Capitol Federal Financial of Topeka, Kan., said Monday that earnings for its fiscal first quarter, which ended Dec. 31, fell 10.7% from a year earlier, to $9.1 million.
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The $8 billion-asset company attributed the drop to declines in interest income on investments and dividend income on Federal Home Loan Bank stock.
Capitol's interest expenses increased 7%, to $38 million, primarily because of an increase in the average rate paid on the certificate of deposit portfolio.
Asset quality slipped but remains healthy. Capitol said that its balance of nonperforming loans rose 38% from a year earlier, to $10.2 million at Dec. 31, but its ratio of nonperforming loans to total loans increased just 5 basis points, to 0.19%.
