Capitol Federal’s quarterly profit lifts earnings for its fiscal year

Profits climbed 10.2 percent at Capitol Federal Financial Inc. during the last three months of its fiscal year, boosting earnings for the year by 6.9 percent.

The Topeka-based parent company of Capitol Federal Savings on Thursday said it earned $20.7 million, or 16 cents a share, during July, August and September, which make up the final months of its fiscal calendar. A year ago, it earned $18.8 million, or 14 cents a share, in the quarter.

For all of Capitol Federal’s fiscal year, profits climbed to $83.5 million, or 63 cents a share, from $78.1 million, or 58 cents a share a year ago.

The recent yearly profit included $2.3 million from the company’s “daily leverage strategy.” Capitol Federal makes this profit by borrowing from the Federal Home Loan Bank of Topeka at a lower interest rate than it earns by depositing that money in its reserve account at the Federal Reserve Bank of Kansas City.

At the end of September, Capitol Federal held $6.96 billion in loans among its $9.27 billion in assets. Deposits were $5.2 billion.

This story was originally published October 27, 2016 at 12:55 PM with the headline "Capitol Federal’s quarterly profit lifts earnings for its fiscal year."