Cap Fed says conversion behind year-end earnings drop

The holding company of Capitol Federal Savings bank saw its year-end earnings almost halved by its move to a fully publicly traded company, it said today.

Topeka-based Capitol Federal Financial said its net income for the fiscal year ended Sept. 30 was $38.4 million compared with $67.8 million in fiscal 2010.

In a statement, Capitol Federal Financial said the 43 percent drop in year-over-year earnings "was due primarily to the $40.0 million ($26.0 million, net of income tax benefit) contribution to the Capitol Federal Foundation (the "Foundation") in connection with the second step conversion and stock offering completed in December 2010."

Total assets were $9.5 billion compared with $8.5 billion in fiscal 2010.