Capitol Federal Financial of Topeka, Kan., said earnings for its fiscal third quarter, which ended June 30, fell 30% from a year earlier, to $11.3 million.
Diluted earnings per share sank 32%, to 15 cents, which missed the average of analysts' expectations by 2 cents, according to Thomson Financial.
For the nine months that ended June 30, net income and diluted earnings per share fell 27%, to $38.2 million, or 52 cents a share, the $8.1 billion-asset Capitol Federal said Friday.
It attributed the decline to an increase in interest expenses. Deposit expenses jumped 30% from a year earlier, to $31.6 million, and interest expenses on Federal Home Loan bank advances rose 7%, to $39 million.
As a result, net interest income after provisions for loan losses fell 21%, to $30.7 million.
Noninterest income was flat, at $6 million. The provision for loan losses was $40,000, compared with no provision a year earlier.
