Remains Strong, Stable and
Well-Capitalized
TFS Financial Corporation (NASDAQ: TFSL) (the "Company"), the
holding company for Third Federal Savings and Loan Association of
Cleveland (the "Association"), today announced results for the
quarter and six months ended March 31, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230427006034/en/
Marc A. Stefanski, Chairman and CEO
(Photo: Business Wire)
“We live by our mission of helping customers achieve the dream
of homeownership and financial security, and we are built to
withstand changes in the economy,” said Chairman and CEO Marc A.
Stefanski. “Our retail deposits from individuals in the communities
we serve, and our first mortgage loan portfolio with an average
credit score of 761 and with a loan-to-value ratio of 66%, are a
result of the success we have found by focusing on that mission. We
continue to expand our product offerings to attract new customers
from around the country, and saw a strong net gain in savings of
$140 million in March alone. Our strength and stability is further
recognized through our Tier 1 capital leverage ratio of 11 percent
– more than double the regulatory requirement, and our ongoing
quarterly 5-star rating from independent rating agency Bauer
Financial.”
Highlights - Second Quarter Fiscal 2023
- Reported net income of $15.9 million
- Generated over $80 million of residential mortgage loan
growth
- Remained well capitalized, with a Tier 1 leverage ratio of
11.27%
- Paid a $0.2825 dividend per share
The Company reported net income of $15.9 million for the quarter
ended March 31, 2023, a decrease of $6.3 million from $22.2 million
for the quarter ended December 31, 2022. The decrease was primarily
due to a decrease in net interest income and an increase in
non-interest expense, partially offset by a resultant decrease in
income tax expense.
Net interest income decreased $5.9 million to $69.3 million for
the quarter ended March 31, 2023 from $75.2 million for the quarter
ended December 31, 2022. During the quarter, an increase in
balances and yields on interest-earning assets was more than offset
by higher funding costs. The interest rate spread was 1.56% for the
quarter ended March 31, 2023 compared to 1.75% for the quarter
ended December 31, 2022. The net interest margin was 1.78% for the
quarter ended March 31, 2023 compared to 1.95% for the prior
quarter.
Total non-interest expense increased $2.4 million to $55.6
million for the quarter ended March 31, 2023, from $53.2 million
for the quarter ended December 31, 2022. The increase consisted
mainly of a $2.0 million increase in salaries and employee
benefits, related primarily to annual increases in wages and health
insurance costs, and a $0.7 million increase in federal ("FDIC")
insurance premiums and assessments, due to a two basis point
increase in FDIC assessment rates effective January 1, 2023.
Total assets increased by $132.7 million to $16.26 billion at
March 31, 2023 from $16.13 billion at December 31, 2022. The
increase was mainly the result of new loan originations exceeding
the total of loan sales and principal repayments and an increase in
other assets.
Loans held for investment, net of allowance and deferred loan
expenses, increased $89.8 million to $14.56 billion at March 31,
2023 from $14.47 billion at December 31, 2022.
Other assets increased $51.5 million to $159.3 million at March
31, 2023 from $107.8 million at December 31, 2022. The increase was
primarily due to the combined effect of a $34.9 million increase in
initial margin requirement and a $7.8 million increase in interest
receivable on centrally cleared swap contracts. Additionally, there
was a $5.5 million increase in the net deferred tax asset, related
to net changes in unrealized gains and losses recorded in other
comprehensive income.
Compared to December 31, 2022, deposits decreased by $11.4
million, to $9.00 billion at March 31, 2023. The decrease was due
to the release of $93.3 million in maturing brokered deposits,
partially offset by an $81.9 million increase in retail deposits.
Retail deposit growth in the third month of the quarter more than
offset some attrition that occurred during the first two months of
the quarter.
Borrowed funds increased $217.7 million to $5.20 billion at
March 31, 2023 from $4.99 billion at December 31, 2022. The
increase was primarily used to fund loan growth and contractual
requirements on swap instruments.
Highlights - Fiscal Year-To-Date 2023
- Reported net income of $38.1 million
- Generated over $300 million of residential mortgage loan
growth
- Grew net interest income by 20% to $144.4 million compared to
the fiscal 2022 period
- Remained well capitalized, with a Tier 1 leverage ratio of
11.27%
- Paid a $0.565 dividend per share
The Company reported net income of $38.1 million for the six
months ended March 31, 2023 compared to net income of $32.0 million
for the six months ended March 31, 2022. The $6.1 million increase
was primarily due to an increase in net interest income offset by a
decrease in non-interest income and an increase in non-interest
expenses.
Net interest income increased by $23.8 million, or 20%, to
$144.4 million for the six months ended March 31, 2023, compared to
$120.6 million for the six months ended March 31, 2022, driven by
loan growth and a higher interest rate environment. The interest
rate spread was 1.66% for the six months ended March 31, 2023
compared to 1.63% for the six months ended March 31, 2022. The net
interest margin was 1.86% for the six months ended March 31, 2023
compared to 1.76% for the prior year period.
During the six months ended March 31, 2023, there was a $2.0
million release of provision for credit losses compared to a $3.0
million release of provision for the six months ended March 31,
2022. Net loan recoveries totaled $2.9 million during the six
months ended March 31, 2023 and $4.7 million during the prior year
period. The total allowance for credit losses at March 31, 2023 was
$100.8 million, or 0.69% of total loans receivable, compared to
$99.9 million, or 0.70% of total loans receivable, at September 30,
2022 and $90.9 million, or 0.69% of total loans receivable, at
March 31, 2022. The allowance for credit losses included $26.7
million, $27.0 million, and $26.6 million in liabilities for
unfunded commitments at March 31, 2023, September 30, 2022 and
March 31, 2022, respectively.
Total loan delinquencies increased $2.7 million to $23.9
million, or 0.16% of total loans receivable, at March 31, 2023 from
$21.2 million, or 0.17% of total loans, at September 30, 2022.
Non-accrual loans decreased $2.9 million to $32.7 million, or 0.22%
of total loans, at March 31, 2023 from $35.6 million, or 0.25% of
total loans, at September 30, 2022.
Total non-interest income decreased $3.2 million, or 23%, to
$10.5 million for the six months ended March 31, 2023 from $13.7
million for the six months ended March 31, 2022. The decrease
consisted mainly of a $1.7 million decrease in net gain on the sale
of loans, a $1.1 million decrease in fees and service charges and a
$0.7 million decrease in benefits realized on bank owned life
insurance contracts. The decrease in net gain on the sale of loans
was the result of a decrease in secondary market pricing and a
lower volume of loans sold. The decrease in fees and service
charges is primarily due to less servicing revenue due to a
decrease in the balance of loans serviced for others.
Total non-interest expense increased $11.2 million, or 11%, to
$108.8 million for the six months ended March 31, 2023, from $97.6
million for the six months ended March 31, 2022 and included
increases of $5.4 million in salaries and employee benefits, $2.2
million in marketing costs, and $1.9 million in federal ("FDIC")
insurance premiums and assessments. Additionally, there was a $1.4
million increase in pension expense, reported in other expenses,
related to the change in net actuarial gains and losses. The
increase in salaries and employee benefits was primarily the result
of increases in health insurance costs and increases in both
staffing levels and wages. FDIC premiums increased due to growth in
deposits and a two basis point increase in FDIC assessment rates
that went into effect on January 1, 2023.
Total assets increased by $471.8 million, or 3%, to $16.26
billion at March 31, 2023 from $15.79 billion at September 30,
2022. The increase was mainly the result of new loan originations
exceeding the total of loan sales and principal repayments.
Cash and cash equivalents increased $51.5 million, or 14%, to
$421.1 million at March 31, 2023 from $369.6 million at September
30, 2022, due to normal fluctuations.
Loans held for investment, net of allowance and deferred loan
expenses, increased $306.3 million, or 2%, to $14.56 billion at
March 31, 2023 from $14.26 billion at September 30, 2022. The
residential core mortgage loan portfolio increased $212.4 million,
to $11.75 billion, and home equity loans and lines of credit
increased $90.0 million, to $2.72 billion, during the six months.
Loan originations, including first mortgages and equity loans and
lines of credit, were $1.54 billion during the six months ended
March 31, 2023 compared to $2.82 billion during the six months
ended March 31, 2022. The decrease in originations was primarily
due to a generally increasing interest rate environment, resulting
in less refinance activity. Mortgage loan originations included 88%
purchases and 37% adjustable rate mortgages for the six months
ended March 31, 2023.
Deposits increased $81.9 million to $9.00 billion at March 31,
2023 from $8.92 billion at September 30, 2022. The increase was the
result of a $206.9 million increase in certificates of deposit
("CDs") and a $70.0 million increase in savings accounts, partially
offset by a $108.6 million decrease in money market deposit
accounts and an $89.8 million decrease in checking accounts.
Borrowed funds increased $411.7 million, or 9%, to $5.20 billion
at March 31, 2023 from $4.79 billion at September 30, 2022. The
increase was primarily used to fund loan growth. The total balance
of borrowed funds at March 31, 2023, all from the FHLB, included
$575.0 million of overnight advances, $1.59 billion of term
advances with a weighted average maturity of approximately 2.6
years, and $3.03 billion of term advances, aligned with interest
rate swap contracts, with a remaining weighted average effective
maturity of approximately 3.9 years. Additional borrowing capacity
at the FHLB was $3.44 billion at March 31, 2023.
Total shareholders' equity decreased $9.9 million, or 0.5%, to
$1.83 billion at March 31, 2023 from $1.84 billion at September 30,
2022. Activity reflects $38.1 million of net income reduced by
$29.1 million for dividends paid, an $18.4 million net loss in
accumulated other comprehensive income and $5.0 million in
repurchases of common stock. Additionally, there was $4.5 million
of net positive adjustments related to our stock compensation and
employee stock ownership plans. The change in accumulated other
comprehensive income is primarily due to a net negative change in
unrealized gains and losses on swap contracts. During the six
months ended March 31, 2023, a total of 361,869 shares of our
common stock were repurchased at an average cost of $13.82 per
share. The Company's eighth stock repurchase program allows for a
total of 10,000,000 shares to be repurchased, with 5,191,951 shares
remaining to be repurchased at March 31, 2023.
The Company declared and paid a quarterly dividend of $0.2825
per share during each of the quarters of fiscal year 2023. 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 12,
2022 member vote and the subsequent non-objection of the Federal
Reserve, 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 12, 2023). The MHC has conducted the
member vote to approve the dividend waiver each of the past nine
years under Federal Reserve regulations and for each of those nine
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 March 31, 2023 all of
the Company's capital ratios substantially exceed the amounts
required for the Company to be considered "well capitalized" for
regulatory capital purposes. The Company's Tier 1 leverage ratio
was 11.27%, its Common Equity Tier 1 and Tier 1 ratios were each
19.93% and its total capital ratio was 20.64%.
Presentation slides as of March 31, 2023 will be available on
the Company's website, www.thirdfederal.com, under the Investor
Relations link within the "Recent Presentations" menu, beginning
April 28, 2023. 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 is celebrating its 85th anniversary in
May 2023. Third Federal, which lends in 25 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, four
lending offices in Central and Southern Ohio, and 16 full service
branches throughout Florida. As of March 31, 2023, the Company’s
assets totaled $16.26 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;
●
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, and regulatory 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
Financial Accounting Standards Board or the Public Company
Accounting Oversight Board;
●
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, and the
possible short-term dilutive effect of potential acquisitions or de
novo branches, if any;
●
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 and
the FRS and changes in the level of government support of housing
finance;
●
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, or
compensation and benefit plans 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;
●
the effects of global or national war,
conflict or acts of terrorism;
●
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)
March 31, 2023
December 31,
2022
September 30,
2022
ASSETS
Cash and due from banks
$
28,468
$
31,515
$
18,961
Other interest-earning cash
equivalents
392,660
412,066
350,603
Cash and cash equivalents
421,128
443,581
369,564
Investment securities available for
sale
482,576
473,131
457,908
Mortgage loans held for sale
4,398
12,549
9,661
Loans held for investment, net:
Mortgage loans
14,580,410
14,492,723
14,276,478
Other loans
3,868
3,481
3,263
Deferred loan expenses, net
53,183
51,768
50,221
Allowance for credit losses on loans
(74,138
)
(74,477
)
(72,895
)
Loans, net
14,563,323
14,473,495
14,257,067
Mortgage loan servicing rights, net
7,669
7,815
7,943
Federal Home Loan Bank stock, at cost
232,855
222,415
212,290
Real estate owned, net
1,165
1,378
1,191
Premises, equipment, and software, net
34,529
35,252
34,531
Accrued interest receivable
46,399
45,317
40,256
Bank owned life insurance contracts
308,339
306,216
304,040
Other assets
159,299
107,828
95,428
TOTAL ASSETS
$
16,261,680
$
16,128,977
$
15,789,879
LIABILITIES AND SHAREHOLDERS’
EQUITY
Deposits
$
9,002,867
$
9,014,295
$
8,921,017
Borrowed funds
5,204,964
4,987,287
4,793,221
Borrowers’ advances for insurance and
taxes
102,888
109,070
117,250
Principal, interest, and related escrow
owed on loans serviced
27,166
28,500
29,913
Accrued expenses and other liabilities
89,319
140,236
84,139
Total liabilities
14,427,204
14,279,388
13,945,540
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
1,752,508
1,751,020
1,751,223
Treasury stock, at cost
(775,852
)
(775,154
)
(771,986
)
Unallocated ESOP shares
(29,250
)
(30,334
)
(31,417
)
Retained earnings—substantially
restricted
879,046
877,713
870,047
Accumulated other comprehensive income
(loss)
4,701
23,021
23,149
Total shareholders’ equity
1,834,476
1,849,589
1,844,339
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
16,261,680
$
16,128,977
$
15,789,879
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except share and per
share data)
For the three months
ended
March 31, 2023
December 31,
2022
September 30,
2022
June 30, 2022
March 31, 2022
INTEREST AND DIVIDEND INCOME:
Loans, including fees
$
136,835
$
129,665
$
114,871
$
99,576
$
91,125
Investment securities available for
sale
3,455
3,062
1,904
1,282
1,355
Other interest and dividend earning
assets
7,262
6,243
4,236
1,913
981
Total interest and dividend income
147,552
138,970
121,011
102,771
93,461
INTEREST EXPENSE:
Deposits
39,876
29,855
23,582
17,214
16,896
Borrowed funds
38,408
33,958
21,920
14,255
13,824
Total interest expense
78,284
63,813
45,502
31,469
30,720
NET INTEREST INCOME
69,268
75,157
75,509
71,302
62,741
PROVISION (RELEASE) FOR CREDIT LOSSES
(1,000
)
(1,000
)
—
4,000
(1,000
)
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
70,268
76,157
75,509
67,302
63,741
NON-INTEREST INCOME:
Fees and service charges, net of
amortization
1,924
1,936
2,220
2,742
2,568
Net gain (loss) on the sale of loans
579
17
(1,113
)
(51
)
113
Increase in and death benefits from bank
owned life insurance contracts
2,123
2,238
2,761
2,090
2,222
Other
703
966
514
896
688
Total non-interest income
5,329
5,157
4,382
5,677
5,591
NON-INTEREST EXPENSE:
Salaries and employee benefits
30,390
28,403
27,206
28,756
26,862
Marketing services
6,671
7,713
4,256
4,830
6,551
Office property, equipment and
software
6,802
6,800
6,558
6,762
6,824
Federal insurance premium and
assessments
3,488
2,761
2,722
2,351
2,276
State franchise tax
1,268
1,208
1,201
1,197
1,237
Other expenses
6,955
6,309
6,799
7,860
6,225
Total non-interest expense
55,574
53,194
48,742
51,756
49,975
INCOME BEFORE INCOME TAXES
20,023
28,120
31,149
21,223
19,357
INCOME TAX EXPENSE
4,115
5,927
5,716
4,076
3,512
NET INCOME
$
15,908
$
22,193
$
25,433
$
17,147
$
15,845
Earnings per share - basic and diluted
$
0.06
$
0.08
$
0.09
$
0.06
$
0.06
Weighted average shares outstanding
Basic
277,361,293
277,320,904
277,383,038
277,453,439
277,423,493
Diluted
278,499,145
278,462,937
278,505,233
278,555,759
278,819,539
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except share and per
share data)
For the Six Months
Ended
March 31,
2023
2022
INTEREST AND DIVIDEND INCOME:
Loans, including fees
$
266,500
$
181,244
Investment securities available for
sale
6,517
2,315
Other interest and dividend earning
assets
13,505
1,992
Total interest and dividend income
286,522
185,551
INTEREST EXPENSE:
Deposits
69,731
36,147
Borrowed funds
72,366
28,819
Total interest expense
142,097
64,966
NET INTEREST INCOME
144,425
120,585
PROVISION (RELEASE) FOR CREDIT LOSSES
(2,000
)
(3,000
)
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
146,425
123,585
NON-INTEREST INCOME:
Fees and service charges, net of
amortization
3,860
4,972
Net gain on the sale of loans
596
2,300
Increase in and death benefits from bank
owned life insurance contracts
4,361
5,133
Other
1,669
1,340
Total non-interest income
10,486
13,745
NON-INTEREST EXPENSE:
Salaries and employee benefits
58,793
53,377
Marketing services
14,384
12,177
Office property, equipment and
software
13,602
13,463
Federal insurance premium and
assessments
6,249
4,288
State franchise tax
2,476
2,461
Other expenses
13,264
11,882
Total non-interest expense
108,768
97,648
INCOME BEFORE INCOME TAXES
48,143
39,682
INCOME TAX EXPENSE
10,042
7,697
NET INCOME
$
38,101
$
31,985
Earnings per share - basic and diluted
$
0.13
$
0.11
Weighted average shares outstanding
Basic
277,340,877
277,323,217
Diluted
278,472,705
278,864,945
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2023
December 31, 2022
March 31, 2022
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
$
350,437
$
3,947
4.51
%
$
354,214
$
3,249
3.67
%
$
337,915
$
161
0.19
%
Investment securities
3,649
11
1.21
%
3,618
11
1.22
%
4,044
11
1.23
%
Mortgage-backed securities
475,902
3,444
2.89
%
463,964
3,051
2.63
%
432,012
1,344
1.24
%
Loans (2)
14,517,771
136,835
3.77
%
14,396,685
129,665
3.60
%
12,845,756
91,125
2.84
%
Federal Home Loan Bank stock
230,496
3,315
5.75
%
219,282
2,994
5.46
%
162,783
820
2.01
%
Total interest-earning assets
15,578,255
147,552
3.79
%
15,437,763
138,970
3.60
%
13,782,510
93,461
2.71
%
Noninterest-earning assets
527,935
485,380
475,938
Total assets
$
16,106,190
$
15,923,143
$
14,258,448
Interest-bearing liabilities:
Checking accounts
$
1,128,560
2,229
0.79
%
$
1,184,896
2,410
0.81
%
$
1,292,977
293
0.09
%
Savings accounts
1,668,115
5,028
1.21
%
1,766,354
3,707
0.84
%
1,869,103
485
0.10
%
Certificates of deposit
6,110,460
32,619
2.14
%
5,972,924
23,738
1.59
%
5,788,249
16,118
1.11
%
Borrowed funds
5,112,767
38,408
3.00
%
4,873,145
33,958
2.79
%
3,282,890
13,824
1.68
%
Total interest-bearing liabilities
14,019,902
78,284
2.23
%
13,797,319
63,813
1.85
%
12,233,219
30,720
1.00
%
Noninterest-bearing liabilities
209,161
257,353
238,884
Total liabilities
14,229,063
14,054,672
12,472,103
Shareholders’ equity
1,877,127
1,868,471
1,786,345
Total liabilities and shareholders’
equity
$
16,106,190
$
15,923,143
$
14,258,448
Net interest income
$
69,268
$
75,157
$
62,741
Interest rate spread (1)(3)
1.56
%
1.75
%
1.71
%
Net interest-earning assets (4)
$
1,558,353
$
1,640,444
$
1,549,291
Net interest margin (1)(5)
1.78
%
1.95
%
1.82
%
Average interest-earning assets to average
interest-bearing liabilities
111.12
%
111.89
%
112.66
%
Selected performance ratios:
Return on average assets (1)
0.40
%
0.56
%
0.44
%
Return on average equity (1)
3.39
%
4.75
%
3.55
%
Average equity to average assets
11.65
%
11.73
%
12.53
%
- Annualized.
- Loans include both mortgage loans held for sale and loans held
for investment.
- Interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of average
interest-bearing liabilities.
- Net interest-earning assets represent total interest-earning
assets less total interest-bearing liabilities.
- Net interest margin represents net interest income divided by
total interest-earning assets.
TFS FINANCIAL CORPORATION AND
SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(unaudited)
Six Months Ended
Six Months Ended
March 31, 2023
March 31, 2022
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
$
352,325
$
7,196
4.08
%
$
416,050
$
351
0.17
%
Investment securities
3,634
22
1.21
%
3,488
20
1.15
%
Mortgage-backed securities
469,933
6,495
2.76
%
426,685
2,295
1.08
%
Loans (1)
14,457,228
266,500
3.69
%
12,714,257
181,244
2.85
%
Federal Home Loan Bank stock
224,889
6,309
5.61
%
162,783
1,641
2.02
%
Total interest-earning assets
15,508,009
286,522
3.70
%
13,723,263
185,551
2.70
%
Noninterest-earning assets
506,658
494,020
Total assets
$
16,014,667
$
14,217,283
Interest-bearing liabilities:
Checking accounts
$
1,156,728
4,639
0.80
%
$
1,222,288
558
0.09
%
Savings accounts
1,717,235
8,735
1.02
%
1,852,232
1,042
0.11
%
Certificates of deposit
6,041,692
56,357
1.87
%
5,866,360
34,547
1.18
%
Borrowed funds
4,992,956
72,366
2.90
%
3,229,024
28,819
1.78
%
Total interest-bearing liabilities
13,908,611
142,097
2.04
%
12,169,904
64,966
1.07
%
Noninterest-bearing liabilities
233,257
275,494
Total liabilities
14,141,868
12,445,398
Shareholders’ equity
1,872,799
1,771,885
Total liabilities and shareholders’
equity
$
16,014,667
$
14,217,283
Net interest income
$
144,425
$
120,585
Interest rate spread (1)(2)
1.66
%
1.63
%
Net interest-earning assets (3)
$
1,599,398
$
1,553,359
Net interest margin (1)(4)
1.86
%
1.76
%
Average interest-earning assets to average
interest-bearing liabilities
111.50
%
112.76
%
Selected performance ratios:
Return on average assets (1)
0.48
%
0.45
%
Return on average equity (1)
4.07
%
3.61
%
Average equity to average assets
11.69
%
12.46
%
- Annualized
- Loans include both mortgage loans held for sale and loans held
for investment.
- Interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of average
interest-bearing liabilities.
- Net interest-earning assets represent total interest-earning
assets less total interest-bearing liabilities.
- 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/20230427006034/en/
Jennifer Rosa (216) 429-5037
TFS Financial (NASDAQ:TFSL)
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