|UNITED STATES                                                                                                                                                                                                                                                                                                                                                                                                        
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|SECURITIES AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                   
|Washington, D.C.  20549                                                                                                                                                                                                                                                                                                                                                                                              
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|FORM 10-Q                                                                                                                                                                                                                                                                                                                                                                                                            
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|CAPITOL FEDERAL FINANCIAL                                                                                                                                                                                                                                                                                                                                                                                            
|(Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                               
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|United States                                                                                                                                                                                                                                                                                                                                                                                                        
|(State or other jurisdiction of incorporation                                                                                                                                                                                                                                                                                                                                                                        
|or organization)                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                     
|700 Kansas Avenue, Topeka, Kansas                                                                                                                                                                                                                                                                                                                                                                                    
|(Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                             
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|Registrant's telephone number, including area code:  (785) 235-1341                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                     
|Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days.  YES X NO __.                                                       
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|Transitional Small Business Format:                                             Yes [  ]          No [X]                                                                                                                                                                                                                                                                                                             
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|Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Common Stock                                           73,549,542
Class                                                            Shares Outstanding
                                                                                                             as of August 7, 2002



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FORM 10-Q
Capitol Federal Financial
INDEX

|PART I -- FINANCIAL INFORMATION                                                                                        | Page
Number
|---------------------------------------------------------------------------------------------------------------------- | -----------
|Item 1.  Financial Statements                                                                                          |            
|Consolidated Balance Sheetsat June 30, 2002 and September 30, 2001                                                     | 3          
|Consolidated Statements of Incomefor the three and nine months ended                   June 30, 2002 and June 30, 2001 | 4          
|Consolidated Statement of Stockholders' Equityfor the nine months ended                   June 30, 2002                | 5          
|Consolidated Statements of Cash Flowsfor the nine months ended                   June 30, 2002 and June 30, 2001       | 6          
|Notes to Consolidated Interim Financial Statements                                                                     | 8          
|Item 2.Management's Discussion and Analysisof Financial Condition and                   Results of Operations          | 13         
|Item 3.Quantitative and Qualitative Disclosure about Market Risk                                                       | 22         
|                                                                                                                       |            
|PART II -- OTHER INFORMATION                                                                                           |            
|Item 1.Legal Proceedings                                                                                               | 25         
|Item 2.Changes in Securities and Use of Proceeds                                                                       | 25         
|Item 3.Defaults Upon Senior Securities                                                                                 | 25         
|Item 4.Submission of Matters to a Vote of Security Holders                                                             | 25         
|Item 5.Other Information                                                                                               | 25         
|Item 6.Exhibits and Reports on Form 8-K                                                                                | 25         
|                                                                                                                       |            
|Signature Page                                                                                                         | 26         
|Financial Statement Certification                                                                                      | 27         

2

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PART 1 -- FINANCIAL INFORMATION

CAPITOL FEDERAL FINANCIAL AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share counts)

|                                                                            | June 30,     |  | September 30,
|--------------------------------------------------------------------------- | ------------ |  | -------------
|                                                                            | 2002         |  | 2001         
|                                                                            | (Unaudited)  |  |              
|ASSETS:                                                                     |              |  |              
|Cash and cash equivalents                                                   | $     95,992 |  | $     153,462
|Investment securities held to maturity, at cost (market value of $521,565   |              |  |              
|and $520,099)                                                               | 501,181      |  | 502,283      
|Capital stock of Federal Home Loan Bank, at cost                            | 161,000      |  | 162,350      
|Mortgage-related securities:                                                |              |  |              
|Available-for-sale, at market (amortized cost of $1,152,382 and $1,041,069) | 1,175,312    |  | 1,059,110    
|Held-to-maturity, at cost (market value of $1,448,045 and $1,294,248)       | 1,419,396    |  | 1,248,813    
|Loans held for sale, net                                                    | 17,790       |  | 16,904       
|Loans receivable, net                                                       | 5,349,404    |  | 5,416,507    
|Premises and equipment, net                                                 | 23,135       |  | 22,494       
|Real estate owned, net                                                      | 2,642        |  | 1,031        
|Accrued interest receivable                                                 | 45,258       |  | 47,219       
|Other assets                                                                | 4,131        |  | 5,270        
|TOTAL ASSETS                                                                | $ 8,795,241  |  | $ 8,635,443  
|                                                                            |              |  |              
|LIABILITIES:                                                                |              |  |              
|Deposits                                                                    | $ 4,431,321  |  | $ 4,285,835  
|Advances from Federal Home Loan Bank                                        | 3,200,000    |  | 3,200,000    
|Other borrowings, net                                                       | 106,344      |  | --           
|Advance payments by borrowers for taxes and insurance                       | 19,946       |  | 40,161       
|Accrued and deferred income taxes payable                                   | 19,899       |  | 24,625       
|Accounts payable and accrued expenses                                       | 41,960       |  | 36,560       
|Total Liabilities                                                           | 7,819,470    |  | 7,587,181    
|                                                                            |              |  |              
|COMMITMENTS AND CONTINGENCIES (NOTE 8)                                      |              |  |              
|                                                                            |              |  |              
|STOCKHOLDERS' EQUITY:                                                       |              |  |              
|Preferred stock ($0.01 par value) 50,000,000 shares                         |              |  |              
|authorized; none issued                                                     | --           |  | --           
|Common stock ($0.01 par value) 450,000,000 authorized; 91,512,287           |              |  |              
|shares issued as of June 30, 2002 and September 30, 2001                    | 915          |  | 915          
|Additional paid-in-capital                                                  | 392,706      |  | 387,018      
|Retained earnings                                                           | 861,629      |  | 809,127      
|Accumulated other comprehensive income                                      | 14,234       |  | 11,457       
|Unearned compensation, Employee Stock Ownership Plan                        | (22,684)     |  | (24,197)     
|Unearned compensation, Recognition and Retention Plan                       | (4,450)      |  | (6,156)      
|Less shares held in treasury (17,363,459 and 11,103,005 shares as of        |              |  |              
|June 30, 2002 and  September 30, 2001, at cost)                             | (266,579)    |  | (129,902)    
|Total Stockholders' Equity                                                  | 975,771      |  | 1,048,262    
|                                                                            |              |  |              
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                  | $ 8,795,241  |  | $ 8,635,443  



See accompanying notes to consolidated interim financial statements.

3

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CAPITOL FEDERAL FINANCIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(dollars in thousands, except per share amounts)

|                                                 | For the Three Months Ended |  | For the Nine Months Ended
|------------------------------------------------ | -------------------------- |  | -------------------------
|                                                 | June 30,                   |  | June 30,                 
|                                                 | 2002                       |  | 2001                     
|INTEREST AND DIVIDEND INCOME:                    |                            |  |                          
|Loans receivable                                 | $  91,823                  |  | $ 100,128                
|Mortgage-related securities                      | 38,310                     |  | 36,660                   
|Investment securities                            | 6,544                      |  | 2,483                    
|Cash and cash equivalents                        | 329                        |  | 2,770                    
|Capital stock of Federal Home Loan Bank          | 1,907                      |  | 2,854                    
|Total interest and dividend income               | 138,913                    |  | 144,895                  
|                                                 |                            |  |                          
|INTEREST EXPENSE:                                |                            |  |                          
|Deposits                                         | 40,487                     |  | 52,895                   
|Borrowings                                       | 50,672                     |  | 49,628                   
|Total interest expense                           | 91,159                     |  | 102,523                  
|                                                 |                            |  |                          
|Net interest and dividend income                 | 47,754                     |  | 42,372                   
|Provision for loan losses                        | 60                         |  | --                       
|Net interest and dividend income after           |                            |  |                          
|provision for loan losses                        | 47,694                     |  | 42,372                   
|                                                 |                            |  |                          
|OTHER INCOME:                                    |                            |  |                          
|Automated teller and debit card transaction fees | 1,597                      |  | 1,469                    
|Checking account transaction fees                | 1,234                      |  | 935                      
|Loan fees                                        | 344                        |  | 410                      
|Insurance commissions                            | 458                        |  | 422                      
|Other, net                                       | 1,145                      |  | 672                      
|Total other income                               | 4,778                      |  | 3,908                    
|                                                 |                            |  |                          
|OTHER EXPENSES:                                  |                            |  |                          
|Salaries and employee benefits                   | 10,302                     |  | 9,302                    
|Occupancy of premises                            | 2,291                      |  | 2,551                    
|Office supplies and related expenses             | 1,125                      |  | 1,061                    
|Deposit and loan transaction fees                | 1,218                      |  | 1,465                    
|Advertising                                      | 1,137                      |  | 952                      
|Federal insurance premium                        | 195                        |  | 192                      
|Other, net                                       | 1,494                      |  | 1,128                    
|Total other expenses                             | 17,762                     |  | 16,651                   
|                                                 |                            |  |                          
|Income before income tax expense                 | 34,710                     |  | 29,629                   
|                                                 |                            |  |                          
|Income tax expense                               | 13,641                     |  | 10,815                   
|NET INCOME                                       | $  21,069                  |  | $  18,814                
|                                                 |                            |  |                          
|Basic earnings per share                         | $ 0.29                     |  | $ 0.24                   
|Diluted earnings per share                       | $ 0.29                     |  | $ 0.24                   



See accompanying notes to consolidated interim financial statements

4

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CAPITOL FEDERAL FINANCIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
(dollars in thousands)

|                                            |        |            |          | Accumulated   |              |              |            |           
|------------------------------------------- | ------ | ---------- | -------- | ------------- | ------------ | ------------ | ---------- | ----------
|                                            |        | Additional |          | Other         | Unearned     | Unearned     |            |           
|                                            | Common | Paid-In    | Retained | Comprehensive | Compensation | Compensation | Treasury   |           
|                                            | Stock  | Capital    | Earnings | Income        | (ESOP)       | (RRP)        | Stock      | Total     
|                                            |        |            |          |               |              |              |            |           
|Balance at October 1, 2001                  | $915   | $387,018   | $809,127 | $11,457       | ($24,197)    | ($6,156)     | ($129,902) | $1,048,262
|Comprehensive Income:                       |        |            |          |               |              |              |            |           
|Net income                                  |        |            | 63,531   |               |              |              |            | 63,531    
|Change in unrealized gain on available      |        |            |          |               |              |              |            |           
|for sale securities, net of deferred income |        |            |          |               |              |              |            |           
|tax ($2,110)                                |        |            |          | 2,777         |              |              |            | 2,777     
|Total Comprehensive income                  |        |            |          |               |              |              |            | 66,308    
|                                            |        |            |          |               |              |              |            |           
|Change in Employee Stock Ownership Plan     |        | 1,948      |          |               | 1,513        |              |            | 3,461     
|Change in Recognition and Retention Plan    |        | 1,629      |          |               |              | 1,706        | 30         | 3,365     
|Acquisition of treasury stock               |        |            |          |               |              |              | (143,219)  | (143,219) 
|Stock options exercised                     |        | 2,111      | (599)    |               |              |              | 6,512      | 8,024     
|Dividends on common stock to                |        |            |          |               |              |              |            |           
|stockholders ($0.54 per share)              |        |            | (10,430) |               |              |              |            | (10,430)  
|Balance at June 30, 2002                    | $915   | $392,706   | $861,629 | $14,234       | ($22,684)    | ($4,450)     | ($266,579) | $975,771  





See accompanying notes to consolidated interim financial statements.



5

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CAPITOL FEDERAL FINANCIAL AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in thousands)

|                                                                                 | For the Nine Months Ended
|-------------------------------------------------------------------------------- | -------------------------
|                                                                                 | June 30,                 
|                                                                                 | 2002                     
|CASH FLOWS FROM OPERATING ACTIVITIES:                                            |                          
|Net income                                                                       | $63,531                  
|Adjustments to reconcile net income to net cash provided                         |                          
|by operating activities:                                                         |                          
|Amortization of net deferred loan origination fees                               | (5,036)                  
|Provision for loan losses                                                        | 184                      
|Net loan origination fees capitalized                                            | 5,528                    
|Gain on sale of loans held for sale                                              | (14)                     
|Gain on sales of real estate owned, net                                          | (116)                    
|Originations of loans held for sale                                              | (6,602)                  
|Proceeds from sales of loans held for sale                                       | 5,745                    
|Amortization and accretion of premiums and discounts on                          |                          
|mortgage-related securities and investment securities                            | 2,560                    
|Depreciation and amortization on premises and equipment                          | 2,504                    
|Amortization of capitalized cost on other borrowings                             | 129                      
|Common stock committed to be released for allocation - ESOP                      | 3,462                    
|Amortization of unearned compensation - RRP                                      | 1,706                    
|Recognition and Retention Plan shares sold for employee withholding tax purposes | (66)                     
|Changes in:                                                                      |                          
|Accrued interest receivable                                                      | 1,961                    
|Other assets                                                                     | 1,137                    
|Income taxes payable                                                             | 670                      
|Accounts payable and accrued expenses                                            | 1,004                    
|Net cash provided by operating activities                                        | 78,287                   
|                                                                                 |                          
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |                          
|Proceeds from maturities of investment securities                                | 201,350                  
|Purchases of investment securities                                               | (200,000)                
|Principal collected on mortgage-related securities available-                    |                          
|for-sale                                                                         | 249,957                  
|Principal collected on mortgage-related securities held-to-                      |                          
|maturity                                                                         | 546,106                  
|Purchases of mortgage-related securities available-for-sale                      | (363,521)                
|Purchases of mortgage-related securities held-to-maturity                        | (715,898)                
|Loan originations net of principal collected                                     | (283,561)                
|Principal collected net of loans purchased                                       | 346,939                  
|Purchases of premises and equipment, net                                         | (3,145)                  
|Proceeds from sales of real estate owned                                         | 2,043                    
|Net cash used in investing activities                                            | (219,730)                





6

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|CASH FLOWS FROM FINANCING ACTIVITIES:                 |           |  |          
|----------------------------------------------------- | --------- |  | ---------
|Dividends paid                                        | (10,430)  |  | (10,244) 
|Deposits, net of payments                             | 145,486   |  | 270,799  
|Proceeds from advances from Federal Home Loan Bank    | 20,000    |  | --       
|Proceeds from other borrowings                        | 116,389   |  | --       
|Repayments on advances from Federal Home Loan Bank    | (20,000)  |  | (25,000) 
|Repayments on other borrowings                        | (10,174)  |  | --       
|Payments for the repurchase of common stock           | (143,219) |  | (20,595) 
|Stock options exercised                               | 6,136     |  | 746      
|Change in advance payments by borrowers for taxes and |           |  |          
|insurance                                             | (20,215)  |  | (17,746) 
|Net cash provided by financing activities             | 83,973    |  | 197,960  
|                                                      |           |  |          
|NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS  | (57,470)  |  | 109,373  
|CASH AND CASH EQUIVALENTS:                            |           |  |          
|Beginning of Period                                   | 153,462   |  | 133,034  
|End of Period                                         | $ 95,992  |  | $ 242,407
|                                                      |           |  |          
|SUPPLEMENTAL SCHEDULE OF NON-CASH                     |           |  |          
|INVESTING AND FINANCING TRANSACTIONS:                 |           |  |          
|Loans transferred to real estate owned                | $3,551    |  | $2,079   
|Loans made on the sale of real estate owned           | --        |  | $98      
|Treasury stock issued to RRP, net of forfeited shares | $30       |  | $21      
|Equity adjustment for tax effect of RRP shares        | $1,485    |  | --       
|Equity adjustment for tax effect of disqualifying     |           |  |          
|disposition of incentive stock options                | $2,127    |  | --       
|                                                      |           |  |          



See accompanying notes to consolidated interim financial statements.

7

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Notes to Consolidated Interim Financial Statements

1.   Basis of Financial Statement Presentation and Significant Accounting PoliciesThe accompanying consolidated financial statements of Capitol Federal Financial and subsidiaries have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.  These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2001 Annual Report on Form 10-K to the Securities and Exchange Commission.  Interim results are not necessarily indicative of results for a full year.

In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period.  Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowances for losses on loans and real estate owned.  While management believes that these allowances are adequate, future additions to the allowances may be necessary based on changes in economic conditions.

All amounts are in thousands except per share data, unless otherwise indicated.

2.   Recent Accounting Pronouncements

In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 141, "Business Combinations."  SFAS No.141 requires the purchase method of accounting for business combinations initiated after June 30, 2001 and eliminates the pooling-of-interests method.  The provisions of this Statement apply to all business combinations initiated after June 30, 2001.  The Company's adoption of SFAS No.141 did not have a significant impact on its financial statements.

In July 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible Assets."  SFAS No. 142 changes the accounting for goodwill from an amortization method to an impairment-only approach.  The Company does not believe that the adoption of SFAS No. 142 will have a significant impact on its financial statements.  The provisions of this Statement are required to be applied starting with fiscal years beginning after December 15, 2001.

In July 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations."  SFAS No. 143 addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs.  The Company does not believe that the adoption of SFAS No. 143 will have a significant impact on its financial statements.  This statement is effective for all financial statements issued for fiscal years beginning after June 15, 2002.

In August 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-lived Assets."  SFAS No. 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets.  The Company does not believe that the adoption of SFAS No. 144 will have a significant impact on its financial statements.  The provisions of this Statement are effective for financial statements issued for fiscal years beginning after December 15, 2001 with early application encouraged.

In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB statement No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections."  SFAS No. 145 addresses financial accounting and reporting for the early retirement of debt.  The Company does not believe that the adoption of SFAS No. 145 will have a significant impact on its financial statements.  The provisions of this Statement are effective for financial statements issued for fiscal years beginning after May 1, 2002 .

8

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3.   Loan PortfolioThe following table presents the Company's loan portfolio at the dates indicated.

|                             | June 30, 2002 |  | September 30, 2001
|---------------------------- | ------------- |  | ------------------
|                             | Amount        |  | % of Total        
|                             |               |  |                   
|Real Estate Loans:           |               |  |                   
|One- to four-family          | $5,100,120    |  | 94.51             
|Multi-family                 | 46,483        |  | 0.86              
|Commercial                   | 5,191         |  | 0.10              
|Construction and development | 49,508        |  | 0.92              
|Total real estate loans      | 5,201,302     |  | 96.39             
|                             |               |  |                   
|Consumer loans:              |               |  |                   
|Savings loans                | 12,440        |  | 0.23              
|Home improvement             | 1,621         |  | 0.03              
|Automobile                   | 7,725         |  | 0.14              
|Home equity                  | 171,358       |  | 3.17              
|Other                        | 1,904         |  | 0.04              
|Total consumer loans         | 195,048       |  | 3.61              
|                             |               |  |                   
|Total loans receivable       | 5,396,350     |  | 100.00            
|                             |               |  |                   
|Less:                        |               |  |                   
|Loans in process             | 24,937        |  |                   
|Deferred fees and discounts  | 17,145        |  |                   
|Allowance for losses         | 4,864         |  |                   
|Total loans receivable, net  | $5,349,404    |  |                   



9

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1. Non-Performing Loans

The following table presents the Company's non-performing loans, including non-accrual loans and

real estate owned, at the dates indicated.

|                                             | June 30, |  | September 30,
|-------------------------------------------- | -------- |  | -------------
|                                             | 2002     |  | 2001         
|Non-accruing loans:                          |          |  |              
|One- to four-family                          | $7,393   |  | $6,384       
|Multi-family                                 | --       |  | --           
|Commercial real estate                       | --       |  | --           
|Construction or development                  | --       |  | --           
|Consumer                                     | 230      |  | 276          
|Total                                        | $7,623   |  | $6,660       
|                                             |          |  |              
|Accruing loans delinquent more than 90 days: |          |  |              
|One- to four-family                          | --       |  | --           
|Multi-family                                 | --       |  | --           
|Commercial real estate                       | --       |  | --           
|Construction or development                  | --       |  | --           
|Consumer                                     | --       |  | --           
|Total                                        | --       |  | --           
|                                             |          |  |              
|Real Estate Owned:                           |          |  |              
|One- to four-family                          | $2,581   |  | $1,031       
|Multi-family                                 | --       |  | --           
|Commercial real estate                       | --       |  | --           
|Construction or development                  | --       |  | --           
|Consumer                                     | --       |  | --           
|Total                                        | $2,581   |  | $1,031       
|                                             |          |  |              
|Total non-performing assets                  | $10,204  |  | $7,691       
|                                             |          |  |              
|Non-performing assets to total assets        | 0.12%    |  | 0.09%        
|Non-performing loans to total loans          | 0.14%    |  | 0.12%        
|Allowance for loan losses to non-            |          |  |              
|performing loans                             | 63.81%   |  | 72.63%       
|Allowance for loan losses to loans           |          |  |              
|receivable, net                              | 0.09%    |  | 0.09%        



10

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5.   Allowance for Loan LossesThe following table presents the Company's activity for loan losses at the dates and for the periods indicated.

|                                   | For the Three Months Ended |  | For the Nine Months Ended
|---------------------------------- | -------------------------- |  | -------------------------
|                                   | June 30,                   |  | June 30,                 
|                                   | 2002                       |  | 2001                     
|                                   |                            |  |                          
|Balance at the beginning of period | $4,859                     |  | $4,822                   
|                                   |                            |  |                          
|Charge offs:                       |                            |  |                          
|One- to four-family                | 26                         |  | 36                       
|Multi-family                       | --                         |  | --                       
|Commercial real estate             | --                         |  | --                       
|Construction or development        | --                         |  | --                       
|Consumer                           | 30                         |  | 13                       
|Total charge-offs                  | 56                         |  | 49                       
|                                   |                            |  |                          
|Recoveries:                        |                            |  |                          
|One- to four-family                | --                         |  | --                       
|Multi-family                       | --                         |  | --                       
|Commercial real estate             | --                         |  | --                       
|Construction or development        | --                         |  | --                       
|Consumer                           | 1                          |  | --                       
|Total recoveries                   | 1                          |  | --                       
|                                   |                            |  |                          
|Net charge-offs                    | 55                         |  | 49                       
|Additions charged to operations    | 60                         |  | --                       
|Balance at end of period           | $4,864                     |  | $4,773                   

6.   Deposits

|                      | June 30, 2002 |  | September 30, 2001
|--------------------- | ------------- |  | ------------------
|                      | Amount        |  | % of Total        
|                      |               |  |                   
|Demand deposits       | $   357,227   |  | 8.06              
|Passbook and passcard | 108,447       |  | 2.45              
|Money market          | 783,533       |  | 17.68             
|Certificates          | 3,182,114     |  | 71.81             
|Total deposits        | $ 4,431,321   |  | 100.00            





11

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7.   Earnings Per Share

|                                          |  | Three Months Ended |  | Nine Months Ended
|----------------------------------------- |  | ------------------ |  | -----------------
|                                          |  | June 30,           |  | June 30,         
|                                          |  | 2002               |  | 2001             
|Net Income                                |  | $  21,069          |  | $  18,814        
|                                          |  |                    |  |                  
|Average common shares outstanding         |  | 70,234,007         |  | 76,071,787       
|Average allocated ESOP shares outstanding |  | 706,288            |  | 504,650          
|Average allocated RRP shares outstanding  |  | 720,549            |  | 464,549          
|Total basic average common shares         |  |                    |  |                  
|outstanding                               |  | 71,660,844         |  | 77,040,986       
|                                          |  |                    |  |                  
|                                          |  |                    |  |                  
|Effect of dilutive RRP shares             |  | 380,588            |  | 402,360          
|Effect of dilutive stock options          |  | 1,567,541          |  | 1,362,232        
|Total diluted average common shares       |  |                    |  |                  
|outstanding                               |  | 73,608,973         |  | 78,805,578       
|                                          |  |                    |  |                  
|Net earnings per share                    |  |                    |  |                  
|Basic                                     |  | $ 0.29             |  | $ 0.24           
|Diluted                                   |  | $ 0.29             |  | $ 0.24           



8

12

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Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations

Except for the historical information contained in this filing, the matters discussed may be deemed to be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area, competition, and other risks detailed from time to time in the Company's SEC reports.  Actual strategies and results in future periods may differ materially from those currently expected.  These forward-looking statements represent the Company's judgment as of the date of this filing.  The Company disclaims, however, any intent or obligation to update these forward-looking statements.

The following discussion is intended to assist in understanding the financial condition and results of operations of the Company.  The discussion includes comments relating to Capitol Federal Savings Bank (the "Bank"), since the Bank is wholly owned by the Company and comprises the majority of assets and principal source of income for the Company.

Critical Accounting Policies

The Company's critical accounting policies involving significant judgments and assumptions used in the preparation of the consolidated financial statements as of June 30, 2002, have remained unchanged from September 30, 2001.  Our primary policy involving significant judgment and assumptions relates to the allowance for loan losses.  Disclosure on this critical accounting policy is incorporated by reference under Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the Company's year ended September 30, 2001.

Financial Condition

Assets.  Total assets of the Company increased $159.8 million from $8.64 billion at September 30, 2001 to $8.80 billion at June 30, 2002.  The increase from September 30, 2001 was primarily due to the growth in the Company's mortgage-related securities portfolio, which was partially offset by a decrease in our loan portfolio and in cash and cash equivalents.

- Mortgage-related securities increased $286.8 million, or 12.4%, from $2.31 billion at September 30, 2001 to $2.59 billion at June 30, 2002.  During the current quarter we purchased $364.0 million of adjustable rate mortgage-backed securities, bringing the total purchased through June 30, 2002, to $1.08 billion, with an average yield of 5.78%.  Subsequent to June 30, 2002, the Bank purchased an additional $160.2 million of adjustable rate mortgage-related securities with an average yield of 4.85%.  The purchase of adjustable rate securities is part of our strategy to provide interest rate risk and earnings protection in a rising rate environment.

- The loan portfolio decreased $67.1 million, or 1.2%, from $5.42 billion at September 30, 2001 to $5.35 billion at June 30, 2002.  Despite record loan originations of $1.19 billion during the nine month period, and loan purchases of $81.0 million, the balance of the loan portfolio decreased primarily due to repayments of $1.07 billion.  The amount of originations and purchases excluding amounts refinanced was $966.6 million.Adjustable rate products comprised 33.0% of total originations and purchases during the period.  The average yield on our loan portfolio decreased 37 basis points from 7.21% at September 30, 2001 to 6.84%.

Loans may be modified under a program that provides current borrowers with the opportunity to change their existing term to maturity and/or rate of interest.  The loan is then re-amortized.  The program requires a fee to be paid by the borrower of $650.00 to $950.00.  This program allows us to retain our relationship with the borrower who might otherwise attain home financing elsewhere.Loans with rate modifications totaled $592.7 million, an increase of $394.1 million, or a 208.1%increase over the same period, one-year ago.  The average rate on loans modified during the nine month period decreased 104 basis points from 7.36% to 6.32%.

13

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Loans refinanced totaled $303.4 million since September 30, 2001, an increase of $163.6 million or 117.1%, compared to the same period one-year ago.  The yield on loans refinanced for the period ended June 30, 2002 was 6.26%, 8 basis points less than the average rate on loan originations.

- Cash and cash equivalents decreased $57.5 million, or 37.5%, from $153.5 million at September 30, 2001 to $96.0 million at June 30, 2002.  The decrease in the balance was due primarily to the use of cash to purchase mortgage-related securities.

The following tables present average balance information for the periods indicated.

|                             |                                                           | Average Balances for the   |  |                          |  |                | 
|---------------------------- | --------------------------------------------------------- | -------------------------- |  | ------------------------ |  | -------------- | 
|                             |                                                           | Quarter Ended June 30,     |  | Change From Prior Period
|                             |                                                           | 2002                       |  | 2001                     |  | Amount         | 
|Selected Balance Sheet Data: |                                                           |                            |  |                          |  |                | 
|                             | Total assets                                              | $  8,798,043               |  | $  8,463,727             |  | $      334,316 | 
|                             | Loans receivable                                          | 5,350,547                  |  | 5,506,779                |  | (156,232)      | 
|                             | Mortgage-related securities                               | 2,568,781                  |  | 2,236,714                |  | 332,067        | 
|                             | Investment securities                                     | 508,016                    |  | 194,577                  |  | 313,439        | 
|                             | Cash and cash equivalents                                 | 83,565                     |  | 261,980                  |  | (178,415)      | 
|                             | Capital stock of FHLB                                     | 161,053                    |  | 161,250                  |  | (197)          | 
|                             | Deposits                                                  | 4,400,488                  |  | 4,130,321                |  | 270,167        | 
|                             | FHLB advances                                             | 3,200,220                  |  | 3,200,000                |  | 220            | 
|                             | Borrowings, other                                         | 106,324                    |  | --                       |  | 106,324        | 
|                             | Stockholder's equity                                      | 969,877                    |  | 1,018,937                |  | (49,060)       | 
|                             |                                                           |                            |  |                          |  |                | 
|                             |                                                           | Average Balances for the   |  |                          |  |                | 
|                             |                                                           | Nine Months Ended June 30, |  | Change From Prior Period
|                             |                                                           | 2002                       |  | 2001                     |  | Amount         | 
|Selected Balance Sheet Data: |                                                           |                            |  |                          |  |                | 
|                             | Total assets                                              | $  8,727,387               |  | $  8,354,777             |  | $      372,610 | 
|                             | Loans receivable                                          | 5,369,338                  |  | 5,527,604                |  | (158,266)      | 
|                             | Mortgage-related securities                               | 2,466,588                  |  | 2,278,880                |  | 187,708        | 
|                             | Investment securities                                     | 506,919                    |  | 73,575                   |  | 433,344        | 
|                             | Cash and cash equivalents                                 | 112,007                    |  | 209,854                  |  | (97,847)       | 
|                             | Capital stock of FHLB                                     | 161,613                    |  | 161,250                  |  | 363            | 
|                             | Deposits                                                  | 4,346,494                  |  | 4,028,238                |  | 318,256        | 
|                             | FHLB advances                                             | 3,201,703                  |  | 3,207,179                |  | (5,476)        | 
|                             | Borrowings, other                                         | 105,560                    |  | --                       |  | 105,560        | 
|                             | Stockholder's equity                                      | 966,302                    |  | 1,003,470                |  | (37,168)       | 
|                             |                                                           |                            |  |                          |  |                | 
|                             | n.m. - Not meaningful for comparison to previous periods.

14

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The following table presents loan and investment information for the periods indicated.

|                                   |                                  | At             |  |                |  |                          | 
|---------------------------------- | -------------------------------- | -------------- |  | -------------- |  | ------------------------ | 
|                                   |                                  | June 30,       |  | September 30,  |  | Change from Prior Period | 
|                                   |                                  | 2002           |  | 2001           |  | Amount                   | 
|Selected Loan and Investment Data: |                                  |                |  |                |  |                          | 
|                                   | Loans serviced for others        | $      209,796 |  | $      278,703 |  | $       (68,907)         | 
|                                   | Fair-value of securities HTM     | 1,969,610      |  | 1,814,347      |  | 155,263                  | 
|                                   | Amortized cost of AFS securities | 1,152,382      |  | 1,041,069      |  | 111,313                  | 
|                                   | Amortized cost of MBS            | 1,402,610      |  | 1,362,935      |  | 39,675                   | 
|                                   | Amortized cost of CMOs           | 1,169,167      |  | 926,945        |  | 242,222                  | 

The following table presents loan origination, purchase, and modification activity for the periods indicated.

|                                  | For the Three Months Ended |       |   | For the Nine Months Ended |  
|--------------------------------- | -------------------------- | ----- | - | ------------------------- | -
|                                  | June 30, 2002              |       |   | June 30, 2002             |  
|Fixed Rate                        | Amount                     | Yield |   | % of Total                |  
|Origination - One- to four-family | $  171,555                 | 6.79  | % | 45.16                     | %
|Refinance - One- to four-family   | 34,893                     | 6.68  |   | 9.19                      |  
|Multi-family and commercial       | 446                        | 7.51  |   | 0.12                      |  
|Consumer Loans                    | 7,385                      | 7.35  |   | 1.94                      |  
|                                  |                            |       |   |                           |  
|Adjustable Rate                   |                            |       |   |                           |  
|Origination - One- to four-family | 60,345                     | 5.75  |   | 15.88                     |  
|Refinance - One- to four-family   | 13,607                     | 5.61  |   | 3.58                      |  
|Consumer Loans                    | 37,601                     | 5.51  |   | 9.90                      |  
|Purchased Loans                   | 54,057                     | 5.58  |   | 14.23                     |  
|Total Originations and Purchases  | $  379,889                 | 6.29  | % | 100.00                    | %
|                                  |                            |       |   |                           |  
|Mortgage-related securities       | $  364,049                 | 4.89  | % |                           |  
|Mortgage loan modifications       | $    50,981                |       |   |                           |  

Our level of non-performing loans continues to be minimal because of the underwriting standards on the loans we originate and purchase.  At June 30, 2002 our ratio of non-performing loans to total loans was 0.14%, compared to 0.12% at September 30, 2001.  The increase in the balance of non-performing loans represents an increase in loans entering foreclosure and real estate owned.  The increase in real estate owned resulted from an increase of 23 property foreclosures, totaling $1.6 million, or an average balance less than $70 thousand per property, since September 30, 2001.  Non-performing loans includes loans primarily either 90 days or more delinquent or in the process of foreclosure.  Loans 90 days or more delinquent, as a component of non-performing assets have decreased $837 thousand, while loans in some stage of foreclosure have increased $1.8 million since September 30, 2001.  Loans 30 to 89 days delinquent, which are not reported as non-performing loans, have decreased approximately 27% since September 30, 2001.

The allowance for loan losses as a percentage of non-performing loans was 63.81% at June 30, 2002 compared to 72.63% at September 30, 2001.  Charge-offs year-to-date, of $158 thousand, represent 1.5% of non-performing assets and less than 0.01% of the outstanding balance of loans receivable.

15

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Liabilities.  Deposits increased $145.5 million, or 3.4%, from $4.29 billion at September 30, 2001 to $4.43 billion at June 30, 2002.  The money market and demand deposit accounts increased by $110.9 million and $35.0 million, respectively, partially offset by a decrease in certificates of $9.2 million or approximately 1.0%.

Other borrowings increased due to the loan taken out by the Company, the proceeds of which were used to fund the repurchase of shares obtained in the modified dutch auction tender.  The effective rate paid by the Company for the first nine months was 4.22%, while the rate for the next three months will be 3.65%.

The following table presents deposit activity for the periods indicated.

|                  |                         | For the Quarter Ended |  | For the Nine Months Ended
|----------------- | ----------------------- | --------------------- |  | -------------------------
|                  |                         | June 30,              |  | June 30,                 
|                  |                         | 2002                  |  | 2001                     
|Deposit activity: |                         |                       |  |                          
|                  | Opening balance         | $4,442,655            |  | $4,092,805               
|                  | Deposits                | 1,611,090             |  | 1,698,140                
|                  | Withdrawals             | 1,658,409             |  | 1,610,640                
|                  | Interest credits        | 35,985                |  | 46,823                   
|                  | Ending balance          | $4,431,321            |  | $4,227,128               
|                  |                         |                       |  |                          
|                  | Net increase (decrease) | $    (11,334)         |  | $    134,323             

Equity.  Total stockholders' equity decreased $72.5 million, or 6.9%, from $1.05 billion at September 30, 2001, to $975.8 million at June 30, 2002. At June 30, 2002, book value per share was $13.67 compared to $13.58 at September 30, 2001.  Our equity to assets ratio was 11.09% at June 30, 2002 compared to 12.14% at September 30, 2001.  Return on average equity was 8.69% for the quarter and 8.77% for the nine months ended June 30, 2002.

The decrease in the balance of stockholders' equity was due primarily to the repurchase of 6,900,918 shares during the nine month period ended June 30, 2002 at a total cost of $143.2 million and dividends paid of $10.4 million.  The total number of treasury shares at June 30, 2002 was 17,363,459 with 74,148,828 shares outstanding. The Company continued to repurchase shares in the open market after the end of the quarter.  Subsequent to June 30, 2002, the Company has repurchased an additional 611,586 shares at a cost of $16.4 million.  The current stock repurchase plan has 2,147,404 shares authorized and 1,659,828 repurchased.  These actions were partially offset by year-to-date net income of $63.5 million and an increase in the balance of unrealized gains on securities available-for-sale, net of income taxes of $2.8 million.

During the quarter, the Company paid a $0.19 per share dividend on May 17, 2002 to holders of record as of May 3, 2002.  At its meeting on July 16, 2002, the Board declared a $0.20 per share dividend to holders of record on August 2, 2002, payable on August 16, 2002.

16

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Comparison of Operating Results for the Three Months Ended June 30, 2002 and 2001
General.  For the three months ended June 30, 2002, the Company recognized net income of $21.1 million, compared to net income of $18.8 million for the three months ended June 30, 2001, an increase of $2.3 million, or 12.2%.  The Company's efficiency ratio for the quarter ended June 30, 2002 was 33.83% compared to 35.98% for the quarter ended June 30, 2001.Net Interest Income.  Net interest and dividend income for the three months ended June 30, 2002 was $47.8 million, an increase of $5.4 million, or 12.7% from the same period last year.

- The increase was in part due to an increase in the average balance of mortgage-related securities of $332.1 million and investment securities of $313.4 million, partially offset by a decrease in the average yield on our loan portfolio of 40 basis points, a decrease in the average yield on mortgage-related securities of 59 basis points and a decrease in the average balance of our loan portfolio of $156.2 million.
- The increase was also due in part to a decrease in the average cost of deposits.  The average rate paid on deposits decreased 144 basis points from 5.13% for the three month period ending June 30, 2001 to 3.69% for the same period ending June 30, 2002.  This was partially offset by an increase in average interest-bearing liabilities of $376.7 million to $7.71 billion at June 30, 2002.  Driven primarily by the decrease in the cost of deposits, interest expense was down $11.4 million for the current quarter compared to the same quarter one year ago.
- The net interest margin for the quarter increased 17 basis points to 2.20% from 2.03% for the same quarter one year ago.  The Company's net interest rate spread at June 30, 2002 was 1.70%, 34 basis points higher than the same quarter one year ago.

Interest and Dividend Income.  Interest and dividend income for the three months ended June 30, 2002 was $138.9 million, down $6.0 million from the same period last year, a decrease of 4.1%.

- Interest on loans decreased from $100.1 million for the three months ended June 30, 2001 to $91.8 million for the three months ended June 30, 2002.  This decrease of $8.3 million was primarily the result of a decrease in the average yield and a decrease in the average balance of loans.  The average yield on loans decreased 40 basis points to 6.87% for the quarter ended June 30, 2002 from 7.27% one-year ago.  The average balance of loans receivable decreased $156.2 million to $5.35 billion for the three months ended June 30, 2002 compared to the same period one year ago.
- Interest income on mortgage-related securities increased $1.6 million from $36.7 million for the quarter ended June 30, 2001 to $38.3 million for the quarter ended June 30, 2002.  The increase was due primarily to an increase in the average balance of $332.1 million, partially offset by a decrease in the average yield of 59 basis points from 6.56% for the quarter ended June 30, 2001 to 5.97% for the quarter ended June 30, 2002.
- Interest income on investment securities increased $4.0 million from $2.5 million for the quarter ended June 30, 2001 to $6.5 million for the quarter ended June 30, 2002.  This increase was due primarily to an increase in the average balance of $313.4 million.  The average balance of these assets during the quarter was $508.0 million with an average yield of 5.15%.
- Dividend income on capital stock in the FHLB for the quarter ended June 30, 2002 was $1.9 million compared to $2.9 million for the quarter ended June 30, 2001.  The average yield during the quarter was 4.75% compared to 7.10% for the same quarter one year ago.

Interest Expense.  Interest expense decreased for the quarter ended June 30, 2002 to $91.2 million, down $11.4 million, or 11.1%, from the same period one year ago.

- For the quarter ended June 30, 2002 interest expense on deposits was $40.5 million compared to $52.9 million for the quarter ended June 30, 2001, a decrease of $12.4 million.  The average balance of deposits during the quarter ended June 30, 2002 was $4.40 billion compared to $4.13 billion for the quarter ended June 30, 2001, an increase of $270.2 million, or 6.5%.  The average rate paid on deposits for the quarter ended June 30, 2002 was 3.69% compared to 5.13% for the quarter ended June 30, 2001, a decrease of 144 basis points.
  17
- Interest expense on borrowings for the quarter ended June 30, 2002 was $50.7 million compared to $49.6 million for the quarter ended June 30, 2001, an increase of $1.1 million or 2.1%.  The average balance of borrowings for the quarter ended June 30, 2002 was $3.31 billion compared to $3.20 billion for the quarter ended June 30, 2001, an increase of $106.5 million, or 3.3%.  The average cost of borrowings for the quarter ended June 30, 2002 was 6.07% compared to 6.14% for the quarter ended June 30, 2001.

Provision for Loan Losses.  During the quarter, we recorded an additional provision for loan losses of $60 thousand.  The appropriateness of the provision, determined by management, is based upon an evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions, such as credit quality trends, collateral values, loan volumes and concentrations and recent loss experience in particular segments of the portfolio that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectibility of loans.  The amounts that might actually be recorded as losses can vary significantly from the estimated amounts.

Non-interest Income.  During the quarter, non-interest income was $4.8 million, up $870 thousand or 22.3%, over the same period one year ago.  The increase was primarily due to increases in fees charged on saving accounts and an increase in check card income.

Non-interest Expense.  Total non-interest expense increased $1.1 million to $17.8 million for the quarter ended June 30, 2002 compared to $16.7 million for the same period in 2001.  The change over the previous year was primarily due to an increase in compensation expense.  The increase was primarily the result of increases in the cost of the ESOP due to the increase in the average price of the Company's stock during the period, salary expense due to increased staff and normal increases in compensation, and a decrease in compensation expense deferred under FAS 91 due to a decrease in loan originations during the current period, compared to the same period one year ago, of approximately 22.9%

Income Tax Expense.

18

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Comparison of Operating Results for the Nine Months Ended June 30, 2002 and 2001

General.  For the nine months ended June 30, 2002, the Company recognized net income of $63.5 million compared to net income of $58.2 million for the nine months ended June 30, 2001, an increase of $5.3 million or 9.1%.  The efficiency ratio, for the nine months ended June 30, 2002 was 32.52% compared to 33.90% for the nine months ended June 30, 2001.

Net Interest and Dividend Income.  Net interest and dividend income for the nine months ended June 30, 2002 was $141.2 million compared to $126.7 million for the nine months ended June 30, 2001, an increase of $14.5 million, or 11.4%.  The net interest margin increased 14 basis points from 2.05% for the nine months ended June 30, 2001 to 2.19% for the nine months ended June 30, 2002.

Interest and Dividend Income.  Interest and dividend income for the nine months ended June 30, 2002 was $422.1 million, a decrease of $14.1 million, or 3.2%, over the same period one year ago.

- Interest on loans decreased from $301.8 million for the nine months ended June 30, 2001 to $282.1 million for the nine months ended June 30, 2002.  The decrease of $19.7 million was primarily the result of the average yield on loans decreasing 27 basis points to 7.01%, and the average balance decreasing $158.3 million to $5.37 billion, for the nine months ended June 30, 2002.
- Interest on mortgage-related securities decreased by $1.4 million, or 1.2%, from $114.1 million for the nine months ended June 30, 2001 to $112.7 million for the nine months ended June 30, 2002.  This was primarily a result of a decrease in the average yield for the nine months ended June 30, 2002 to 6.09%, from 6.68% for the nine months ended June 30, 2001.  This was partially offset by the average balance increasing $187.7 million from $2.28 billion for the nine months ended June 30, 2001 to $2.47 billion for the nine months ended June 30, 2002.
- Interest income on investment securities increased $16.7 million from $2.9 million for the nine months ended June 30, 2001 to $19.6 million for the nine months ended June 30, 2002.  This increase was primarily due to an increase in the average balance of $433.3 million.  For the nine months just ended, the average balance was $506.9 million, with an average yield of 5.16%.
- Dividends earned on capital stock of the FHLB were $6.1 million for the nine months ended June 30, 2002, compared to $9.4 million for the nine months ended June 30, 2001.  The average yield for the nine months ended June 30, 2002 was 5.09% compared to 7.78% for the nine months ended June 30, 2001.  The average balance was $161.6 million for the nine month period ended June 30, 2002, largely unchanged from one year ago.

Interest Expense.  Interest expense decreased during the nine month period ended June 30, 2002 to $280.9 million, down $28.6 million, or 9.3%, from the same period one year ago.

- Interest expense on deposits decreased from $160.3 million for the nine months ended June 30, 2001 to $128.6 million for the nine months ended June 30, 2002, a $31.6 million or 19.7% decrease.  The average cost of deposits decreased to 3.95% for the nine months ended June 30, 2002 from 5.32% for the nine months ended June 30, 2001, or 137 basis points.  The decrease in the average rate was partially offset by an increase in the average balance of $318.3 million, to $4.35 billion for the nine months ended June 30, 2002.
- Interest expense on borrowings increased to $152.2 million from $149.2 million, a $3.0 million increase, or 2.0%.  The average balance increased from $3.21 billion for the nine months ended June 30, 2001 to $3.31 billion for the nine months ended June 30, 2002.  The average cost of borrowings decreased from 6.14% for the nine months ended June 30, 2001 to 6.08% for the nine months ended June 30, 2002.

Provision for Loan Losses.  During the nine months ended June 30, 2002 we recorded additional provisions for loan losses of $184 thousand.

Non-interest Income.  During the nine months ended June 30, 2002, non-interest income increased to $13.3 million from $11.9 million in the same period one year ago.  The increase was primarily due to increases in fees charged on savings accounts and an increase in check card income.

Non-interest Expense.  Total non-interest expense increased $3.3 million to $50.3 million for the nine months ended June 30, 2002, up from $47.0 million for the nine months ended June 30, 2001.  The increase was due primarily to increases in compensation expense, fees associated with deposit and loan transactions and other operating expenses.  The increase in compensation expense was primarily the result of increases in the cost of the ESOP due to the increase in the average price of the Company's stock during the period and increases in salary expense due to increased staff and normal increases in compensation.

Income Tax Expense.  Income tax expense increased from $33.5 million for the nine month period ended June 30, 2001 to $40.6 million for the nine months ended June 30, 2002.  The effective tax rate for the nine month period was 39.0%.

19

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The following table presents average rate information for the periods indicated.

|                                      |                                              | For the Quarter Ended |   | For the Nine Months Ended
|------------------------------------- | -------------------------------------------- | --------------------- | - | -------------------------
|                                      |                                              | June 30,              |   | June 30,                 
|                                      |                                              | 2002                  |   | 2001                     
|Average Yield and Cost During Period: |                                              |                       |   |                          
|                                      | Loans receivable                             | 6.87                  | % |                          
|                                      | Mortgage-related securities                  | 5.97                  |   |                          
|                                      | Investment securities                        | 5.15                  |   |                          
|                                      | Cash and cash equivalents                    | 1.58                  |   |                          
|                                      | Capital stock of FHLB                        | 4.75                  |   |                          
|                                      | Average yield on interest earning assets     | 6.41                  |   |                          
|                                      | Deposits                                     | 3.69                  |   |                          
|                                      | FHLB advances                                | 6.14                  |   |                          
|                                      | Borrowings, other                            | 3.94                  |   |                          
|                                      | Average rate on interest bearing liabilities | 4.71                  |   |                          

The following table presents rate information at the periods indicated.

|                                       |                             | At      
|-------------------------------------- | --------------------------- | --------
|                                       |                             | June 30,
|                                       |                             | 2002    
|Average Yield / Cost at End of Period: |                             |         
|                                       | Loans receivable            | 6.84    
|                                       | Mortgage-related securities | 5.91    
|                                       | Investment securities       | 5.21    
|                                       | Deposits                    | 3.57    
|                                       | FHLB advances               | 6.14    
|                                       | Borrowings, other           | 3.98    



The following table presents performance ratios for the periods indicated.

|                    |                                         | For the Quarter Ended |   | For the Nine Months Ended
|------------------- | --------------------------------------- | --------------------- | - | -------------------------
|                    |                                         | June 30,              |   | June 30,                 
|                    |                                         | 2002                  |   | 2001                     
|Performance Ratios: |                                         |                       |   |                          
|                    | Return on average assets                | 0.96                  | % |                          
|                    | Return on average equity                | 8.69                  |   |                          
|                    | Average interest rate spread during     |                       |   |                          
|                    | the period                              | 1.70                  |   |                          
|                    | Net interest margin                     | 2.20                  |   |                          
|                    | Efficiency ratio                        | 33.83                 |   |                          
|                    | Ratio of earning assets to costing      |                       |   |                          
|                    | liabilities                             | 1.13                  |   |                          
|Capital Ratios:     |                                         |                       |   |                          
|                    | Equity to total assets at end of period | 11.09                 | % |                          
|                    | Average equity to average assets        | 11.02                 | % |                          

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Liquidity and Commitments

The Bank's liquidity, represented by cash and cash equivalents and mortgage-related securities available-for-sale, is a product of its operating, investing and financing activities.  The Bank's primary sources of funds are deposits, advances from the
FHLB, prepayments and maturities of outstanding loans and mortgage-related securities, other short-term investments and funds provided from operations.  While scheduled payments from the amortization of loans and mortgage-related securities and short-term investments are relatively predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition.  In addition, we invest excess funds in short-term interest-earning assets, which provide additional control over liquidity levels to help meet lending requirements.  We utilize FHLB advances to provide funds for our lending and investment activities and as an interest rate risk management tool.

Liquidity management is both a daily and a long-term function of business management.  Excess liquidity is generally invested in short-term investments such as overnight deposits or U.S. agency securities.  We use our sources of funds primarily to meet our ongoing commitments, to pay maturing certificates of deposit and savings withdrawals, to fund loan commitments and to maintain our portfolio of mortgage-related securities.

At June 30, 2002:

- The total approved loan origination and purchase commitments outstanding amounted to $207.8 million.
- The unadvanced portion of construction loans was $24.9 million.
- Unused home equity lines of credit were $243.3 million.
- Outstanding letters of credit totaled $739 thousand.
- Certificates of deposit scheduled to mature in one year or less, totaled $1.88 billion.

Based on historical experience, management believes that a significant portion of maturing deposits will remain with the Bank.  We anticipate that we will continue to have sufficient funds, through repayments, deposits and borrowings, to meet our current commitments.

Capital

Consistent with our goals to operate a sound and profitable financial organization, we actively seek to maintain the Bank as a "well capitalized" institution in accordance with regulatory standards.  Total equity for the Bank was $979.0 million at June 30, 2002, or 11.09% of total assets on that date.  As of June 30, 2002, the Bank exceeded all capital requirements of the Office of Thrift Supervision.  The Bank's regulatory capital ratios at June 30, 2002 were as follows: Tier I (leverage) capital, 11.0%; Tier I risk-based capital, 26.5%; and total risk-based capital, 26.4%.  The regulatory capital requirements to be considered well capitalized are 5.0%, 6.0%, and 10.0%, respectively.

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Item 3.   Quantitative and Qualitative Disclosure About Market Risk

For a complete discussion of the Company's asset and liability management policies, as well as the potential impact of interest rate changes upon the market value of the Company's portfolio, see "Management's Discussion and Analysis of Financial Condition and Results of Operations, Asset and Liability Management and Market Risk" in the Company's Annual Report for the year ended September 30, 2001.

The asset and liability management committee regularly reviews the interest rate risk position of the Bank by forecasting the impact of alternative interest rate environments on net interest income and measuring the market value of portfolio equity at various dates.  The market value of portfolio equity is defined as the net present value of an institution's existing assets, liabilities and off-balance sheet instruments.  The present values are determined in alternative interest rate environments and evaluated against the potential changes in market value of portfolio equity.



Changes in portfolio composition.  The following tables provide information regarding the fixed and adjustable rate composition of our investment and mortgage-related securities, loan and certificates of deposit portfolios as well as the change in composition from September 30, 2001 to June 30, 2002.  Also presented is the maturity and conversion option information, by fiscal year, for our FHLB advances.

Our investment and mortgage-related securities portfolio became more rate sensitive with the fixed rate component increasing by $151.4 million while the average yield decreased 15 basis points and the adjustable rate component increased $122.4 million with a decrease in the average yield of 33 basis points.  Overall, fixed rate mortgage-related securities comprise 73.0% of this portfolio at June 30, 2002 compared to 74.7% at September 30, 2001.  The mortgage-related securities added during the period have a remaining average life of 8.6 years at June 30, 2002.  The average remaining life of the fixed rate mortgage-related securities is 5.71 years.

Our loan portfolio composition became more heavily weighted in fixed rate loans during the period.  Fixed-rate loans comprised 72.3% of total loans at June 30, 2002 compared to 63.3% at September 30, 2001.  The balance of fixed rate loans increased $448.2 million with a decrease in the average yield of 29 basis points, to 6.95%, at June 30, 2002 over the nine month period.  Adjustable-rate loans decreased in balance by $509.9 million over the nine month period with a decrease in the average yield of 69 basis points to 6.47%, at June 30, 2002.

Our certificates of deposit decreased from September 30, 2001 to June 30, 2002 by $9.2 million and the average cost dropped 96 basis points between the two reporting dates.  Certificates maturing in one-year or less decreased $164.3 million and the average cost dropped 103 basis points from September 30, 2001 to June 30, 2002.

In April 2002, the Bank purchased $263.7 million of adjustable-rate mortgage-backed securities.  It is the Bank's intent to continue to purchase these types of securities and loans, as market conditions allow, to lower the fixed-rate portion of our loan and mortgage-related securities portfolios.



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The following table presents the distribution of our loan portfolio at the periods indicated:

|                       |                                  |                  |                  | At            |     
|---------------------- | -------------------------------- | ---------------- | ---------------- | ------------- | ----
|                       |                                  |                  |                  | June 30, 2002 |     
|                       |                                  |                  |                  | Amount        |     
|                       |                                  |                  |                  |               |     
|                       |                                  |                  |                  |               |     
|Fixed-Rate Loans:      |                                  |                  |                  |               |     
|                       | One- to four- family real estate | $      3,780,055 |                  | 6.93          | %   
|                       | Other real estate                |                  | 82,198           |               | 7.50
|                       | Non real estate                  |                  | 41,479           |               | 8.01
|                       | Total Fixed-Rate Loans:          | 3,903,732        |                  | 6.95          |     
|                       |                                  |                  |                  |               |     
|Adjustable-Rate Loans: |                                  |                  |                  |               |     
|                       | One- to four- family real estate | 1,320,065        |                  | 6.58          |     
|                       | Other real estate                |                  | 18,984           |               | 6.23
|                       | Non real estate                  |                  | 153,569          |               | 5.56
|                       | Total Adjustable-Rate loans      | 1,492,618        |                  | 6.47          |     
|                       | Total Loans                      |                  | $      5,396,350 |               | 6.82
|                       |                                  |                  |                  |               |     
|                       | Less:                            |                  |                  |               |     
|                       | Loans in process                 |                  | 24,937           |               |     
|                       | Deferred fees and discounts      | 17,145           |                  |               |     
|                       | Allowance for loan losses        | 4,864            |                  |               |     
|                       | Total loans receivable, net      | $      5,349,404 |                  |               |     



|                            |                                      | At            | 
|--------------------------- | ------------------------------------ | ------------- | 
|                            |                                      | June 30, 2002 | 
|                            |                                      | Balance       | 
|Fixed Rate Investments      |                                      |               | 
|                            | Agency bonds                         | $     501,181 | 
|                            | Mortgage-backed securities, at cost  | 571,020       | 
|                            | Mortgage-related securities, at cost | 1,165,948     | 
|                            | Total fixed rate investments         | $  2,238,149  | 
|                            |                                      |               | 
|Adjustable Rate Investments |                                      |               | 
|                            | Mortgage-backed securities, at cost  | $     824,616 | 
|                            | Mortgage-related securities, at cost | 3,219         | 
|                            | Total adjustable rate investments    | $     827,835 | 
|                            | Total Investments, at cost           | $  3,065,984  | 

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The following table present the maturity of certificates of deposit at the periods indicated:

|                             | June 30, 2002 |  |      | September 30, 2001 | 
|---------------------------- | ------------- |  | ---- | ------------------ | 
|                             | Amount        |  | Rate |                    | 
|Certificates maturing within |               |  |     
|0 to 3 months                | $    627,469  |  | 4.27 | %                  | 
|3 to 6 months                | 324,401       |  | 3.70 |                    | 
|6 month to one year          | 928,675       |  | 4.34 |                    | 
|One year to two years        | 829,897       |  | 4.40 |                    | 
|After two years              | 471,672       |  | 4.91 |                    | 
|Total certificates maturing  | $ 3,182,114   |  | 4.36 | %                  | 



The following table presents the maturity of FHLB advances.

|Conversion  |  | Maturity by Fiscal Year |  |      |   |                 |          
|----------- |  | ----------------------- |  | ---- | - | --------------- | ---------
|option by   |  | 2008                    |  | 2009 |   | 2010            |          
|Fiscal Year |  | Amount                  |  | Rate |   |                 | Amount   
|2003        |  | $ 225,000               |  | 5.68 | % | $            -- |          
|2004        |  | --                      |  | --   |   |                 | 725,000  
|2005        |  | --                      |  | --   |   |                 | --       
|Total       |  | $ 225,000               |  | 5.68 | % |                 | $ 725,000
|            |  |                         |  |      |   |                 |          

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Part 2 -   OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Change in Securities and Use of Proceeds

Item 3.  Defaults Upon Senior Securities

Item 4.  Submission of Matters to a Vote of Security Holders

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

<Index>

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Signatures

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CAPITOL FEDERAL FINANCIAL



Date:   August 13, 2002                                        By:   /s/ John C. Dicus
                                                                                     John C. Dicus, Chairman and
                                                                                     Chief Executive Officer



Date:   August 13, 2002                                       By:   /s/ Neil F. M. McKay
                                                                                     Neil F.M. McKay, Executive Vice President
                                                                                     and Chief Financial Officer





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CERTIFICATION

In connection with the Quarterly Report of Capitol Federal Financial (the "Company") on Form 10-Q for the period ending June 30, 2002 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John C. Dicus, Chief Executive Officer of the Company and Neil F. M. McKay, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.







Date:   August 13, 2002                                        By:   /s/ John C. Dicus
                                                                                     John C. Dicus, Chairman and
                                                                                     Chief Executive Officer



Date:   August 13, 2002                                       By:   /s/ Neil F. M. McKay
                                                                                     Neil F.M. McKay, Executive Vice President
                                                                                     and Chief Financial Officer





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