CAPITOL FEDERAL FINANCIAL, INC.® REPORTS FOURTH QUARTER AND FISCAL YEAR 2026 RESULTS

TOPEKA, Kan., Oct. 28, 2026 /PRNewswire/ -- Capitol Federal Financial, Inc.^® (NASDAQ: CFFN) (the "Company," "we" or "our"), the parent company of Capitol Federal Savings Bank (the "Bank"), announced preliminary results today for the quarter and fiscal year ended September 30, 2026.  For best viewing results, please view this release in Portable Document Format (PDF) on our website, https://ir.capfed.com.  Additionally, our quarterly investor presentation can also be found on our website at https://ir.capfed.com/events-and-presentations/default.aspx. 

The Company ended the current quarter with total assets of $9.67 billion and stockholders' equity of $1.01 billion and reported net income for the quarter of $22.4 million.  For the fiscal year ended September 30, 2026, the Company reported net income of $86.4 million, up from $68.0 million for fiscal year 2025.  This marks our ninth consecutive quarter of net interest income growth and net interest margin expansion.  For the quarter, net interest income increased $1.3 million to $54.8 million, and net interest margin increased eight basis points to 2.39%, each due primarily to the continued growth in the higher-yielding commercial loan portfolio. 

The continued remix of our assets and the strong earnings performance are the direct result of disciplined execution of our strategic banking initiatives.  Executing on these initiatives during the current quarter allowed us to grow our commercial loan portfolio by $111.8 million, bringing the total outstanding balance to $2.58 billion at September 30, 2026, up from $2.12 billion at September 30, 2025.  We continue to increase our commercial loan portfolio primarily by redeploying funds received from the repayment of single-family loans not utilized to replace originations in our local markets.  Deposits grew $267.7 million during fiscal year 2026, primarily in retail deposits while the balance of our borrowings decreased $335.3 million, reflecting a significant remixing of our funding base.  In addition, our commitment to share repurchases continued with the purchase of 2,512,196 shares for $21.7 million between July 1, 2026 and October 23, 2026.

John Dicus, CEO, stated, "Our fiscal year 2026 results reflect continued success in executing our strategic initiatives and the investments we have made in our people, technology and products. These investments have expanded our capabilities across all lines of business, allowing us to offer a broader range of products and services to our consumer and commercial clients, while also enhancing our trust and wealth management offerings.  Our solid financial results and continued strong capital position are a direct result of ongoing commitment to our corporate strategies.  These benefit our stockholders by enabling the payment of dividends, including a special dividend paid in January 2026, repurchases of our stock and a higher tangible book value per share.  We expect that dividends and repurchases will continue."

Highlights for the current quarter include:

• net income of $22.4 million;
• net interest margin was 2.39%, an increase from 2.31% for the quarter ended June 30, 2026 (the "prior quarter");
• basic and diluted earnings per share of $0.18;
• an efficiency ratio of 53.79%;
• an operating expense ratio of 1.35%;
• cash dividends paid of $10.5 million, or $0.085 per share, and
• repurchased 1,684,276 shares of common stock at an average price of $8.74 per share.
• on October 27, 2026, the Company announced a cash dividend of $0.085 per share, payable on November 20, 2026 to stockholders of record as of the close of business on November 6, 2026.

Fiscal Year 2026 balance sheet highlights include:

• total assets of $9.67 billion at September 30, 2026;
• tangible book value per share of $8.02 at September 30, 2026, an increase of $0.17 since September 30, 2025;
• commercial loan growth of $468.8 million, or 22.2% since September 30, 2025;
• commercial deposit growth of $13.1 million, or 2.6% since September 30, 2025;
• distributions of $112.0 million from the Bank to the Company during fiscal year 2026; and
• cash dividends paid of $0.38 per share.

Billy Skrobacz, Jr., President, stated, "We have been building on the foundation laid in previous years to transform Capitol Federal into a fully integrated commercial bank providing products and services to all of our customer segments.  Strategically, we are remixing our balance sheet and finding efficiencies in our operations while scaling our commercial capabilities and delivering exceptional customer service.  We now provide retail, commercial, trust and wealth, private banking, and insurance customers with all of their financial services needs under one umbrella.  We look forward to continued growth in the next fiscal year."

Strategic Banking Initiatives
As a full-service bank, we remain focused on broadening our product and service offerings, expanding our customer base, and enhancing the overall customer experience, through investments in technology, tactical talent acquisitions, effective marketing, enhanced internal monitoring of performance measures, and disciplined execution as we launch new services and products.  Our marketing and business development efforts are strengthening and expanding our customer relationships.  Our experienced and well-connected commercial bankers and trust and wealth advisors continue to identify and on-board new customer groups.  Our treasury management product suite allows us to deliver best-in-class service to new and existing customers.  We customize solutions using our broad product suite, advanced digital platforms and sophisticated cash management tools as we leverage our centralized organizational structure to respond quickly to our customers' needs and desires.

Commercial Lending.  Commercial loans continue to grow as a percentage of our total loan portfolio, comprising 31% of the portfolio at September 30, 2026, compared to 26% at September 30, 2025.  We continue to bring new commercial relationships into our portfolio, many with strong local connections.  As we do this, we maintain strong credit quality through disciplined underwriting, ongoing credit administration and close monitoring of concentration levels by collateral type, geographic location and borrowing relationship.

We continue to leverage loan pricing and profitability software that provides insights on lending opportunities based on the full customer banking relationship and market intelligence regarding competitor pricing.  As a result, we profitably compete with other financial institutions both inside and outside our market areas, leading, in part, to the growth in our commercial lending portfolio.

Treasury Management.  The Bank's competitive suite of treasury management products is supported by an experienced team of treasury management officers.  This team focuses on serving the deposit and cash management needs of commercial customers, growing this line of business through the acquisition of new customers located in our local market areas, and those we lend to outside these areas. 

Our team of business development officers is tasked with growing the deposit base within the small business customer segment and providing product offerings specifically designed for these customers.  Treasury management officers and business development officers often establish deposit relationships with new customers independent of a lending relationship.  This is a focus area for our sales teams as the Bank diversifies funding sources and seeks to increase fee revenue tied to depository accounts.

In fiscal year 2027, we plan to add cash concentration services and new mobile features, and continue pursuing growth in our recently launched corporate card and lockbox products.

Digital Banking.  We invest in digital banking to better serve our existing customers and attract new customers.  As customers increasingly demand better digital experiences from a bank they can trust, we believe that we are well positioned to compete with fintech providers and other financial institutions because of the breadth of our product offerings, advanced digital platforms, and quality personal service.

During the current quarter, we (1) completed development that brings both self-directed and automated investing capabilities into True Blue Online®, providing customers with an investment experience directly connected to their checking or savings account and (2) completed development of new debit card management software for True Blue Online®, continuing to improve self-service debit card management capabilities.  We expect both of these features to be launched in the first quarter of fiscal year 2027 with full availability to all customers in the second quarter of fiscal year 2027.

In fiscal year 2027, we have planned initiatives for a new mobile experience for youth banking with parental spending controls, improved onboarding workflows to make it easier to open an account with the Bank, and additional digital servicing features that allow customers to complete more account maintenance activities online.

Wealth Management.  Building on our strategic investments in wealth management and private banking, we are making meaningful progress toward implementing customer-facing tools that advance our long-term growth objectives.  We have enhanced our trust and financial advisory platform, including improvements to processes, technology, and service delivery that are expected to strengthen both the client and advisor experience.  This transformation is expected to be fully implemented by the second quarter of fiscal year 2027.

In private banking, we have deepened relationships with high-net-worth households, business owners, and commercial clients through the onboarding of new relationships that include a combination of wealth management assets, deposits, and lending opportunities.  Our focus on delivering coordinated banking, lending, and wealth management solutions has enhanced client engagement and expanded opportunities across multiple lines of business.

We also have increased referral activity between the wealth management, retail banking, and commercial banking teams.  These collaborative efforts have led to the identification of opportunities to serve clients more comprehensively and support the Bank's strategy of growing fee-based revenue while deepening core customer relationships.  These factors have contributed to strong new client acquisition and asset growth.

The progress achieved this quarter demonstrates continued momentum in building a scalable wealth management and private banking model that we believe will generate sustainable revenue growth, improve operating efficiency, and enhance stockholder value over time.

Stockholder Value.  The intended result of our strategic initiatives is to deliver long-term sustainable stockholder value.  As part of our historically robust and disciplined approach to capital management, we continue to generate returns to stockholders through earnings, dividend payments and share repurchases.  Total dividends paid during the fourth quarter of fiscal year 2026 were $10.5 million, or $0.085 per share.  During the year ended September 30, 2026, the Company paid dividends totaling $48.0 million, or $0.380 per share.  We repurchased 8,054,222 shares for $60.6 million during the current fiscal year.  Subsequent to September 30, 2026, the Company repurchased an additional 827,920 shares for $7.0 million through October 23, 2026.  Since converting to a fully public company in December 2010 through September 30, 2026, we have returned $2.11 billion to stockholders through $1.61 billion in cash dividends and $500.6 million in share repurchases.  For fiscal year 2027, it is the intention of the Board of Directors to continue the regular quarterly cash dividend of $0.085 per share and to seek further opportunities for value-enhancing share repurchases. At September 30, 2026, at the holding company level, the Company had $22.1 million in cash on deposit at the Bank.

Comparison of Operating Results for the Three Months Ended September 30, 2026 and June 30, 2026 
For the quarter ended September 30, 2026, the Company recognized net income of $22.4 million, or $0.18 per share, compared to net income of $23.6 million, or $0.19 per share, for the quarter ended June 30, 2026.  The decrease in net income was due primarily to higher non-interest expenses and a decrease in non-interest income, partially offset by an increase in net interest income.  The net interest margin increased eight basis points, from 2.31% for the prior quarter to 2.39% for the current quarter, due primarily to continued growth in the higher yielding commercial loan portfolio.

Interest and Dividend Income
The following table presents the components of interest and dividend income for the periods presented, along with the change measured in dollars and percent. 

The increase in interest income on loans receivable was due to continued growth in the commercial loan portfolio, as a significant portion of the cash flows from the one- to four-family loan portfolio continue to be redirected into the higher yielding commercial loan portfolio, along with an increase in the average yield on the one- to four-family loan portfolio.  The decrease in interest income on cash and cash equivalents was due to a decrease in the average balance of cash compared to the prior quarter.

Interest Expense
The following table presents the components of interest expense for the periods presented, along with the change measured in dollars and percent. 

The decrease in interest expense on deposits was due primarily to a decrease in the average cost and average balance of retail certificates of deposit ("CDs"), offset by an increase in the average balance of high yield savings accounts.  The reduction in the average cost of retail CDs was due to existing higher rate CDs renewing at lower rates as the Bank selectively changed rates on term CDs while retaining approximately 82% of CD renewals.  Interest expense on borrowings decreased compared to the prior quarter due to continued repayments on amortizing FHLB advances, along with the full quarter impact of $50.0 million of FHLB borrowings that matured during the prior quarter and were not replaced.

Provision for Credit Losses
No provision for credit losses was recorded during the current quarter, as the increase in provision for credit losses associated with off-balance sheet credit exposures was offset by a release of provision for credit losses associated with the allowance for credit losses ("ACL"), due primarily to a more favorable forecast for some of the commercial-related economic indices, primarily commercial real estate price indices.  The Company recorded a release of provision for credit losses of $433 thousand during the prior quarter.

Non-Interest Income
The following table presents the components of non-interest income for the periods presented, along with the change measured in dollars and percent.

The decrease in income from BOLI was due primarily to death benefits received in the prior quarter with no such benefits in the current quarter.  The decrease in other non-interest income was due primarily to decreases in brokerage and trust fee income and insurance commissions, reflecting fewer one-time fees related to account closures and distributions in the prior quarter as we transition service providers, while recurring fee revenue remained strong.

Non-Interest Expense
The following table presents the components of non-interest expense for the periods presented, along with the change measured in dollars and percent. 

The increase in information technology and related expense was driven primarily by credits and reimbursements from a vendor in the prior quarter related to contractual and service fulfillment matters.  The increase in professional and other services was due primarily to increased consulting and controls testing services during the quarter.

The Company's efficiency ratio was 53.79% for the current quarter compared to 52.10% for the prior quarter.  The efficiency ratio is a measure of a financial institution's total non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income.  A higher value generally indicates that it is costing the financial institution more money to generate revenue.  The Company's operating expense ratio (annualized) for the current quarter was 1.35%, compared to 1.29% for the prior quarter.  The operating expense ratio is a measure of a financial institution's total non-interest expense as a percentage of average assets, providing insight into how efficiently the Company is managing its expenses in relation to its assets and does not take into consideration changes in interest rates.  The operating expense ratio was higher in the current quarter due to higher non-interest expense.

Income Tax Expense
The following table presents pretax income, income tax expense, and net income for the periods presented, along with the change measured in dollars and percent and the effective tax rate.

The increase in income tax expense and the effective tax rate was due primarily to a true-up of the estimates utilized in prior fiscal year State of Kansas tax return based on updated information and refinements to the related tax calculation during the current quarter. The true-up increased income tax expense and caused the effective tax rate to increase notwithstanding the decrease in income before income tax expense.

Comparison of Operating Results for the Years Ended September 30, 2026 and 2025
The Company recognized net income of $86.4 million, or $0.69 per share, for the current year, compared to net income of $68.0 million, or $0.52 per share for the prior year.  The increase in net income was due mainly to higher net interest income and non-interest income, partially offset by higher non-interest expense and income tax expense.  The net interest margin increased 32 basis points, from 1.96% for the prior year to 2.28% for the current year.  The increase in net interest margin was due mainly to growth in the higher yielding commercial loan portfolio, along with a decrease in the average balance of borrowings and the average cost of CDs, partially offset by an increase in the average balance of deposits, mainly high yield savings accounts.

Interest and Dividend Income
The following table presents the components of interest and dividend income for the periods presented, along with the change measured in dollars and percent.

The increase in interest income on loans receivable was due primarily to commercial loan growth, as cash flows from the one- to four-family loan portfolio continued to be redirected into the higher yielding commercial loan portfolio.  The decrease in FHLB stock dividend income was due primarily to a reduction in the balance of FHLB stock resulting from paying off maturing FHLB borrowings between periods and repayments on amortizing FHLB borrowings, which reduced the Bank's required FHLB stock holdings.  The decrease in interest income on investment securities was due primarily to a lower average balance, caused mainly by repayments and securities that were called or matured between periods and were not replaced in their entirety.

Interest Expense
The following table presents the components of interest expense for the periods presented, along with the change measured in dollars and percent.

Interest expense on deposits was relatively unchanged compared to the prior year as a decrease in the average cost of CDs, caused by existing higher rate retail CDs renewing at lower rates, was offset by an increase in the average balance of high yield savings accounts.  The decrease in interest expense on borrowings was due primarily to a decrease in the average balance of borrowings resulting from FHLB borrowings that matured between periods and were not renewed, the restructuring of certain borrowings during the year, and continued repayments on amortizing FHLB advances.  Cash flows from the increase in the deposit portfolio and excess operating cash were used to pay off maturing FHLB borrowings and repay amortizing FHLB advances.

Provision for Credit Losses
The Company recorded a provision for credit losses of $3.0 million during the current year compared to a provision for credit losses of $745 thousand for the prior year.  The provision for credit losses in the current year was due primarily to establishing a $4.0 million specific valuation allowance related to a nonaccrual commercial lending relationship, along with commercial loan and commitment growth, partially offset by improvement between periods in some of the commercial-related forecasted economic indices and an update to the ACL model's regression analyses.

Non-Interest Income
The following table presents the components of non-interest income for the periods presented, along with the change measured in dollars and percent.

Income from BOLI was higher in the current year due primarily to $45.0 million in new BOLI policies being purchased during the current year, along with an increase in the crediting rate as a result of updates to certain policies that were executed in the second half of the prior year.  Insurance commissions were lower compared to the prior year due primarily to contingent commissions received versus accrued in the current year compared to the prior year.  Other non-interest income was higher in the current year due mainly to increased commercial loan fee activity and growth in the trust and brokerage business.

Non-Interest Expense 
The following table presents the components of non-interest expense for the periods presented, along with the change measured in dollars and percent.

The increase in salaries and employee benefits was mainly attributable to an increase in full-time equivalent employees between periods, merit increases and salary adjustments to remain market competitive, as well as increased incentive compensation.  The increase in information technology and related expense was due primarily to an increase in software licensing expense as a result of new agreements and applications that were implemented, along with annual increases in costs of existing agreements, partially offset by a vendor credit applied in the current year.  The increase in professional and other services was due primarily to new relationships with outside service providers and additional services provided by current providers.  

The Company's efficiency ratio was 53.00% for the current year compared to 58.33% for the prior year.  The improvement in the efficiency ratio was due primarily to higher net interest income compared to the prior year, partially offset by higher non-interest expense.  The Company's operating expense ratio for the current year was 1.28% compared to 1.22% for the prior year.  The operating expense ratio was higher in the current year due mainly to higher non-interest expense, partially offset by higher average asset balances compared to the prior year.

Income Tax Expense
The following table presents pretax income, income tax expense, and net income for the periods presented, along with the change measured in dollars and percent and the effective tax rate.

Income tax expense was higher in the current year due primarily to higher pretax income.  The effective tax rate was higher in the current year due primarily to a reduction of the effective tax rate in Kansas for the prior year that was not repeated in the current year.  Additionally, the Bank continued to benefit from low-income housing tax credits, which reduced the tax rate.

Fiscal Year 2027 Outlook  
The near-term outlook for commercial loan balances is an increase of approximately a 17%, with overall total loans receivable, net, anticipated to increase by approximately 2.5% for fiscal year 2027.  Deposits are anticipated to grow 6.2% during fiscal year 2027, helping to support our loan growth and liquidity levels.  The effective tax rate for fiscal year 2027 is anticipated to range between 20.0% and 21.0%.  As the Company realizes the benefits of executing on its initiatives, it is likely the Company will exceed $10 billion in total assets in the coming fiscal years. 

Salary and employee benefit expense is anticipated to increase approximately 4.8% in fiscal year 2027 from the fiscal year 2026 level due to the expected hiring of additional professionals, merit increases, continued staff compensation alignment with market compensation levels, and the impact of the first full year of compensation for recently hired staff.  Occupancy expense is anticipated to increase 7.4% in fiscal year 2027 from fiscal year 2026, primarily due to improvement projects on several large facilities expected to be completed during the current fiscal year 2027.  Information technology expense is anticipated to increase during fiscal year 2027 approximately 22.4% from fiscal year 2026 due to recognizing full year amortization of software licenses and annual cost escalation, hardware implemented or placed into service in fiscal years 2026 and 2027 on which we did not record depreciation in fiscal year 2026, project implementation delays to fiscal year 2027, along with several new initiatives including a customer relationship management system.  Overall, non-interest expense is projected to increase 7% in fiscal year 2027 from fiscal year 2026.

Management anticipates the Board of Governors of the Federal Reserve System will continue to increase rates during our 2027 fiscal year, which will put pressure on deposit costs.  Management also anticipates that rising rates will result in an increase in loan yields as new loans are booked, existing loans reprice to higher rates, and commercial loans replace 1-4 family residential loans in the portfolio.

Financial Condition as of September 30, 2026
The following table summarizes the Company's financial condition at the dates indicated.

Comparison to June 30, 2026
The loan portfolio increased $32.1 million during the current quarter due to commercial loan growth of $111.8 million, or an 18% annualized increase, mainly in the commercial real estate portfolio, partially offset by a decrease of $79.4 million in the one- to four-family loan portfolio.  It is expected that a significant portion of repayments from our one- to four-family loan portfolio will continue to be directed toward supporting commercial loan growth.  Maintaining strong credit quality remains a top priority as we expand our commercial loan portfolio.  The weighted average debt service coverage ratio ("DSCR") for commercial loan originations and participations during the current quarter was 2.43x and the weighted average loan-to-value ("LTV") for commercial real estate and construction loan originations and participations was 62%.  The weighted average DSCR and LTV for our commercial real estate and construction loan portfolios was 1.78x and 63%, respectively, at September 30, 2026.

Deposits increased $8.5 million during the current quarter, as an increase in high yield savings accounts was partially offset by decreases in retail money market accounts, commercial checking accounts, and CDs.  Borrowings decreased $20.8 million from June 30, 2026, due to principal repayments made on the Bank's amortizing FHLB advances.  Management estimates that the Bank had $4.40 billion in liquidity available at September 30, 2026, based on the Bank's blanket collateral agreement with FHLB, available brokered and public unit deposit capacity, unencumbered securities, and cash and cash equivalent balances.  The balance of AFS securities decreased $48.7 million due to principal repayments and the change in market value to an unrealized loss as a result of an increase in market interest rates.  Stockholders' equity decreased $15.2 million during the current quarter, due primarily to share repurchases, a decrease in accumulated other comprehensive income ("AOCI") associated with AFS securities, and dividend payments. 

Comparison to September 30, 2025
The loan portfolio increased $86.9 million from September 30, 2025, which was attributable to a $468.8 million increase in commercial loans, offset by a $381.8 million decrease in one- to four-family loans, as the Bank continued to redirect cash flows from the one- to four-family loan portfolio to the commercial loan portfolio.  The growth in the commercial loan portfolio was primarily in commercial real estate loans.  The weighted average DSCR for commercial loan originations/participations during the year ended September 30, 2026 was 2.30x and the weighted average LTV for commercial real estate and construction loan originations/participations was 67%.

Deposits increased $267.7 million from September 30, 2025 due mainly to an increase in high yield savings accounts, retail checking, and commercial checking, partially offset by a decrease in CDs.  Management remains focused on growing commercial relationships and deposits.  During the year ended September 30, 2026, commercial non-interest-bearing deposits increased $32.3 million, or 16.9%.  Borrowings decreased $335.3 million during the current year due primarily to the maturity of $250.0 million of borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances. 

The following table summarizes loan originations and participations, deposit activity, and borrowing activity, along with certain related weighted average rates, during the periods indicated.  The new borrowings during the current period relate to advances that matured and were renewed during the current quarter.  New borrowings in the prior quarter periods represent maturing advances that were prepaid and renewed to lower rates.  All new borrowings are also reflected in the maturities and repayments line.

Stockholders' Equity
Stockholders' equity totaled $1.01 billion at September 30, 2026.  Consistent with our goal to operate a sound and profitable financial organization that delivers long-term stockholder value, we actively seek to maintain a well-capitalized status for the Bank in accordance with regulatory standards.  As of September 30, 2026, all of the Bank's capital ratios exceeded the well-capitalized requirements, and the Bank exceeded internal policy thresholds for sensitivity to changes in interest rates.  As of September 30, 2026, the Bank's CBLR was 9.5%.  Excluding the impact of federal tax credits, the Bank's CBLR would have been 9.8% as of September 30, 2026. 

During the year ended September 30, 2026, the Company repurchased 8,054,222 shares of common stock at an average price of $7.53 per share, or $60.6 million in total.  From October 1, 2026 through October 23, 2026, the Company repurchased an additional 827,920 shares of common stock at an average price of $8.45 per share, or $7.0 million in total.  The Company intends to continue to repurchase stock from time to time depending upon market conditions, available liquidity, and other factors.  Although our existing repurchase plans have no expiration date, we are required to annually seek the Federal Reserve Bank of Kansas City's ("FRB'") non-objection for the remaining buyback amount.  The Company has received non-objection from the FRB for an additional $75.0 million of stock repurchase authority to begin at the completion of the current plan (which had $10.5 million remaining authorized as of September 30, 2026).

During the year ended September 30, 2026, the Company paid cash dividends totaling $48.0 million, or $0.380 per share, which consisted of a $0.040 per share special cash dividend paid in January 2026 and four regular quarterly cash dividends of $0.085 per share, totaling $0.340 per share for the quarterly cash dividends.  On October 27, 2026, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $10.3 million, payable on November 20, 2026 to stockholders of record as of the close of business on November 6, 2026.  The special cash dividend paid in January 2026, in addition to the Company's history of regular quarterly dividends and opportunistic share repurchases, demonstrates the Company's multi-channel focus on delivering stockholder value through disciplined capital allocation that balances investments in the future of the Company with incremental opportunities to return capital to stockholders.  Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital compliance, regulatory limitations on the Bank's ability to make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.

The Board of Directors continues to evaluate various alternatives for capital allocation to enhance stockholder value, including the repurchase of stock, the payment of additional cash dividends, or retaining earnings to support future growth.  Since converting to a fully public company in December 2010 through September 30, 2026, we have returned $2.11 billion in capital to stockholders through dividends totaling $1.61 billion and stock repurchases totaling $500.6 million.  This is supported by our holistic approach to managing the balance sheet through continuous modeling of the Bank's performance, risk management, our commitment to credit quality and periodic stress testing.

At September 30, 2026, at the holding company level, the Company had $22.1 million in cash on deposit at the Bank.  During the year ended September 30, 2026, the Bank distributed $112.0 million from the Bank to the Company.   Earnings distributions from the Bank to the Company will be limited to the extent necessary to prevent the Bank from re-entering a negative accumulated earnings and profit position and having to pay the pre-1988 bad debt recapture tax on earnings moved from the Bank to the Company.

The following table presents a reconciliation of total to net shares outstanding as of September 30, 2026.  As of October 23, 2026, total shares outstanding were 123,413,063.

Capitol Federal Financial, Inc. is the holding company for the Bank.  News and other information about the Company can be found at the Bank's website, http://www.capfed.com. 

Forward-Looking Statements
Except for the historical information contained in this press release, the matters discussed herein may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include statements about our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions.  The words "may," "could," "should," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions are intended to identify forward-looking statements.  Forward-looking statements involve risks and uncertainties, including: changes in policies or the application or interpretation of laws and regulations by regulatory agencies and tax authorities; other governmental initiatives affecting the financial services industry; changes in accounting principles, policies or guidelines; fluctuations in interest rates and the effects of inflation or a potential recession, whether caused by Federal Reserve action or otherwise; changes to existing trade policies that could affect economic activity or specific industry sectors; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor or depositor sentiment; demand for loans in the Company's market areas; the future earnings and capital levels of the Bank and the impact of potential pre-1988 bad debt recapture, which could affect the ability of the Company to pay dividends in accordance with its dividend policies; competition; and other risks detailed from time to time in documents filed or furnished by the Company with the Securities and Exchange Commission.  Actual results may differ materially from those currently expected.  These forward-looking statements represent the Company's judgment as of the date of this release.  The Company disclaims, however, any intent or obligation to update these forward-looking statements.

Average Balance Sheets. The following tables present the average balances of our assets, liabilities, and stockholders' equity, and the related annualized weighted average yields and rates on our interest-earning assets and interest-bearing liabilities for the periods indicated, as well as selected performance ratios and other information for the periods shown.  Weighted average yields are derived by dividing income (annualized for the three-month periods) by the average balance of the related assets, and weighted average rates are derived by dividing expense (annualized for the three-month periods) by the average balance of the related liabilities, for the periods shown.  Average outstanding balances are derived from average daily balances.  All amounts are presented on a fully taxable basis for the periods presented.  The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates. 

Loan Portfolio
The following table presents information related to the composition of our loan portfolio in terms of dollar amounts, weighted average rates, and percentage of total as of the dates indicated.