Capitol Federal Financial, Inc. Reports Second Quarter Fiscal Year 2016 Results

TOPEKA, Kan., April 28, 2016

Highlights for the quarter include:

• net income of $21.5 million, including $561 thousand from the daily leverage strategy;
• basic and diluted earnings per share of $0.16;
• annualized loan portfolio growth of 6%;
• annualized deposit portfolio growth of 12%;
• net interest margin of 1.78% (2.13% excluding the effects of the daily leverage strategy); and
• paid dividends of $11.3 million, or $0.085 per share.

Comparison of Operating Results for the Three Months Ended March 31, 2016 and December 31, 2015

Net income increased $809 thousand, or 3.9%, from the quarter ended December 31, 2015 to $21.5 million, or $0.16 per share, for the quarter ended March 31, 2016, due primarily to an increase in non-interest income.  Net income attributable to the daily leverage strategy was $561 thousand during the current quarter compared to $583 thousand in the prior quarter.

Net interest income increased $556 thousand, or 1.2%, from the prior quarter to $48.5 million for the current quarter.  The increase was due primarily to a decrease in interest expense on Federal Home Loan Bank Topeka ("FHLB") advances.  The net interest margin increased three basis points from 1.75% for the prior quarter to 1.78% for the current quarter.  Excluding the effects of the daily leverage strategy, the net interest margin would have been 2.13% for the current quarter compared to 2.11% for the prior quarter.  The two basis point increase was due mainly to a decrease in interest expense on FHLB advances.

Interest and Dividend Income
The weighted average yield on total interest-earning assets for the current quarter increased six basis points from the prior quarter, to 2.77%, while the average balance of interest-earning assets decreased $52.1 million between the two periods.  Absent the impact of the daily leverage strategy, the weighted average yield on total interest-earning assets would have increased one basis point from the prior quarter, to 3.22%, while the average balance would have increased $17.4 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 Three Months Ended ARIVA.DE Börsen-Geflüster Kurse Capitol Fedl Financial 4,82 € -1,23%
	March 31,				December 31,				Change Expressed in:
	2016				2015				Dollars				Percent
	(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable	$	60,732			$	60,223			$	509			0.8%
Mortgage-backed securities ("MBS")	7,702				7,831				(129)				(1.6)
FHLB stock	3,006				3,152				(146)				(4.6)
Cash and cash equivalents	2,707				1,620				1,087				67.1
Investment securities	1,485				1,533				(48)				(3.1)
Total interest and dividend income	$	75,632			$	74,359			$	1,273			1.7

The increase in interest income on loans receivable was due to a $65.6 million increase in the average balance of the portfolio.  The loan growth was largely funded with deposit growth during the current quarter.  The weighted average yield on the portfolio was 3.62% for the current quarter, unchanged from the prior quarter.

The decrease in interest income on MBS was due to a $37.8 million decrease in the average balance of the portfolio, partially offset by a two basis point increase in the weighted average yield on the portfolio.  During the current quarter, $1.1 million of net premiums on MBS were amortized, which decreased the weighted average yield on the portfolio by 32 basis points.  During the prior quarter, $1.2 million of net premiums were amortized, which decreased the weighted average yield on the portfolio by 33 basis points.

The increase in interest income on cash and cash equivalents was due primarily to a 21 basis point increase in the weighted average yield resulting from a full quarter impact, in the current quarter, of the increase in yield earned on balances held at the Federal Reserve Bank.

Interest Expense
The weighted average rate paid on total interest-bearing liabilities increased four basis point from the prior quarter, to 1.12%, while the average balance of interest-bearing liabilities decreased $9.2 million between the two periods.  Absent the impact of the daily leverage strategy, the weighted average rate paid on total interest-bearing liabilities would have decreased one basis point from the prior quarter, to 1.27%, and the average balance would have increased $60.2 million.  The following table presents the components of interest expense for the time periods presented, along with the change measured in dollars and percent.

The increase in interest expense on FHLB borrowings was due largely to a 20 basis point increase in the average rate paid on FHLB line of credit borrowings during the current quarter, to 0.53%, partially offset by a $66.8 million decrease in the average balance of FHLB advances.  Late in the prior quarter, a $200.0 million advance with an effective rate of 1.94% matured and was partially replaced with a $100.0 million advance with a contractual rate of 1.45%.

The increase in interest expense on deposits was due primarily to a three basis point increase in the average rate paid on the deposit portfolio, to 0.74% for the current quarter, as well as to deposit growth.  The average balance of the deposit portfolio increased by $127.1 million, which was largely in the certificates of deposit and checking portfolios.

Non-Interest Income
The following table presents the components of non-interest income for the time periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

March 31,

December 31, Werbung Mehr Nachrichten zur Capitol Fedl Financial Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:00 - PR Newswire BlackRock Smaller Companies Trust Plc - Total Voting Rights 15.04.24 - PR Newswire Fidelity Asian Values Plc - Transaction in Own Shares Gefragter denn je...:    Explosive Nachfrage und Schockierendes Defizit! Auf den Schwingen des Silbers jetzt abheben! weiterlesen» Anzeige wo-site-teaser-box-16670_site-teaser-box_2024-04-16_08%253A00%253A00_2024-04-17_09%253A00%253A59