Capitol Federal Financial, Inc.® Announces Intention to Repurchase Stock

Rhea-AI Summary

Capitol Federal Financial, Inc. (CFFN) has authorized $44.7 million for stock repurchases under an existing plan. As of September 30, 2022, the company holds $104.0 million in cash at Capitol Federal Savings Bank. The repurchase will commence soon, depending on market prices. The bank operates 54 branches across Kansas and Missouri and is a leading residential lender in Kansas.

Positive

• Authorization of $44.7 million for stock repurchases could enhance shareholder value.
• Holding $104.0 million in cash provides financial flexibility for future investments.

Negative

• Dependence on market conditions for the timing of share repurchases raises uncertainty.

TOPEKA, Kan.--(BUSINESS WIRE)-- Capitol Federal Financial, Inc. (NASDAQ: CFFN) (the "Company") has $44.7 million authorized under an existing stock repurchase plan. As of September 30, 2022, the Company, at the holding company level, had $104.0 million in cash on deposit at Capitol Federal Savings Bank (the "Bank"). The Company intends to resume repurchasing shares of the Company's common stock in the market in the near term in conjunction with the Company's existing stock repurchase plan. The amount and timing of these stock repurchases will be determined based upon the market price of the Company’s common stock.

Capitol Federal Financial, Inc. is the holding company for the Bank. The Bank has 54 branch locations in Kansas and Missouri, and is one of the largest residential lenders in the State of Kansas. News and other information about the Company can be found at the Bank's website, http://www.capfed.com.

Forward-Looking Statements

Except for the historical information contained in this press release, the matters discussed herein may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties, including: potential adverse impacts of the ongoing COVID-19 pandemic and any governmental or societal responses thereto on economic conditions in the Company's local market areas and other areas where the Bank has lending relationships, on other aspects of the Company's business operations and on financial markets; changes in policies or the application or interpretation of laws and regulations by regulatory agencies and tax authorities; other governmental initiatives affecting the financial services industry; changes in accounting principles, policies or guidelines; fluctuations in interest rates and the effects of inflation or a potential recession; demand for loans in the Company's and its correspondent banks' market areas; the future earnings and capital levels of the Bank, which could affect the ability of the Company to pay dividends in accordance with its dividend policies; competition; and other risks detailed from time to time in documents filed or furnished by the Company with the SEC. Actual results 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006150/en/

Kent Townsend

Executive Vice President, Chief Financial Officer and Treasurer

(785) 231-6360

ktownsend@capfed.com

Investor Relations

(785) 270-6055

investorrelations@capfed.com

Source: Capitol Federal Financial, Inc.

FAQ

What is the purpose of the $44.7 million stock repurchase plan for CFFN?

The repurchase plan aims to enhance shareholder value by reducing the number of outstanding shares.

When will Capitol Federal Financial start repurchasing shares?

The company intends to begin repurchasing shares in the near term, depending on market prices.

How much cash does CFFN have available for operations?

As of September 30, 2022, Capitol Federal Financial has $104.0 million in cash.

What is the significance of the repurchase plan for CFFN's stock price?

The repurchase plan can potentially increase demand for CFFN's shares, which may positively impact the stock price.