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Capitol Federal Q2 2025 Earnings Report
Capitol Federal Financial, Inc. reported its second quarter fiscal year 2025 results, with net income of $15.4 million and basic and diluted earnings per share of $0.12.
Key Takeaways
Capitol Federal Financial, Inc. reported net income of $15.4 million for the quarter ended March 31, 2025, consistent with the prior quarter. The net interest margin improved to 1.92% due to a decrease in the cost of deposits. The company also announced a cash dividend of $0.085 per share.
Net income for the current quarter was $15.4 million, unchanged from the prior quarter.
Basic and diluted earnings per share were $0.12.
Net interest margin increased by six basis points to 1.92%, primarily due to a decrease in the cost of deposits.
A cash dividend of $0.085 per share was announced, payable on May 16, 2025.
Capitol Federal
Capitol Federal
Capitol Federal Revenue by Segment
Revenue by Segment
Loans receivable Revenue
CapyFin.comMortgage-backed securities Revenue
CapyFin.comFHLB stock Revenue
CapyFin.comCash and cash equivalents Revenue
CapyFin.comInvestment securities Revenue
CapyFin.com Forward Guidance
Capitol Federal Financial, Inc. anticipates continued improvement in its net interest margin for the remainder of fiscal year 2025, driven by decreasing deposit costs and increasing loan portfolio yields. The Bank remains focused on cost management across all operations.
Positive Outlook
- Net interest margin is expected to continue to improve.
- Anticipated decrease in deposit costs.
- Expected increase in yields on the loan portfolio.
- Continued focus on cost management across all Bank operations.
- Commercial loan volume is expected to increase, with significant commitments funding in the next quarter.
Challenges Ahead
- One- to four-family originated loan portfolio is expected to continue to decrease due to challenging housing affordability and limited supply.
- Prepayment fees from FHLB advances will be recognized as interest expense.
- Uncertainty regarding the direction and actual impact of the economic outlook on the Bank's ACL.
- The Company does not expect to repurchase shares until an excess cash balance is rebuilt at the holding company level.
- The Bank suspended its one- to four-family correspondent lending channels for the foreseeable future.