Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — Q2 FY2012 Earnings Presentation
14 slides from Tfs Financial's earnings presentation, May 1, 2012
Slide 1: Investor Conference Call
Exhibit 99.1 Investor Conference Call May 3, 2012
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 3/31
Slide 4: 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 Historically a fixed rate lender, but Smart Rate adjustable rate mortgage product has been major part of origin
Slide 5: 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 ($M) Share (%) Rank Cleveland-Elyria-Mentor, OH 19 5,416 11.23 3
Slide 6: Financial Highlights
Financial Highlights (Dollars in Thousands) At, or for the year ended, At, or for the three months ended, 9/30/11 9/30/10 9/30/09 3/31/12 12/31/11 3/31/11 Balance Sheet Assets ($) 10,892,948 11,076,027 10,598,840 11,286,768 11,058,126 10,885,060 Net Loans ($) 9,750,943 9,181,749 9,219,585 10,117,558
Slide 7: Capital Position as of March 31, 2012
Capital Position as of March 31, 2012 25.00% 22.58% 21.33% 20.00% 15.87% 15.00% 13.54% 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 7
Slide 8: Loan and Deposit Balances
Loan and Deposit Balances Gross Loan Balances 3/31/2012 Deposit Data 3/31/2012 1% 0% Residential non-Home Certificates of Deposit Today 23% 20% Residential Home Negotiable Order of 2% Today Withdrawal 12% 75% Equity loans and lines of 68% Savings credit Other Accrued Interest 79% of first mortgages
Slide 9: Adjustable Rate Loan Production
Adjustable Rate Loan Production Smart Rate adjustable product began July 2010 In the six months ended 3/31/12, total loan production of $1.34 billion was 58% ARM and 42% fixed Average credit score of quarter ended 3/31/12 ARM production was 782, with average LTV of 60% % Fixed vs. % Adjustable First
Slide 10: Adjustable Rate Growth
Adjustable Rate Growth As of 3/31/12, 45% of all real estate loans, including equity loan products, are adjustable rate Total ARMs of $2.4 billion represents 31% of all first mortgages at 3/31/12, compared to 14% of all first mortgages as of 9/30/10 In May 2011, we began expansion of our Smart Rate
Slide 11: Loan Delinquencies and Charge-offs
Loan Delinquencies and Charge-offs Dollars in millions Loan Net Charge Offs Delinquencies at: Balances Quarter-end FYE 3/31/12 3/31/12 9/30/11 9/30/10 3/31/12 12/31/11 9/30/11 9/30/10 Residential non-Home Today Ohio $6,063 1.1% 1.4% 1.9% $4 $9 $9 $5 Florida $1,327 3.4% 5.1% 5.2% 4 18 9 7 Other 264 0
Slide 12: Loan Portfolio Trends
Loan Portfolio Trends Non-performing assets and delinquencies are trending downward Troubled debt restructuring loans have leveled off Delinquencies 12
Slide 13: Regulatory Status
Regulatory Status Company believes it has met all the key provisions of the February 7, 2011 MOU received from the OTS, subject to OCC/Fed regulatory exam validation. We are awaiting results from the validation process but would not anticipate final actions until early in the fourth fiscal quarter.
Slide 14: Investor Questions
Investor Questions Investor Conference Call May 3, 2012 14