Capitol Federal Financial in Topeka, Kan., reported a higher quarterly profit as costs for Federal Home Loan Bank borrowings and compensation declined.
The $9 billion-asset company reported Monday that profit for the quarter that ended June 30 rose roughly 11%, to $20 million, from a year earlier. Earnings per share increased by a penny, to 14 cents.
Interest expenses for Capitol Federal's fiscal year third quarter declined roughly 12%, to $25.7 million, primarily from a roughly 15% decrease in costs for Federal Home Loan Bank borrowings. Noninterest expenses fell more than 5%, to $22.4 million, as salaries and other employee benefit costs dropped 10%, to $10.9 million, from a year earlier.
Net interest income rose about 4%, to $46.2 million, as income from loans receivable increased more than 1%, to $57.5 million, year over year. Noninterest income also declined 3.5%, to $5.6 million, as loan fees shrank by 14%, to $367,000, and income from bank-owned life insurance declined slightly.