PR Newswire
TOPEKA, Kan., Oct. 27, 2016
TOPEKA, Kan., Oct. 27, 2016 /PRNewswire/ -- Capitol Federal® Financial, Inc. (NASDAQ: CFFN) (the "Company") announced results today for the fiscal year ended September 30, 2016. Detailed results will be available in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016, which will be filed with the Securities and Exchange Commission ("SEC") on or about November 29, 2016 and posted on our website, http://ir.capfed.com. For best viewing results, please view this release in Portable Document Format (PDF) on our website.
Highlights for the fourth quarter include:
Highlights for the fiscal year include:
Comparison of Operating Results for the Years Ended September 30, 2016 and 2015
For fiscal year 2016, the Company recognized net income of $83.5 million, or $0.63 per share, compared to net income of $78.1 million, or $0.58 per share, for fiscal year 2015. The $5.4 million, or 6.9%, increase in net income was due primarily to a $2.4 million increase in net interest income and a $2.2 million increase in non-interest income. The $2.4 million, or 1.3%, increase in net interest income from the prior fiscal year was due primarily to an $8.2 million decrease in interest expense on term borrowings, partially offset by a $4.7 million increase in interest expense on deposits.
Net income attributable to the daily leverage strategy was $2.3 million during the current fiscal year, compared to $2.8 million for the prior fiscal year. The decrease was due to the average borrowings rate on the Federal Home Loan Bank Topeka ("FHLB") line of credit increasing more than the average yield earned on the cash balances held at the Federal Reserve Bank.
The net interest margin increased two basis points, from 1.73% for the prior fiscal year to 1.75% for the current fiscal year. Excluding the effects of the daily leverage strategy, the net interest margin would have increased three basis points, from 2.07% for the prior fiscal year to 2.10% for the current fiscal year. The increase in the net interest margin was due mainly to a decrease in interest expense on term borrowings, partially offset by an increase in interest expense on deposits.
Interest and Dividend Income
The weighted average yield on total interest-earning assets increased three basis points, from 2.71% for the prior fiscal year to 2.74% for the current fiscal year, and the average balance of interest-earning assets increased $25.4 million from the prior fiscal year. Absent the impact of the daily leverage strategy, the weighted average yield on total interest-earning assets would have decreased one basis point, from 3.22% for the prior fiscal year to 3.21% for the current fiscal year, while the average balance would have increased $40.5 million. The following table presents the components of interest and dividend income for the time periods presented along with the change measured in dollars and percent.
| For the Year Ended | | | |||||||||||||||||||||||||
| September 30, | | Change Expressed in: | |||||||||||||||||||||||||
| 2016 | | 2015 | | Dollars | | Percent | |||||||||||||||||||||
| (Dollars in thousands) | | ||||||||||||||||||||||||||
INTEREST AND DIVIDEND INCOME: | | | | | | | ||||||||||||||||||||||
Loans receivable | $ | 243,311 | | $ | 235,500 | | $ | 7,811 | | 3.3% | ||||||||||||||||||
Mortgage-backed securities ("MBS") | 29,794 | | 36,647 | | (6,853) | | (18.7) | |||||||||||||||||||||
FHLB stock | 12,252 | | 12,556 | | (304) | | (2.4) | |||||||||||||||||||||
Cash and cash equivalents | 9,831 | | 5,477 | | 4,354 | | 79.5 | |||||||||||||||||||||
Investment securities | 5,925 | | 7,182 | | (1,257) | | (17.5) | |||||||||||||||||||||
Total interest and dividend income | $ | 301,113 | | $ | 297,362 | | $ | 3,751 | | 1.3 |
The increase in interest income on loans receivable was due to a $376.4 million increase in the average balance of the portfolio, partially offset by a nine basis point decrease in the weighted average yield on the portfolio, to 3.60% for the current fiscal year. Loan growth was primarily funded through cash flows from the MBS and investment securities portfolios along with deposit growth. The decrease in the weighted average yield was due primarily to loans repricing to lower market rates and the origination and purchase of loans between periods at rates less than the existing portfolio rate, along with an increase in the amortization of premiums paid for correspondent loans.
The decrease in interest income on the MBS portfolio was due primarily to a $265.5 million decrease in the average balance of the portfolio as cash flows not reinvested were used to fund loan growth. Additionally, the weighted average yield on the MBS portfolio decreased seven basis points, from 2.25% during the prior fiscal year to 2.18% for the current fiscal year. The decrease in the weighted average yield was due primarily to an increase in the impact of net premium amortization. Net premium amortization of $5.0 million during the current fiscal year decreased the weighted average yield on the portfolio by 37 basis points. During the prior fiscal year, $5.4 million of net premiums were amortized, which decreased the weighted average yield on the portfolio by 32 basis points. As of September 30, 2016, the remaining net balance of premiums on our portfolio of MBS was $13.0 million.
The increase in interest income on cash and cash equivalents was due primarily to a 20 basis point increase in the weighted average yield resulting from an increase in the yield earned on balances held at the Federal Reserve Bank. The decrease in interest income on investment securities was due primarily to a $123.8 million decrease in the average balance, partially offset by a four basis point increase in the weighted average yield on the portfolio. Cash flows not reinvested in the portfolio were used to fund loan growth.
Interest Expense
The weighted average rate paid on total interest-bearing liabilities decreased one basis point, from 1.12% for the prior fiscal year to 1.11% for the current fiscal year, while the average balance of interest-bearing liabilities increased $138.5 million from the prior year fiscal year. Absent the impact of the daily leverage strategy, the weighted average rate paid on total interest-bearing liabilities would have decreased seven basis points from the prior year fiscal year, to 1.28% for the current fiscal year, due primarily to a decrease in the cost of term borrowings, while the average balance of interest-bearing liabilities would have increased $154.1 million due primarily to growth in deposits. The following table presents the components of interest expense for the time periods presented, along with the change measured in dollars and percent.
| For the Year Ended | | | | | ||||||||||||||||||||||||
| September 30, | | Change Expressed in: | ||||||||||||||||||||||||||
| 2016 | | 2015 | | Dollars | | Percent | ||||||||||||||||||||||
| (Dollars in thousands) | | | | |||||||||||||||||||||||||
INTEREST EXPENSE: | | | | | | ||||||||||||||||||||||||
FHLB advances | $ | 54,969 | | $ | 62,437 | | $ | (7,468) | | (12.0)% | |||||||||||||||||||
FHLB line of credit | 10,122 | | | 5,360 | | 4,762 | | 88.8 | |||||||||||||||||||||
Deposits | 37,859 | | | 33,119 | | 4,740 | | 14.3 | |||||||||||||||||||||
Repurchase agreements | 5,981 | | | 6,678 | | (697) | | (10.4) | |||||||||||||||||||||
Total interest expense | $ | 108,931 | | $ | 107,594 | | $ | 1,337 Werbung Mehr Nachrichten zur Capitol Fedl Financial Aktie kostenlos abonnieren
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