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TFS Financial Corporation Announces Earnings for the First Fiscal Quarter 2024
Expense management keeps Company well-positioned during the quarter CLEVELAND--(BUSINESS WIRE)-- TFS Financial Corporation (NASDAQ: TFSL) (the "Company"),
About this update from Tfs Financial Corporation
[{"type":"text","content":"\nExpense management keeps Company well-positioned during the quarter\n\n\n CLEVELAND--(BUSINESS WIRE)--\nTFS 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 ended December 31, 2023.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240130536299/en/Chairman and CEO Marc A. Stefanski (Photo: Business Wire)\n“Third Federal is well-positioned to withstand the ongoing volatility of the interest rate environment,” said Chairman and CEO Marc A. Stefanski. “We have taken proactive and strategic measures to control expenses, significantly reducing the expense-to-asset ratio from 1.34 percent in December 2022, down to 1.17 percent in December 2023. We will continue to prudently manage our expenses to help safeguard against margin compression and will focus on maintaining the Company’s strong Tier 1 capital ratio of nearly 11 percent to ensure that we remain strong, stable and safe during this challenging rate environment.”\n\n\nHighlights - First Quarter Fiscal Year 2024\n\n\n\nReported net income of $20.7 million\n\n\n\nRemained well capitalized, with a Tier 1 leverage ratio of 10.78%\n\n\n\nPaid a $0.2825 dividend\n\n\n\nFinancial Results for the Quarter ended December 31, 2023 Compared to Prior Quarter\n\n\nThe Company reported net income of $20.7 million for the quarter ended December 31, 2023 compared to $19.5 million for the quarter ended September 30, 2023. The increase in net income was mainly due to a release of provision for credit losses, an increase in non-interest income and a decrease in non-interest expense, partially offset by a decrease in net interest income.\n\n\nNet interest income decreased $1.3 million, or 2%, to $69.1 million for the quarter ended December 31, 2023, when compared to the quarter ended September 30, 2023 mainly due to the impact of a higher interest rate environment on cost of funds. There was a 36 basis point increase in the average cost of certificates of deposit partially offset by a 15 basis point increase in the average yield on interest-earning assets. The interest rate spread for the quarter ended December 31, 2023 was 1.39% compared to 1.46% for the preceding quarter. The net interes...