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Capitol Federal's Q4 net income falls 5% as expenses rise

By Reuters News


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


Reuters Recommended Reads

  • Oct 27 - UMB Financial Q3 profit rises on record loans

  • Oct 27 - First Financial Bancorp Q3 EPS rises 11% to record

  • Oct 27 - Hold or sell? High Treasury yields spur US banks to rethink bond portfolios


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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