Capitol Federal Financial reported higher earnings for fiscal 2026, alongside continued growth in commercial lending and a shift toward deposits and away from borrowings. The Topeka-based bank also announced another quarterly dividend and reported $21.7 million of share repurchases from July 1 through October 23.
For the year ended September 30, net income rose to $86.4 million from $68.0 million in fiscal 2025. The company said the growth reflected its ongoing strategy of expanding commercial banking while redeploying funds from maturing single-family loans.
Key details
-
Fourth-quarter earnings and margins: Capitol Federal earned $22.4 million in the quarter. Net interest income increased $1.3 million to $54.8 million, while net interest margin rose eight basis points to 2.39%. The company attributed both gains primarily to growth in its higher-yielding commercial loan portfolio. It reported nine consecutive quarters of growth in net interest income and net interest margin.
-
Commercial lending: Commercial loans grew by $111.8 million during the quarter, ending September at $2.58 billion, compared with $2.12 billion a year earlier. The company said it is using funds from single-family loan repayments to support commercial lending rather than replacing all those loans with new local-market originations.
-
Funding mix: Deposits increased $267.7 million during fiscal 2026, primarily from retail deposits. Borrowings fell by $335.3 million over the year.
-
Balance sheet: The company ended the quarter with $9.67 billion in total assets and $1.01 billion in stockholders’ equity.
-
Share repurchases: Capitol Federal bought back 2,512,196 shares for $21.7 million between July 1 and October 23. CEO John Dicus said the company expects dividends and repurchases to continue.
-
Quarterly dividend: The company declared a cash dividend of 8.5 cents per share, payable November 20 to shareholders of record at the close of business on November 6.
What changes for investors
The dividend sets the next scheduled cash payment to shareholders. The reported buybacks reduce the share count by the number of shares repurchased, while the company’s lending and funding figures show a continued shift toward commercial loans and retail deposits and away from borrowings.