Capitol Federal Financial (CFFN) in Topeka, Kan., posted a stronger quarter compared with a year ago but earnings in the quarter that ended June 30 were down from the prior quarter as net interest income fell.
The $9.4 billion-asset company reported profit of $18.7 million its fiscal-year third quarter, up 8% year over year but down 3% from the prior quarter. Earnings per share totaled 12 cents for the quarter that ended June 30, falling short of analysts' estimates by one penny, according to Thomson Reuters.
For the nine months that ended June 30, Capitol Federal earned $56.8 million, 163% higher than the same period a year earlier.
Net interest income fell almost 3%, to $46.2 million, from the prior quarter. Interest income on loans receivable declined roughly 4%, to $57.5 million, because of a 16-basis-point decrease in its weighted average yield.
Total other expenses rose 4%, to $22.9 million, from the prior quarter as salaries and employee benefits costs climbed almost 9%, to $11.5 million. This was partially offset by Capitol Federal not recording a provision for credit losses during the quarter. In the prior quarter, the company took a $1.5 million provision.