Capitol Federal Financial (CFFN) of Topeka, Kan., reported second-quarter income of $19.3 million, up more than 23% from a year earlier, as it lowered its total interest expenses.
The $9.6 billion-asset company said Monday that its net interest income for its fiscal-year second-quarter that ended March 31 rose 17%, to $47.5 million, despite a 2% decline in total interest and dividend income.
The company's interest expense on deposits fell 26%, to $11.8 million, as overall interest expense dropped 19%, to $35.8 million from a year earlier. Additionally, there was a 7% decrease in interest expense on Federal Home Loan Advances because of $450 million of advances that were renewed and prepaid during the quarter.
These gains were partially offset by a $1.5 million provision for credit losses, which was almost three times higher than a year earlier. This was the result of adding to the allowance for credit losses for $1 million in chargeoffs during the quarter, mostly on bulk purchased loans.
Capitol Federal's earnings per share totaled 12 cents, meeting analysts' estimates, according to Thomson Reuters.
