Capitol Federal Financial(US:CFFN)2026-01-28 16:35Financial 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].