Overview

• US regional bank's preliminary fiscal Q2 net income was $20.1 mln, EPS $0.16

• Net interest margin rose to 2.24%, marking seventh straight quarter of growth

• Company repurchased $22.4 mln in shares during the quarter

Outlook

• Company expects commercial loan growth of about 6% in the June 2026 qtr

• Capitol Federal anticipates overall net commercial loan growth of about 20% for fiscal 2026

• Company intends to continue regular quarterly cash dividend of $0.085 per share for remainder of fiscal 2026

Result Drivers

• CREDIT LOSS PROVISION - Higher provision for credit losses, mainly due to a $4 mln specific allowance for a nonaccrual commercial loan, weighed on net income

• NET INTEREST MARGIN - Net interest margin rose to 2.24%, mainly due to a reduction in borrowings

• COMMERCIAL LOAN GROWTH - Growth in the commercial loan portfolio, funded by repayments from other loan categories, supported interest income

Company press release: ID:nPn5t5Vqya

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.16
Q2 Net Income		$20.1 mln
Q2 Credit Loss Provision		$2.4 mln
Q2 Net Interest Margin		2.24%

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 $7.75, about 1.6% below its April 28 closing price of $7.88

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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