Business
TFS Financial Corporation Announces Fourth Quarter and 2024 Fiscal Year Results
Home Equity and Retail Deposit Growth Among the Highlights CLEVELAND--(BUSINESS WIRE)-- TFS Financial Corporation (NASDAQ: TFSL) (the "Company", "we",
About this update from Tfs Financial Corporation
[{"type":"text","content":"\nHome Equity and Retail Deposit Growth Among the Highlights\n\n CLEVELAND--(BUSINESS WIRE)--\nTFS 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.\nThis 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)\n“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.”\n\nThe 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.\n\nNet 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.\n\nDuring 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 incre...