Citing lower interest expenses, Capitol Federal Financial in Topeka, Kan., said its earnings for the quarter that ended March 31 rose 55% from a year earlier, to $18.1 million, or 25 cents a share.
The $8.3 billion-asset company said interest expenses fell 17%, to $58.5 million, because it paid less for deposits and Federal Home Loan bank advances. The provision for loan losses soared to $2.1 million, from $119,000. Capitol Federal said it changed how it calculates the provision and accounts for chargeoffs, particularly purchased loans. Chargeoffs increased to $780,000, from $40,000.