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

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 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: ID:nBw4Fly5ba

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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.)