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CAPITOL FEDERAL FINANCIAL , INC . NEWS RELEASE FOR IMMEDIATE RELEASE April 29 , 2021 CAPITOL FEDERAL FINANCIAL , INC.Ⓡ REPORTS SECOND 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 March 31 , 2021. Detailed results will be available in the Company's Quarterly Report on Form 10 - Q for the quarter ended March 31 , 2021 , which will be filed with the Securities and Exchange Commission ( " SEC " ) on or about May 10 , 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 $ 20.4 million ; • basic and diluted earnings per share of $ 0.15 ; • net interest margin of 1.88 % ; • • • annualized deposit growth of approximately 15 % ; paid dividends of $ 11.5 million , or $ 0.085 per share ; and on April 20 , 2021 , announced a cash dividend of $ 0.085 per share , payable on May 21 , 2021 to stockholders of record as of the close of business on May 7 , 2021 . During the current quarter , the Bank completed three unique transactions that impacted operating results : . Sold Visa Class B shares for a gain of $ 7.4 million . Terminated $ 200.0 million of fixed - pay swaps with an average cost at the time of termination of 2.62 % and realized a loss of $ 4.8 million . The estimated earn - back period of the loss is approximately 15 months . Wrote down the value of a branch we intend to sell by $ 1.2 million . For the quarter ended March 31 , 2021 , the Bank also recorded a negative provision for credit losses of $ 3.0 million . Since the onset of the Coronavirus Disease 2019 ( " COVID - 19 " ) pandemic , the Bank has lowered its rates offered on all deposit products except retail checking and savings accounts . The impact of reducing rates offered on our certificate of deposit products has been to lower the cost of deposits as certificates of deposit reprice to a lower rate when they mature and as new accounts are opened . Additionally , certain borrowings were repaid or restructured over the past year using funds obtained through deposit growth , which reduced interest expense on borrowings . Over this time , we lowered rates for our loan products . In late February 2021 , as market interest rates began to increase , we began to increase our offered loan rates in our market areas . Despite this recent increase , the yield on the loan portfolio will likely continue to decrease in the near term due to the high levels of prepayments , refinances and endorsements , but not at the same magnitude as the past year . With significant cash inflows realized due to investment securities being called and prepayments on loans and mortgage - backed securities ( " MBS " ) over the past year and the current yields on reinvested funds into new securities being lower than existing portfolio yields , the yield on our investments has been reduced significantly . Comparison of Operating Results for the Three Months Ended March 31 , 2021 and December 31 , 2020 For the quarter ended March 31 , 2021 , the Company recognized net income of $ 20.4 million , or $ 0.15 per share , compared to net income of $ 18.9 million , or $ 0.14 per share , for the quarter ended December 31 , 2020. The increase was due primarily to an increase in non - interest income resulting mainly from the sale of VISA Class B shares , partially offset by an increase in non - interest expense due to the termination of $ 200.0 million of interest rate swaps . The net interest margin decreased four basis points , from 1.92 % for the prior quarter to 1.88 % for the current quarter . The decrease in the net interest margin was due mainly to a decrease in the loan portfolio and securities portfolio average yields , along with a change in asset mix as cash flows from the loan portfolio have been invested into lower yielding securities , partially offset by a decrease in the average cost of borrowings and deposits . Our net interest margin could continue to decrease if our interest - earning assets continue to reprice to lower market rates at a faster pace than our 1