Capitol Federal Financial Inc (CFFN) SEC Filing 10-K Annual report for the fiscal year ending Sunday, September 30, 2012

NEWS RELEASE

FOR IMMEDIATE RELEASE

October 31, 2012

CAPITOL FEDERAL FINANCIAL, INC. 
REPORTS FISCAL YEAR 2012 RESULTS

Topeka, KS - Capitol Federal Financial, Inc. (NASDAQ: CFFN) (the “Company”) announced results today for the year ended September 30, 2012.  Detailed results will be available in the Company’s Annual Report on Form 10-K for the year ended September 30, 2012, which will be filed with the Securities and Exchange Commission (“SEC”) on or about November 29, 2012 and posted on our website, http://ir.capfed.com. 

Highlights for fiscal year 2012 include:

Comparison of Operating Results for the Fiscal Years Ended September 30, 2012 and 2011

Net income for fiscal year 2012 was $74.5 million, compared to $38.4 million for fiscal year 2011.  The $36.1 million, or 94.0%, increase for the current year was due primarily to the prior year including a $40.0 million ($26.0 million, net of income tax benefit) contribution to the Capitol Federal Foundation (the “Foundation”) in connection with the second step conversion and stock offering completed in December 2010 (the “corporate reorganization”).    Additionally, net interest income increased $16.2 million, or 9.6%, from $168.7 million for the prior year to $184.9 million for the current year.  The increase in net interest income was due primarily to a decrease in interest expense of $34.9 million, or 19.6%, partially offset by a decrease in interest income of $18.8 million, or 5.4%. 

The net interest margin increased 17 basis points to 2.01% for the current year, up from 1.84% for the prior year.  The increase was largely due to a decrease in the cost of the certificate of deposit portfolio, along with a decrease in costs on Federal Home Loan Bank (“FHLB”) advances and other borrowings, partially offset by a decrease in interest income on loans receivable.