TOPEKA, Kan., Aug. 11 /PRNewswire-FirstCall/ -- Capitol Federal Financial
(Nasdaq: CFFN) today announces results for the June 30, 2003 quarter.
Detailed results of the quarter will be available on Form 10-Q which will be
filed today and available on our web-site,
www.capfed.com/html/relations.html , within 24 hours of this release.
Highlights for the quarter include:
-- net income of $7.5 million,
-- basic and diluted earnings per share of $0.11 each,
-- efficiency ratio of 59.65%,
-- declared dividends per share of $0.24,
-- The Board reconfirms its commitment to paying a year end dividend,
which it began in December 2002.
Results for the Quarter ended June 30, 2003 Net income for the quarter was $7.5 million compared to $21.1 million for
the same period one year ago. Diluted earnings per share were $0.11 compared
to $0.29 per share one year ago. The efficiency ratio for the current quarter
was 59.65% compared to 33.83% one year ago.
Net interest and dividend income was $24.2 million compared to
$47.8 million one year ago. The net interest margin decreased to 1.13% from
2.20% one year ago.
The decrease in earnings was primarily due to a decrease in total interest
and dividend income. The amount of total interest and dividend income
recorded for the quarter was $103.8 million, or 25.3% less than the
$138.9 million one year ago. The primary reason for the change was a decrease
in interest on loans receivable of $23.3 million from the same period one year
ago. The average yield on earning assets was 4.87%, down 154 basis points
from one year ago.
The decrease in interest and dividend income was partially offset by the
decrease in total interest expense of $11.5 million, or 12.7%, from one year
ago. The decrease in interest expense was primarily due to a decrease in the
expense on deposits of $11.2 million while the average balance of interest-
bearing liabilities was down $121.3 million. The average cost of interest
bearing liabilities was 4.18%, down 53 basis points from one year ago.
During the quarter, other income was $6.4 million, up $1.6 million, over
the same period one year ago. Total other expense increased $472 thousand to
$18.3 million for the quarter ended June 30, 2003 compared to $17.8 million
for the same period in 2002. Deposit and loan transaction fees increased
primarily due to the amortization and an impairment charge on MSR of
$838 thousand due to the high level of repayments on sold loans.
Results for the Nine Months ended June 30, 2003
Net income for the nine months ended June 30, 2003 was $49.1 million
compared to net income of $63.5 million for the nine months ended June 30,
2002. Diluted earnings per share were $0.68 per share for the nine months
ended June 30, 2003. The efficiency ratio for the current nine months was
40.15% compared to 32.52% for the nine months ended June 30, 2002.
Net interest and dividend income for the nine months ended June 30, 2003
was $98.2 million compared to $141.2 million for the nine months ended June
30, 2002, a decrease of $43.0 million, or 30.5%. The net interest margin
decreased 66 basis points from 2.19% for the nine months ended June 30, 2002
to 1.53% for the nine months ended June 30, 2003.
The decrease in earnings was primarily due to a decrease in total interest
and dividend income. The amount of total interest and dividend income
recorded for the nine months ended June 30, 2003 was $347.3 million down from
$422.1 million one year ago. The primary reason for the change was a decrease
in interest on loans receivable of $59.4 million from the same period one year
ago. The average yield on earning assets was 5.40%, down 113 basis points
from one year ago.
The decrease in interest and dividend income was partially offset by the
decrease in total interest expense of $31.8 million, or 11.3%, from one year
ago. The decrease in interest expense was primarily due to a decrease in the
expense on deposits of $31.0 million. The average cost of interest bearing
liabilities was 4.34%, down 53 basis points from one year ago.
Total other income was $36.3 million, up $22.8 million, over the same
period one year ago. The increase was primarily the result of the Bank
selling most of its conforming new originations and modifications of single-
family fixed rate mortgage loans during the first quarter of the fiscal year
into the secondary market. Total other expense increased $3.5 million to
$53.9 million for the nine months ended June 30, 2003, from one year ago. The
increase was primarily due to increases of $1.8 million in deposit and loan
transaction fees largely due to MSR charges and $898 thousand in compensation
expense primarily a result of the increase in the market value of our stock.
Financial Condition at June 30, 2003
Total assets at June 30, 2003 were $8.63 billion, a decrease of
$152.0 million from $8.78 billion at September 30, 2002. The decrease was
primarily due to a decrease in loans receivable and loans available for sale
of $705.4 million and a decrease in cash and cash equivalents of
$351.7 million. These were partially offset by a net increase in mortgage-
related securities of $415.1 million and investment securities of
$474.2 million. Total loan volume, including modifications, for the nine-
month period was $2.88 billion.
Total liabilities at June 30, 2003 were $7.64 billion, which was
$154.7 million less than at September 30, 2002. The decrease in liabilities
was primarily the result of a decrease in the deposit portfolio of
$113.6 million.
Total non-performing assets were $13.4 million at June 30, 2003 compared
to $10.9 million at September 30, 2002. No provision for loan losses was
recorded during the current quarter. The percentage of non-performing assets
to total assets was 0.15%. The allowance for loan losses as a percentage of
non-performing loans was 48.31% at June 30, 2003.
Stockholders' equity totaled $990.1 million at June 30, 2003 compared to
$987.4 million at September 30, 2002. The increase was due primarily to net
income for the nine month period of $49.1 million which was partially offset
by dividends paid and the repurchase of shares during the period.
Capitol Federal Financial is the holding company for Capitol Federal
Savings Bank. Capitol Federal Savings Bank has 35 branch locations in Kansas,
7 of which are in-store branches. Capitol Federal Savings Bank employs 715
full time equivalents in the operation of its business and is the leading
residential lender in the State of Kansas.
Except for the historical information contained in this press release, the
matters discussed may be deemed to be forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that involve
risks and uncertainties, including changes in economic conditions in the
Company's market area, changes in policies by regulatory agencies,
fluctuations in interest rates, demand for loans in the Company's market area,
competition, and other risks detailed from time to time in the Company's SEC
reports. Actual strategies and results in future periods may differ
materially from those currently expected. These forward-looking statements
represent the Company's judgment as of the date of this release. The Company
disclaims, however, any intent or obligation to update these forward-looking
statements.
SOURCE Capitol Federal Financial
-0- 08/11/2003
/CONTACT: Jim Wempe, Vice President, Investor Relations, +1-785-270-6055,
jwempe@capfed.com , or Kent Townsend, Senior Vice President, Controller,
+1-785-231-6360, ktownsend@capfed.com , both of Capitol Federal Financial/
/Web site: http://www.capfed.comhttp://www.capfed.com/html/relations.html /
(CFFN)
CO: Capitol Federal Financial
ST: Kansas
IN: FIN
SU: ERN
JK-JR
-- CGM044 --
7101 08/11/200311:59 EDThttp://www.prnewswire.com