Capitol Federal Financial(US:CFFN)2026-02-06 15:45Financial Performance - The Company reported a net income of $20.3 million, or $0.16 per share, for the quarter ended December 31, 2025, an increase from $15.4 million, or $0.12 per share, for the same quarter in 2024[110]. - The net income for the quarter ended December 31, 2025, was $20.3 million, compared to $18.8 million in the previous quarter[216]. - For the three months ended December 31, 2025, net income increased to $20,304 thousand, a 31.6% rise from $15,431 thousand in the prior year[262]. - Basic EPS for the quarter ended December 31, 2025, was $0.16, an increase from $0.14 in the previous quarter[216]. - The Company reported net interest income of $51.3 million for the quarter ended December 31, 2025, an increase from $48.8 million in the previous quarter[216]. - Total interest and dividend income for the current quarter was $105.989 million, an increase of 8.6% from $97.622 million in the prior year quarter[248]. Loan Portfolio - The loan portfolio totaled $8.18 billion at December 31, 2025, reflecting a $64.8 million increase from September 30, 2025, with commercial loans growing by $162.6 million[113]. - Loans receivable increased by $64.8 million during the current quarter, with commercial loans growing by $162.6 million, primarily in the commercial real estate portfolio[132]. - Total commercial loans for the three months ended December 31, 2025, amounted to $364,601 thousand, with a weighted average rate of 6.45% compared to $241,276 thousand and 7.08% in the same period of 2024[138]. - The total unpaid principal balance of the Bank's commercial real estate and construction loans as of December 31, 2025, is $2,058,733,000, with a weighted average LTV of 63% and a DSCR of 1.73x[154]. - The Bank's commercial real estate portfolio included $1,379,099 thousand in non-owner occupied properties and $161,736 thousand in owner occupied properties as of December 31, 2025[148]. Deposits and Equity - Total deposits increased by $167.2 million to $6.76 billion at December 31, 2025, driven by growth in high yield savings accounts and retail checking accounts[116]. - Stockholders' equity decreased by $6.4 million to $1.04 billion at December 31, 2025, due to share repurchases and dividend payments totaling $11.0 million[118]. - The total deposits increased to $6.76 billion at December 31, 2025, up from $6.59 billion at September 30, 2025, driven by a $96.8 million increase in high yield savings accounts[192]. - The Bank's stockholders' equity totaled $1.04 billion as of December 31, 2025, exceeding regulatory capital requirements[206]. Asset Quality - The Bank's asset quality remained strong, with loans 30 to 89 days delinquent at 0.24% and loans 90 or more days delinquent at 0.10% of total loans receivable[115]. - Approximately 59% of the loans that are 30 to 89 days delinquent at December 31, 2025, were 59 days or less delinquent[164]. - Nonaccrual loans totaled $48,882,000, accounting for 0.60% of total loans, up from $48,063,000 or 0.59% in September 2025[167]. - The allowance for credit losses (ACL) at the end of December 2025 was $24,572,000, with a ratio of ACL to loans receivable at 0.30%[178]. Efficiency and Cost Management - The efficiency ratio improved to 53.66% for the current quarter, down from 57.86% in the prior year quarter, primarily due to higher net interest income[112]. - The Company's efficiency ratio improved to 53.66% from 56.84% in the prior quarter, indicating better cost management relative to revenue generation[242]. - Total non-interest expense decreased to $30.476 million from $31.018 million in the prior quarter, a reduction of 1.7%[241]. Dividends and Share Repurchases - Total dividends declared and paid during fiscal year 2025 amounted to $44.3 million, with regular quarterly cash dividends of $11.0 million or $0.085 per share in Q1 of fiscal year 2026[127]. - During the quarter ended December 31, 2025, the Company repurchased 2,376,633 shares of common stock at an average price of $6.86 per share, totaling $16.3 million[207]. - The Company intends to continue opportunistically repurchasing stock based on market conditions and available liquidity[207]. - A special cash dividend of $0.04 per share, totaling approximately $5.1 million, was announced on December 17, 2025[208]. Future Outlook and Strategy - The Company expects commercial loan growth of approximately 18% for the current fiscal year, with a near-term projected growth of about 1% for the quarter ending March 31, 2026[114]. - The Bank plans to introduce digital onboarding for small business customers in Q2 of fiscal year 2026, utilizing industry-leading risk management tools[124]. - The Company plans to broaden its focus on commercial insurance lines during fiscal year 2026, aligning with its strategy to expand commercial banking services[239]. - The Bank is expanding its private wealth management services, targeting customers with $5.0 million or more in personal relationships[126].