Capitol Federal Financial in Topeka, Kan., said a prepayment penalty it incurred for refinancing $2.4 billion in Federal Home Loan Bank advances wiped out profits in its fiscal year, which ended Sept. 30.
The $8.5 billion-asset company said Monday that it lost $106 million in the fiscal year, compared to net income of $52 million for the previous year. In its fiscal fourth quarter it lost $130 million, versus a profit of $3 million a year earlier.
Capitol Federal, which refinanced its loans with the Federal Home Loan Bank of Topeka in July, said that excluding the $146 million, after-tax penalty, it would have earned $16.6 million in its fourth quarter.
Investors largely shrugged off the announcement. In late trading Capitol Federal's stock was up 0.12% from Friday's close, to $34.31 a share.
