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TFS Financial Corporation Reports Earnings Growth in First Quarter Fiscal 2025
CLEVELAND--(BUSINESS WIRE)-- TFS Financial Corporation (NASDAQ: TFSL) (the "Company"), the holding company for Third Federal Savings and Loan Association of
About this update from Tfs Financial Corporation
[{"type":"text","content":" 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, 2024.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250130972753/en/Chairman and CEO Marc A. Stefanski (Photo: Business Wire)\n“Our earnings of $22.4 million this quarter show our success in managing margin compression and expenses,” said Chairman and CEO Marc A. Stefanski. “We’ve also developed creative deposit products, leading to more than $350 million growth in our promotional CDs in December alone. Additionally, our Tier I capital ratio remains a source of strength at nearly 11%. As I look forward in 2025, I am encouraged by the economic forecast, interest rates, and their effect on the housing industry.”\n\n\nFinancial Results for the Quarter ended December 31, 2024 Compared to the Quarter ended September 30, 2024\n\n\nThe Company reported net income of $22.4 million for the quarter ended December 31, 2024 compared to $18.2 million for the quarter ended September 30, 2024. The increase in net income was mainly due to a release of provision for credit losses and a decrease in non-interest expense, partially offset by a decrease in net interest income.\n\n\nNet interest income decreased $0.4 million, or 0.58%, to $68.3 million for the quarter ended December 31, 2024 when compared to the quarter ended September 30, 2024, primarily driven by a decrease in the average balance and yield of interest-earning cash and cash equivalents, the latter being impacted by a decline in short-term interest rates. The interest rate spread for the quarter ended December 31, 2024 was 1.34% compared to 1.36% for the preceding quarter. The net interest margin was 1.66% for the quarter ended December 31, 2024 and 1.67% for the quarter ended September 30, 2024.\n\n\nDuring the quarter ended December 31, 2024, there was a $1.5 million release of provision for credit losses compared to a $1.0 million provision for the quarter ended September 30, 2024. The total allowance for credit losses at December 31, 2024 was $97.8 million, or 0.64% of total loans receivable, unchanged from the prior quarter. Net loan recoveries were $1.4 million dur...