Overview

* Capitol Federal Q3 net income rises to $18.4 mln from $15.4 mln prior qtr

* Net interest margin improves to 1.98%, driven by commercial loan growth

* Company announces cash dividend of $0.085 per share

Outlook

* Company expects $146.2 mln commercial real estate loans to fund next qtr

* Capitol Federal to introduce digital onboarding for small businesses next qtr

* Company plans digital banking enhancements for debit cardholders by Q4 FY 2025

* Capitol Federal aims to grow non-interest bearing deposits and fee-based revenue

Result Drivers

* COMMERCIAL LOAN GROWTH - Net interest margin increased due to higher average balance of commercial loans

* CREDIT LOSS PROVISION - Release of provision for credit losses due to improved credit quality in commercial loan portfolio

* NON-INTEREST INCOME - Increase in deposit service fees driven by higher debit card usage

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.14

Q3 Net $18.40

Income mln

Q3 Basic $0.14

EPS

Q3 -$451,00

Credit 0

Loss

Provisio

n

Q3 $0.085

Dividend

Q3 Net 2.0%

Interest

Margin

Press Release:

(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.)