Business Wire·Oct 29, 2025, 9:00 AM ET

Capitol Federal Financial, Inc.® Reports Fourth Quarter and Fiscal Year 2025 Results

CFFN

Capitol Federal Financial, Inc. reported fiscal year 2025 net income of $68.0 million, up from $38.0 million in the prior year.
Total assets reached $9.78 billion at September 30, 2025, while stockholders' equity grew to $1.05 billion.
Net interest margin increased 19 basis points to 1.96% for the full year, driven by a shift to higher-yielding commercial loans.
Commercial loan portfolio grew $607.0 million (40.2%) to $2.12 billion, with commercial real estate loans comprising a significant portion.
Commercial deposits increased $190.2 million (59.8%) to $508.2 million, diversifying the funding base.
The company acquired Capital City Bank to expand product offerings, asset diversification, and revenue opportunities.
A 2023 securities restructuring replaced low-yielding securities with higher-yielding assets, reducing debt costs & boosting net interest margin.
Earnings per share for the fiscal year were $0.52, compared to $0.29 in the prior year.
The efficiency ratio improved to 58.33% from 66.91% in the prior fiscal year.
The company returned $2.01 billion to stockholders via dividends & share repurchases since its 2010 conversion.
Fiscal 2025 included $44.3 million in total cash dividends & $3.9 million in share repurchases.
A quarterly dividend of $0.085 per share was announced on October 28, 2025, payable November 21, 2025.
Management anticipates total assets exceeding $10 billion in upcoming fiscal years.
Non-interest expense is projected to increase 7% in fiscal 2026 due to hiring & technology investments.
The loan portfolio mix shifted away from one-to-four-family loans toward commercial loans due to housing market conditions.
Asset quality remains strong with non-performing assets at 0.49% of total assets & a provision for credit losses of $745 thousand for the year.
The allowance for credit losses totaled $24.0 million at September 30, 2025.
The company announced plans to launch private banking & trust services in the first quarter of fiscal 2026.
Digital banking enhancements, including new onboarding platforms, are expected to be fully implemented by fiscal year 2026.
Borrowings decreased $228.8 million during the year, primarily from maturing FHLB advances not replaced.
Total deposits grew $461.5 million, with high-yield savings accounts contributing $364.5 million of the increase.
Commercial loan originations totaled $901.9 million for the year, up from $350.6 million the prior year.
The weighted average loan-to-value ratio for commercial real estate loans was 61% with a debt service coverage ratio of 1.65x.
The company expects the effective tax rate to range between 19% and 20% for fiscal year 2026.