Financial Performance - The Company recognized net income of $26.0 million, or $0.20 per share, for the current year period, down from $38.7 million, or $0.29 per share, in the prior year period [111]. - For the quarter ended June 30, 2024, the Company reported net income of $9.6 million, or $0.07 per share, down from $13.8 million, or $0.11 per share in the previous quarter [183]. - The company reported net income of $26.0 million, or $0.20 per share, for the nine months ended June 30, 2024, compared to $38.7 million, or $0.29 per share, for the same period in 2023 [199]. - Net income decreased to $9,648 thousand, down 29.9% from $13,762 thousand in the prior quarter, influenced by a higher income tax expense [192]. - The effective tax rate increased to 38.2% from 20.1% in the previous quarter, primarily due to recording $2.9 million of income taxes on earnings distributions [192]. Securities Transactions - The Company sold $1.30 billion of securities, representing 94% of its securities portfolio, and recognized an impairment loss of $192.6 million for the quarter ended September 30, 2023 [109]. - The Company completed the sale of securities and recognized an additional loss of $13.3 million ($10.0 million net of tax), or $0.08 per share, related to the sale [109]. - The net loss from securities transactions was $13,345 thousand [161]. - The company recorded a net loss from securities transactions of $13,345,000, with no similar transaction in the prior year [205]. Interest Income and Margin - The net interest margin increased by 27 basis points from 1.50% in the prior year period to 1.77% in the current year period, primarily due to higher yields on securities and loans [113]. - The net interest margin decreased from 1.82% to 1.77% due to rising costs of retail certificates of deposit [183]. - The net interest margin improved to 1.77%, up from 1.50% in the previous period [212]. - The average yield for total interest-earning assets was 4.20% as of June 30, 2024, with total interest-earning assets amounting to $9.18 billion [267]. Loan Portfolio - The loan portfolio was $7.93 billion, a decrease of $37.9 million, with a $214.4 million drop in one- to four-family loans, partially offset by a $177.9 million increase in commercial loans [115]. - Total originated, refinanced, and purchased/participations for the nine months ended June 30, 2024, amounted to $1,393,732, with a weighted average rate of 5.67% [132]. - The total fixed-rate loans for the nine months ended June 30, 2024, were $577,271, representing 35.7% of total loans, with a weighted average rate of 5.68% [132]. - The total adjustable-rate loans for the nine months ended June 30, 2024, were $816,461, accounting for 64.3% of total loans, with a weighted average rate of 5.66% [132]. Deposits and Borrowings - Total deposits increased by $78.4 million to $6.13 billion, driven mainly by retail certificates of deposit [116]. - Total borrowings decreased by $587.5 million to $2.29 billion, primarily due to the repayment of $500 million in borrowings under the BTFP [117]. - As of June 30, 2024, total deposits amounted to $6.13 billion, with a year-over-year increase in retail certificates of deposit to $2.77 billion, representing 45.2% of total deposits [162]. - Total borrowings at June 30, 2024, were $2.29 billion, including $1.99 billion in fixed-rate FHLB advances [164]. Efficiency and Expenses - The Company's efficiency ratio was 69.77% for the current year period compared to 61.78% for the prior year period, with a potential adjusted efficiency ratio of 62.87% excluding the net loss from the securities strategy [114]. - The efficiency ratio for the quarter was 62.07%, slightly up from 61.89% in the previous quarter [181]. - Total non-interest expense decreased to $27,950 thousand, down 1.7% from $28,445 thousand, reflecting lower costs in various categories [189]. - The efficiency ratio increased to 69.77% from 61.78%, primarily due to lower non-interest income [208]. Credit Quality and Losses - The total allowance for credit losses (ACL) ratio to loans receivable was 0.33% as of September 30, 2023 [152]. - The provision for credit losses was $2,133 thousand for the current period, down from $6,054 thousand in the prior year [154]. - The provision for credit losses increased to $1.472 million, reflecting growth in commercial loans [181]. - The total amount of non-performing assets was $8,603,000, which is 0.09% of total assets [148]. Digital Transformation and Services - The digital transformation implemented in August 2023 led to a 60% increase in online deposit accounts opened compared to the prior fiscal year [120]. - The integration of Zelle into the Bank's digital platform resulted in a 37% increase in settlement volume quarter over quarter [120]. - The Bank is now accepting credits from two instant payment networks, RTP® and FedNow®, enhancing consumer banking services [121]. Capital and Equity - Stockholders' equity totaled $1.02 billion at June 30, 2024, a decrease of $23.4 million from September 30, 2023, due to share repurchases and dividend payments [173]. - The Bank's community bank leverage ratio (CBLR) was 9.1% as of June 30, 2024, exceeding regulatory capital requirements [174]. - Approximately $751.2 million, or 12% of the bank's deposit balance, was uninsured as of June 30, 2024 [163].

Company Overview - Capitol Federal Financial (CFFN) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share, which represents a year-over-year increase from $0.06 per share [8] - The company posted revenues of $45.03 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.65%, and showing an increase from year-ago revenues of $40.56 million [9] - The company has not been able to beat consensus revenue estimates over the last four quarters [9] Earnings Performance - The recent quarterly report represents an earnings surprise of -36.36% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $47.25 million, and for the current fiscal year, it is $0.42 on revenues of $171.14 million [12] Market Position - Capitol Federal shares have added about 4.7% since the beginning of the year, compared to the S&P 500's gain of 16.5% [10] - The company currently holds a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [5] - The outlook for the Financial - Savings and Loan industry, to which Capitol Federal belongs, is currently in the bottom 27% of over 250 Zacks industries [6] Future Outlook - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call [3] - The estimate revisions trend for Capitol Federal is mixed, and changes in these estimates could impact the stock's performance [5][11] - Investors are encouraged to monitor how estimates for the coming quarters and the current fiscal year change in the days ahead [12]

Loan Activity: The following table summarizes activity in the loan portfolio, along with weighted average rates where applicable, for the periods indicated, excluding changes in ACL, deferred loan fees/discounts, and premiums/deferred costs. Loans that were paid off as a result of refinances are included in repayments. Loan endorsements are not included in the activity in the following table because a new loan is not generated at the time of the endorsement. The endorsed balance and rate are included in the ...

Dividend Yield: 5.76% Wedbush analyst David Chiaverini reiterated a Neutral rating with a price target of $17 on April 24. This analyst has an accuracy rate of 61%. Piper Sandler analyst Matthew Clark maintained a Neutral rating and cut the price target from $20 to $17 on May 1, 2023. This analyst has an accuracy rate of 66%. Recent News: Hanmi Financial said it will report second quarter financial results on Tuesday, July 23. Benzinga Pro's real-time newsfeed alerted to latest HAFC's news Loading... During ...

[PART I -- FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20--%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended March 31, 2024, including the balance sheets, income statements, statements of comprehensive income, stockholders' equity, and cash flows, along with detailed notes outlining significant accounting policies and financial instrument details [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a decrease in total assets to $9.72 billion from $10.18 billion at September 30, 2023, primarily due to a securities strategy, with net income for the six months ended March 31, 2024, significantly decreasing to $16.3 million from $30.4 million in the prior-year period due to a net loss on securities transactions, and total stockholders' equity also seeing a slight decline to $1.02 billion Consolidated Balance Sheet Summary (in thousands) | Metric | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | $9,721,286 | $10,177,461 | | Loans receivable, net | $7,877,569 | $7,970,949 | | AFS securities, at fair value | $842,950 | $1,384,482 | | **Total Liabilities** | $8,696,383 | $9,133,407 | | Deposits | $6,141,711 | $6,051,220 | | Borrowings | $2,351,022 | $2,879,125 | | **Total Stockholders' Equity** | $1,024,903 | $1,044,054 | Consolidated Income Statement Summary (in thousands, except EPS) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $41,320 | $41,959 | $80,913 | $87,787 | | Provision for Credit Losses | $301 | $891 | $424 | $4,551 | | Net Loss from Securities Transactions | $0 | $0 | $(13,345) | $0 | | **Net Income** | $13,762 | $14,189 | $16,305 | $30,429 | | **Diluted EPS** | $0.11 | $0.11 | $0.12 | $0.23 | Consolidated Cash Flow Summary (Six Months Ended, in thousands) | Cash Flow From | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Operating Activities | $15,168 | $24,734 | | Investing Activities | $674,270 | $(424,258) | | Financing Activities | $(491,530) | $410,537 | | **Net Increase in Cash** | **$197,908** | **$11,013** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the basis of presentation and significant accounting policies, including the adoption of ASU 2022-02 which eliminated Troubled Debt Restructuring (TDR) accounting, providing breakdowns of securities, loans, allowance for credit losses (ACL), borrowings, income taxes, and fair value measurements, with key disclosures covering the impact of the company's securities strategy on deferred tax assets and the composition of the loan portfolio - The Company adopted ASU 2022-02 on October 1, 2023, which eliminated the accounting guidance for Troubled Debt Restructurings (TDRs), resulting in a cumulative-effect adjustment to accumulated deficit of **$27 thousand**, net of tax[316](index=316&type=chunk) - The loan portfolio is primarily composed of one- to four-family loans, with a total net balance of **$7.88 billion** at March 31, 2024, down from **$7.97 billion** at September 30, 2023[32](index=32&type=chunk)[333](index=333&type=chunk) - Borrowings decreased to **$2.35 billion** at March 31, 2024, from **$2.88 billion** at September 30, 2023, mainly due to the payoff of **$500.0 million** in borrowings from the Federal Reserve's Bank Term Funding Program (BTFP)[53](index=53&type=chunk) - Due to an anticipated taxable net loss in fiscal year 2024 from its securities strategy, the Company recorded a deferred tax asset of **$42.3 million** related to the net operating loss as of March 31, 2024[64](index=64&type=chunk) - The majority of the company's financial instruments measured at fair value, including Mortgage-Backed Securities (MBS) and interest rate swaps, are classified as Level 2, valued using observable market inputs rather than direct quoted prices[69](index=69&type=chunk)[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operating results, detailing a significant securities strategy initiated in October 2023 to improve future earnings, covering performance metrics, balance sheet changes, strong asset quality, liquidity management, and detailed comparisons of operating results across different periods [Executive Summary](index=33&type=section&id=Executive%20Summary) The company initiated a securities strategy in October 2023, selling $1.30 billion of low-yield securities and redeploying proceeds into higher-yielding assets and paying down debt, resulting in a $13.3 million net loss but expected future earnings improvement, with net income for the six months ended March 31, 2024, at $16.3 million ($0.12/share), down from $30.4 million ($0.23/share) year-over-year, primarily due to the securities loss, while the loan portfolio shifted towards commercial loans and asset quality remained strong, and digital transformation efforts improved customer engagement - In October 2023, a securities strategy was launched, selling **$1.30 billion** of securities with a **1.22%** yield, with proceeds used to purchase **$632.0 million** of securities yielding **5.75%** and pay down **$500.0 million** of borrowings with a **4.70%** cost[99](index=99&type=chunk) - Net income for the six months ended March 31, 2024, was **$16.3 million** (**$0.12/share**), compared to **$30.4 million** (**$0.23/share**) for the prior-year period, with the decrease mainly due to a **$13.3 million** net loss on the securities sale[101](index=101&type=chunk) - Total assets decreased by **$456.2 million** to **$9.72 billion** at March 31, 2024, from September 30, 2023, primarily due to the securities strategy[103](index=103&type=chunk) - The company is advancing its digital transformation, resulting in a **64%** increase in person-to-person payment volume and a **40%** increase in payment amounts year-over-year for the current quarter following the integration of Zelle[107](index=107&type=chunk) [Financial Condition](index=36&type=section&id=Financial%20Condition) As of March 31, 2024, total assets were $9.72 billion, a decrease from September 30, 2023, driven by the securities strategy, with the loan portfolio decreasing slightly to $7.88 billion, deposits increasing to $6.14 billion, and borrowings significantly decreasing to $2.35 billion after paying off BTFP debt, while asset quality remained strong with low delinquency rates, stockholders' equity decreased to $1.02 billion due to dividends and share repurchases, and the company maintains a well-capitalized status Financial Condition Summary (in thousands) | Metric | March 31, 2024 | Dec 31, 2023 | Sept 30, 2023 | | :--- | :--- | :--- | :--- | | Total assets | $9,721,286 | $9,576,064 | $10,177,461 | | Loans receivable, net | $7,877,569 | $7,947,510 | $7,970,949 | | Deposits | $6,141,711 | $6,021,595 | $6,051,220 | | Borrowings | $2,351,022 | $2,373,064 | $2,879,125 | | Stockholders' equity | $1,024,903 | $1,034,121 | $1,044,054 | - The loan portfolio is shifting, with one-to-four family loans decreasing by **$88.0 million** and commercial loans increasing by **$20.3 million** during the current quarter[121](index=121&type=chunk) - Asset quality remains strong: At March 31, 2024, loans 30 to 89 days delinquent were **0.19%** of total loans, and net charge-offs were only **$1 thousand** for the six-month period[105](index=105&type=chunk) - During the six months ended March 31, 2024, the Company repurchased **3,280,110 shares** of common stock for **$19.3 million**, and a new **$75 million** share repurchase plan was approved by the FRB in February 2024[171](index=171&type=chunk) [Operating Results](index=51&type=section&id=Operating%20Results) This section provides a detailed comparative analysis of operating results, showing net income rising to $13.8 million from $2.5 million for Q2'24 vs Q1'24, mainly due to the prior quarter's $13.3 million loss from the securities strategy, and a decrease in net income for the six months ended March 31, 2024 vs 2023, from $30.4 million to $16.3 million, also due to the securities loss, with the net interest margin improving to 1.76% from 1.59% YoY due to the absence of a low-margin leverage strategy, and highlighting the expected tax recapture of pre-1988 bad debt reserves due to an anticipated tax loss in FY2024 - **Q2'24 vs Q1'24:** Net income increased to **$13.8 million** from **$2.5 million**, with the prior quarter including a **$13.3 million** loss on securities sales, and absent this loss, EPS would have been **$0.10** in Q1'24 vs **$0.11** in Q2'24, while the net interest margin improved **11 basis points** to **1.82%**[181](index=181&type=chunk) - **6M'24 vs 6M'23:** Net income decreased to **$16.3 million** from **$30.4 million**, driven by the **$13.3 million** securities loss, and net interest margin increased **17 bps** to **1.76%**, primarily because a low-margin leverage strategy was not used in the current period[196](index=196&type=chunk)[203](index=203&type=chunk) - **Tax Impact:** An anticipated taxable net loss for FY2024 will cause any capital distributions from the Bank to the Company to trigger a recapture of pre-1988 bad debt reserves, resulting in additional income tax expense[198](index=198&type=chunk) Rate/Volume Analysis of Net Interest Income Change (6M'24 vs 6M'23, in thousands) | Component | Change Due to Volume | Change Due to Rate | Total Change | | :--- | :--- | :--- | :--- | | **Interest Income** | $(33,159) | $37,254 | $4,095 | | **Interest Expense** | $(27,779) | $38,748 | $10,969 | | **Net Interest Income** | **$(5,380)** | **$(1,494)** | **$(6,874)** | [Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by analyzing the impact of hypothetical rate changes on Net Interest Income (NII) and the Market Value of Portfolio Equity (MVPE), with the one-year interest rate gap at $(1.10) billion, or (11.3)% of total assets, as of March 31, 2024, and projections showing NII increasing by 8.9% in a +200 bps rate shock scenario while MVPE would decrease by 20.4%, indicating increased balance sheet sensitivity to rate changes due to a higher cash balance following the recent securities strategy - The company's most significant market risk is interest rate risk, managed through Net Interest Income (NII) and Market Value of Portfolio Equity (MVPE) analysis[257](index=257&type=chunk)[258](index=258&type=chunk) - The one-year interest rate sensitivity gap was **$(1.10) billion**, or **(11.3)%** of total assets, at March 31, 2024[262](index=262&type=chunk) Interest Rate Sensitivity Analysis (at March 31, 2024) | Change in Rates (bps) | Change in Net Interest Income (next 4 qtrs) | Change in Market Value of Portfolio Equity (MVPE) | | :--- | :--- | :--- | | +300 | +13.2% | -31.5% | | +200 | +8.9% | -20.4% | | +100 | +4.6% | -9.9% | | -100 | -5.0% | +9.4% | | -200 | -10.0% | +16.5% | | -300 | -15.6% | +16.5% | [Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the company's disclosure controls and procedures as of March 31, 2024, concluding their effectiveness in ensuring timely recording, processing, and reporting of information required for SEC filings, with no material changes to internal control over financial reporting occurring during the quarter - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[276](index=276&type=chunk) - There were no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[277](index=277&type=chunk) [PART II -- OTHER INFORMATION](index=77&type=section&id=PART%20II%20--%20OTHER%20INFORMATION) [Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative class action lawsuit concerning overdraft fees, which was dismissed with prejudice by the court in April 2023 but is currently under appeal by the plaintiffs, though management does not believe this or any other pending legal action will have a material adverse effect on the company's financial condition or operations - A putative class action lawsuit regarding overdraft fees, filed against the Bank, was dismissed with prejudice on April 5, 2023, but the plaintiffs have appealed this decision[285](index=285&type=chunk) - Management believes it is unlikely that any pending legal actions will have a material adverse effect on the company's financial condition, results of operations, or liquidity[278](index=278&type=chunk) [Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) This section supplements the risk factors from the annual report, highlighting that the company's ability to pay dividends and repurchase shares depends on the Bank's ability to make capital distributions, which is subject to regulatory approval, and a significant new risk has emerged where the Bank's anticipated tax loss for fiscal year 2024 will cause capital distributions to the holding company to trigger a recapture of pre-1988 bad debt reserves, resulting in additional tax expense that could impact future dividends and share repurchases - The Company's ability to pay dividends and repurchase shares is primarily dependent on the Bank's ability to make capital distributions, which are subject to regulatory oversight[280](index=280&type=chunk) - A key risk is that the Bank's anticipated net loss for tax purposes in FY2024 will cause capital distributions to the holding company to trigger the recapture of pre-1988 bad debt reserves, resulting in additional tax expense, reducing earnings available for distribution[286](index=286&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity for the quarter ended March 31, 2024, where a total of 1,246,110 shares were repurchased at an average price of $6.00 per share, with $2.0 million remaining under the existing repurchase plan, and a new, larger $75 million repurchase plan approved by the FRB set to become active after the completion of the current program Stock Repurchase Activity (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2024 | 199,400 | $6.53 | | Feb 2024 | 572,289 | $5.99 | | Mar 2024 | 474,421 | $5.78 | | **Total** | **1,246,110** | **$6.00** | - As of March 31, 2024, approximately **$2.0 million** remained available for repurchase under the existing plan[289](index=289&type=chunk) - In February 2024, the FRB approved a new share repurchase plan of up to **$75 million**, which will commence after the existing plan is completed, with the FRB's approval for this new plan expiring in February 2025[289](index=289&type=chunk)

Capitol Federal Financial (CFFN) came out with quarterly earnings of $0.11 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this holding company for Capitol Federal Savings Bank would post earnings of $0.06 per share when it actually produced earnings of $0.10, delivering a surprise of 66.67%.Over the last four quarters, the company has surpassed consensus EPS ...

NEWS RELEASE FOR IMMEDIATE RELEASE April 24, 2024 ® CAPITOL FEDERAL FINANCIAL, INC. REPORTS SECOND QUARTER FISCAL YEAR 2024 RESULTS Topeka, KS - Capitol 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 March 31, 2024. For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com. The highlights for the quarter includ ...

Investors might want to bet on Capitol Federal Financial (CFFN) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual inve ...

| --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------|------------| | | Unrealized \nGains (Losses) on AFS Securities | Unrealized \nGains (Losses) on Cash Flow Hedges \n(Dollars in thousands) | Total AOCI | | Beginning balance | (1,142) | 9,842 | 8,700 ...

Capitol Federal Financial (CFFN) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.06 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 66.67%. A quarter ago, it was expected that this holding company for Capitol Federal Savings Bank would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise ...