Capitol Federal Financial(CFFN) - 2025 Q1 - Quarterly Report

Financial Performance - The Company reported net income of $15.4 million, or$0.12 per share, for the current quarter, compared to $2.5 million, or$0.02 per share, in the prior year quarter[113]. - Net income for the quarter ended December 31, 2024, was $15,431,000, compared to$2,543,000 for the same quarter in 2023, reflecting a significant year-over-year increase[204]. - Basic EPS for the quarter ended December 31, 2024, was $0.12, up from$0.02 for the same quarter in 2023[204]. - Income before income tax expense increased dramatically by 823.5% to $19.098 million, with net income rising by 506.8$15.431 million[246]. - The Company reported total dividends paid year-to-date of $44,275,000 for 2024, with a per share dividend of$0.340[201]. Interest Income and Margin - Total interest and dividend income for the quarter ended December 31, 2024, was $97,622,000, an increase from$91,692,000 for the same quarter in 2023[204]. - The net interest margin increased by 15 basis points to 1.86% due to higher yields on loans and securities, outpacing the increase in deposit costs[114]. - Total interest and dividend income rose to $97.622 million, up 6.5$91.692 million in the prior year quarter, with loans receivable increasing by 7.2% to $81.394 million[232]. - The net interest margin increased by six basis points from 1.80$7.95 billion, a $46.2 million increase from the previous quarter, with commercial loans growing by 36.5$7,981,231 thousand, with a yield of 4.05%, reflecting an increase from $7,939,973 thousand and a yield of 4.00$46.2 million during the current quarter, with a shift towards commercial loans, which grew by $137.5 million[132]. - Total originated, refinanced, and purchased loans reached$335,521 thousand, with an overall weighted average rate of 6.85%[140]. Deposits and Borrowings - Total deposits increased by $76.1 million to$6.21 billion, primarily in retail savings accounts due to high-yield offerings[118]. - The deposit portfolio balance increased to $6,206,117 thousand at December 31, 2024, compared to$6,129,982 thousand at September 30, 2024[181]. - Total borrowings decreased by $15.8 million to$2.16 billion, with $2.91 billion in additional liquidity available[119]. - Total borrowings were$2.16 billion, consisting of $1.96 billion in fixed-rate FHLB advances and$200 million in variable-rate advances tied to interest rate swaps[185]. Asset Quality and Delinquency - The Bank's asset quality remained strong, with loans 30 to 89 days delinquent at 0.40% and loans 90 or more days delinquent at 0.13%[121]. - The total amount of loans 90 or more days delinquent or in foreclosure was $10.140 million, representing 0.13$31,965 thousand as of December 31, 2024, compared to $16,030 thousand in September 2024, reflecting a rise in delinquency rates[157]. - Total nonaccrual loans increased to$11,361,000 from $10,092,000, representing a rise of 12.5$27.1 million, a 0.4% increase from $27.0 million in the prior quarter, driven by higher salaries and employee benefits[222]. - The Company's efficiency ratio improved to 57.86$677 thousand, compared to a provision release of $637 thousand in the prior quarter, reflecting a$2.0 million increase in the allowance for loans[218]. Future Plans and Strategies - Management plans to launch new checking products and digital banking services for small businesses in the second quarter of fiscal year 2025[127]. - The Company anticipates sufficient taxable income in fiscal year 2025 to allow for earnings distributions to the holding company in fiscal year 2026[198]. - The Company has $75 million authorized for stock repurchase, with plans to extend the repurchase program through February 2026[196].