The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Capitol Federal in Kan. to report lower quarterly loss

Capitol Federal Financial in Topeka, Kan., will amend its quarterly results, reducing its previously reported loss, to correct its accounting treatment for certain securities sales.

The $10.2 billion-asset company said that it should have recorded $13.3 million of securities losses in the current quarter.

As a result, the company’s net loss for the previous quarter was lowered from $111.7 million to $101.7 million.

The company sold $1.3 billion of securities – 94% of its portfolio – incurring a $206 million pretax loss from the sales.

The sales should lower the bank’s assets to $9.7 billion by the end of this year.

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