Overview

* Capitol Federal Q4 net income rises to $18.8 mln, up from $18.4 mln prior qtr

* Net interest margin increased 11 basis points to 2.09% from 1.98% prior qtr

* Company repurchased 618,260 shares at an average price of $6.23 per share

Outlook

* Company plans to continue regular quarterly cash dividend of $0.085 per share in fiscal 2026

* Capitol Federal expects commercial loan growth to continue through redeploying funds from loan repayments

* Company anticipates growth in commercial deposits to lower cost of funds

Result Drivers

* COMMERCIAL LOAN GROWTH - Significant growth in commercial loan portfolio from $319.1 mln to $2.12 bln, contributing to increased revenue opportunities

* SECURITIES RESTRUCTURING - October 2023 securities restructuring led to improved net interest margin, contributing to financial performance

* TECHNOLOGY AND PERSONNEL INVESTMENTS - Investments in technology and staff additions support commercial banking expansion and new product offerings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 EPS $0.14

Q4 Net $18.80

Income mln

Q4 Basic $0.14

EPS

Q4 $519,000

Credit

Loss

Provisio

n

Q4 Net 2.09%

Interest

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy."

* Wall Street's median 12-month price target for Capitol Federal Financial Inc ( CFFN ) is $6.75, about 6.8% above its October 28 closing price of $6.29

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)