Capitol Federal's Q4 net income falls 5% as expenses rise
Overview
US regional bank's preliminary Q4 net income fell 5.1% sequentially to $22.4 mln
Net interest margin rose by 8 bps to 2.39% on continued commercial loan growth
Company repurchased 2.5 mln shares for $21.7 mln during the quarter
Outlook
Company expects commercial loan balances to increase about 17% in fiscal 2027
Total loans receivable, net, anticipated to rise about 2.5% in fiscal 2027
Deposits are anticipated to grow 6.2% during fiscal 2027
Result Drivers
COMMERCIAL LOAN GROWTH - Co said net interest income and net interest margin rose due to continued growth in higher-yielding commercial loan portfolio
ASSET MIX SHIFT - Co continued to redirect repayments from single-family loans into commercial loans, supporting portfolio growth
HIGHER NON-INTEREST EXPENSES - Co said Q4 net income declined from prior quarter due to higher non-interest expenses and lower non-interest income
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 EPS | $0.18 | ||
Q4 Net Income | $22.4 mln | ||
Q4 Net Interest Margin | 2.39% |
Analyst Coverage
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 "hold"
Wall Street's median 12-month price target for Capitol Federal Financial Inc is $9.50, about 11.2% above its October 27 closing price of $8.54
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
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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.)