Capitol Federal Financial Q3 2026 Net Income Rises to $23.6M

By Greg Peters • Wednesday, July 29 16:09 • Permanent Link

Capitol Federal Financial said third-quarter fiscal 2026 net income rose to $23.6 million from $20.1 million in the prior quarter, as earnings per share increased to $0.19 from $0.16.

Net interest income climbed to $53.5 million from $52.3 million, up $1.2 million, while net interest margin widened to 2.31% from 2.24%, a gain of seven basis points. The company said the margin improvement reflected lower borrowings.

Noninterest expense pressures were partly offset by better operating efficiency: the efficiency ratio improved to 52.10% from 52.45%. The operating expense ratio was 1.29%.

On the balance sheet, total assets were $9.66 billion at June 30, 2026, and stockholders’ equity was $1.02 billion. Tangible book value per share was $8.04.

Commercial lending remained the clearest growth area. Commercial loans increased by $155.2 million during the quarter to $2.47 billion, up from $2.11 billion at September 30, 2025. That lifted commercial loans to 30% of the total loan portfolio, from 29% at March 31, 2026 and 26% at September 30, 2025. Since September 30, 2025, commercial loan growth totaled $357.0 million, or 22.5% annualized.

Single-family loans moved the other way, falling to $5.60 billion from $5.90 billion at September 30, 2025.

Funding also improved. Commercial deposits rose to $24.3 million of growth since September 30, 2025, a 6.4% annualized increase. Interest expense on borrowings declined to $15.4 million from $16.0 million, while borrowing costs fell as the company let some FHLB borrowings mature and replaced others at lower rates.

Capital returns stayed heavy. The company paid $10.6 million in dividends during the quarter, or $0.085 per share, and repurchased 1,837,832 shares at an average price of $7.73. Through the first nine months of fiscal 2026, it repurchased 6,369,946 shares for $45.9 million and paid $37.5 million in dividends, or $0.295 per share.

Cash at the holding company stood at $10.7 million at quarter-end. The bank said it expects to move at least $34.0 million to the holding company in the September quarter to support dividends and buybacks. Following these announcements, the company's shares moved -1.31%, and are now trading at a price of $8.665. For more information, read the company's full 8-K submission here.

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