In its second full quarter as a 100% stock-owned company, Capitol Federal Financial Inc. in Topeka reported earnings of $17.3 million, an increase of 11% over the same period in 2010. Its earnings per share of 10 cents were in line with the estimates of analysts polled by Thomson Reuters.
In December, The $9.6 billion-asset thrift company raised $1.2 billion in second-step conversion and invested much of the proceeds in mortgage-backed and other securities. The increased earnings were largely a result of the yields on those securities, Capitol Federal said in a news release Friday.
For the nine months that ended June 30, Capitol Federal said that profits declined 59% year over year primarily because it contributed $40 million to a charitable foundation it set up with funds it raised in the stock offering.