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CAPITOL FEDERAL FINANCIAL , INC . NEWS RELEASE FOR IMMEDIATE RELEASE January 28 , 2021 CAPITOL FEDERAL FINANCIAL , INC.Ⓡ REPORTS FIRST QUARTER FISCAL YEAR 2021 RESULTS Ⓡ Topeka , KS - Capitol Federal Financial , Inc. ( NASDAQ : CFFN ) ( the " Company " ) , the parent company of Capitol Federal Savings Bank ( the " Bank " ) , announced results today for the quarter ended December 31 , 2020. Detailed results will be available in the Company's Quarterly Report on Form 10 - Q for the quarter ended December 31 , 2020 , which will be filed with the Securities and Exchange Commission ( " SEC " ) on or about February 9 , 2021 and posted on our website , http://ir.capfed.com . For best viewing results , please view this release in Portable Document Format ( PDF ) on our website . Highlights for the quarter include : • • • • net income of $ 18.9 million ; basic and diluted earnings per share of $ 0.14 ; • net interest margin of 1.92 % ; • annualized deposit growth of approximately 14 % ; paid dividends of $ 29.1 million , or $ 0.215 per share ; the Company adopted Accounting Standards Update ( " ASU " ) 2016-13 , Financial Instruments - Credit Losses : Measurement of Credit Losses on Financial Instruments , on October 1 , 2020 which resulted in a cumulative - effect adjustment to retained earnings of $ 2.3 million ( net of tax of $ 739 thousand ) ; and on January 26 , 2021 , announced a cash dividend of $ 0.085 per share , payable on February 19 , 2021 to stockholders of record as of the close of business on February 5 , 2021 . Comparison of Operating Results for the Three Months Ended December 31 , 2020 and September 30 , 2020 For the quarter ended December 31 , 2020 , the Company recognized net income of $ 18.9 million , or $ 0.14 per share , compared to net income of $ 18.3 million , or $ 0.13 per share , for the quarter ended September 30 , 2020. The increase was due primarily to a lower effective tax rate compared to the prior quarter . The net interest margin decreased 11 basis points , from 2.03 % for the prior quarter to 1.92 % for the current quarter . The decrease in the net interest margin was due mainly to a decrease in the loan portfolio and securities portfolio yields , along with a decrease in the average balance of the loan portfolio , partially offset by a decrease in the cost of deposits . Since the onset of the Coronavirus Disease 2019 ( " COVID - 19 " ) pandemic , the Bank has lowered its offered rates on all deposit products except retail checking and savings accounts . The impact of reducing rates offered on our certificate of deposit products lowers the cost of deposits as certificates of deposit reprice to a lower rate when they mature and as new accounts are opened . We responded to lower market rates for lending by lowering rates offered on our loan products . Given current rates offered on new loans , increased prepayments on existing loans , and the volume of one- to four - family refinances and endorsements , the yield on the total loan portfolio is likely to continue to decrease . With significant cash inflows realized due to investment securities being called and prepayments on loans and mortgage - backed securities ( " MBS " ) , the current yields on reinvested funds into new securities are lower than existing portfolio yields , reducing the yield on our investments significantly . Considering the drastic changes in market rates and the ongoing economic uncertainty , our net interest margin could continue to decrease , with further downside risk as a result of high levels of prepayments and premium amortization on correspondent one- to four - family loans and MBS . 1