|UNITED STATES                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SECURITIES AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                            
|Washington, D.C.  20549                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|FORM 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                                                                                                                                                                                                                                                                                                                                                                            
|OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|For the quarter ended March 31, 2002                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|OR                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                                                                                                                                                                                                                                                                                                                                                                         
|ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|For the transition period from _____________________to_____________________                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Commission file number 333-68363                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|CAPITOL FEDERAL FINANCIAL                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|United States                                               48-1212142                                                                                                                                                                                                                                                                                                                                                                                        
|(State or other jurisdiction of incorporation         (I.R.S. Employer Identification No.)                                                                                                                                                                                                                                                                                                                                                                    
|or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|700 Kansas Avenue, Topeka, Kansas                                                                    
66603                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(Address of principal executive offices)                                                                
(Zip Code)                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|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 __.                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Transitional Small Business Format:                                             Yes [  ]          No [X]                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Common Stock                                              74,651,761                                        Class                                                            Shares Outstanding
                                                                                                             as of May
  8, 2002

1

---

FORM 10-Q
Capitol Federal Financial
INDEX

|PART I -- FINANCIAL INFORMATION                                                                                         | Page
Number
|----------------------------------------------------------------------------------------------------------------------- | -----------
|Item 1.  Financial Statements                                                                                           |            
|Consolidated Balance Sheets at March 31, 2002 and September 30, 2001                                                    | 3          
|Consolidated Statements of Incomefor the three and six months ended                   March 31, 2002 and March 31, 2001 | 4          
|Consolidated Statement of Stockholders' Equityfor the six months ended                   March 31, 2002                 | 5          
|Consolidated Statements of Cash Flowsfor the six months ended                   March 31, 2002 and March 31, 2001       | 6          
|Notes to Consolidated Interim Financial Statements                                                                      | 8          
|Item 2.Management's Discussion and Analysis of Financial Conditionand                   Results of Operations           | 13         
|Item 3.Quantitative and Qualitative Disclosure about Market Risk                                                        | 21         
|                                                                                                                        |            
|PART II -- OTHER INFORMATION                                                                                            |            
|Item 1.Legal Proceedings                                                                                                | 23         
|Item 2.Changes in Securities and Use of Proceeds                                                                        | 23         
|Item 3.Defaults Upon Senior Securities                                                                                  | 23         
|Item 4.Submission of Matters to a Vote of Security Holders                                                              | 23         
|Item 5.Other Information                                                                                                | 23         
|Item 6.Exhibits and Reports on Form 8-K                                                                                 | 23         
|                                                                                                                        |            
|Signature Page                                                                                                          | 24         

2

---

PART 1 -- FINANCIAL INFORMATION

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

|                                                                                       | March 31,   |  | September 30,
|-------------------------------------------------------------------------------------- | ----------- |  | -------------
|                                                                                       | 2002        |  | 2001         
|                                                                                       | (Unaudited) |  |              
|ASSETS:                                                                                |             |  |              
|Cash and cash equivalents                                                              | $75,762     |  | $153,462     
|Investment securities held to maturity, at cost (market value of $711,908              |             |  |              
|and $520,099)                                                                          | 701,549     |  | 502,283      
|Capital stock of Federal Home Loan Bank, at cost                                       | 161,108     |  | 162,350      
|Mortgage-related securities:                                                           |             |  |              
|Available-for-sale, at market (amortized cost of $859,486 and              $1,041,069) | 871,056     |  | 1,059,110    
|Held-to-maturity, at cost (market value of $1,580,798 and $1,294,248)                  | 1,572,413   |  | 1,248,813    
|Loans held for sale, net                                                               | 18,649      |  | 16,904       
|Loans receivable, net                                                                  | 5,326,478   |  | 5,416,507    
|Premises and equipment, net                                                            | 22,598      |  | 22,494       
|Real estate owned, net                                                                 | 1,036       |  | 1,031        
|Accrued interest receivable                                                            | 45,302      |  | 47,219       
|Other assets                                                                           | 4,425       |  | 5,270        
|TOTAL ASSETS                                                                           | $8,800,376  |  | $8,635,443   
|                                                                                       |             |  |              
|LIABILITIES :                                                                          |             |  |              
|Deposits                                                                               | $4,442,655  |  | $4,285,835   
|Advances from Federal Home Loan Bank                                                   | 3,200,000   |  | 3,200,000    
|Other borrowings, net                                                                  | 111,387     |  | --           
|Advance payments by borrowers for taxes and insurance                                  | 32,329      |  | 40,161       
|Accrued and deferred income taxes payable                                              | 18,171      |  | 24,625       
|Accounts payable and accrued expenses                                                  | 34,964      |  | 36,560       
|Total Liabilities                                                                      | 7,839,506   |  | 7,587,181    
|                                                                                       |             |  |              
|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 March 31, 2002 and September 30, 2001                              | 915         |  | 915          
|Additional paid-in-capital                                                             | 388,867     |  | 387,018      
|Retained earnings                                                                      | 844,513     |  | 809,127      
|Accumulated other comprehensive income                                                 | 7,182       |  | 11,457       
|Unearned compensation, Employee Stock Ownership Plan                                   | (23,188)    |  | (24,197)     
|Unearned compensation, Recognition and Retention Plan                                  | (4,967)     |  | (6,156)      
|Less shares held in treasury (17,042,138 and 11,103,005 shares as of                   |             |  |              
|March 31, 2002 and  September 30, 2001, at cost)                                       | (252,452)   |  | (129,902)    
|Total Stockholders' Equity                                                             | 960,870     |  | 1,048,262    
|                                                                                       |             |  |              
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                             | $8,800,376  |  | $8,635,443   

See accompanying notes to consolidated interim financial statements.

3

---

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

|                                                 | For the Three Months Ended |  | For the Six Months Ended
|------------------------------------------------ | -------------------------- |  | ------------------------
|                                                 | March 31,                  |  | March 31,               
|                                                 | 2002                       |  | 2001                    
|INTEREST AND DIVIDEND INCOME:                    |                            |  |                         
|Loans receivable                                 | $93,096                    |  | $101,829                
|Mortgage-related securities                      | 38,079                     |  | 36,709                  
|Investment securities                            | 6,553                      |  | 171                     
|Cash and cash equivalents                        | 405                        |  | 3,311                   
|Capital stock of Federal Home Loan Bank          | 1,992                      |  | 2,982                   
|Total interest and dividend income               | 140,125                    |  | 145,002                 
|                                                 |                            |  |                         
|INTEREST EXPENSE:                                |                            |  |                         
|Deposits                                         | 41,923                     |  | 53,257                  
|Borrowings                                       | 50,303                     |  | 49,084                  
|Total interest expense                           | 92,226                     |  | 102,341                 
|                                                 |                            |  |                         
|Net interest and dividend income                 | 47,899                     |  | 42,661                  
|Provision for loan losses                        | 24                         |  | --                      
|Net interest and dividend income after           |                            |  |                         
|provision for loan losses                        | 47,875                     |  | 42,661                  
|                                                 |                            |  |                         
|OTHER INCOME:                                    |                            |  |                         
|Automated teller and debit card transaction fees | 1,385                      |  | 1,320                   
|Checking account transaction fees                | 976                        |  | 754                     
|Loan fees                                        | 365                        |  | 456                     
|Insurance commissions                            | 427                        |  | 535                     
|Other, net                                       | 1,024                      |  | 769                     
|Total other income                               | 4,177                      |  | 3,834                   
|                                                 |                            |  |                         
|OTHER EXPENSES:                                  |                            |  |                         
|Salaries and employee benefits                   | 9,413                      |  | 8,825                   
|Occupancy of premises                            | 2,446                      |  | 2,287                   
|Office supplies and related expenses             | 897                        |  | 912                     
|Deposit and loan transaction fees                | 1,238                      |  | 1,019                   
|Advertising                                      | 673                        |  | 720                     
|Federal insurance premium                        | 200                        |  | 195                     
|Other, net                                       | 1,439                      |  | 1,286                   
|Total other expenses                             | 16,306                     |  | 15,244                  
|                                                 |                            |  |                         
|Income before income tax expense                 | 35,746                     |  | 31,251                  
|                                                 |                            |  |                         
|Income tax expense                               | 14,048                     |  | 11,323                  
|NET INCOME                                       | $21,698                    |  | $19,928                 
|                                                 |                            |  |                         
|Basic earnings per share                         | $0.30                      |  | $0.26                   
|Diluted earnings per share                       | $0.30                      |  | $0.25                   

See accompanying notes to consolidated interim financial statements

4

---

CAPITOL FEDERAL FINANCIAL AND SUBSIDIARY
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                                  |        |            | 42,462   |               |              |              |            | 42,462    
|Change in unrealized gain on available-     |        |            |          |               |              |              |            |           
|for-sale securities, net of deferred income |        |            |          |               |              |              |            |           
|tax ($2,198)                                |        |            |          | (4,275)       |              |              |            | (4,275)   
|Total comprehensive income                  |        |            |          |               |              |              |            | 38,187    
|                                            |        |            |          |               |              |              |            |           
|Change in Employee Stock Ownership Plan     |        | 1,152      |          |               | 1,009        |              |            | 2,161     
|Change in Recognition and Retention Plan    |        | 21         |          |               |              | 1,189        |            | 1,210     
|Acquisition of treasury stock               |        |            |          |               |              |              | (125,472)  | (125,472) 
|Stock options exercised                     |        | 676        | (324)    |               |              |              | 2,922      | 3,274     
|Dividends on common stock to                |        |            |          |               |              |              |            |           
|stockholders ($0.35 per share)              |        |            | (6,752)  |               |              |              |            | (6,752)   
|Balance at March 31, 2002                   | $915   | $388,867   | $844,513 | $7,182        | ($23,188)    | ($4,967)     | ($252,452) | $960,870  



See accompanying notes to consolidated interim financial statements.



5

---

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

|                                                              | For the Six Months Ended
|------------------------------------------------------------- | ------------------------
|                                                              | March 31,               
|                                                              | 2002                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                         |                         
|Net income                                                    | $42,462                 
|Adjustments to reconcile net income to net cash provided      |                         
|by operating activities:                                      |                         
|Amortization of net deferred loan origination fees            | (3,828)                 
|Provision for loan losses                                     | 124                     
|Net loan origination fees capitalized                         | 4,398                   
|Gain on sale of loans held for sale                           | (26)                    
|Gain on sales of real estate owned, net                       | (2)                     
|Originations of loans held for sale                           | (5,568)                 
|Proceeds from sales of loans held for sale                    | 3,840                   
|Amortization and accretion of premiums and discounts on       |                         
|mortgage-related securities and investment securities         | 1,936                   
|Depreciation and amortization on premises and equipment       | 1,751                   
|Amortization of capitalized cost on other borrowings          | 85                      
|Common stock committed to be released for allocation - ESOP   | 2,161                   
|Amortization of unearned compensation - RRP                   | 1,189                   
|Changes in:                                                   |                         
|Accrued interest receivable                                   | 1,917                   
|Other assets                                                  | 844                     
|Income taxes payable                                          | 328                     
|Accounts payable and accrued expenses                         | (5,991)                 
|Net cash provided by operating activities                     | 45,620                  
|                                                              |                         
|CASH FLOWS FROM INVESTING ACTIVITIES:                         |                         
|Proceeds from maturities of investment securities             | 1,242                   
|Purchases of investment securities                            | (200,000)               
|Principal collected on mortgage-related securities available- |                         
|for-sale                                                      | 180,585                 
|Principal collected on mortgage-related securities held-to-   |                         
|maturity                                                      | 391,564                 
|Purchases of mortgage-related securities available-for-sale   | (471)                   
|Purchases of mortgage-related securities held-to-maturity     | (714,899)               
|Loan originations net of principal collected                  | (221,823)               
|Loan purchases net of principal collected                     | 310,241                 
|Purchases of premises and equipment, net                      | (1,855)                 
|Proceeds from sales of real estate owned                      | 1,426                   
|Net cash used in investing activities                         | (253,990)               



6

---



|CASH FLOWS FROM FINANCING ACTIVITIES:                 |             |  |               
|----------------------------------------------------- | ----------- |  | --------------
|Dividends paid                                        | (6,752)     |  | (6,525)       
|Deposits, net of payments                             | 156,820     |  | 136,476       
|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                        | (5,087)     |  | --            
|Payments for the repurchase of common stock           | (125,472)   |  | (20,595)      
|Stock options exercised                               | 2,604       |  | 567           
|Change in advance payments by borrowers for taxes and |             |  |               
|insurance                                             | (7,832)     |  | (7,842)       
|Net cash provided by financing activities             | 130,670     |  | 77,081        
|                                                      |             |  |               
|NET (DECREASE)INCREASE IN CASH AND CASH EQUIVALENTS   | (77,700)    |  | 110,907       
|CASH AND CASH EQUIVALENTS:                            |             |  |               
|Beginning of Period                                   | 153,462     |  | 133,034       
|End of Period                                         | $   75,762  |  | $   243,941   
|                                                      |             |  |               
|SUPPLEMENTAL SCHEDULE OF NONCASH                      |             |  |               
|INVESTING AND FINANCING ACTIVITIES:                   |             |  |               
|Loans transferred to real estate owned                | $     1,419 |  | $      1,176  
|Treasury stock issued to RRP, net of forfeited shares | --          |  | $           21
|Equity adjustment for tax effect of disqualifying     |             |  |               
|disposition of incentive stock options                | $       670 |  | --            
|                                                      |             |  |               

See accompanying notes to consolidated interim financial statements.

7

---

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.



8

---

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

|                             | March 31, 2002 |  | September 30, 2001
|---------------------------- | -------------- |  | ------------------
|                             | Amount         |  | % of Total        
|                             |                |  |                   
|Real Estate Loans:           |                |  |                   
|One- to four-family          | $ 5,079,391    |  | 94.60             
|Multi-family                 | 49,427         |  | 0.92              
|Commercial                   | 6,236          |  | 0.12              
|Construction and development | 45,773         |  | 0.85              
|Total real estate loans      | 5,180,827      |  | 96.49             
|                             |                |  |                   
|Consumer loans:              |                |  |                   
|Savings loans                | 11,624         |  | 0.22              
|Home improvement             | 1,692          |  | 0.03              
|Automobile                   | 8,758          |  | 0.16              
|Home equity                  | 164,406        |  | 3.06              
|Other                        | 1,848          |  | 0.04              
|Total consumer loans         | 188,328        |  | 3.51              
|                             |                |  |                   
|Total loans receivable       | 5,369,155      |  | 100.00            
|                             |                |  |                   
|Less:                        |                |  |                   
|Loans in process             | 20,595         |  |                   
|Deferred fees and discounts  | 17,223         |  |                   
|Allowance for losses         | 4,859          |  |                   
|Total loans receivable, net  | $ 5,326,478    |  |                   
|                             |                |  |                   
|                             |                |  |                   



9

---

4.   Non-Performing LoansThe following table presents the Company's non-performing loans, including non-accrual loans and real estate owned, at the dates indicated.

|                                                     | March 31, |  | September 30,
|---------------------------------------------------- | --------- |  | -------------
|                                                     | 2002      |  | 2001         
|Non-accruing loans:                                  |           |  |              
|One- to four-family                                  | $ 7,579   |  | $ 6,384      
|Multi-family                                         | --        |  | --           
|Commercial real estate                               | --        |  | --           
|Construction or development                          | --        |  | --           
|Consumer                                             | 119       |  | 276          
|Total                                                | $ 7,698   |  | $ 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                                  | $ 1,036   |  | $ 1,031      
|Multi-family                                         | --        |  | --           
|Commercial real estate                               | --        |  | --           
|Construction or development                          | --        |  | --           
|Consumer                                             | --        |  | --           
|Total                                                | $ 1,036   |  | $ 1,031      
|                                                     |           |  |              
|Total non-performing assets                          | $ 8,734   |  | $ 7,691      
|                                                     |           |  |              
|Non-performing assets to total assets                | 0.10%     |  | 0.09%        
|                                                     |           |  |              
|Non-performing loans to total loans                  | 0.14%     |  | 0.12%        
|Allowance for loan losses to non-
  performing loans | 63.12%    |  | 72.63%       
|Allowance for loan losses to loans
  receivable, net | 0.09%     |  | 0.09%        



10

---

5.   Allowance for Loan Losses

|                                   | For the Three Months Ended |  | For the Six Months Ended
|---------------------------------- | -------------------------- |  | ------------------------
|                                   | March 31,                  |  | March 31,               
|                                   | 2002                       |  | 2001                    
|                                   |                            |  |                         
|Balance at the beginning of period | $ 4,866                    |  | $ 4,579                 
|                                   |                            |  |                         
|Charge offs:                       |                            |  |                         
|One- to four-family                | 9                          |  | --                      
|Multi-family                       | --                         |  | --                      
|Commercial real estate             | --                         |  | --                      
|Construction or development        | --                         |  | --                      
|Consumer                           | 22                         |  | 7                       
|Total charge-offs                  | 31                         |  | 7                       
|                                   |                            |  |                         
|Recoveries:                        |                            |  |                         
|One- to four-family                | --                         |  | --                      
|Multi-family                       | --                         |  | 250                     
|Commercial real estate             | --                         |  | --                      
|Construction or development        | --                         |  | --                      
|Consumer                           | --                         |  | --                      
|Total recoveries                   | --                         |  | 250                     
|                                   |                            |  |                         
|Net charge-offs                    | 31                         |  | (243)                   
|Additions charged to operations    | 24                         |  | --                      
|Balance at end of period           | $ 4,859                    |  | $ 4,822                 

6.   Deposits

|                      | March 31, 2002 |  | September 30, 2001
|--------------------- | -------------- |  | ------------------
|                      | Amount         |  | % of Total        
|                      |                |  |                   
|Demand deposits       | $   360,005    |  | 8.10              
|Passbook and passcard | 107,740        |  | 2.43              
|Money market          | 768,856        |  | 17.31             
|Certificates          | 3,206,054      |  | 72.16             
|Total deposits        | $ 4,442,655    |  | 100.00            



11

---

7.   Earnings Per Share

|                                          |  | Three Months Ended |  | Six Months Ended
|----------------------------------------- |  | ------------------ |  | ----------------
|                                          |  | March 31,          |  | March 31,       
|                                          |  | 2002               |  | 2001            
|Net income                                |  | $ 21,698           |  | $ 19,928        
|                                          |  |                    |  |                 
|Average common shares outstanding         |  | 70,220,076         |  | 76,237,744      
|Average allocated ESOP shares outstanding |  | 655,884            |  | 454,246         
|Average allocated RRP shares outstanding  |  | 514,000            |  | 258,000         
|Total basic average common shares         |  |                    |  |                 
|outstanding                               |  | 71,389,960         |  | 76,949,990      
|                                          |  |                    |  |                 
|                                          |  |                    |  |                 
|Effect of dilutive RRP shares             |  | 534,187            |  | 551,052         
|Effect of dilutive stock options          |  | 1,589,901          |  | 1,294,570       
|Total diluted average common shares       |  |                    |  |                 
|outstanding                               |  | 73,514,048         |  | 78,795,612      
|                                          |  |                    |  |                 
|Net earnings per share                    |  |                    |  |                 
|Basic                                     |  | $0.30              |  | $0.26           
|Diluted                                   |  | $0.30              |  | $0.25           
|                                          |  |                    |  |                 
|Average:                                  |  |                    |  |                 
|Unallocated shares in ESOP                |  | 2,368,690          |  | 2,570,328       
|Unvested shares in RRP                    |  | 768,000            |  | 1,024,000       

8

12

---

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.  Total assets of the Company increased $164.9 million from $8.64 billion at September 30, 2001 to $8.80 billion at March 31, 2002.  The increase from September 30, 2001 was primarily due to the growth in the Company's mortgage-related securities portfolio and a net increase in investment securities, which was partially offset by a decrease in our loan portfolio and in cash and cash equivalents.

- Investment securities increased $199.3 million, or 39.7%, from $502.3 million at September 30, 2001 to $701.5 million at March 31, 2002.  The increase is the result of purchases of short-term FHLB certificates of deposit.  Following the end of the current quarter $200 million of maturing certificates were used to partially fund the purchase of $263.7 million of adjustable rate mortgage-related securities.
- Mortgage-related securities increased $135.5 million, or 5.9%, from $2.31 billion at September 30, 2001 to $2.44 billion at March 31, 2002.  The increase is primarily the result of securities purchased during the quarter ended December 31, 2001.  During the current quarter we purchased $150.1 million of fixed rate mortgage-backed securities, bringing the total purchased through March 31, 2002, to $715.4 million, all of which were fixed rate with an average yield of 6.24%.  Following the end of the March 31, 2002 quarter, the Bank purchased $263.7 million of adjustable rate mortgage-related securities with an average yield of 4.45%.  The change in type of securities and the corresponding decrease in yield is part of a strategy to provide interest rate risk protection in a rising rate environment.
- The loan portfolio decreased $90.0 million, or 1.7%, from $5.42 billion at September 30, 2001 to $5.33 billion at March 31, 2002.  Despite record loan originations during the six-month period of $863.2 million the balance of the loan portfolio decreased partially due to prepayments of $770.9 million.  The effect of refinances on the loan portfolio was significant during the six-month period.  The total amount of originations and purchases excluding amounts refinanced was $635.2 million.  Loans purchased during the six-month period totaled $26.9 million.  Total adjustable rate products originated during the six-months totaled $253.5 million, or 28.5%, of total originations and purchases.
- Cash and cash equivalents decreased $77.7 million, or 50.6%, from $153.5 million at September 30, 2001 to $75.8 million at March 31, 2002.  The decrease in the balance is due primarily to the use of cash to purchase mortgage-related and investment securities.



---

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

|                             |                             | Average Balances for the   |  |                          |  |              | 
|---------------------------- | --------------------------- | -------------------------- |  | ------------------------ |  | ------------ | 
|                             |                             | Quarter Ended March 31,    |  | Change From Prior Period
|                             |                             | 2002                       |  | 2001                     |  | Amount       | 
|Selected Balance Sheet Data: |                             |                            |  |                          |  |             
|                             | Total assets                | $ 8,730,111                |  | $ 8,316,002              |  | $    414,109 | 
|                             | Loans receivable            | 5,360,482                  |  | 5,557,743                |  | (197,261)    | 
|                             | Mortgage-related securities | 2,484,553                  |  | 2,238,865                |  | 245,688      | 
|                             | Investment securities       | 510,678                    |  | 11,003                   |  | 499,675      | 
|                             | Cash and cash equivalents   | 102,722                    |  | 246,572                  |  | (143,850)    | 
|                             | Capital stock of FHLB       | 161,594                    |  | 161,250                  |  | 344          | 
|                             | Deposits                    | 4,364,444                  |  | 4,011,363                |  | 353,081      | 
|                             | FHLB Advances               | 3,204,189                  |  | 3,200,111                |  | 4,078        | 
|                             | Other borrowings            | 111,467                    |  | --                       |  | 111,467      | 
|                             | Equity                      | 953,673                    |  | 1,001,903                |  | (48,230)     | 
|                             |                             |                            |  |                          |  |              | 
|                             |                             | Average Balances for the   |  |                          |  |              | 
|                             |                             | Six Months Ended March 31, |  | Change From Prior Period
|                             |                             | 2002                       |  | 2001                     |  | Amount       | 
|Selected Balance Sheet Data: |                             |                            |  |                          |  |             
|                             | Total assets                | $ 8,697,440                |  | $ 8,297,390              |  | $   400,050  | 
|                             | Loans receivable            | 5,378,726                  |  | 5,538,017                |  | (159,291)    | 
|                             | Mortgage-related securities | 2,415,492                  |  | 2,298,270                |  | 117,222      | 
|                             | Investment securities       | 506,371                    |  | 13,074                   |  | 493,297      | 
|                             | Cash and cash equivalents   | 126,227                    |  | 183,791                  |  | (57,564)     | 
|                             | Capital stock of FHLB       | 161,893                    |  | 161,250                  |  | 643          | 
|                             | Deposits                    | 4,319,498                  |  | 3,977,196                |  | 342,302      | 
|                             | FHLB Advances               | 3,202,445                  |  | 3,210,769                |  | (8,324)      | 
|                             | Other borrowings            | 105,178                    |  | --                       |  | 105,178      | 
|                             | Equity                      | 963,484                    |  | 995,744                  |  | (32,260)     | 

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

|                                   |                                  | At            |  |               |  |                          | 
|---------------------------------- | -------------------------------- | ------------- |  | ------------- |  | ------------------------ | 
|                                   |                                  | March 31,     |  | September 30, |  | Change from Prior Period | 
|                                   |                                  | 2002          |  | 2001          |  | Amount                   | 
|Selected Loan and Investment Data: |                                  |               |  |               |  |                         
|                                   | Loans serviced for others        | $     224,976 |  | $     278,703 |  | $     (53,727)           | 
|                                   | Fair-value of securities HTM     | 2,292,706     |  | 1,814,347     |  | 478,359                  | 
|                                   | Amortized cost of AFS securities | 859,486       |  | 1,041,069     |  | (181,583)                | 
|                                   | Amortized cost of MBS            | 1,137,373     |  | 1,362,935     |  | (225,562)                | 
|                                   | Amortized cost of CMOs           | 1,294,526     |  | 926,945       |  | 367,581                  | 



14

---

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

|                                  | For the Three Months Ended |       |   | For the Six Months Ended |  
|--------------------------------- | -------------------------- | ----- | - | ------------------------ | -
|                                  | March 31, 2002             |       |   | March 31, 2002           |  
|Fixed Rate                        | Amount                     | Yield |   | % of Total               |  
|Origination - One- to four-family | $ 208,929                  | 6.55  | % | 49.78                    | %
|Refinance - One- to four-family   | 84,359                     | 6.37  |   | 20.10                    |  
|Multi-family and commercial       | 311                        | 7.78  |   | 0.07                     |  
|Consumer Loans                    | 6,351                      | 7.53  |   | 1.51                     |  
|                                  |                            |       |   |                          |  
|Adjustable Rate                   |                            |       |   |                          |  
|Origination - One- to four-family | 49,088                     | 5.95  |   | 11.70                    |  
|Refinance - One- to four-family   | 24,472                     | 5.91  |   | 5.83                     |  
|Consumer Loans                    | 34,837                     | 5.60  |   | 8.30                     |  
|Purchased Loans                   | 11,385                     | 5.99  |   | 2.71                     |  
|Total Originations and Purchases  | $ 419,732                  | 6.33  | % | 100.00                   | %
|                                  |                            |       |   |                          |  
|Mortgage-related securities       | $ 150,110                  | 6.58  | % |                          |  
|Mortgage loan modifications       | $ 106,523                  |       |   |                          |  

We modify loans under a program that provides current borrowers with the opportunity to change their existing term to maturity and/or rate of interest with the loan then reamortized.  The program requires a fee to be paid by the borrower of $650.00 to $950.00 (actual amount).  This program allows us to retain our relationship with the borrower who might otherwise attain home financing elsewhere.

Our level of non-performing loans continues to be minimal because of the underwriting standards on the 1-4 family loans we originate and purchase.  At March 31, 2002 our ratio of non-performing loans to total loans was 0.14%, compared to 0.09% at September 30, 2001. Non-performing loans increased primarily due to increased delinquencies and foreclosures without an increase in repossessed loans by the Bank.  The increase in delinquencies is primarily the result of a limited number of loans to individuals experiencing employment difficulties.

Liabilities.  Deposits increased $156.8 million, or 3.7%, from $4.29 billion at September 30, 2001 to $4.44 billion at March 31, 2002.  All account categories showed increases with money market and demand deposit accounts  increasing by $96.2 million and $37.7 million, respectively.  During the current quarter advances from the Federal Home Loan Bank of Topeka ("FHLB") decreased $20.0 million from December 31, 2001, due to the repayment of the line of credit at the FHLB.  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 rate paid by the Company for the first six months was 4.11%, while the rate for the next three months will be 3.73%.

The following table presents deposit activity for the periods indicated.

|                  |                  | For the Quarter Ended |  | For the Six Months Ended
|----------------- | ---------------- | --------------------- |  | ------------------------
|                  |                  | March 31,             |  | March 31,               
|                  |                  | 2002                  |  | 2001                    
|Deposit Activity: |                  |                       |  |                         
|                  | Opening balance  | $ 4,342,882           |  | $ 4,029,125             
|                  | Deposits         | 1,582,371             |  | 1,427,592               
|                  | Withdrawals      | 1,520,296             |  | 1,411,416               
|                  | Interest credits | 37,698                |  | 47,504                  
|                  | Ending Balance   | $ 4,442,655           |  | $ 4,092,805             
|                  |                  |                       |  |                         
|                  | Net increase     | $    99,773           |  | $    63,680             

15

---

Equity.  Total stockholders' equity decreased $87.4 million, or 8.3%, from $1.05 billion at September 30, 2001, to $960.9 million at March 31, 2002. At March 31, 2002, book value per share was $13.46 compared to $13.58 at September 30, 2001.  Our equity to assets ratio was 10.92% at March 31, 2002 compared to 12.14% at September 30, 2001.  Return on average equity was 9.10% for the quarter and 8.81% for the six-months ended March 31, 2002.

The decrease in the balance of stockholders' equity was due primarily to the repurchase of 6,220,783 shares during the six months ended March 31, 2002 at a total cost of $125.5 million, dividends paid of $6.8 million, and a reduction in the balance of unrealized gains on securities available-for-sale, net of income taxes of $4.3 million. The total number of treasury shares at March 31, 2002 was 17,042,138 with 74,470,149 shares outstanding.  The current stock repurchase plan has 2,147,404 shares authorized to be repurchased, with 358,892 shares repurchased to-date.  These decreases were partially offset by year-to-date net income of $42.5 million.

During the quarter, the Company paid an $0.18 per share dividend on February 15, 2002 to holders of record as of February 1, 2002.  At its meeting on April 16, 2002, the Board declared a $0.19 per share dividend to holders of record on May 3, 2002, payable on May 17, 2002.

Comparison of Operating Results for the Three Months Ended March 31, 2002 and 2001

General.  For the three months ended March 31, 2002, the Company recognized net income of $21.7 million, compared to net income of $19.9 million for the three months ended March 31, 2001, an increase of $1.8 million, or 8.9%.  The Company's efficiency ratio for the quarter ended March 31, 2002 was 31.32% compared to 32.81% for the quarter ended March 31, 2001.

Net Interest Income.  Net interest income for the three months ended March 31, 2002 was $47.9 million, an increase of $5.2 million, or 12.3% from the same period last year.

- The increase was in part due to an increase in the average balance of investment securities of $499.7 million, partially offset by a decrease in the average balance of our loan portfolio of $197.3 million and a decrease in the average yield on mortgage-related securities of 43 basis points.
- The increase was also due in part to a decrease in the average cost of deposits of 148 basis points to 3.90% compared to the same quarter one year ago.  This was partially offset by an increase in average interest-bearing liabilities of $468.6 million to $7.68 billion at March 31, 2002.  Driven primarily by the decrease in the cost of deposits, interest expense was down $10.1 million for the current quarter compared to the same quarter one year ago.
- The net interest margin for the quarter increased 14 basis points to 2.22% from 2.08% for the same quarter one year ago.  The Company's net interest rate spread at March 31, 2002 was 1.67%, 32 basis points higher than the same quarter one year ago.

Interest and Dividend Income.  Interest and dividend income for the three months ended March 31, 2002 was $140.1 million, down $4.9 million from the same period last year, a decrease of 3.4%.

- Interest on loans decreased from $101.8 million for the three months ended March 31, 2001 to $93.1 million for the three months ended March 31, 2002.  This decrease of $8.7 million was primarily the result of a decrease in the average balance of loans and a decrease in the average yield.  The average balance of loans receivable decreased $197.3 million to $5.36 billion for the three months ended March 31, 2002 compared to the same period one year ago.  The average yield on loans decreased 38 basis points to 6.95% for the quarter ended March 31, 2002 from 7.33% one-year ago.  The decreased yield is primarily the result of loans originated during the period at a rate below the average yield in the portfolio compared to the same period one year ago and the effects that refinance activity and loan modifications since March 31, 2001 have had on our loan portfolio.
- Interest income on mortgage-related securities increased $1.4 million from $36.7 million for the quarter ended March 31, 2001 to $38.1 million for the quarter ended March 31, 2002.  The increase was due primarily to an increase in the average balance of $245.7 million, partially offset by

16

---

a decrease in the average yield of 43 basis points from 6.56% for the quarter ended March 31, 2001 to 6.13% for the quarter ended March 31, 2002.

Interest Expense.  Interest expense decreased for the quarter ended March 31, 2002 to $92.2 million, down $10.1 million, or 9.9%, from the same period one year ago.

- For the quarter ended March 31, 2002 interest expense on deposits was $41.9 million compared to $53.3 million for the quarter ended March 31, 2001, a decrease of $11.3 million.  The average balance of deposits during the quarter ended March 31, 2002 was $4.36 billion compared to $4.01 billion for the quarter ended March 31, 2001, an increase of $353.1 million, or 8.8%.  The average rate paid on deposits for the quarter ended March 31, 2002 was 3.90% compared to 5.38% for the quarter ended March 31, 2001, a decrease of 148 basis points.
- Interest expense on borrowings for the quarter ended March 31, 2002 was $50.3 million compared to $49.1 million for the quarter ended March 31, 2001, an increase of $1.2 million or 2.5%.  The average balance of borrowings for the quarter ended March 31, 2002 was $3.32 billion compared to $3.20 billion for the quarter ended March 31, 2001, an increase of $115.5 million, or 3.6%.  The average cost of borrowings for the quarter ended March 31, 2002 was 6.08% compared to 6.14% for the quarter ended March 31, 2001.

Provision for Loan Losses.  During the quarter we recorded an additional provision for loan losses of $24,000 (actual amount).  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, specific industry conditions within portfolio segments 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 Expense.  Total noninterest expense increased $1.1 million to $16.3 million for the quarter ended March 31, 2002 compared to $15.2 million for the same period in 2001.  The increase was primarily due to increases in compensation expense and deposit and loan fees.

Income Tax Expense.  Income tax expense increased from $11.3 million for the quarter ended March 31, 2001, to $14.0 million for the quarter ended March 31, 2002.  The effective tax rate for the quarter was 39.3%. 
The change in the effective rate represents an increase of 1.2% over the
effective rate for the fiscal year ended September 30, 2001.  This is
primarily attributable to the increase in the market value of the Company's
stock and the effect on market value based stock compensation related to the
ESOP and RRP, which are non-deductible for tax purposes.

Comparison of Operating Results for the Six Months Ended March 31, 2002 and 2001

General.  For the six months ended March 31, 2002, the Company recognized net income of $42.5 million compared to net income of $39.4 million for the six months ended March 31, 2001, an increase of $3.1 million or 7.8%.  The efficiency ratio, for the six months ended March 31, 2002 was 31.85% compared to 32.85% for the six months ended March 31, 2001.

Net Interest and Dividend Income.  Net interest and dividend income for the six months ended March 31, 2002 was $93.5 million compared to $84.3 million for the six months ended March 31, 2001, an increase of $9.1 million, or 10.8%.  The net interest margin increased 12 basis points from

17

---

2.06% for the six months ended March 31, 2001 to 2.18% for the six months ended March 31, 2002.

Interest and Dividend Income.  Interest and dividend income for the six months ended March 31, 2002 was $283.2 million, a decrease of $8.1 million, or 2.8%, over the same period one year ago.

- Interest on loans decreased from $201.7 million for the six months ended March 31, 2001 to $190.3 million for the six months ended March 31, 2002.  The decrease of $11.4 million was primarily the result of the average balance of loans decreasing $159.3 million to $5.38 billion for the six months ended March 31, 2002 and the average yield on loans decreasing 20 basis points to 7.08% for the six months ended March 31, 2002.
- Interest on mortgage-related securities decreased by $3.0 million, or 3.88%, from $77.4 million for the six months ended March 31, 2001 to $74.4 million for the six months ended March 31, 2002.  This was primarily a result of a decrease in the average yield for the six months ended March 31, 2002 to 6.16%, from 6.74% for the six months ended March 31, 2001.  This was partially offset by the average balance of mortgage-related securities increasing $117.2 million from $2.30 billion for the six months ended March 31, 2001 to $2.42 billion for the six months ended March 31, 2002.
- Interest income on investment securities increased $12.7 million from $401,000 (actual amount) for the six months ended March 31, 2001 to $13.1 million for the six months ended March 31, 2002.  This increase was primarily due to an increase in the average balance of these assets of $493.3 million.  For the six months just ended, the average balance was $506.4 million, with an average yield of 5.16%.
- Dividends earned on capital stock of the FHLB was $4.2 million for the six months ended March 31, 2002, compared to $6.5 million for the same period in fiscal year 2001.  The average yield for the six months ended March 31, 2002 was 5.25% compared to 8.12% for the six months ended March 31, 2001.  The average balance of FHLB stock was $161.9 million for the six-month period ended March 31, 2002, remained largely unchanged from one year ago.

Interest Expense.  Interest expense decreased during the six-month period ended March 31, 2002 to $189.7 million, down $17.3 million, or 8.34%, from the same period one year ago.

- Interest expense on deposits decreased from $107.4 million for the six months ended March 31, 2001 to $88.2 million for the six months ended March 31, 2002, a $19.2 million or 17.9% decrease.  The average cost of deposits decreased to 4.09% for the six months ended March 31, 2002 from 5.42% for the six months ended March 31, 2001, or 133 basis points.  The decrease in the average rate was partially offset by an increase in the average balance of deposits of $342.3 million, to $4.32 billion for the six months ended March 31, 2002.
- Interest expense on borrowings increased to $101.6 million from $99.6 million, a $2.0 million increase, or 1.96%.  The average balance of borrowings increased from $3.21 billion for the six months ended March 31, 2001 to $3.31 billion for the six months ended March 31, 2002.  The average cost of borrowings decreased from 6.14% for the six months ended March 31, 2001 to 6.08% for the six months ended March 31, 2002.

Provision for Loan Losses.  During the six months ended March 31, 2002 we recorded additional provisions for loan losses of $124,000 (actual amount).

Noninterest Expense.  Total noninterest expense increased $2.2 million to $32.5 million for the six months ended March 31, 2002, up from $30.3 million for the six months ended March 31, 2001.  The increase was primarily due to increases of $966,000 (actual amount) in compensation expense and $538,000 (actual amount) in deposit and loan fees.  The change in compensation expense is primarily due to additional costs associated with the ESOP as a result of market to market adjustments on shares deemed vested during the period.  The change in deposit and loan fees is primarily due to increased loan volume.

Income Tax Expense.  Income tax expense increased from $22.6 million for the six-month period ended March 31, 2001 to $26.9 million for the six months ended March 31, 2002.  The effective tax rate for the six-month period was 38.8%. 
The change in the effective rate represents an increase of 0.7% over the
effective rate for the fiscal year ended September 30, 2001.  This is
primarily attributable to the increase in the market value of the Company's
stock and the effect on market value based stock compensation related to the
ESOP and RRP, which are non-deductible for tax purposes.

18

z

---

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

|                                      |                                              | For the Quarter Ended |   | For the Six Months Ended
|------------------------------------- | -------------------------------------------- | --------------------- | - | ------------------------
|                                      |                                              | March 31,             |   | March 31,               
|                                      |                                              | 2002                  |   | 2001                    
|Average Yield and Cost During Period: |                                              |                       |   |                         
|                                      | Loans receivable                             | 6.95                  | % |                         
|                                      | Mortgage-related securities                  | 6.13                  |   |                         
|                                      | Investment securities                        | 5.13                  |   |                         
|                                      | Cash and cash equivalents                    | 1.60                  |   |                         
|                                      | Capital stock of FHLB                        | 5.00                  |   |                         
|                                      | Average yield on interest earning assets     | 6.51                  |   |                         
|                                      | Deposits                                     | 3.90                  |   |                         
|                                      | FHLB Advances                                | 6.13                  |   |                         
|                                      | Other borrowings                             | 4.37                  |   |                         
|                                      | Average rate on interest bearing liabilities | 4.84                  |   |                         

The following table presents rate information at the periods indicated.

|                                       |                             | At       
|-------------------------------------- | --------------------------- | ---------
|                                       |                             | March 31,
|                                       |                             | 2002     
|Average Yield / Cost at End of Period: |                             |          
|                                       | Loans receivable            | 6.91     
|                                       | Mortgage-related securities | 6.13     
|                                       | Investment securities       | 4.19     
|                                       | Deposits                    | 3.77     
|                                       | FHLB Advances               | 6.14     
|                                       | Other borrowings            | 4.36     



The following table presents performance ratios for the periods indicated.

|                    |                                         | For the Quarter Ended |   | For the Six Months Ended
|------------------- | --------------------------------------- | --------------------- | - | ------------------------
|                    |                                         | March 31,             |   | March 31,               
|                    |                                         | 2002                  |   | 2001                    
|Performance Ratios: |                                         |                       |   |                         
|                    | Return on average assets                | 0.99                  | % |                         
|                    | Return on average equity                | 9.10                  |   |                         
|                    | Average interest rate spread during     |                       |   |                         
|                    | the period                              | 1.67                  |   |                         
|                    | Net interest margin                     | 2.22                  |   |                         
|                    | Efficiency ratio                        | 31.32                 |   |                         
|                    | Ratio of earning assets to costing      |                       |   |                         
|                    | liabilities                             | 1.12                  |   |                         
|Capital Ratios:     |                                         |                       |   |                         
|                    | Equity to total assets at end of period | 10.92                 | % |                         
|                    | Average equity to average assets        | 10.92                 | % |                         



---

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 March 31, 2002:

- The total approved loan origination and purchase commitments outstanding amounted to $207.8 million.
- The unadvanced portion of construction loans was $20.6 million.
- Unused home equity lines of credit were $239.9 million.
- Outstanding letters of credit totaled $739,000 (actual amount).
- Certificates of deposit scheduled to mature in one year or less, totaled $1.80 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 "well capitalized" institution in accordance with regulatory standards.  Total equity for the Bank was $985.3 million at March 31, 2002, or 11.16% of total assets on that date.  As of March 31, 2002, the Bank exceeded all capital requirements of the Office of Thrift Supervision.  The Bank's regulatory capital ratios at March 31, 2002 were as follows: Tier I (leverage) capital, 11.1%; Tier I risk-based capital, 27.0%; and total risk-based capital, 27.2%.  The regulatory capital requirements to be considered well capitalized are 5.0%, 6.0%, and 10.0%, respectively.

20

---

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.

The following tables sets forth the estimated percentage change in our net interest income over the next four-quarter period and our market value of portfolio equity at March 31, 2002 and September 30, 2001, based on the indicated instantaneous, parallel, and permanent changes in interest rates.  The tables indicate the effects of the change in interest rates on the portfolios of assets and liabilities of the Bank as of March 31, 2002 as loans, mortgage-related securities and deposits mature, reprice or repay.  These are, however, not the earnings expectations of management, but instead indicate what would happen without management intervention.

|At March 31, 2002   
|--------------------
|                    
|Change              
|(in Basis Points)   
|in Interest Rates(1)
|-300 bp             
|-200 bp             
|-100 bp             
|0 bp                
|100 bp              
|200 bp              
|300 bp              

|At September 30, 2001
|---------------------
|                     
|Change               
|(in Basis Points)    
|in Interest Rates(1) 
|-300 bp              
|-200 bp              
|-100 bp              
|0 bp                 
|100 bp               
|200 bp               
|300 bp               



n/m   Not meaningful, some market rates would compute to a rate less than zero percent.

Net Interest Income.  The increased sensitivity in estimated net interest income for the four-quarter period beginning March 31, 2002 compared to September 30, 2001 is primarily the result of the steep yield curve, the shift up in the yield curve and the increased portion of our loan and

21

---

mortgage-related securities portfolio that are fixed rate.

A steep yield curve, in increasing interest rate environments, causes modeled prepayments to slow limiting the amount of cash that can be reinvested at higher rates, while rates on short term savings accounts and certificates of deposit are repriced more quickly and by a larger relative amount compared to assets.  The impact of this effect moved the modeled decreases in earnings from the up 200 basis point scenario at September 30, 2001 to the up 100 basis point scenario at March 31, 2002 primarily because interest rates were higher by approximately 100 basis points at many points on the yield curve at March 31, 2002 as compared to September 30, 2001. A steep yield curve provides the Bank the opportunity to price loans at a wider margin versus deposits compared to a yield curve that is relatively flat or inverted.  This opportunity is not always realized, however, in environments when interest rates rise because the volume of loan cash flows available to reprice relative to  the volume of repricing deposits decreases.  The long-term FHLB funding remains fixed over the four-quarter period as does the modeled interest expense.

Generally, in decreasing rate scenarios, prepayments on fixed rate loans will increase, resulting in the reinvestment of the proceeds in lower rate assets. The long-term FHLB funding remains fixed over the  period and certificates eligible to rollover may not decrease in rate as much as market rates.  Repricing of some of our adjustable rate loans will also decrease yields on earning assets.  These events can cause our net interest income to go down.

The results presented in the above table are based upon the assumption that the total composition of interest earning assets and interest bearing liabilities does not change and that the repricing of almost all assets or liabilities occur at market rates as of March 31, 2002, adjusted by the indicated rate shocks.

Market Value of Portfolio Equity.  The change in estimated market value of portfolio equity is most significant in the increasing rate scenarios primarily as a result of increased holdings of fixed rate loans and mortgage-related securities and changing valuations of the fixed-rate convertible advances from the FHLB.

Since fixed rate loans and mortgage-related securities are generally prepaid more slowly in an increasing rate environment, their market value decreases because the cash flows are pushed farther into the future, causing greater discounting of future cash flows.  The valuations were made worse this quarter due to the higher interest rates on the measurement date.  The increase in market rates used to value the loan portfolio causes loans made below current market rates (at March 31, 2002) to be valued at a discount compared to book value.  As rates used to discount the contractual cash flows of the mortgage loan portfolio increase due to the modeled rate shocks, and prepayments slow, the valuations tend to be driven lower than in periods where market rates have gone down.

Convertible advances have the effect of lowering the market value of portfolio equity in rising rate environments because the FHLB is more likely to exercise its option to convert an advance thereby increasing the value of the option to the FHLB which, if exercised, shortens the repricing term for these liability cash flows.  The FHLB has the option to convert a fixed rate advance on one given date for each advance to a floating rate advance with a 30 day repricing cycle.  The advances we currently have all have a final maturity of ten years from the date of the advance with a conversion date either three years or five years from the date of the advance.  The conversion dates occur in fiscal years 2003, 2004 and 2005.  The maturities of these same advances are in fiscal years 2008, 2009 and 2010.

Deposits tended to have little effect on the valuation of the Bank because of the short-term nature of the certificate portfolio.  The valuations were largely unchanged from September 30, 2001 to March 31, 2002.

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 maturity and conversion option information, by fiscal year, for our FHLB convertible advances.  These tables indicate the change in composition from September 30, 2001 to March 31, 2002.

Our investment and mortgage-related securities portfolio became more rate sensitive with the fixed rate component increasing by $511.7 million while

22

---

the average yield decreased 61 basis points and the adjustable rate component decreased $170.4 million with a decrease in the average yield of 31 basis points.  Overall, fixed rate mortgage-related securities comprise 82.9% of this portfolio at March 31, 2002 compared to 74.7% at September 30, 2001.  The mortgage-related securities added during the period have a remaining average life of 3.4 years at March 31, 2002.

Our loan portfolio composition became more heavily weighted in fixed rate loans during the period.  Fixed-rate loans comprised 71.5% of total loans at March 31, 2002 compared to 63.3% at September 30, 2001.  The balance of fixed rate loans increased $384.2 million with a decrease in the average yield of 27 basis points, to 6.92%, at March 31, 2002 over the six month period.  Adjustable-rate loans decreased in balance by $473.1 million over the six month period with a decrease in the average yield of 49 basis points at March 31, 2002.

Our certificates of deposit increased from September 30, 2001 to March 31, 2002 by $14.8 million and the average cost dropped 72 basis points between the two reporting dates.  Certificates maturing in one-year or less decreased $243.0 million and the average cost dropped 84 basis points from September 30, 2001 to March 31, 2002.

During the quarter, the Bank adopted new core deposit life assumptions based upon a study of our core deposits over the preceding five fiscal years.  The results of this study indicated that core deposits have longer lives than had previously been assumed which, when incorporated into our model, decreases the rate sensitivity of these accounts and improves our gap position.  In addition, the Bank modified its loan prepayment assumptions.  The assumptions previously used were based upon a survey of securities with characteristics similar to the securities and loans in our portfolio.  The change now allows the Bank to model prepayments based upon market variables.

Because of the change in assumptions, comparing results of March 31, 2002 to those previously reported as of September 30, 2001, are not meaningful.  However, results as of March 31, 2002 and September 30, 2001 without decay rates are more comparable.  At September 30, 2001 our one-year gap, without decay rates applied to core deposits, was a negative 1.06% and at March 31, 2002 it was a negative 6.11%.  This change has been driven in large part by the increase in our fixed-rate loan and mortgage-related securities portfolio with the increase in each portfolio comprised of loans and securities originated or purchased at current market rates with decreased likelihood of prepayment.  The same characteristics that drive the change in our gap position also drive the decrease in our sensitivity to changes in market rates as shown in the decrease of our market value of portfolio equity.

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.





23

---

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

|                       |                                  |              |              | At             |     
|---------------------- | -------------------------------- | ------------ | ------------ | -------------- | ----
|                       |                                  |              |              | March 31, 2002 |     
|                       |                                  |              |              | Amount         |     
|                       |                                  |              |              |                |     
|Fixed-Rate Loans:      |                                  |              |              |                |     
|                       | One- to four- family real estate | $  3,712,818 |              | 6.97           | %   
|                       | Other real estate                |              | 85,517       |                | 7.58
|                       | Non real estate                  |              | 41,414       |                | 8.21
|                       | Total Fixed-Rate Loans:          | 3,839,749    |              | 7.00           | %   
|                       |                                  |              |              |                |     
|Adjustable-Rate Loans: |                                  |              |              |                |     
|                       | One- to four- family real estate | 1,366,573    |              | 6.80           |     
|                       | Other real estate                |              | 15,919       |                | 6.41
|                       | Non real estate                  |              | 146,914      |                | 5.57
|                       | Total Adjustable-Rate loans      | 1,529,406    |              | 6.68           | %   
|                       | Total Loans                      |              | $  5,369,155 |                | 6.91
|                       |                                  |              |              |                |     
|                       | Less:                            |              |              |                |     
|                       | Loans in process                 |              | 20,595       |                |     
|                       | Deferred fees and discounts      | 17,223       |              |                |     
|                       | Allowance for loan losses        | 4,859        |              |                |     
|                       | Total loans receivable, net      | $  5,326,478 |              |                |     



|                             |                                      | March 31, 2002 |  | September 30, 2001 |  
|---------------------------- | ------------------------------------ | -------------- |  | ------------------ | -
|                             |                                      | Balance        |  | Rate               |  
|Fixed Rate Investments:      |                                      |                |  |                    |  
|                             | Short-term certificates              | $    200,000   |  | 1.64               | %
|                             | Agency bonds                         | 501,549        |  | 5.21               |  
|                             | Mortgage-backed securities, at cost  | 605,980        |  | 6.43               |  
|                             | Mortgage-related securities, at cost | 1,290,910      |  | 6.28               |  
|                             | Total fixed rate investments         | 2,598,439      |  | 5.75               | %
|                             |                                      |                |  |                    |  
|Adjustable Rate Investments: |                                      |                |  |                    |  
|                             | Mortgage-backed securities, at cost  | 531,393        |  | 5.53               |  
|                             | Mortgage-related securities, at cost | 3,616          |  | 8.02               |  
|                             | Total adjustable rate investments    | 535,009        |  | 5.55               | %
|                             | Total Investments, at cost           | $ 3,133,448    |  | 5.72               | %

24

---

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

|                             |         | March 31, 2002 |      |      | September 30, 2001
|---------------------------- | ------- | -------------- | ---- | ---- | ------------------
|Certificates maturing within | Balance |                | Rate |      |                   
|0 to 3 month                 |         | $ 558,755      |      | 4.63 | %                 
|3 to 6 months                |         | 583,763        |      | 4.43 |                   
|6 months to one year         |         | 659,251        |      | 4.17 |                   
|One year to two years        |         | 980,119        |      | 4.75 |                   
|After two years              |         | 424,166        |      | 5.16 |                   
|Total certificates maturing  |         | $ 3,206,054    |      | 4.60 | %                 

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 | % | 0    |          
|2004        |  | 0                       |  | 0.00 |   |      | 725,000  
|2005        |  | 0                       |  | 0.00 |   |      | 0        
|Total       |  | $ 225,000               |  | 5.68 | % |      | $ 725,000
|            |  |                         |  |      |   |      |          



25

---

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>

26

---

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:   May 14, 2002                                           By:   /s/ John C. Dicus
                                                                                     John C. Dicus, Chairman and
                                                                                     Chief Executive Officer



Date:   May 14, 2002                                          By:   /s/ Neil F. M. McKay
                                                                                     Neil F.M. McKay, Executive Vice President
                                                                                     and Chief Financial Officer





27