnings per share of $0.16 reflects the company's profitability for the first quarter of 2026 [1]. Company Operations - A detailed description of the company's operations was provided in its latest 10-Q filing, which was released on February 6 [1].

Financial Performance - The Company reported a net income of $20.3 million, or $0.16 per share, for the quarter ended December 31, 2025, an increase from $15.4 million, or $0.12 per share, for the same quarter in 2024[110]. - The net income for the quarter ended December 31, 2025, was $20.3 million, compared to $18.8 million in the previous quarter[216]. - For the three months ended December 31, 2025, net income increased to $20,304 thousand, a 31.6% rise from $15,431 thousand in the prior year[262]. - Basic EPS for the quarter ended December 31, 2025, was $0.16, an increase from $0.14 in the previous quarter[216]. - The Company reported net interest income of $51.3 million for the quarter ended December 31, 2025, an increase from $48.8 million in the previous quarter[216]. - Total interest and dividend income for the current quarter was $105.989 million, an increase of 8.6% from $97.622 million in the prior year quarter[248]. Loan Portfolio - The loan portfolio totaled $8.18 billion at December 31, 2025, reflecting a $64.8 million increase from September 30, 2025, with commercial loans growing by $162.6 million[113]. - Loans receivable increased by $64.8 million during the current quarter, with commercial loans growing by $162.6 million, primarily in the commercial real estate portfolio[132]. - Total commercial loans for the three months ended December 31, 2025, amounted to $364,601 thousand, with a weighted average rate of 6.45% compared to $241,276 thousand and 7.08% in the same period of 2024[138]. - The total unpaid principal balance of the Bank's commercial real estate and construction loans as of December 31, 2025, is $2,058,733,000, with a weighted average LTV of 63% and a DSCR of 1.73x[154]. - The Bank's commercial real estate portfolio included $1,379,099 thousand in non-owner occupied properties and $161,736 thousand in owner occupied properties as of December 31, 2025[148]. Deposits and Equity - Total deposits increased by $167.2 million to $6.76 billion at December 31, 2025, driven by growth in high yield savings accounts and retail checking accounts[116]. - Stockholders' equity decreased by $6.4 million to $1.04 billion at December 31, 2025, due to share repurchases and dividend payments totaling $11.0 million[118]. - The total deposits increased to $6.76 billion at December 31, 2025, up from $6.59 billion at September 30, 2025, driven by a $96.8 million increase in high yield savings accounts[192]. - The Bank's stockholders' equity totaled $1.04 billion as of December 31, 2025, exceeding regulatory capital requirements[206]. Asset Quality - The Bank's asset quality remained strong, with loans 30 to 89 days delinquent at 0.24% and loans 90 or more days delinquent at 0.10% of total loans receivable[115]. - Approximately 59% of the loans that are 30 to 89 days delinquent at December 31, 2025, were 59 days or less delinquent[164]. - Nonaccrual loans totaled $48,882,000, accounting for 0.60% of total loans, up from $48,063,000 or 0.59% in September 2025[167]. - The allowance for credit losses (ACL) at the end of December 2025 was $24,572,000, with a ratio of ACL to loans receivable at 0.30%[178]. Efficiency and Cost Management - The efficiency ratio improved to 53.66% for the current quarter, down from 57.86% in the prior year quarter, primarily due to higher net interest income[112]. - The Company's efficiency ratio improved to 53.66% from 56.84% in the prior quarter, indicating better cost management relative to revenue generation[242]. - Total non-interest expense decreased to $30.476 million from $31.018 million in the prior quarter, a reduction of 1.7%[241]. Dividends and Share Repurchases - Total dividends declared and paid during fiscal year 2025 amounted to $44.3 million, with regular quarterly cash dividends of $11.0 million or $0.085 per share in Q1 of fiscal year 2026[127]. - During the quarter ended December 31, 2025, the Company repurchased 2,376,633 shares of common stock at an average price of $6.86 per share, totaling $16.3 million[207]. - The Company intends to continue opportunistically repurchasing stock based on market conditions and available liquidity[207]. - A special cash dividend of $0.04 per share, totaling approximately $5.1 million, was announced on December 17, 2025[208]. Future Outlook and Strategy - The Company expects commercial loan growth of approximately 18% for the current fiscal year, with a near-term projected growth of about 1% for the quarter ending March 31, 2026[114]. - The Bank plans to introduce digital onboarding for small business customers in Q2 of fiscal year 2026, utilizing industry-leading risk management tools[124]. - The Company plans to broaden its focus on commercial insurance lines during fiscal year 2026, aligning with its strategy to expand commercial banking services[239]. - The Bank is expanding its private wealth management services, targeting customers with $5.0 million or more in personal relationships[126].

Financial Performance - Total assets reached $9.78 billion, with stockholders' equity at $1.04 billion and net income of $20.3 million for the quarter ended December 31, 2025[2]. - Net income increased to $20.3 million, up from $18.8 million in the prior quarter, with earnings per share of $0.16[4]. - The Company reported net income of $20.3 million, or $0.16 per share, for the current quarter, an increase of 31.6% compared to $15.4 million, or $0.12 per share, for the prior year quarter[29][45]. - Net income for the quarter was $20,304 thousand, representing an increase of 7.9% from $18,813 thousand in the previous quarter and a 31.5% increase from $15,431 thousand year-over-year[68]. - The effective tax rate increased to 19.5% from 19.2% in the prior year quarter, primarily due to higher pretax income[45][46]. Loan and Deposit Growth - Commercial loan portfolio grew by $162.6 million, or 30.7% annualized, reaching $2.28 billion, while commercial deposits increased by $19.5 million, or 15.3% annualized[4]. - Loans receivable increased by $64.8 million during the quarter, with commercial loans growing by $162.6 million, while one- to four-family loans decreased by $98.6 million[50]. - Deposits rose by $167.2 million, primarily due to the Bank's high yield savings account offering, which had an annual percentage yield of 3.80% as of December 31, 2025[51]. - Total deposits increased to $6,062,459 thousand, up from $5,935,167 thousand in the previous quarter and $5,618,365 thousand year-over-year[70]. Interest Income and Margin - Total interest and dividend income rose to $105.989 million, an increase of 8.6% from $97.622 million in the prior year quarter[31]. - Net interest income increased, contributing to a net interest margin rise of 33 basis points, from 1.86% in the prior year quarter to 2.19% in the current quarter[29]. - The net interest margin for the quarter was 2.19%, an increase from 2.09% in the previous quarter and from 1.86% year-over-year[72]. - Total interest and dividend income for the three months ended December 31, 2025, was $105,989 thousand, an increase of 1.9% from $104,044 thousand in the previous quarter and a 8.5% increase from $97,622 thousand in the same quarter last year[68]. Efficiency and Expenses - The efficiency ratio improved to 53.66%, down from 56.84% in the prior quarter[4]. - The Company's efficiency ratio improved to 53.66% from 57.86% in the prior year quarter, indicating better cost management relative to revenue generation[25][43]. - Non-interest expense totaled $30.476 million, a 12.3% increase from $27.148 million in the prior year quarter, driven by higher salaries and employee benefits[41]. - Total non-interest expense was $30,476 thousand, down 1.7% from $31,018 thousand in the previous quarter and up 12.5% from $27,148 thousand year-over-year[68]. Shareholder Returns - The company repurchased 2,376,633 shares at an average price of $6.86 per share, totaling $16.3 million in the first quarter of fiscal year 2026[12]. - Total dividends declared and paid during fiscal year 2025 were $44.3 million, with a regular quarterly cash dividend of $0.085 per share planned for the remainder of fiscal year 2026[12]. - The Company has returned $2.03 billion in capital to stockholders since its second-step conversion, including $1.58 billion in dividends and $456.2 million in stock repurchases[59]. Credit Quality and Risk - The provision for credit losses was recorded at $1.1 million, up from $519 thousand in the prior quarter, primarily due to commercial loan growth[19]. - The allowance for credit losses (ACL) ratio for commercial loans decreased as of December 31, 2025, primarily due to changes in the composition of the commercial and industrial loan portfolios[120]. - Non-performing assets totaled $49.3 million as of December 31, 2025, accounting for 0.50% of total assets, compared to $48.3 million and 0.49% in September 2025[112]. - The total amount of nonaccrual loans was $48.9 million, representing 0.60% of total loans as of December 31, 2025, slightly up from 0.59% in September 2025[112]. Securities and Borrowings - The securities portfolio at amortized cost was $829.7 million, with a weighted average yield of 5.48% and a weighted average life of 4.1 years as of December 31, 2025[130]. - The weighted average effective rate for term borrowings as of December 31, 2025, was 3.65%, with total borrowings amounting to $1,829,816 thousand[140]. - The projected one-year gap between interest-earning assets and interest-bearing liabilities was $(1.23) billion, or (12.6%) of total assets, an increase from $(983.6) million, or (10.1%) of total assets, at September 30, 2025[144].

Capitol Federal Financial (CFFN) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +10.35%. A quarter ago, it was expected that this holding company for Capitol Federal Savings Bank would post earnings of $0.14 per share when it actually produced earnings of $0.14, delivering no surpris ...

QUARTERLY INVESTOR PRESENTATION Safe Harbor Disclosure Except for the historical information contained in this press release, the matters discussed herein may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "will," "believe," "anticipate," "e ...

Core Viewpoint - Options markets are indicating significant post-earnings volatility for several stocks, particularly regional banks, with expectations of price swings being amplified by the Federal Reserve's policy decision [1][2]. Group 1: Implied Moves and Earnings Reports - Options markets are pricing in double-digit to near-50% post-earnings swings for a group of regional banks [2]. - Ten stocks are highlighted with implied moves of approximately 30% or more ahead of their earnings reports this week [3]. - Capitol Federal Financial, Inc. is expected to have the highest implied move at 48.48%, with earnings per share projected at 15 cents and revenue at $57.51 million [5][6]. - First Financial Bancorp follows closely with a 47.50% implied move, expecting earnings per share of 56 cents and revenue of $245.83 million [5][6]. - Other notable stocks include Provident Financial Services, Inc. (39.22% implied move), First BanCorp (39.09% implied move), and West Bancorporation, Inc. (35.92% implied move) [5][6]. Group 2: Specific Stock Details - Beacon Financial Corp. anticipates earnings per share of 79 cents and revenue of $224.81 million, with an implied move of 29.48% [5]. - ConnectOne Bancorp, Inc. expects earnings per share of 73 cents and revenue of $110.15 million, with an implied move of 29.51% [5]. - High Tide Inc., the only non-bank on the list, is set to report earnings per share of $0.01 and revenue of $114.95 million, with an implied move of 30.12% [5]. - Primis Financial Corp. is projected to have earnings per share of $1.10 and revenue of $34.98 million, with an implied move of 31.17% [5]. - Hope Bancorp, Inc. expects earnings per share of 26 cents and revenue of $142.91 million, with an implied move of 32.94% [5].

Core Viewpoint - Capitol Federal Financial, Inc. announced a special dividend and provided an update on its stock buyback program, indicating a strong financial position and commitment to returning value to shareholders [1] Dividend Announcement - The company declared a special dividend of $0.10 per share, which will be payable on December 1, 2023, to shareholders of record as of November 17, 2023 [1] Stock Buyback Update - Capitol Federal Financial has repurchased approximately 1.5 million shares of its common stock during the fiscal year 2023, reflecting the company's strategy to enhance shareholder value [1] - The company has approximately $20 million remaining under its current stock repurchase authorization, indicating ongoing commitment to buybacks [1]

Financial Performance - The Company reported a net income of $68.0 million, or $0.52 per share, for fiscal year 2025, up from $38.0 million, or $0.29 per share, in the prior year, primarily due to higher net interest income [143]. - The efficiency ratio improved to 58.33% for the current fiscal year, down from 66.91% in the prior year, reflecting higher net interest income [146]. - The return on average assets increased to 0.71% in 2025 from 0.40% in 2024, reflecting enhanced profitability relative to total assets [285]. - The return on average equity improved to 6.54 in 2025, up from 3.69 in 2024, indicating stronger returns for shareholders [285]. - Net income for the current fiscal year was $68.025 million, a 79.0% increase from $38.010 million in the prior fiscal year, with pretax income rising by 53.4% to $83.021 million [307]. Loan Portfolio - Total loans receivable increased to $8.0 billion in 2025, with a net interest income of $180.3 million, compared to $7.9 billion and $162.1 million in 2024, respectively [288]. - The commercial loan portfolio increased by $607.0 million, or approximately 40%, during the current fiscal year, while one- to four-family loans decreased by $400.0 million [148]. - The one- to four-family loan portfolio decreased to $3.77 billion, representing 64% of the total one- to four-family loan portfolio, impacted by high interest rates and limited housing inventory [177][176]. - The commercial loan portfolio, which includes commercial real estate loans, reached $2.12 billion, up from $1.51 billion in the previous year, with a weighted average yield of 5.98% [187]. - Total originated commercial loans amounted to $797,466,000 with a weighted average rate of 6.93% and a weighted average LTV of 65% [203]. Asset and Liability Management - Total assets reached $9.78 billion as of September 30, 2025, an increase of $251.1 million from the previous year, mainly due to loan portfolio growth funded by deposit increases [147]. - Total liabilities increased to $8.73 billion, up $235.7 million from the previous year, primarily due to a $364.5 million increase in deposits from high yield savings accounts [151]. - The Bank's total borrowings were $1.95 billion, representing approximately 20% of total assets, with a borrowing limit of 44% starting November 1, 2025 [312]. - The weighted average rate for total deposits decreased to 2.26% in 2025 from 2.45% in 2024 [251]. - The Bank had $2.92 billion in liquidity available as of September 30, 2025, based on its collateral agreements and unencumbered securities [313]. Credit Quality and Risk Management - The Allowance for Credit Losses (ACL) was $24.0 million as of September 30, 2025, an increase from $23.0 million in the previous year, while the reserve for off-balance sheet credit exposures decreased to $5.5 million from $6.0 million [171]. - Nonaccrual loans as a percentage of total loans increased to 0.59% as of September 30, 2025, from 0.13% in the previous year [225]. - The total non-performing assets amounted to $48.3 million, representing 0.49% of total assets as of September 30, 2025 [225]. - The ratio of ACL to total loans increased to 0.30% as of September 30, 2025, compared to 0.29% in the previous year, primarily due to a shift in the loan portfolio mix towards commercial loans [239]. - The provision for credit losses for the year ended September 30, 2025, was $1.202 million, a significant increase from a provision of $(633) thousand in 2024 [242]. Dividend and Shareholder Returns - Stockholders' equity totaled $1.05 billion as of September 30, 2025, with total dividends declared and paid during fiscal year 2025 amounting to $44.3 million [152]. - The Company plans to continue regular quarterly cash dividends of $0.085 per share and explore further share repurchase opportunities in fiscal year 2026 [163]. - The Company paid $44.3 million in cash dividends during the fiscal year, equating to $0.34 per share [271]. - A stock repurchase of 618,260 shares was executed at an average price of $6.23 per share during the fiscal year [272]. - Since the second-step conversion in December 2010, the Company has returned $2.01 billion to stockholders through dividends and stock repurchases [273]. Strategic Initiatives and Future Outlook - The Company anticipates growing past $10 billion in total assets in the coming fiscal years due to strategic initiatives [308]. - Management continues to evaluate capital allocation strategies to enhance stockholder value, including stock repurchases and additional cash dividends [273]. - The projected disbursements for the quarter ending December 31, 2025, are expected to be $75,856,000 [209]. - The Company aims to maintain a tier 1 leverage ratio of about 9% to manage risk effectively [275]. - The Bank is expected to continue making earnings distributions to the Company during fiscal year 2026, contingent on maintaining positive tax accumulated earnings [276]. Operational and Compliance Risks - Cybersecurity risks continue to rise, potentially impacting the Bank's operations and reputation [86]. - Compliance with evolving privacy and data protection laws may result in higher costs and restrict business activities [92]. - The Bank and the Company face potential business, reputation, and financial risks from third-party vendors, including operational errors and information security breaches [94]. - The Bank heavily relies on technology for product delivery and business operations, necessitating ongoing investment in technological solutions and system upgrades [97]. - There are risks associated with implementing new technology initiatives, including potential delays, budget overruns, and negative operational impacts [97].

Core Insights - Capitol Federal Financial, Inc. (CFFN) reported an EPS of $0.52 for the year ended September 2025, which exceeded the previous estimate of $0.49 [1] Financial Performance - The reported EPS of $0.52 indicates a positive performance compared to the analyst's prior estimate [1]