Cap Fed year-end profit jumps 30 percent; special dividend set

Capitol Federal Financial earned $66.3 million
in fiscal 2009, a 30 percent increase from the $51 million profit in 2008.

The Topeka-based organization attributed the $15.3 million improvement to the lower interest rate environment.

Cap Fed reported a $40.5 million decrease in interest expenses, which helped offset an $11.6 million increase in other expenses, a $9.7 increase in income tax expenses, and a $4.3 million increase in the provision for loan losses.

During 2009, Cap Fed said in experienced increases in loan delinquencies, non-performing loans, net loan charge-offs and losses on foreclosed property. As a result of conditions in the housing market, Cap Fed's provision for loan losses stands at $6.4 million compared with $2.1 million in the 2008 fiscal year.

Cap Fed also announced a special year-end cash dividend of 29 cents per share, payable Dec. 4.

For the fiscal fourth quarter, Cap Fed reported net income of $16.8 million.