Home Equity and Retail Deposit Growth Among
the Highlights
TFS Financial Corporation (NASDAQ: TFSL) (the "Company", "we",
"our"), the holding company for Third Federal Savings and Loan
Association of Cleveland (the "Association"), today announced
results for the quarter and fiscal year ended September 30,
2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20241030453402/en/
Chairman and CEO Marc A. Stefanski
(Photo: Business Wire)
“During the year, Third Federal capitalized on the strong growth
in our home equity products, and earnings increased approximately
6% in 2024 from the prior year, to almost $80 million,” said
Chairman and CEO Marc A. Stefanski. "We successfully navigated
margin compression and reduced our expense-to-asset ratio from 1.30
to 1.20 percent through natural attrition and cost-management
efforts. We are proud that much of our $745 million in deposit
growth came through our retail branch system in Ohio and Florida.
And, to further support Third Federal, our nearly 11% Tier 1
capital ratio keeps us strong, stable and safe.”
The Company reported net income of $18.2 million for the quarter
ended September 30, 2024 compared to $20.0 million of net income
for the quarter ended June 30, 2024. The decrease was mainly due to
the change in the provision for credit losses and a decrease in net
interest income between the two periods.
Net interest income decreased $0.6 million, or 0.9%, to $68.7
million for the quarter ended September 30, 2024 from $69.3 million
for the quarter ended June 30, 2024. The change was primarily due
to an increase in the average balance of total interest-bearing
liabilities, primarily certificates of deposit, compared to a
decrease in the average balance of total interest-earning assets,
primarily cash equivalents. The interest rate spread and net
interest margin held steady between the two quarters at 1.36% and
1.67%, respectively.
During the quarter ended September 30, 2024, there was a $1.0
million provision for credit losses compared to a $0.5 million
release of provision for the quarter ended June 30, 2024. Net
recoveries were $1.1 million for the quarter ended September 30,
2024 compared to $1.4 million for the previous quarter. The total
allowance for credit losses increased $2.1 million during the
quarter to $97.8 million, or 0.64% of total loans receivable, from
$95.7 million, or 0.63% of total loans receivable, at June 30,
2024. The increase was mainly due to growth in loans held for
investment, primarily the home equity loans and lines of credit
portfolios. The total allowance for credit losses included a
liability for unfunded commitments of $27.8 million and $28.2
million at September 30, 2024 and June 30, 2024, respectively.
Total assets increased by $55.8 million, or less than 1%, to
$17.09 billion at September 30, 2024 from $17.03 billion at June
30, 2024. The increase was mainly due to increases in loans held
for investment and prepaid expenses and other assets, partially
offset by a decrease in cash and cash equivalents.
Cash and cash equivalents decreased $96.7 million, or 17%, to
$463.7 million at September 30, 2024 from $560.4 million at June
30, 2024 due to normal fluctuations and liquidity management.
Loans held for investment, net of allowance and deferred loan
expenses, increased $132.1 million, or less than 1%, to $15.32
billion at September 30, 2024 from $15.19 billion at June 30, 2024.
During the quarter ended September 30, 2024, the combined balances
of home equity loans and lines of credit increased $296.5 million
and residential core mortgage loans decreased $160.4 million.
Repayments and sales of residential mortgage loans held for
investment outpaced originations during the quarter ended September
30, 2024. The volume of mortgage loan originations remains low due
to a relatively high interest rate environment, resulting in
minimal refinance activity.
Prepaid expenses and other assets increased $31.0 million, or
37%, to $114.1 million at September 30, 2024 from $83.1 million at
June 30, 2024. This increase was primarily due to increases in the
net deferred tax asset of $11.6 million, the funded status of the
defined benefit plan of $6.5 million and the swap margin
receivable, related to changes in the market values of swap
instruments, of $6.1 million. Additionally, there was a $7.4
million decrease in uncleared wire transfer receipts, primarily
loan repayments, between the periods compared. The change in the
net deferred tax asset, which was a net liability at September 30,
2023, was primarily due to a decrease in the net unrealized gain or
loss on swap instruments, which are recorded in other comprehensive
income net of related tax effect.
Deposits increased $169.1 million, or 2%, to $10.20 billion at
September 30, 2024, compared to $10.03 billion at June 30, 2024,
consisting of a $277.3 million increase in primarily retail
certificates of deposit ("CDs") and decreases of $58.8 million in
savings accounts, $15.3 million in money market deposit accounts,
and $35.5 million in checking accounts. The increase in retail
deposits was achieved through competitive rate and enhanced product
offerings, supported by marketing efforts.
Borrowed funds decreased $36.5 million to $4.79 billion at
September 30, 2024 from $4.83 billion at June 30, 2024, as maturing
borrowings were paid off with cash and partially replaced with
retail deposits.
Accrued expenses and other liabilities decreased by $83.1
million, or 46%, to $97.8 million at September 30, 2024 from $180.9
million at June 30, 2024 primarily related to in-transit real
estate tax payments that cleared during the quarter.
Fiscal Year 2024
The Company reported net income of $79.6 million for the fiscal
year ended September 30, 2024, an increase of $4.3 million compared
to net income of $75.3 million for the fiscal year ended September
30, 2023. The change was primarily due to an increase in
non-interest income and a decrease in non-interest expense,
partially offset by a decrease in net interest income.
Net interest income decreased $5.1 million, or 1.8%, to $278.5
million for the fiscal year ended September 30, 2024 compared to
$283.6 million for the fiscal year ended September 30, 2023. The
decrease in net interest income was primarily due to an increase in
the cost of interest-bearing liabilities, mainly certificates of
deposit, partially offset by an increase in the yield on
interest-earning assets, primarily loans. The weighted average
balance and cost of the certificates of deposit portfolio increased
88% and 127 basis points, respectively. Balance growth was driven
both by new deposit accounts and balances that migrated from
savings and checking accounts. Certificate of deposit accounts that
matured and repriced into a higher interest rate environment
contributed to the cost increase. The interest rate spread was
1.38% for the fiscal year ended September 30, 2024, a 19 basis
point decrease from 1.57% for the fiscal year ended September 30,
2023. The net interest margin was 1.69% for the fiscal year ended
September 30, 2024 compared to 1.80% for the prior year period.
During both the fiscal year ended September 30, 2024 and
September 30, 2023, there was a $1.5 million release of provision
for credit losses. Continued recoveries of loan amounts previously
charged off and low levels of current loan charge-offs resulted in
the release of provision. Net loan recoveries totaled $4.7 million
for the fiscal year ended September 30, 2024 and $6.4 million for
the same period in the prior year.
The total allowance for credit losses at September 30, 2024 was
$97.8 million, or 0.64% of total loans receivable, compared to
$104.8 million, or 0.69% of total loans receivable, at September
30, 2023. The decrease was mainly due to the October 1, 2023
adoption of accounting guidance related to accounting for troubled
debt restructurings ("TDRs"), which resulted in a $10.2 million
reduction to the allowance and a $7.9 million adjustment to
retained earnings, net of tax. The decrease was partially offset by
an increase in total expected loss estimates related to growth in
loans held for investment, primarily in the home equity loans and
lines of credit portfolios. The allowance for credit losses
included $27.8 million and $27.5 million in liabilities for
unfunded commitments at September 30, 2024 and September 30, 2023,
respectively. Total loan delinquencies increased to $31.9 million,
or 0.21% of total loans receivable, at September 30, 2024 from
$28.6 million, or 0.19% of total loans receivable, at June 30, 2024
and $23.4 million, or 0.15% of total loans receivable, at September
30, 2023. Non-accrual loans totaled $33.6 million, or 0.22% of
total loans receivable, at September 30, 2024, a decrease from
$35.4 million, or 0.23% of total loans receivable, at June 30, 2024
and an increase from $31.9 million, or 0.21% of total loans
receivable, at September 30, 2023.
Total non-interest income increased $3.3 million, or 15.4%, to
$24.7 million for the fiscal year ended September 30, 2024, from
$21.4 million for the fiscal year ended September 30, 2023,
primarily due to a $2.2 million increase in net gain on the sale of
loans and a $0.6 million increase in the yield on bank owned life
insurance contracts. There were $247.4 million of residential
mortgage loans, primarily long-term fixed-rate loans, sold during
the fiscal year ended September 30, 2024, including those in
contracts pending settlement at the end of the period, with a net
gain on sale of $2.7 million. During the fiscal year ended
September 30, 2023, $77.2 million of residential mortgage loans
were sold with a net gain on sale of $0.5 million.
Total non-interest expense decreased $8.8 million, or 4.1%, to
$204.3 million for the fiscal year ended September 30, 2024, from
$213.1 million for the fiscal year ended September 30, 2023. The
change included decreases of $5.6 million in marketing costs and
$5.0 million in salaries and employee benefits, partially offset by
an increase of $1.1 million in federal ("FDIC") insurance premiums.
The decrease in salaries and employee benefits was primarily
related to decreases in staffing and accruals for discretionary
incentive payments. FDIC premiums increased primarily due to growth
in the total balance of deposit accounts.
Total assets increased by $172.8 million, or 1%, to $17.09
billion at September 30, 2024 from $16.92 billion at September 30,
2023. The increase was mainly the result of increases in loans held
for investment, and to a lesser extent, investment securities and
loans held for sale, partially offset by a decrease in Federal Home
Loan Bank ("FHLB") stock.
Loans held for investment, net of allowance and deferred loan
expenses, increased $156.3 million, or 1%, to $15.32 billion at
September 30, 2024 from $15.17 billion at September 30, 2023. Home
equity loans and lines of credit increased $854.8 million to $3.89
billion and the residential mortgage loan portfolio decreased
$693.0 million to $11.39 billion. The decrease in residential
mortgage loans included $247.4 million of loans sold or committed
for sale. Loans originated and purchased during the fiscal year
ended September 30, 2024 included $854.2 million of residential
mortgage loans and $2.28 billion of equity loans and lines of
credit compared to $1.86 billion of residential mortgage loans and
$1.70 billion of equity loans and lines of credit originated or
purchased during the fiscal year ended September 30, 2023. The
decrease in mortgage loan originations was primarily due to a
relatively high interest rate environment, resulting in minimal
refinance activity. New mortgage loans included 93% purchases and
18% adjustable rate loans during the fiscal year ended September
30, 2024.
Loans held for sale increased $14.5 million to $17.8 million at
September 30, 2024, from $3.3 million at September 30, 2023, due to
an increase in both loans committed to future delivery contracts
with Fannie Mae and loans intended for future sale.
Investment securities increased $17.9 million, or 4%, to $526.3
million at September 30, 2024 from $508.3 million at September 30,
2023 primarily due to changes in fair values related to
fluctuations in market interest rates.
FHLB stock decreased $18.6 million to $228.5 million at
September 30, 2024 from $247.1 million at September 30, 2023. The
decrease is a result of stock redemptions by the FHLB related to a
decrease in the balance of FHLB advances. The FHLB has collateral
requirements on funds borrowed that dictate the minimum amount of
stock owned at any given time.
Deposits increased $745.3 million, or 8%, to $10.20 billion at
September 30, 2024 from $9.45 billion at September 30, 2023. The
increase was the result of a $1.37 billion increase in primarily
retail certificates of deposit, partially offset by a $332.8
million decrease in savings accounts, a $153.5 million decrease in
checking accounts and a $153.4 million decrease in money market
deposit accounts. There was $1.22 billion in brokered deposits at
September 30, 2024 compared to $1.16 billion at September 30, 2023.
The increase in retail deposits was achieved through competitive
rate and enhanced product offerings, supported by marketing
efforts.
Borrowed funds decreased $480.8 million, or 9%, to $4.79 billion
at September 30, 2024 from $5.27 billion at September 30, 2023. The
decrease was primarily due to a decrease in overnight advances, and
term advances, aligned with interest rate swap contracts, paid off
at maturity. The total balance of borrowed funds at September 30,
2024, all from the FHLB, included $40.0 million of overnight
advances, $1.81 billion of term advances with a weighted average
maturity of approximately 2.0 years, and $2.93 billion of term
advances, aligned with interest rate swap contracts, with a
remaining weighted average effective maturity of approximately 3.2
years. Additional borrowing capacity at the FHLB was $2.09 billion
at September 30, 2024.
Total shareholders' equity decreased $64.7 million, or 3%, to
$1.86 billion at September 30, 2024 from $1.93 billion at September
30, 2023. Activity reflects $79.6 million of net income, a $7.9
million positive adjustment to retained earnings related to a
change in accounting principle described above with respect to
changes in the allowance for credit losses, a $100.8 million net
decrease in accumulated other comprehensive income, dividends paid
of $59.0 million and net positive adjustments of $7.6 million
related to our stock compensation and employee stock ownership
plans. The change in accumulated other comprehensive income was
primarily due to a net decrease in unrealized gains and losses on
swap contracts. There were no stock repurchases during the fiscal
year ended September 30, 2024. The Company's eighth stock
repurchase program allows for a total of 10,000,000 shares to be
repurchased, with 5,191,951 shares authorized for repurchase at
September 30, 2024.
The Company declared and paid a quarterly dividend of $0.2825
per share during each quarter of fiscal year 2024. As a result of a
mutual member vote, Third Federal Savings and Loan Association of
Cleveland, MHC (the "MHC"), the mutual holding company that owns
approximately 81% of the outstanding stock of the Company, was able
to waive its receipt of its share of the dividend paid. Under
Federal Reserve regulations, the MHC is required to obtain the
approval of its members every 12 months for the MHC to waive its
right to receive dividends. As a result of a July 9, 2024 member
vote and subsequent non-objection, the MHC has the approval to
waive receipt of up to $1.13 per share of possible dividends to be
declared on the Company’s common stock during the twelve months
subsequent to the members’ approval (i.e., through July 9, 2025),
including a total of up to $0.8475 remaining. The MHC has conducted
the member vote to approve the dividend waiver each of the past
eleven years under Federal Reserve regulations and for each of
those eleven years, approximately 97% of the votes cast were in
favor of the waiver.
The Company operates under the capital requirements for the
standardized approach of the Basel III capital framework for U.S.
banking organizations (“Basel III Rules”). At September 30, 2024
all of the Company's capital ratios exceed the amounts required for
the Company to be considered "well capitalized" for regulatory
capital purposes. The Company's Tier 1 leverage ratio was 10.89%,
its Common Equity Tier 1 and Tier 1 ratios were each 18.50% and its
total capital ratio was 19.24%.
Presentation slides as of September 30, 2024 will be available
on the Company's website, www.thirdfederal.com, under the Investor
Relations link within the "Recent Presentations" menu, beginning
October 31, 2024. The Company will not be hosting a conference call
to discuss its operating results.
Third Federal Savings and Loan Association is a leading provider
of savings and mortgage products, and operates under the values of
love, trust, respect, a commitment to excellence and fun. Founded
in Cleveland in 1938 as a mutual association by Ben and Gerome
Stefanski, Third Federal’s mission is to help people achieve the
dream of home ownership and financial security. It became part of a
public company in 2007 and celebrated its 85th anniversary in May
2023. Third Federal, which lends in 27 states and the District of
Columbia, is dedicated to serving consumers with competitive rates
and outstanding service. Third Federal, an equal housing lender,
has 21 full service branches in Northeast Ohio, two lending offices
in Central and Southern Ohio, and 16 full service branches
throughout Florida. As of September 30, 2024, the Company’s assets
totaled $17.09 billion.
Forward Looking Statements
This report contains
forward-looking statements, which can be identified by the use of
such words as estimate, project, believe, intend, anticipate, plan,
seek, expect and similar expressions. These forward-looking
statements include, among other things:
•
statements of our goals,
intentions and expectations;
•
statements regarding our business
plans and prospects and growth and operating strategies;
•
statements concerning trends in
our provision for credit losses and charge-offs on loans and
off-balance sheet exposures;
•
statements regarding the trends
in factors affecting our financial condition and results of
operations, including credit quality of our loan and investment
portfolios; and
•
estimates of our risks and future
costs and benefits.
These forward-looking statements
are subject to significant risks, assumptions and uncertainties,
including, among other things, the following important factors that
could affect the actual outcome of future events:
•
significantly increased
competition among depository and other financial institutions,
including with respect to our ability to charge overdraft fees;
•
inflation and changes in the
interest rate environment that reduce our interest margins or
reduce the fair value of financial instruments, or our ability to
originate loans;
•
general economic conditions,
either globally, nationally or in our market areas, including
employment prospects, real estate values and conditions that are
worse than expected;
•
the strength or weakness of the
real estate markets and of the consumer and commercial credit
sectors and its impact on the credit quality of our loans and other
assets, and changes in estimates of the allowance for credit
losses;
•
decreased demand for our products
and services and lower revenue and earnings because of a recession
or other events;
•
changes in consumer spending,
borrowing and savings habits, including repayment speeds on
loans;
•
adverse changes and volatility in
the securities markets, credit markets or real estate markets;
•
our ability to manage market
risk, credit risk, liquidity risk, reputational risk, regulatory
risk and compliance risk;
•
our ability to access
cost-effective funding;
•
changes in liquidity, including
the size and composition of our deposit portfolio and the
percentage of uninsured deposits in the portfolio;
•
legislative or regulatory changes
that adversely affect our business, including changes in regulatory
costs and capital requirements and changes related to our ability
to pay dividends and the ability of Third Federal Savings, MHC to
waive dividends;
•
changes in accounting policies
and practices, as may be adopted by the bank regulatory agencies,
the FASB or the PCAOB;
•
the adoption of implementing
regulations by a number of different regulatory bodies, and
uncertainty in the exact nature, extent and timing of such
regulations and the impact they will have on us;
•
our ability to enter new markets
successfully and take advantage of growth opportunities;
•
our ability to retain key
employees;
•
future adverse developments
concerning Fannie Mae or Freddie Mac;
•
changes in monetary and fiscal
policy of the U.S. Government, including policies of the U.S.
Treasury, the Federal Reserve System, Fannie Mae, the OCC, FDIC,
and others;
•
the continuing governmental
efforts to restructure the U.S. financial and regulatory
system;
•
the ability of the U.S.
Government to remain open, function properly and manage federal
debt limits;
•
changes in policy and/or
assessment rates of taxing authorities that adversely affect us or
our customers;
•
changes in accounting and tax
estimates;
•
changes in our organization and
changes in expense trends, including but not limited to trends
affecting non-performing assets, charge-offs and provisions for
credit losses;
•
the inability of third-party
providers to perform their obligations to us;
•
civil unrest;
•
cyber-attacks, computer viruses
and other technological risks that may breach the security of our
websites or other systems to obtain unauthorized access to
confidential information, destroy data or disable our systems;
and
•
the impact of wide-spread
pandemic, including COVID-19, and related government action, on our
business and the economy.
Because of these and other
uncertainties, our actual future results may be materially
different from the results indicated by any forward-looking
statements. Any forward-looking statement made by us in this report
speaks only as of the date on which it is made. We undertake no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited)
(In thousands, except share
data)
September 30,
2024
June 30, 2024
September 30,
2023
ASSETS
Cash and due from banks
$
26,287
$
29,411
$
29,134
Other interest-earning cash
equivalents
437,431
531,024
437,612
Cash and cash equivalents
463,718
560,435
466,746
Investment securities available for
sale
526,251
522,967
508,324
Mortgage loans held for sale
17,775
30,391
3,260
Loans held for investment, net:
Mortgage loans
15,321,400
15,189,683
15,177,844
Other loans
5,705
5,070
4,411
Deferred loan expenses, net
64,956
62,738
60,807
Allowance for credit losses on loans
(70,002
)
(67,529
)
(77,315
)
Loans, net
15,322,059
15,189,962
15,165,747
Mortgage loan servicing rights, net
7,627
7,591
7,400
Federal Home Loan Bank stock, at cost
228,494
232,083
247,098
Real estate owned, net
174
431
1,444
Premises, equipment, and software, net
33,187
33,665
34,708
Accrued interest receivable
59,398
58,615
53,910
Bank owned life insurance contracts
317,977
315,710
312,072
Other assets
114,125
83,090
117,270
TOTAL ASSETS
$
17,090,785
$
17,034,940
$
16,917,979
LIABILITIES AND SHAREHOLDERS’
EQUITY
Deposits
$
10,195,079
$
10,025,977
$
9,449,820
Borrowed funds
4,792,847
4,829,365
5,273,637
Borrowers’ advances for insurance and
taxes
113,637
66,757
124,417
Principal, interest, and related escrow
owed on loans serviced
28,753
16,867
29,811
Accrued expenses and other liabilities
97,845
180,910
112,933
Total liabilities
15,228,161
15,119,876
14,990,618
Commitments and contingent liabilities
Preferred stock, $0.01 par value,
100,000,000 shares authorized, none issued and outstanding
—
—
—
Common stock, $0.01 par value, 700,000,000
shares authorized; 332,318,750 shares issued
3,323
3,323
3,323
Paid-in capital
1,754,365
1,753,074
1,755,027
Treasury stock, at cost
(772,195
)
(772,195
)
(776,101
)
Unallocated ESOP shares
(22,750
)
(23,834
)
(27,084
)
Retained earnings—substantially
restricted
915,489
912,082
886,984
Accumulated other comprehensive income
(15,608
)
42,614
85,212
Total shareholders’ equity
1,862,624
1,915,064
1,927,361
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
17,090,785
$
17,034,940
$
16,917,979
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except share and per
share data)
For the three months
ended
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
INTEREST AND DIVIDEND INCOME:
Loans, including fees
$
172,412
$
166,268
$
162,970
$
162,035
$
154,763
Investment securities available for
sale
4,694
4,663
4,476
4,395
4,141
Other interest and dividend earning
assets
11,410
13,975
16,047
10,729
9,836
Total interest and dividend income
188,516
184,906
183,493
177,159
168,740
INTEREST EXPENSE:
Deposits
80,196
75,521
72,685
64,326
55,565
Borrowed funds
39,605
40,112
39,430
43,741
42,812
Total interest expense
119,801
115,633
112,115
108,067
98,377
NET INTEREST INCOME
68,715
69,273
71,378
69,092
70,363
PROVISION (RELEASE) FOR CREDIT LOSSES
1,000
(500
)
(1,000
)
(1,000
)
500
NET INTEREST INCOME AFTER PROVISION
(RELEASE) FOR CREDIT LOSSES
67,715
69,773
72,378
70,092
69,863
NON-INTEREST INCOME:
Fees and service charges, net of
amortization
2,379
2,097
1,845
1,748
2,061
Net gain (loss) on the sale of loans
1,101
723
442
481
(119
)
Increase in and death benefits from bank
owned life insurance contracts
2,361
2,254
2,193
3,191
2,204
Other
579
1,171
1,242
895
954
Total non-interest income
6,420
6,245
5,722
6,315
5,100
NON-INTEREST EXPENSE:
Salaries and employee benefits
26,320
26,845
27,501
27,116
28,660
Marketing services
5,334
4,867
5,099
4,431
3,881
Office property, equipment and
software
7,158
7,008
7,303
6,845
6,886
Federal insurance premium and
assessments
3,522
3,258
4,013
3,778
3,629
State franchise tax
1,086
1,244
1,238
1,176
1,185
Other expenses
7,664
7,566
7,044
6,931
7,243
Total non-interest expense
51,084
50,788
52,198
50,277
51,484
INCOME BEFORE INCOME TAXES
23,051
25,230
25,902
26,130
23,479
INCOME TAX EXPENSE
4,836
5,277
5,189
5,423
3,933
NET INCOME
$
18,215
$
19,953
$
20,713
$
20,707
$
19,546
Earnings per share - basic and diluted
$
0.06
$
0.07
$
0.07
$
0.07
$
0.07
Weighted average shares outstanding
Basic
278,399,318
278,291,376
278,183,041
277,841,526
277,589,775
Diluted
279,404,704
279,221,360
279,046,837
279,001,898
278,826,441
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except share and per
share data)
For the Year Ended
September 30,
2024
2023
INTEREST AND DIVIDEND INCOME:
Loans, including fees
$
663,685
$
565,610
Investment securities available for
sale
18,228
14,370
Other interest and dividend earning
assets
52,161
31,939
Total interest and dividend income
734,074
611,919
INTEREST EXPENSE:
Deposits
292,728
174,201
Borrowed funds
162,888
154,151
Total interest expense
455,616
328,352
NET INTEREST INCOME
278,458
283,567
PROVISION (RELEASE) FOR CREDIT LOSSES
(1,500
)
(1,500
)
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
279,958
285,067
NON-INTEREST INCOME:
Fees and service charges, net of
amortization
8,069
7,840
Net gain on the sale of loans
2,747
498
Increase in and death benefits from bank
owned life insurance contracts
9,999
9,355
Other
3,887
3,736
Total non-interest income
24,702
21,429
NON-INTEREST EXPENSE:
Salaries and employee benefits
107,782
112,785
Marketing services
19,731
25,288
Office property, equipment and
software
28,314
27,734
Federal insurance premium and
assessments
14,571
13,452
State franchise tax
4,744
4,891
Other expenses
29,205
28,979
Total non-interest expense
204,347
213,129
INCOME BEFORE INCOME TAXES
100,313
93,367
INCOME TAX EXPENSE
20,725
18,117
NET INCOME
$
79,588
$
75,250
Earnings per share
Basic
$
0.28
$
0.27
Diluted
$
0.28
$
0.26
Weighted average shares outstanding
Basic
278,178,496
277,436,382
Diluted
279,143,524
278,583,454
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
September 30, 2024
June 30, 2024
September 30, 2023
Average Balance
Interest Income/
Expense
Yield/ Cost (1)
Average Balance
Interest Income/
Expense
Yield/ Cost (1)
Average Balance
Interest Income/
Expense
Yield/ Cost (1)
(Dollars in thousands)
Interest-earning assets:
Interest-earning cash equivalents
$
460,242
$
6,133
5.33
%
$
618,986
$
8,500
5.49
%
$
370,577
$
5,149
5.56
%
Investment securities
72,427
918
5.07
%
72,161
906
5.02
%
63,231
781
4.94
%
Mortgage-backed securities
446,480
3,776
3.38
%
452,224
3,757
3.32
%
449,351
3,360
2.99
%
Loans (2)
15,258,648
172,412
4.52
%
15,175,535
166,268
4.38
%
15,037,776
154,763
4.12
%
Federal Home Loan Bank stock
230,335
5,277
9.16
%
235,755
5,475
9.29
%
247,098
4,687
7.59
%
Total interest-earning assets
16,468,132
188,516
4.58
%
16,554,661
184,906
4.47
%
16,168,033
168,740
4.17
%
Noninterest-earning assets
544,705
513,931
503,865
Total assets
$
17,012,837
$
17,068,592
$
16,671,898
Interest-bearing liabilities:
Checking accounts
$
832,001
91
0.04
%
$
866,170
94
0.04
%
$
993,952
125
0.05
%
Savings accounts
1,353,608
4,688
1.39
%
1,437,406
4,967
1.38
%
1,869,756
7,864
1.68
%
Certificates of deposit
7,909,142
75,417
3.81
%
7,654,612
70,460
3.68
%
6,369,734
47,576
2.99
%
Borrowed funds
4,787,825
39,605
3.31
%
4,892,621
40,112
3.28
%
5,294,285
42,812
3.23
%
Total interest-bearing liabilities
14,882,576
119,801
3.22
%
14,850,809
115,633
3.11
%
14,527,727
98,377
2.71
%
Noninterest-bearing liabilities
217,788
261,741
226,083
Total liabilities
15,100,364
15,112,550
14,753,810
Shareholders’ equity
1,912,473
1,956,042
1,918,088
Total liabilities and shareholders’
equity
$
17,012,837
$
17,068,592
$
16,671,898
Net interest income
$
68,715
$
69,273
$
70,363
Interest rate spread (1)(3)
1.36
%
1.36
%
1.46
%
Net interest-earning assets (4)
$
1,585,556
$
1,703,852
$
1,640,306
Net interest margin (1)(5)
1.67
%
1.67
%
1.74
%
Average interest-earning assets to average
interest-bearing liabilities
110.65
%
111.47
%
111.29
%
Selected performance ratios:
Return on average assets (1)
0.43
%
0.47
%
0.47
%
Return on average equity (1)
3.81
%
4.08
%
4.08
%
Average equity to average assets
11.24
%
11.46
%
11.50
%
(1)
Annualized.
(2)
Loans include both mortgage loans
held for sale and loans held for investment.
(3)
Interest rate spread represents
the difference between the yield on average interest-earning assets
and the cost of average interest-bearing liabilities.
(4)
Net interest-earning assets
represent total interest-earning assets less total interest-bearing
liabilities.
(5)
Net interest margin represents
net interest income divided by total interest-earning assets.
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(unaudited)
Year Ended
Year Ended
September 30, 2024
September 30, 2023
Average Balance
Interest Income/
Expense
Yield/ Cost
Average Balance
Interest Income/
Expense
Yield/ Cost
(Dollars in thousands)
Interest-earning assets:
Interest-earning cash equivalents
$
549,598
$
29,676
5.40
%
$
356,450
$
16,826
4.72
%
Investment securities
70,364
3,581
5.09
%
23,636
1,123
4.75
%
Mortgage-backed securities
447,942
14,647
3.27
%
464,919
13,247
2.85
%
Loans (1)
15,207,429
663,685
4.36
%
14,657,265
565,610
3.86
%
Federal Home Loan Bank stock
245,298
22,485
9.17
%
233,013
15,113
6.49
%
Total interest-earning assets
16,520,631
734,074
4.44
%
15,735,283
611,919
3.89
%
Noninterest-earning assets
529,310
515,123
Total assets
$
17,049,941
$
16,250,406
Interest-bearing liabilities:
Checking accounts
$
880,893
401
0.05
%
$
1,093,036
6,081
0.56
%
Savings accounts
1,518,453
22,165
1.46
%
1,798,663
24,686
1.37
%
Certificates of deposit
7,489,887
270,162
3.61
%
6,123,979
143,434
2.34
%
Borrowed funds
4,985,484
162,888
3.27
%
5,114,045
154,151
3.01
%
Total interest-bearing liabilities
14,874,717
455,616
3.06
%
14,129,723
328,352
2.32
%
Noninterest-bearing liabilities
242,634
239,387
Total liabilities
15,117,351
14,369,110
Shareholders’ equity
1,932,590
1,881,296
Total liabilities and shareholders’
equity
$
17,049,941
$
16,250,406
Net interest income
$
278,458
$
283,567
Interest rate spread (2)
1.38
%
1.57
%
Net interest-earning assets (3)
$
1,645,914
$
1,605,560
Net interest margin (4)
1.69
%
1.80
%
Average interest-earning assets to average
interest-bearing liabilities
111.07
%
111.36
%
Selected performance ratios:
Return on average assets
0.47
%
0.46
%
Return on average equity
4.12
%
4.00
%
Average equity to average assets
11.33
%
11.58
%
(1)
Loans include both mortgage loans held for
sale and loans held for investment.
(2)
Interest rate spread represents the
difference between the yield on average interest-earning assets and
the cost of average interest-bearing liabilities.
(3)
Net interest-earning assets represent
total interest-earning assets less total interest-bearing
liabilities.
(4)
Net interest margin represents net
interest income divided by total interest-earning assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030453402/en/
Jennifer Rosa (216) 429-5037
Grafico Azioni TFS Financial (NASDAQ:TFSL)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni TFS Financial (NASDAQ:TFSL)
Storico
Da Mar 2024 a Mar 2025
