(RTTNews) - Capitol Federal Financial (CFFN: News ), the holding company for Capitol Federal Savings Bank, reported an increase in third quarter profit from a year ago, primarily reflecting lower interest expenses.

The Topeka, Kansas-based company's fourth-quarter net income increased to $16.84 million or $0.23 per share from $15.75 million or $0.22 per share in the prior year period. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter.

The $1.0 million increase in net income was primarily a result of an $8.8 million decrease in interest expense, partially offset by a $5.1 million decrease in interest and dividend income, a $1.2 million increase in other expenses and an $844 thousand decrease in other income.

Total interest and dividend income for the quarter decreased to $100.10 million from $105.18 million in the comparable period.

The company related the decrease of $3.0 million as primarily the result of decreases in interest income on MBS of $2.0 million and loans receivable of $1.8 million, partially offset by an increase in interest income on investment securities of $694 thousand.

Total other income was $6.7 million for the current quarter compared to $8.2 million for the quarter ended June 30, 2009.

Total interest expenses dipped to $56.46 million for the quarter from $65.32 million a year ago.
Provision for loan losses were $0.62 million for the quarter, compared to $0.33 million in the prior year quarter.

Total assets increased to $8.40 billion at September 30, 2009 from $8.06 billion at September 30, 2008. Deposits increased to $4.23 billion at September 30, 2009 from $3.92 billion at September 30, 2008. Net loans receivable was $5.60 billion September 30, 2009, compared to $5.32 million at September 30, 2009.

For fiscal year 2009, the company's net income increased to $66.3 million or $0.91 per from $50.95 million or $0.70 per share a year ago.

Total interest and dividend income for the current fiscal year 2009 was $412.8 million, up from $410.81 million for the prior fiscal year. Total other income was $28.6 million, down from $30.0 million in the prior fiscal year.

CFFN is trading at $30.54, up $0.87 or 2.98%, on a volume of about 69 thousand shares.

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by RTT Staff Writer

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