Capitol Federal Financial of Topeka, Kan., said Monday that its profit for its fiscal 2008 third quarter more than doubled from a year earlier, to $14.4 million.
Earnings per share for the period, which ended June 30, rose 100%, to 20 cents, 2 cents better than the average estimate of analysts polled by Thomson Reuters.
The $7.9 billion-asset mutual holding company said it was helped by a 9.3% drop in its interest expense, to $66.1 million. It said its interest expense was lower because it paid $7 million less in interest on Federal Home Loan bank advances.
The results were also boosted by a 23.7% increase in noninterest income, including retail banking fees and income from bank-owned life insurance policies.
Credit quality weakened, however. Capitol Federal's loan-loss provision was $1.6 million; in the year-earlier period it had no provision. Nonperforming loans increased 34.3% from three months earlier, to $13.3 million. Nearly 40% of those loans were purchased from a single lender.
Capitol Federal's shares rose 1.3% Monday to close at $40.77. Its shares are up nearly 30% for the year.