Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — Q3 2011 Earnings Presentation
16 slides from Tfs Financial's earnings presentation, Aug 3, 2011
Slide 1: Investor Conference Call
Exhibit 99.1 Investor Conference Call August 4, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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: Statements of our goals, intenti
Slide 3: Overview of TFS Financial Corporation
Overview of TFS Financial Corporation Organized in 1997 as the mid-tier stock holding company for Third Federal Savings & Loan Association of Cleveland (“Thrift”), which was founded in 1938 by Ben and Gerome Stefanski Completed first step IPO conversion in April 2007 TFSL (NASDAQ) Financials at 6/30
Slide 4: Markets of Operation
Markets of Operation Ohio 22 full service branches in Northeast Ohio 4 loan production offices in the Columbus area (Central Ohio) 4 loan production offices in the Cincinnati area (Southwestern Ohio) Deposits Market Market MSA Branches ($M) Share (%) Rank Cleveland-Elyria-Mentor, OH 19 5,427 11.51 2
Slide 5: Strategic Overview
Strategic Overview Our business model is to originate and service first mortgage loans and continue to service existing home equity loans and lines which we fund with core retail deposits Thrift continues to offer the Smart Rate adjustable rate mortgage product to act as an interest-rate hedge for t
Slide 6: Financial Highlights
Financial Highlights (Dollars in Thousands) At, or for the year ended, At, or for the three months ended, 9/30/10 9/30/09 9/30/08 6/30/11 3/31/11 6/30/10 Balance Sheet Assets ($) 11,076,027 10,598,840 10,786,451 10,877,541 10,885,060 10,940,202 Net Loans ($) 9,181,749 9,219,585 9,208,736 9,698,228 9
Slide 7: Loan and Deposit Balances
Loan and Deposit Balances Gross Loan Balances 6/30/2011 Deposit Data 6/30/2011 1% 0% Residential non-Home 19% Certificates of Deposit 26% Today Residential Home Negotiable Order of Today Withdrawal 11% Equity loans and lines Savings 3% of credit 70% Other 70% Accrued Interest 80% of first mortgages
Slide 8: Capital Position as of June 30, 2011
Capital Position as of June 30, 2011 25.00% 22.02% 20.77% 20.00% 16.16% 15.00% 13.82% 10.00% 10.00% 6.00% 5.00% 5.00% 0.00% Tangible Common Core Capital Ratio Tier 1 Risk-based Ratio Total Risk-Based Equity Ratio (TFSL) (Thrift) (Thrift) Capital Ratio (Thrift) TFSL/Thrift Well Capitalized 8
Slide 9: Loan Delinquencies and Charge-offs
Loan Delinquencies and Charge-offs Dollars in millions Loan Delinquencies Net Charge Offs Balances Quarter-end FYE Quarter-end FYE 6/30/11 6/30/11 3/31/11 9/30/10 6/30/11 3/31/11 9/30/10 Residential non-Home Today Ohio and Kentucky $5,733 1.5% 1.6% 1.9% $3 $3 $5 Florida 1,255 5.1% 5.2% 5.2% 2 1 7 To
Slide 10: Adjustable Rate Growth
Adjustable Rate Growth As of 6/30/2011 booked more than $1.25 billion in new Fixed vs. Adjustable Production adjustable mortgages 100 New production continues to 90 be a 50% fixed rate/50% 80 70 adjustable rate split 60 Average credit score of the 50 ARM production is 775 40 30 Average LTV is 62% 20
Slide 11: Memorandum of Understanding Status
Memorandum of Understanding Status June 30, 2011 update on requirements of the Memorandum of Understanding from the OTS, received on behalf of Thrift, TFS Financial Corporation, and Mutual Holding Company on February 7, 2011: Independent assessment of interest rate and enterprise risk management – T
Slide 12: Home Equity Lending Reduction Plan
Home Equity Lending Reduction Plan Results of completed plan at June 30, 2011: Commitment reduction goal of $1 billion – actual reduction of $1.05 billion at June 30, 2011 Home equity balance reduction goal of $300 million – actual reduction of $335.7 million at June 30, 2011 $150 million capital in
Slide 13: Home Equity Lines of Credit
Home Equity Lines of Credit History of Equity Portfolio Exposure Calculations include only capital at Thrift level and excludes additional capital maintained at TFSL Home Equity Portfolio and Open Commitments Relative to Thrift Tier 1 (Core) Plus ALLL 600% 544% 500% 414% 449% 400% 375% 350% 387% 300
Slide 14: Cash Dividends and Stock Repurchases
Cash Dividends and Stock Repurchases Under the terms of the MOU, TFS Financial must provide 45 days written notice and obtain the non-objection of its regulator prior to the Company’s intent to declare and pay dividends to its stockholders or repurchase any of its outstanding stock. The Company unde
Slide 15: Summary
Summary Focus on our core competency of originating high credit quality 1-4 family residential mortgages primarily in our banking footprint, expanding into new markets with our adjustable rate mortgage loans TFSL has a strong capital position and flexibility at the holding company Working with new r
Slide 16: Investor Questions
Investor Questions Investor Conference Call August 4, 2011 16