Capitol Federal expects net commercial loan balances to grow about 3% in the quarter ending September 30, 2026
Company anticipates overall net commercial loan growth of about 20% for fiscal 2026
Capitol Federal intends to continue regular quarterly cash dividend of $0.085 per share
Overview
US regional bank's preliminary fiscal Q3 net income rose to $23.6 mln, EPS at $0.19
Net interest margin improved to 2.31% on reduced borrowings and commercial loan growth
Company repurchased $15.5 mln in shares during the quarter
Result Drivers
Commercial loan growth - Net interest income and margin rose mainly due to growth in higher-yielding commercial loans and reduced borrowings
Credit loss provision release - Net income benefited from a release of provision for credit losses, mainly due to updated allowance models impacting commercial construction loans
Non-interest income gains - Higher deposit service fees from increased debit card usage and a rise in bank-owned life insurance income supported results
Key details and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.19
Q3 Net Income
$23.60 mln
Q3 Credit Loss Provision
-$433,000
Q3 Dividend
$0.09
Q3 Net Interest Margin
2.31%
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 is $8.50, about 3.2% below its July 28 closing price of $8.78
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
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