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

Financial Performance - The company reported net income of $15.4 million, or$0.12 per share, for the quarter ended December 31, 2024, an increase of $3.4 million from the previous quarter[6]. - Net income for the three months ended December 31, 2024, was$15.4 million, a 506.8% increase from $2.5 million in the prior year[38]. - Net income for the quarter ended December 31, 2024, was$15.431 million, an increase from $12.057 million in the previous quarter[60]. - The effective tax rate decreased to 19.2$97.622 million, a $755 thousand increase from the previous quarter, primarily driven by an increase in the average balance of the commercial loan portfolio[4]. - Non-interest income decreased to$4.693 million, down $93 thousand from the previous quarter, with deposit service fees declining by 4.3$27.148 million, with salaries and employee benefits rising by 8.8% due to the accrual of incentive compensation[14]. - The company's efficiency ratio improved to 57.86% from 59.29% in the prior quarter, indicating better cost management relative to revenue generation[15]. Loan Portfolio and Credit Losses - The provision for credit losses was recorded at $677 thousand, compared to a provision release of$637 thousand in the prior quarter, reflecting a $2.0 million increase in the allowance for credit losses for loans[10]. - The Company recorded a provision for credit losses of$677 thousand during the current quarter, compared to $123 thousand for the prior year quarter[30]. - The allowance for credit losses (ACL) increased to$24.997 million, with a ratio of ACL to loans receivable at 0.31% as of December 31, 2024[91]. - The ratio of non-performing loans to total loans was 0.13% as of December 31, 2024, up from 0.12% in the previous quarter[85]. Asset and Liability Management - Total assets increased by 0.4% to $9.54 billion as of December 31, 2024, from$9.53 billion at the end of the previous quarter[40]. - Total interest-earning assets increased to $9,088,947 thousand with a net interest income of$42,230 thousand for the three months ended December 31, 2024, reflecting a net interest margin of 1.86%[63]. - Total interest-bearing liabilities reached $7,815,163 thousand with an average rate of 2.79$2,735,138 thousand with an average rate of 0.88%[119]. Securities and Investments - The Company initiated a securities strategy by selling $1.30 billion of securities, representing 94$192.6 million[23]. - The securities portfolio's ending balance was $861.5 million with a weighted average yield of 5.62$0.085 per share, payable on February 21, 2025, to stockholders of record as of February 7, 2025[6]. - Stockholders' equity totaled $1.03 billion at December 31, 2024, a decrease of$5.3 million from September 30, 2024, primarily due to a decrease in accumulated other comprehensive income[48]. - 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[51]. Market and Economic Conditions - Single-family origination activity has slowed, with originated loan balances decreasing due to high interest rates and limited housing inventory, impacting the one- to four-family loan portfolio[42]. - The one- to four-family originated loan portfolio is expected to continue decreasing due to ongoing housing affordability challenges[42]. - The bank anticipates funding approximately $87.5 million in commercial real estate and construction loans during the March 2025 quarter[76]. Delinquency and Non-Performing Assets - The total amount of loans 30 to 89 days delinquent was$31.965 million, representing 0.40% of total loans receivable[84]. - Non-performing assets totaled $11.361 million, accounting for 0.12$15.5 million Community Reinvestment Act loan[83].