Capitol Federal Financial in Topeka, Kan., said Friday that net income in its fiscal fourth quarter fell 23% from a year earlier, to $9.9 million. Diluted earnings per share for the period, which ended Sept. 30, fell 22%, to 14 cents, a penny below the average of analysts' estimates, according to Thomson Financial.
For the full year the $8.2 billion-asset mutual holding company said earnings were down 26%, to $48.1 million. Diluted earnings per share for the year fell 26%, to 66 cents.
Capitol attributed the earnings decline to a decrease in net interest income as a result of higher funding costs. Its interest expense in the quarter rose 17% from a year earlier, to $104.7 million, because of higher costs on deposits and an increase in Federal Home Loan bank advances. Net interest income fell 17%, to $28.5 million.
Noninterest income rose 16% for the quarter, to $6.9 million. For the year it was up 6%, to $24.8 million. The company attributed the increase to rises in fees on accounts, insurance commission income, and gains on securities trades.
Capitol also said Friday that it would pay a yearend, 9-cent-per-share dividend Dec. 1 to shareholders of record as of Nov. 17.
