Reduced funding costs gave Capitol Federal Financial's bottom line a big boost in its fiscal first quarter, which ended Dec. 31.
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The Topeka, Kan., holding company for Capitol Federal Savings Bank said its earnings for the quarter rose 304% from a year earlier, to $18.6 million.
The $3.4 billion-asset holding company credited most of the gain to its decision in July to refinance $2.4 billion of Federal Home Loan Bank advances. The refinancing cut the amount of interest it paid on the outstanding advances by $12.4 million in the fourth quarter.
Capitol reported a full-year fiscal 2004 loss of $106.3 million, primarily because of a $146 million prepayment penalty it paid as a result of the refinancing.
