Capitol Federal reports Q EPS 10c, consensus 6c

During the current quarter, the Company completed a securities strategy by selling $1.30B of securities with a weighted average yield of 1.22% and an average duration of 3.6 years and purchased $632M of securities yielding 5.75% and paid down $500M of borrowings with a cost of 4.70%. The Company plans to hold the remaining cash associated with the securities strategy at the Federal Reserve Bank earning interest at the reserve balances rate, until such time as it can be used to fund commercial loan activity or other Bank operations. The Company recognized net interest margin benefits in the current quarter associated with the securities strategy and total assets were reduced below $10.0 B at December 31 to $9.58 B s.