Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — Q1 FY2013 Earnings Presentation
14 slides from Tfs Financial's earnings presentation, Jan 30, 2013
Slide 1: Investor Conference Call January 31, 2013
Investor Conference Call January 31, 2013
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, inten
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) As of Decem
Slide 4: Strategic Overview
Strategic Overview Our business model is to originate and service first mortgage loans. We also originate home equity lines to existing line customers and service all existing home equity lines and loans. We fund our loans primarily with core retail deposits, supplemented by FHLB advances Histor
Slide 5: 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) Markets of Operation Florida Organic, de novo expansion into Florida started in 2000 9 full service branches al
Slide 6: Financial Highlights
Financial Highlights (Dollars in Thousands) 9/30/12 9/30/11 9/30/10 12/31/12 9/30/12 12/31/11 Balance Sheet Assets ($) 11,518,125 10,892,948 11,076,027 11,379,628 11,518,125 11,058,126 Net Loans ($) 10,349,518 9,750,943 9,181,749 10,165,536 10,349,518 10,012,862 Deposits ($) 8,981,419 8,715,910 8,85
Slide 7: Capital Position as of December 31, 2012
Capital Position as of December 31, 2012 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Tangible Common Equity Ratio (TFSL) Core Capital Ratio (Thrift) Tier 1 Risk-based Ratio (Thrift) Total Risk-Based Capital Ratio (Thrift) Well Capitalized 6.00% 10.00% 5.00% TFSL/Thrift 13.59% 15.92% 22.79% 21.54% 7
Slide 8: Deposit Overview
Deposit Overview Deposits have stayed consistent while average interest cost has decreased 0% 1% 2% 3% 4% $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 FYE 9/30/09 FYE 9/30/10 FYE 9/30/11 FYE 9/30/12 12/31/12 (a v e rage cos t) (in b ill io n s ) Profile of Retail Deposits CDs Savings NOW Avg Cost 8
Slide 9: Adjustable Rate Loan Production
Adjustable Rate Loan Production Smart Rate adjustable product began July, 2010 In the quarter ended 12/31/12, total loan production of $448 million was 53% ARM and 47% fixed Average credit score of quarter ended 12/31/12, ARM production was 782, with average LTV of 61% 0% 20% 40% 60% 80% 100%
Slide 10: Adjustable Rate Growth
Adjustable Rate Growth As of 12/31/12, 48% of all real estate loans, including equity loan products, are adjustable rate In May 2011, we began expansion of our Smart Rate adjustable rate mortgage into new markets. We are now offering the product in 11 states. PA, NJ, IL, NC, VA, CT, TN, CO, OR
Slide 11: Loan Delinquencies and Charge-offs
Loan Delinquencies and Charge-offs Charge offs for quarter ended 9/30/12 include $15.8 million in charge offs of mostly performing loans as a result of implementing new regulatory guidance on Chapter 7 bankruptcies. Charge offs for year ended 9/30/12 include the $15.8 million and the elimination
Slide 12: Loan Portfolio Trends
12 Loan Portfolio Trends Charge off of SVA, which was $55.5 million at 9/30/11, positively impacted NPAs and delinquencies in fiscal year ended 9/30/12. Implementing OCC bankruptcy guidance negatively impacted NPAs by $34 million and TDRs by $20 million in fiscal year ended 9/30/12. $0 $50,000 $
Slide 13: Regulatory Status
Regulatory Status Memorandum of Understanding (MOU) for the thrift was terminated by the Office of the Comptroller of the Currency (OCC) in December, 2012. MOU under control of Federal Reserve for the holding company remains in effect and covers the further refinement and enhancement of our Ente
Slide 14: Investor Questions
Investor Conference Call January 31, 2013 Investor Questions 14