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Dec 31, 2025
Capitol Federal Q1 2026 Earnings Report
Capitol Federal Financial, Inc. reported its first quarter fiscal year 2026 results, showing increased net income and improved efficiency, driven by strategic operational changes and growth in commercial loan and deposit portfolios.
Key Takeaways
Capitol Federal Financial, Inc. reported a net income of $20.3 million for the first quarter of fiscal year 2026, an increase from $18.8 million in the prior quarter. Total assets stood at $9.78 billion, with stockholders' equity at $1.04 billion. The company's strategic initiatives led to significant growth in its commercial loan portfolio and commercial deposits, contributing to a higher net interest margin and improved efficiency ratio.
Net income increased to $20.3 million, up from $18.8 million in the prior quarter, reflecting improved financial performance.
Net interest margin rose to 2.19% from 2.09% in the prior quarter, primarily due to growth in the higher-yielding commercial loan portfolio.
The efficiency ratio improved to 53.66% from 56.84% in the prior quarter, indicating more efficient operations.
Commercial loan growth was $162.6 million, or 30.7% annualized, and commercial deposits grew by $19.5 million, or 15.3% annualized, demonstrating successful execution of strategic initiatives.
Revenue by Segment
Forward Guidance
The Company anticipates continued growth in its commercial loan portfolio and deposit base, supported by ongoing investments in technology and strategic initiatives. The Board intends to maintain regular quarterly cash dividends and pursue opportunistic share repurchases.
Positive Outlook
- Continued growth in commercial loan portfolio and commercial deposit base is expected to lower the cost of funds.
- Implementation of new technology and processes will enhance delivery of commercial products and services.
- Building on a disciplined capital management approach, with a history of returning $2.03 billion to stockholders since 2010.
- Expectation to continue regular quarterly cash dividends of $0.085 per share for fiscal year 2026, totaling $0.34 per share.
- Anticipated growth in commercial loan balances of approximately 1% in the quarter ending March 31, 2026, with overall loan growth of approximately 18% for the fiscal year.
Challenges Ahead
- Earnings distributions from the Bank to the Company will be limited to prevent re-entering a negative accumulated earnings and profit position.
- Required to pay pre-1988 bad debt recapture tax on earnings moved from the Bank to the Company.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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