Capitol Federal reports Q2 EPS 12c, consensus 11c

For the quarter ended March 31 the company recognized net income of $13.8M or 11c per share, compared to a net income of $2.5M, or 2c per share, for the quarter ended December 31. The higher net income in the current quarter was due primarily to the prior quarter including $13.3M of net losses related to the strategic securities transaction discussed in the “Comparison of Operating Results for the Six Months Ended March 31 and March 31, 2023” section below. Excluding the securities strategy, earnings per share would have been 10c for the prior quarter. The increase in earnings per share in the current quarter, excluding the net losses on securities sales related to the securities strategy in the prior quarter, was due primarily to an increase in the net interest margin. The net interest margin increased 11 basis points, from 1.71% for the prior quarter to 1.82% for the current quarter due mainly to a full quarter of higher yielding securities that were purchased during the prior quarter in association with the securities strategy.