[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES           EXCHANGE ACT OF 1934

[   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES           EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________



**CAPITOL FEDERAL FINANCIAL**

---

|United States(State or other jurisdiction of incorporationor organization) |  | 48-1212142(I.R.S. Employer Identification No.)
|-------------------------------------------------------------------------- |  | ----------------------------------------------

|700 Kansas Avenue, Topeka, Kansas(Address of principal executive offices) |  | 66603(Zip Code)
|------------------------------------------------------------------------- |  | ---------------



Indicate by check mark whether the issuer (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 issuer was  required to  file such  reports), and (2) has been subject to such filing
requirements for the past 90 days.    Yes [X]    No [   ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of
the latest practicable date.

|Common StockClass |  | 80,404,182Shares Outstandingas of August 10, 2001
|----------------- |  | -------------------------------------------------



|**PART I -- FINANCIAL INFORMATION**                                                                                          | PageNumber
|---------------------------------------------------------------------------------------------------------------------------- | ----------
|Item 1.      Financial Statements                                                                                            |           
|Consolidated Balance Sheets at June 30, 2001 and September 30, 2000                                                          | 3         
|Consolidated Statements of Income for the three and nine months ended                        June 30, 2001 and June 30, 2000 | 4         
|Consolidated Statement of Stockholders' Equity for the nine months ended                        June 30, 2001                | 5         
|Consolidated Statements of Cash Flows for the nine months ended                        June 30, 2001 and June 30, 2000       | 6         
|Notes to Consolidated Interim Financial Statements                                                                           | 8         
|Item 2.      Management's Discussion and Analysis of Financial Condition and Results of                        Operations    | 13        
|Item 3.      Quantitative and Qualitative Disclosures about Market Risk                                                      | 18        
|                                                                                                                             |           
|**PART II -- OTHER INFORMATION**                                                                                             |           
|Item 1.       Legal Proceedings                                                                                              | 19        
|Item 2.       Changes in Securities and Use of Proceeds                                                                      | 19        
|Item 3.       Defaults Upon Senior Securities                                                                                | 19        
|Item 4.       Submission of Matters to a Vote of Security Holders                                                            | 19        
|Item 5.       Other Information                                                                                              | 19        
|Item 6.       Exhibits and Reports on Form 8-K                                                                               | 19        
|                                                                                                                             |           
|Signature Page                                                                                                               | 20        

PART 1 -- FINANCIAL INFORMATION

CAPITOL FEDERAL FINANCIAL AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS(dollars in thousands)

|                                                                                                                                     | June 30,    |  | September 30,
|------------------------------------------------------------------------------------------------------------------------------------ | ----------- |  | -------------
|                                                                                                                                     | 2001        |  | 2000         
|                                                                                                                                     | (Unaudited) |  |              
|ASSETS:                                                                                                                              |             |  |              
|Cash and cash equivalents                                                                                                            | $   242,407 |  | $   133,034  
|Investment securities held to maturity (market value of $501,652 and $14,808)                                                        | 502,650     |  | 15,100       
|                                                                                                                                     |             |  |              
|Capital stock of Federal Home Loan Bank                                                                                              | 161,250     |  | 161,250      
|Mortgage-related securities:                                                                                                         |             |  |              
|Available-for-sale (amortized cost of $627,817 and $851,374)                                                                         | 635,501     |  | 850,892      
|Held-to-maturity (market value of $1,454,555 and $1,539,247)                                                                         | 1,444,025   |  | 1,561,251    
|Loans held for sale, net                                                                                                             | 21,195      |  | 25,742       
|Loans receivable, net                                                                                                                | 5,446,844   |  | 5,442,445    
|Premises and equipment                                                                                                               | 23,166      |  | 24,076       
|Real estate owned, net                                                                                                               | 1,033       |  | 1,094        
|Accrued interest receivable                                                                                                          | 46,053      |  | 43,397       
|Other assets                                                                                                                         | 4,075       |  | 6,938        
|TOTAL ASSETS                                                                                                                         | $8,528,199  |  | $8,265,219   
|LIABILITIES AND STOCKHOLDERS' EQUITY:                                                                                                |             |  |              
|Deposits                                                                                                                             | $4,227,128  |  | $3,956,329   
|Advances from Federal Home Loan Bank                                                                                                 | 3,200,000   |  | 3,225,000    
|Advance payments by borrowers for taxes and insurance                                                                                | 20,665      |  | 38,411       
|Accrued and deferred income taxes payable                                                                                            | 19,027      |  | 17,527       
|Accounts payable and accrued expenses payable                                                                                        | 36,233      |  | 41,745       
|Total Liabilities                                                                                                                    | 7,503,053   |  | 7,279,012    
|COMMITMENTS AND CONTINGENCIES (NOTE 10)                                                                                              |             |  |              
|                                                                                                                                     |             |  |              
|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, 2001 and September 30, 2000                                                                             | 915         |  | 915          
|Additional paid in capital                                                                                                           | 387,370     |  | 385,076      
|Retained earnings                                                                                                                    | 793,551     |  | 745,598      
|Accumulated other comprehensive income (loss)                                                                                        | 4,879       |  | (300)        
|Unearned compensation, Employee Stock Ownership Plan                                                                                 | (24,702)    |  | (26,214)     
|Unearned compensation, Recognition and Retention Plan                                                                                | (6,750)     |  | (8,485)      
|Less shares held in treasury: 11,123,705 shares at cost as of  June 30, 2001 and 9,830,155 shares at cost as of   September 30, 2000 | (130,117)   |  | (110,383)    
|Total Stockholders' Equity                                                                                                           | 1,025,146   |  | 986,207      
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                           | $8,528,199  |  | $8,265,219   

See accompanying notes to consolidated interim financial statements.



|                                                   |                                    |                                   |            |         
|-------------------------------------------------- | ---------------------------------- | --------------------------------- | ---------- | --------
|                                                   | For the Three Months EndedJune 30, | For the Nine Months EndedJune 30,
|                                                   | 2001                               | 2000                              | 2001       | 2000    
|INTEREST AND DIVIDEND INCOME:                      |                                    |                                  
|Loans receivable                                   | $100,128                           | $  88,609                         | $  301,804 | $249,913
|Mortgage-related securities                        | 36,660                             | 44,299                            | 114,090    | 115,975 
|Investment securities                              | 2,483                              | 227                               | 2,884      | 697     
|Cash and cash equivalents                          | 2,770                              | 314                               | 8,066      | 1,630   
|Capital stock of Federal Home Loan Bank            | 2,854                              | 2,446                             | 9,383      | 5,535   
|Total interest and dividend income                 | 144,895                            | 135,895                           | 436,227    | 373,750 
|INTEREST EXPENSE:                                  |                                    |                                   |           
|Deposits                                           | 52,895                             | 51,225                            | 160,275    | 151,134 
|Borrowings                                         | 49,628                             | 41,427                            | 149,240    | 96,845  
|Total interest expense                             | 102,523                            | 92,652                            | 309,515    | 247,979 
|Net interest and dividend income                   | 42,372                             | 43,243                            | 126,712    | 125,771 
|Provision for loan losses                          | --                                 | --                                | --         | 494     
|Net interest and dividend income after             |                                    |                                  
|provision for loan losses                          | 42,372                             | 43,243                            | 126,712    | 125,277 
|OTHER INCOME:                                      |                                    |                                  
|Automated teller and debit card transaction   fees | 1,469                              | 1,317                             | 4,137      | 3,756   
|Checking account transaction fees                  | 935                                | 778                               | 2,536      | 2,314   
|Loan fees                                          | 410                                | 392                               | 1,576      | 1,201   
|Insurance commissions                              | 422                                | 392                               | 1,506      | 1,287   
|Other, net                                         | 672                                | 969                               | 2,168      | 2,148   
|Total other income                                 | 3,908                              | 3,848                             | 11,923     | 10,706  
|OTHER EXPENSES:                                    |                                    |                                  
|Salaries and employee benefits                     | 9,302                              | 11,199                            | 27,158     | 27,491  
|Occupancy of premises                              | 2,551                              | 2,159                             | 7,255      | 7,052   
|Office supplies and related expenses               | 1,061                              | 878                               | 2,727      | 2,432   
|Deposit and loan transaction fees                  | 1,465                              | 943                               | 3,420      | 2,800   
|Advertising                                        | 952                                | 505                               | 2,168      | 1,698   
|Federal insurance premium                          | 192                                | 210                               | 589        | 1,016   
|Other, net                                         | 1,128                              | 1,084                             | 3,653      | 3,655   
|Total other expenses                               | 16,651                             | 16,978                            | 46,970     | 46,144  
|Income before income tax expense                   | 29,629                             | 30,113                            | 91,665     | 89,839  
|Income tax expense                                 | 10,815                             | 11,368                            | 33,458     | 33,914  
|NET INCOME                                         | $18,814                            | $18,745                           | $58,207    | $55,925 

See accompanying notes to consolidated interim financial statements.



|                                                                                                          | CommonStock | AdditionalPaid-InCapital | RetainedEarnings | AccumulatedOtherComprehensiveIncome (Loss) | UnearnedCompensation(RRP) | UnearnedCompensation(ESOP) | TreasuryStock | Total     
|--------------------------------------------------------------------------------------------------------- | ----------- | ------------------------ | ---------------- | ------------------------------------------ | ------------------------- | -------------------------- | ------------- | ----------
|Balance at October 1, 2000                                                                                | $915        | $385,076                 | $745,598         | ($300)                                     | ($8,485)                  | ($26,214)                  | ($110,383)    | $986,207  
|Comprehensive Income:                                                                                     |             |                          |                  |                                            |                           |                            |               |           
| Net income                                                                                           |             |                          | 58,207           |                                            |                           |                            |               | 58,207    
|Change in unrealized gain/(loss)       on available for sale securities,       net of deferred income tax |             |                          |                  | 5,179                                      |                           |                            |               | 5,179     
|Total Comprehensive income                                                                                |             |                          |                  |                                            |                           |                            |               | 63,386    
|                                                                                                          |             |                          |                  |                                            |                           |                            |               |           
|Repurchase of common stock, at cost                                                                       |             |                          |                  |                                            |                           |                            | (20,595)      | (20,595)  
|Change in Employee Stock  Ownership Plan                                                                  |             | 1,704                    |                  |                                            |                           | 1,512                      |               | 3,216     
|Change in Recognition and  Retention Plan                                                                 |             | 684                      | (10)             |                                            | 1,735                     |                            | 21            | 2,430     
|Stock options exercised                                                                                   |             | (94)                     |                  |                                            |                           |                            | 840           | 746       
|Dividends on comon stock to 
   stockholders ($0.41 per share)                                            |             |                          | (10,244)         |                                            |                           |                            |               | (10,244)  
|Balance at June 30, 2001                                                                                  | $915        | $387,370                 | $793,551         | $4,879                                     | ($6,750)                  | ($24,702)                  | ($130,117)    | $1,025,146

See accompanying notes to consolidated interim financial statements.



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

|                                                                                                                            | For the Nine Months EndedJune 30, |            
|--------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | -----------
|                                                                                                                            | 2001                              | 2000       
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                       |                                   |            
|Net income                                                                                                                  | $58,207                           | $55,925    
|Adjustments to reconcile net income to net cash provided  by operating activities:                                          |                                   |            
|Federal Home Loan Bank stock dividends                                                                                      | --                                | (1,367)    
|Amortization of net deferred loan origination fees                                                                          | (2,707)                           | (2,063)    
|Provision for loan losses                                                                                                   | --                                | 494        
|Net loan origination fees capitalized                                                                                       | 3,303                             | 2,861      
|Gain on the sale of loans held for sale                                                                                     | (6)                               | --         
|Gain on sales of real estate owned, net                                                                                     | (120)                             | (158)      
|Originations of loans held for sale                                                                                         | (6,415)                           | (10,018)   
|Proceeds from sales of loans held for sale                                                                                  | 12,196                            | 5,223      
|Amortization and accretion of premiums and discounts on 
  mortgage-related securities and investment securities            | 3,778                             | 332        
|Depreciation and amortization on premises and equipment                                                                     | 2,562                             | 2,932      
|Increase (decrease) in fair market value of Employee Stock Ownership 
  Plan shares committed to be released for allocation | 904                               | (24)       
|Common stock committed to be released for allocation - ESOP                                                                 | 1,512                             | 1,513      
|Amortization of unearned compensation - RRP                                                                                 | 1,735                             | 2,763      
|Changes in:                                                                                                                 |                                   |            
|Accrued interest receivable                                                                                                 | (2,656)                           | (7,920)    
|Other assets                                                                                                                | 2,948                             | 757        
|Income taxes payable                                                                                                        | 1,210                             | 5,003      
|Accounts payable and accrued expenses                                                                                       | (6,743)                           | 7,771      
|Net cash provided by operating activities                                                                                   | 69,708                            | 64,024     
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                       |                                   |            
|Proceeds from maturities of investment securities                                                                           | 15,100                            | --         
|Purchases of investment securities                                                                                          | (502,798)                         | (69,547)   
|Principal collected on mortgage-related securities available-
   for-sale                                                   | 218,601                           | 207,819    
|Principal collected on mortgage-related securities held-to-
   maturity                                                     | 368,681                           | 130,399    
|Purchases of mortgage-related securities held-to-maturity                                                                   | (250,131)                         | (816,128)  
|Loan originations net of principal collected                                                                                | (279,518)                         | (381,104)  
|Loan purchases net of principal collected                                                                                   | 271,314                           | (509,379)  
|Purchases of premises and equipment, net                                                                                    | (1,697)                           | (3,115)    
|Proceeds from sales of real estate owned                                                                                    | 2,122                             | 2,549      
|Net cash used in investing activities                                                                                       | (158,326)                         | (1,438,506)

|CASH FLOWS FROM FINANCING ACTIVITIES:                                     |          |          
|------------------------------------------------------------------------- | -------- | ---------
|Dividends paid                                                            | (10,244) | (10,683) 
|Deposits, net of payments                                                 | 270,799  | 41,585   
|Proceeds from advances from Federal Home Loan Bank                        | --       | 2,008,000
|Repayments on advances from Federal Home Loan Bank                        | (25,000) | (568,000)
|Payments for the repurchase of common stock                               | (20,595) | (73,534) 
|Proceeds from the sale and acquisition of RRP shares, net                 | 31       | 81       
|Stock options exercised                                                   | 746      | 9        
|Change in advance payments by borrowers for taxes and   insurance         | (17,746) | (16,612) 
|Net cash provided by financing activities                                 | 197,991  | 1,380,846
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                 | 109,373  | 6,364    
|CASH AND CASH EQUIVALENTS:                                                |          |          
|Beginning of Period                                                       | 133,034  | 22,275   
|End of Period                                                             | $242,407 | $28,639  
|SUPPLEMENTAL SCHEDULE OF NON-CASH
  INVESTING AND FINANCING TRANSACTIONS: |          |          
|Loans transferred to real estate owned                                    | $2,079   | $2,663   
|Loans made on the sale of real estate owned                               | $98      | $71      
|Treasury stock issued to RRP, net of forfeited shares                     | $21      | --       
|                                                                          |          |          

See accompanying notes to consolidated interim financial statements.

**Notes to Consolidated Interim Financial Statements**

**1.       Basis of Financial Statement Presentation and Significant Accounting Policies**
The 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 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 2000 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.

**2.       Recent Accounting Pronouncements**
In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial
Accounting Standards No. 141 ("SFAS 141"), "Business Combinations." SFAS 141 requires the
purchase method of accounting for business combinations initiated after June 30, 2001 and
eliminates the pooling-of-interests method. The Company does not believe that the adoption of
SFAS 141 will have a significant impact on its financial statements.

In July 2001, the FASB issued Statement of Financial
Accounting Standards No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets." SFAS 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 142 will have a significant impact on its financial
statements.

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

|                             | June 30, 2001 | September 30, 2000
|---------------------------- | ------------- | ------------------
|                             | Amount        | Percent           
|Real Estate Loans:           |               |                   
|One- to four-family          | $5,201,888    | 94.79%            
|Multi-family                 | 48,846        | 0.89              
|Commercial                   | 8,297         | 0.15              
|Construction and development | 46,072        | 0.84              
|Total real estate loans      | 5,305,103     | 96.67             
|Consumer loans:              |               |                   
|Savings loans                | 14,790        | 0.27              
|Home improvement             | 2,306         | 0.04              
|Automobile                   | 10,785        | 0.20              
|Home equity                  | 153,535       | 2.80              
|Other                        | 1,455         | 0.02              
|Total consumer loans         | 182,871       | 3.33              
|Total loans receivable       | 5,487,974     | 100.00%           
|Less:                        |               |                   
|Loans in process             | 20,601        |                   
|Deferred fees and discounts  | 15,756        |                   
|Allowance for losses         | 4,773         |                   
|Total loans receivable, net  | $5,446,844    |                   

**4.       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 30,2001 | September 30,2000
|-------------------------------------------- | ------------ | -----------------
|Non-accruing loans:                          |              |                  
|One- to four-family                          | $4,790       | $3,321           
|Multi-family                                 | --           | --               
|Commercial real estate                       | --           | --               
|Construction or development                  | --           | --               
|Consumer                                     | 152          | 134              
|Total                                        | $4,942       | $3,455           
|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                          | $1,033       | $1,094           
|Multi-family                                 | --           | --               
|Commercial real estate                       | --           | --               
|Construction or development                  | --           | --               
|Consumer                                     | --           | --               
|Total                                        | $1,033       | $1,094           
|Total non-performing assets                  | $5,975       | $4,549           
|Total as a percentage of total assets        | 0.07%        | 0.06%            

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

|                                   | Three Months EndedJune 30, | Nine Months EndedJune 30,
|---------------------------------- | -------------------------- | -------------------------
|                                   | 2001                       | 2000                     
|                                   |                            |                          
|Balance at the beginning of period | $4,822                     | $4,866                   
|Charge offs:                       |                            |                          
|One- to four-family                | 36                         | 6                        
|Multi-family                       | --                         | 125                      
|Commercial real estate             | --                         | --                       
|Construction or development        | --                         | --                       
|Consumer                           | 13                         | 10                       
|Total charge-offs                  | 49                         | 141                      
|Recoveries:                        |                            |                          
|One- to four-family                | --                         | 5                        
|Multi-family                       | --                         | --                       
|Commercial real estate             | --                         | --                       
|Construction or development        | --                         | --                       
|Consumer                           | --                         | --                       
|Total recoveries                   | --                         | 5                        
|Net charge-offs                    | 49                         | 136                      
|Additions charged to operations    | --                         | --                       
|Balance at end of period           | $4,773                     | $4,730                   

**6.       Deposits**The table below presents the Company's savings portfolio at the dates indicated.

|                      | June 30, 2001    | September 30, 2000
|--------------------- | ---------------- | ------------------
|                      | Amount           | % ofTotal         
|Demand deposits       | $        319,305 | 7.55%             
|Passbook and passcard | 98,699           | 2.34              
|Money market          | 628,681          | 14.87             
|Certificates          | 3,180,443        | 75.24             
|Total deposits        | $     4,227,128  | 100.00%           

**7.       Earnings Per Share**Basic earnings per share for the quarter ended June 30, 2001 were $0.24 per share and $0.75 per share year-to-date. The Company accounts for the 3,024,574 shares acquired by its ESOP in accordance with SOP 93-6
and the shares acquired for its Recognition and Retention Plan in a manner similar to the ESOP shares;
shares acquired by the ESOP and the Recognition and Retention Plan (included in average common shares
outstanding below) are not considered in the basic average shares outstanding until the shares are committed
for allocation or vested to an employee's individual account. The following is a reconciliation of the
numerators and denominators of the basic and diluted earnings per share calculations.

|                                                           | Three Months Ended
June 30, | Nine Months Ended
June 30,
|---------------------------------------------------------- | --------------------------- | --------------------------
|                                                           | 2001                        | 2000                      
|Net Income                                                 | $18,814                     | $18,745                   
|Average common shares outstanding                          | 76,536,336                  | 82,078,245                
|Average allocated ESOP shares outstanding                  | 504,650                     | 303,011                   
|Total basic average common shares   
outstanding           | 77,040,986                  | 82,381,256                
|Effect of dilutive Recognition and Retention   Plan shares | 402,360                     | 99,023                    
|Effect of dilutive stock options                           | 1,362,232                   | 259,861                   
|Total diluted average common shares   outstanding          | 78,805,578                  | 82,740,140                
|Net earnings per share                                     |                             |                           
|Basic                                                      | $0.24                       | $0.22                     
|Diluted                                                    | $0.24                       | $0.22                     
|                                                           |                             |                           

**8.       Equity**
Stockholders' equity totaled $1.03 billion at June 30, 2001 compared to $986.2 million at September 30,
2000.  The Company declared a $0.16 per share dividend on July 18, 2001 to holders of record on
August 3, 2001, payable on August 17, 2001.  The total number of treasury shares at June 30, 2001 was
11,123,705 with 80,388,582 shares outstanding.  The current stock repurchase plan has 90,365 shares
authorized to be purchased.  At June 30, 2001, book value per share was $13.29 compared to $12.64
book value per share at September 30, 2000.

**9.       Comprehensive Income**
The only component of other comprehensive income is the change in the estimated fair value of mortgage-related securities available-for-sale which was $(3.5) million for the three months ended June 30, 2001 and
$5.2 million for the nine months ended June 30, 2001.

**10.       Commitments and Contingencies**
In the normal course of business, the Company and its Subsidiaries are named defendants in various
lawsuits and counter claims.  In the opinion of management, after consultation with legal counsel, none
of the suits will have a materially adverse effect on the Company's consolidated financial statements for
either the current interim period or fiscal year ending September 30, 2001.

**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.

**Financial Condition**

**Assets.**  For the nine month period ended June 30, 2001, total assets of the Company increased $263.0
million, or 3.2 %, from $8.27 billion at September 30, 2000 to $8.53 billion at June 30, 2001.  Management believes that growth in assets will continue to be limited by the growth in
deposits during the current fiscal year.  The change in total assets was primarily distributed as follows:

|• |  | $487.6 million increase in investment securities from $15.1 million at September 30, 2000 to $502.7
million at June 30, 2001.                       
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------
|• |  | $332.6 million, or (13.8)%, decrease in mortgage-related securities from $2.41 billion at September 30, 2000 to $2.08 billion at June 30, 2001.     
|• |  | $109.4 million, or 82.2%, increase in cash and cash equivalents from $133.0 million at September 30,
2000 to $242.4 million at June 30, 2001.       
|• |  | $4.4 million, or 0.08%, increase in net loans receivable which increased from $5.44 billion at
September 30, 2000 to $5.45 billion at June 30, 2001.

The following table presents loan origination activity for the current quarter and year to date.

|                                   | Three Months Ended |       | Nine Months Ended
|---------------------------------- | ------------------ | ----- | -----------------
|                                   | June 30, 2001      |       | June 30, 2001    
|Fixed Rate                         | Amount             | Yield | % of Total       
|Origination of One- to four-family | $239,897           | 7.05  | 55.85            
|Refinance of One- to four-family   | 69,570             | 6.91  | 16.20            
|Multi-family and commercial        | 270                | 7.97  | 0.06             
|Consumer  loans                    | 11,542             | 8.52  | 2.69             
|Adjustable Rate                    |                    |       |                  
|Origination of One- to four-family | 42,799             | 6.69  | 9.96             
|Refinance of One- to four-family   | 11,516             | 6.68  | 2.68             
|Consumer  loans                    | 34,479             | 8.30  | 8.03             
|Purchased Loans                    | 19,459             | 6.66  | 4.53             
|Total Origination and Purchases    | $429,532           | 7.10  | 100.00           

Our level of non-performing loans continues to be minimal because of the underwriting standards on
loans we originate and purchase.  At June 30, 2001 our ratio of non-performing loans to total loans was
0.09%.  This has contributed to a very low non-performing assets total and ratio to total assets, and
supports our low efficiency ratio.

**Liabilities.**  Deposits increased $270.8 million, or 6.8%, from $3.96 billion at September 30, 2000 to
$4.23 billion at June 30, 2001.  Certificate accounts increased in balance over the period by $162.1
million.  Advances from the Federal Home Loan Bank of Topeka ("FHLB") decreased from September
30, 2000 by $25.0 million, or 0.80%.

**Equity.**  Total stockholders' equity increased $38.9 million, or 3.9%, from $986.2 million at
September 30, 2000, to $1.03 billion at June 30, 2001.  The increase was primarily the result of year-to-date earnings of $58.2 million and an increase of $5.2 million in unrealized gain on securities available
for sale, partially offset by the purchase of the Company's stock totaling $20.6 million and dividends
paid of $10.2 million. During the nine months ended June 30, 2001, the Company purchased 1,384,500
shares of stock in the open market at an average cost of $14.88 per share.  At June 30, 2001, book value
per share was $13.29 compared to $12.64 book value per share at September 30, 2000.  Equity to assets
was 12.02% at June 30, 2001 compared to 11.93% at September 30, 2000.



**General.**  For the three months ended June 30, 2001, the Company recognized net income of $18.8
million, compared to net income of $18.7 million for the three months ended June 30, 2000.  The
Company's efficiency ratio for the three months ended June 30, 2001 was 35.98% compared to 36.05%
for the quarter ended June 30, 2000.

**Net Interest Income.**  Net interest income for the three months ended June 30, 2001 was $42.4 million, a decrease of $871,000, or 2.0% from the same period last year.

|• |  | The decrease was in part due to the average yield on mortgage-related securities decreasing 26 basis
points while the average balance of these assets decreased $362.1 million.  The average balance of the
mortgage loan portfolio increased $612.1 million while the average yield remained largely
unchanged, increasing 3 basis points over the same quarter one year ago.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• |  | The decrease was also due in part to the average cost of our interest bearing liabilities remaining
unchanged for the quarter ended June 30, 2001, at 5.57%, compared to the same quarter one year ago.
Total average interest bearing liabilities increased $700.1 million from $6.63 billion at June 30, 2000
to $7.33 billion at June 30, 2001.                            
|• |  | The net interest margin for the quarter ended June 30, 2001 decreased 23 basis points to 2.03% from
2.26% for the quarter ended June 30, 2000.  The Company's net interest rate spread at June 30, 2001
was 1.36% which is 17 basis points lower than at June 30, 2000.                                                                                                       

**Interest and Dividend Income.**  Interest income for the three months ended June 30, 2001 was
$144.9 million, up $9.0 million from the same period last year, an increase of 6.62%.

|• |  | Interest on loans increased from $88.6 million for the three months ended June 30, 2000 to $100.1
million for the three months ended June 30, 2001.  This increase of $11.5 million was primarily the
result of an increase in the average balance of loans and an increase in the average yield earned.  The
average balance of loans receivable increased $612.1 million to $5.51 billion for the three months
ended June 30, 2001 compared to $4.89 billion for the same period one year ago, while the average
yield on loans increased 3 basis points to 7.27% for the quarter ended June 30, 2001 from 7.24% for
the quarter ended June 30, 2000.  The yield on loans receivable at June 30, 2001 was 7.28%.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• |  | Interest income on mortgage-related securities decreased $7.6 million from $44.3 million for the
quarter ended June 30, 2000 to $36.7 million for the quarter ended June 30, 2001. The decrease was
due primarily to a decrease in the average balance outstanding and in the average yield.  The average
balance of mortgage-related securities decreased $362.1 million from $2.60 billion at June 30, 2000
to $2.24 billion at June 30, 2001, while the average yield decreased 26 basis points from 6.82% for
the quarter ended June 30, 2000 to 6.56% for the quarter ended June 30, 2001.  The yield on
mortgage-related securities at June 30, 2001 was 6.51%.                                             
|• |  | Interest income on investment securities and cash and cash equivalents increased $4.7 million from
$541,000 for the quarter ended June 30, 2000 to $5.2 million for the quarter ended June 30, 2001.
This increase was due primarily to an increase in the average balance of $421.3 million.  The
average balance of these assets during the quarter was $456.6 million with an average rate of 4.61%.
During the quarter we purchased $502.8 million in agency bonds at an average yield of 5.20% and an average life of 3.7 years.                                                                                                                                                                             
|• |  | Dividend income on capital stock in the FHLB for the quarter ended June 30, 2001 was $2.9 million
compared to $2.4 million for the quarter ended June 30, 2000, an increase of $408,000.  The average
balance of FHLB stock increased $34.2 million from $127.1 million at June 30, 2000 to $161.3
million at June 30, 2001.  The average yield during the quarter was 7.10% compared to 7.72% for the
same quarter one year ago.                                                                                                                                                                                                                                                                                 

**Interest Expense.**  Interest expense increased for the quarter ended June 30, 2001 to $102.5
million, up $9.9 million, or 10.7%, from the same period one year ago.

|• |  | For the quarter ended June 30, 2001 interest expense on deposits was $52.9 million compared to
$51.2 million for the quarter ended June 30, 2000, an increase of $1.7 million.  The average balance
of deposits during the quarter ended June 30, 2001 was $4.13 billion compared to $3.92 billion for the
quarter ended June 30, 2000, an increase of $209.3 million, or 5.3%.  The average rate paid on
deposits for the quarter ended June 30, 2001 was 5.13% compared to 5.24% for the quarter ended
June 30, 2000, a decrease of 11 basis points.  At June 30, 2001, the average cost of deposits was
4.89%.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• |  | Interest expense on borrowings for the quarter ended June 30, 2001 was $49.6 million compared to
$41.4 million for the quarter ended June 30, 2000, an increase of $8.2 million, or 19.8%.  The average
balance of borrowings for the quarter ended June 30, 2001 was $3.20 billion compared to $2.71
billion for the quarter ended June 30, 2000, an increase of $490.8 million, or 18.1%.  The average cost
of the borrowings for the quarter ended June 30, 2001 was 6.14% compared to 6.05% for the quarter
ended June 30, 2000.  The average rate paid on borrowings at June 30, 2001 was 6.14%.            

**Provision for Loan Losses.**  During the quarter no provisions for loan losses were recorded.  The
provision is based on estimates of losses inherent in the loan portfolio.  The appropriateness of the
provision is reviewed by management 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.

**Noninterest Income.**  Total noninterest income for the quarter ended June 30, 2001 was $3.9
million, up from $3.8 million for the quarter ended June 30, 2000.  The increase in automated teller
and debit card transaction account income was due to increased usage of debit cards by our customers
and the increase in checking account transaction fees is a result of new fee structures put into place
during the quarter.

**Noninterest Expense.**  Total noninterest expense decreased $327,000 to $16.7 million for the
quarter ended June 30, 2001 compared to $17.0 million for the same period in 2000.  The decrease
was primarily due to a decrease of $1.9 million in compensation expense, generally due to the
expense associated with the initial vesting of the recognition and retention plan in the prior year. The
decrease was partially offset by increases of $522,000 in deposit and loan fees, $447,000 in
advertising expense, and $392,000 in occupancy expense.

**Income Tax Expense.**  Income tax expense decreased from $11.4 million for the quarter ended
June 30, 2000, to $10.8 million for the quarter ended June 30, 2001.



**General.**  For the nine months ended June 30, 2001, the Company recognized net income of $58.2
million compared to net income of $55.9 million for the nine months ended June 30, 2000.  The
efficiency ratio, for the nine months ended June 30, 2001 was 33.90% compared to 33.83% for the
nine months ended June 30, 2000.

**Net Interest Income.**  Net interest income for the nine months ended June 30, 2001 was $126.7
million compared to $125.8 million for the nine months ended June 30, 2000, an increase of
$941,000, or 0.7%.  The net interest margin decreased 31 basis points from 2.36% for the nine months
ended June 30, 2000 to 2.05% for the nine months ended June 30, 2001.

**Interest and Dividend Income.**Interest income for the nine months ended June 30, 2001 was
$436.2 million, up $62.5 million, or 16.7% over the same period one year ago.

|• |  | Interest on loans increased from $249.9 million for the nine months ended June 30, 2000 to $301.8
million for the nine months ended June 30, 2001. This increase of $51.9 million was primarily the
result of the average balance of loans increasing $890.2 million to $5.53 billion for the nine months
ended June 30, 2001 from $4.64 billion for the nine months ended June 30, 2000.  The average yield
on loans increased 9 basis points from 7.19% for the nine months ended June 30, 2000 to 7.28% for
the nine months ended June 30, 2001.             
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• |  | Interest on mortgage-related securities decreased by $1.9 million, or 1.64%, from $116.0 million
for the nine months ended June 30, 2000 to $114.1 million for the nine months ended June 30, 2001,
primarily as a result of a decrease in the average balance of mortgage-related securities of $43.2
million from $2.32 billion for the nine months ended June 30, 2000 to $2.28 billion for the nine
months ended June 30, 2001.  The average yield for the nine months ended June 30, 2001 was 6.68%,
up from 6.66% for the nine months ended June 30, 2000.
|• |  | Interest income on investment securities and cash and cash equivalents increased $8.6 million from
$2.3 million for the nine months ended June 30, 2000 to $10.9 million for the nine months ended
June 30, 2001.  This increase was primarily due to an increase in the average balance of these assets
of $229.8 million.  For the nine months just ended, the average balance was $283.4 million, with an
average yield of 5.16%.                                                                                                                            
|• |  | Dividends earned on capital stock of the FHLB was $9.4 million for the nine months ended June 30,
2001, compared to $5.5 million for the same period in fiscal year 2000.  The average yield for the
nine months ended June 30, 2001 was 7.78% compared to 7.41% for the nine months ended June 30,
2000.  The average balance of FHLB stock was $161.3 million for the nine month period ended June
30, 2001 compared to $99.5 million for the same period one year ago.                                                                                       

**Interest Expense.**  Interest expense increased during the nine month period ended June 30, 2001 to
$309.5 million, up $61.5 million, or 24.8%, from the same period one year ago.

|• |  | Interest expense on deposits increased from $151.1 million for the nine months ended June 30, 2000
to $160.3 million for the nine months ended June 30, 2001, a $9.1 million or 6.02% increase.  The
average cost of deposits increased to 5.32% for the nine months ended June 30, 2001 from 5.12% for
the nine months ended June 30, 2000, or 20 basis points.  The average balance of deposits increased
$102.2 million, from $3.93 billion for the nine months ended June 30, 2000 to $4.03 billion for the
nine months ended June 30, 2001.          
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• |  | Interest expense on borrowings increased to $149.2 million from $96.8 million, a $52.4 million
increase, or 54.1%.  The increase in interest expense on borrowings accounted for 85.1% of the
increase in the amount of interest expense.  The average balance of borrowings increased from $2.15
billion for the nine months ended June 30, 2000 to $3.21 billion for the nine months ended June 30,
2001.  The average cost of borrowings increased from 5.91% for the nine months ended June 30,
2000 to 6.14% for the nine months ended June 30, 2001.

**Provision for Loan Losses.**  During the nine months ended June 30, 2001 there was no provision
for loan losses recorded.  The provision for loan losses for the nine months ended June 30, 2000 was
$494,000.

**Noninterest Income.**  Total noninterest income for the nine month period ended June 30, 2001 was $11.9 million, up slightly from $10.7 million for the nine month period ended June 30, 2000.

**Noninterest Expense.**  Total noninterest expense increased $826,000 to $47.0 million for the nine
months ended June 30, 2001, up from $46.1 million for the nine months ended June 30, 2000.  The
increase was primarily due to increases of $620,000 in deposit and loan fees and $470,000 in
advertising expense partially offset by a decrease in the federal deposit insurance expense of
$427,000.  The increase in deposit and loan fees is primarily due to increased loan volume while the
increase in advertising expense is due primarily to marketing campaigns directed toward deposit
customers and seasonal loan marketing.

**Income Tax Expense.**  Income tax expense decreased from $33.9 million for the nine month period
ended June 30, 2000 to $33.5 million for the nine months ended June 30, 2001.



**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 liquidity to 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 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, 2001:

|• |  | The total approved loan origination and purchase commitments outstanding amounted to $192.9
million.
|- |  | ----------------------------------------------------------------------------------------------------
|• |  | The unadvanced portion of construction loans was $20.6 million.                                     
|• |  | Unused home equity lines of credit were $205.4 million.                                             
|• |  | Outstanding letters of credit totaled $754,596.                                                     
|• |  | Certificates of deposit scheduled to mature in one year or less, totaled $2.12 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 a "well capitalized" institution in accordance with regulatory standards.  Total equity was $1.03
billion at June 30, 2001, or 12.02% of total assets on that date. As of June 30, 2001, the Bank exceeded
all capital requirements of the Office of Thrift Supervision. The Bank's regulatory capital ratios at June
30, 2001 were as follows: Tier I (leverage) capital, 11.2%; Tier I risk-based capital, 26.9%; and total risk-based capital, 26.8%. The regulatory capital requirements to be considered well capitalized are 5.0%,
6.0%, and 10.0%, respectively.

**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, 2000.



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.

Part 2 -  OTHER INFORMATION

**Item 1.  Legal Proceedings**

Not Applicable

**Item 2.  Change in Securities and Use of Proceeds**
Not applicable

**Item 3.  Defaults Upon Senior Securities**
Not applicable

**Item 4.  Submission of Matters to a Vote of Security Holders**
Not applicable

**Item 5.  Other Information**
Not applicable

**Item 6.  Exhibits and Reports on Form 8-K**
No reports on Form 8-K were filed by the Company during the quarter ended June 30, 2001.

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, 2001 |  | By: | /s/ John C. DicusJohn C. Dicus, Chairman and
Chief Executive Officer                    
|Date: | August 13, 2001 |  | By: | /s/ Neil F.M. McKayNeil F.M. McKay, Executive Vice President
and Chief Financial Officer