Tuesday, Capitol Federal Financial (CFFN), the holding company for Capitol Federal Savings Bank, reported an increase in second quarter earnings, helped by a reduction in interest expenses compared to last year.
The Topeka, Kansas-based company's second quarter net income rose to $18.1 million or $0.25 per share from $11.7 million or $0.16 per share last year. Three analysts, on average, polled by Thomson Reuters expected the company to earn $0.22 per share. Analysts' estimates typically exclude special items.
The company said the $6.4 million increase in net income was primarily a result of a $12.3 million decrease in interest expense, partially offset by a $4.3 million increase in income tax expense.
Total interest and dividend income for the quarter increased to $104.3 million from $101.8 million in the prior-year quarter.
Net income for the first half was $34.0 million or 0.46 per share, up from $20.8 million or $0.29 per share for the same period in the prior fiscal year.
Net income increased as a result of a $22.7 million decrease in interest expense and a $6.8 million increase in interest and dividend income, partially offset by an $8.4 million increase in income tax expense, a $3.8 million increase in other expenses, and a $2.5 million increase in provision for loan loss.
Total interest and dividend income for the first half advanced to $209.6 million from $202.8 million for the prior-year period.
Total assets increased from $8.06 billion at September 30, 2008 to $8.27 billion at March 31, 2009. The $214.6 million increase in assets was primarily attributed to a $202.3 million increase in loans receivable and loans receivable held-for-sale.
CFFN is trading at $40.45, down $0.50 or 1.22%, on a volume of about 188 thousand shares.
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