Capitol Federal Financial(CFFN) - 2024 Q4 - Annual Results

Financial Performance - For the quarter ended September 30, 2024, Capitol Federal Financial reported a net income of $12.1 million, or$0.09 per share, compared to $9.6 million, or$0.07 per share for the previous quarter, representing a 26.0% increase in net income [2]. - The fiscal year 2024 net income was $38.0 million, or$0.29 per share, a significant recovery from a net loss of $101.7 million, or$(0.76) per share in the prior year [13]. - The company announced a cash dividend of $0.085 per share, payable on November 15, 2024, to stockholders of record as of November 1, 2024 [1]. - For the fiscal year ended September 30, 2024, net income was$38.01 million, a significant increase of $139.67 million or 137.4$101.66 million in the prior year [26]. Interest Income and Margin - The net interest margin improved to 1.80% for the quarter, up from 1.77% in the previous quarter, driven by better performance in the loan portfolio [2]. - Total interest and dividend income for the quarter was $96.867 million, an increase of 2.0$94.995 million in the prior quarter [4]. - Interest and dividend income increased by $17.1 million, or 4.7$376.8 million, driven by a 10.2% increase in loans receivable income [17]. - The net interest margin increased by 34 basis points from 1.43% in the prior year to 1.77% in the current year, primarily due to the absence of the leverage strategy which negatively impacted the prior year's margin by 12 basis points [15]. Credit Losses and Asset Quality - The provision for credit losses for the quarter was a release of $637 thousand, compared to a provision expense of$1.5 million in the previous quarter, indicating improved asset quality [7]. - The provision for credit losses decreased to $1.3 million from$6.8 million in the prior year, reflecting a $1.9 million increase in reserves for off-balance sheet credit exposures [20]. - The company reported a total of 76 nonaccrual loans amounting to$10,092 million as of September 30, 2024, compared to 57 loans totaling $8,603 million a year earlier, reflecting a significant increase [73]. - The total non-performing assets as a percentage of total assets was 0.11$27.040 million, down 3.3% from $27.950 million in the previous quarter [10]. - The company's efficiency ratio improved to 66.91$9.53 billion, down $649.9 million or 6.4$528.2 million decrease in securities [30]. - Total liabilities at September 30, 2024, were $8.50 billion, a decrease of$638.1 million from the previous year, mainly due to a $699.6 million decrease in borrowings [31]. - Stockholders' equity totaled$1.03 billion, a decrease of $11.8 million from September 30, 2023, attributed to share repurchases and dividend payments [35]. Shareholder Actions - The Company intends to pay a regular quarterly cash dividend of$0.085 per share for fiscal year 2025, totaling $0.34 per share for the year [37]. - The Company repurchased 3,280,110 shares of common stock at an average price of$5.87 per share during the current year, with $75.0 million authorized for future repurchases [38]. - The Board of Directors will consider additional dividends if earnings in fiscal year 2025 exceed$0.34 per share [37]. Loan Portfolio and Originations - Loan originations for one- to four-family and consumer loans totaled $102.08 million for the three months ended September 30, 2024, with a rate of 6.56$350.6 million during the year ended September 30, 2024, including $156.4 million in commercial construction real estate loans [61]. - The total gross loan amount as of September 30, 2024, was$1,379.3 million, an increase from $1,562.9 million as of September 30, 2023, reflecting a growth of approximately 14.7$1.30 billion of securities, recognizing an impairment loss of $192.6 million, and redeploying proceeds into higher-yielding securities [16]. - Fixed-rate securities comprised 95$829.9 million and a weighted average yield of 5.63% as of September 30, 2024 [87].