Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — Q1 FY2012 Earnings Presentation
15 slides from Tfs Financial's earnings presentation, Feb 1, 2012
Slide 1: Investor Conference Call
Exhibit 99.1 Investor Conference Call February 2, 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 12/3
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 ($M) Share (%) Rank Cleveland-Elyria-Mentor, OH 19 5,384 11.23 3
Slide 6: Financial Highlights
Financial Highlights (Dollars in Thousands) At, or for the year ended, At, or for the three months ended, 9/30/11 9/30/10 9/30/09 12/31/11 9/30/11 12/31/10 Balance Sheet Assets ($) 10,892,948 11,076,027 10,598,840 11,058,126 10,892,948 11,064,672 Net Loans ($) 9,750,943 9,181,749 9,219,585 10,012,86
Slide 7: Capital Position as of December 31, 2011
Capital Position as of December 31, 2011 25.00% 22.24% 20.99% 20.00% 16.17% 15.00% 13.78% 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 12/31/2011 Deposit Data 12/31/2011 1% 0% Residential non-Home 20% Certificates of Deposit 24% Today Residential Home Today Negotiable Order of Withdrawal 2% 12% Equity loans and lines of Savings credit Other 68% Accrued Interest 73% 80% of first mortgage
Slide 9: Adjustable Rate Loan Production
Adjustable Rate Loan Production Smart Rate adjustable product began July 2010 In the quarter ended 12/31/11, total loan production of $748 million was 58% ARM and 42% fixed Average credit score of quarter ended 12/31/11, ARM production is 778 with average LTV of 60% % Fixed vs. % Adjustable First Mo
Slide 10: Adjustable Rate Growth
Adjustable Rate Growth As of 12/31/11, 43% of all real estate loans, including equity loan products, are adjustable rate Total ARMs of $2.2 billion represents 29% of all first mortgages at 12/31/11, compared to 14% of all first mortgages as of 9/30/10 In May 2011, we began expansion of our Smart Rat
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 12/31/11 12/31/11 9/30/11 9/30/10 12/31/11 9/30/11 9/30/11 9/30/10 Residential non-Home Today Ohio $5,944 1.2% 1.4% 1.9% $9 $2 $9 $5 Florida $1,297 3.5% 5.1% 5.2% 18 3 9 7 Other 207
Slide 12: Regulatory Status
Regulatory Status Company believes it has met all key provisions of February 7, 2011, MOU received from OTS, subject to OCC/Fed regulatory exam validation Regulatory bodies: OCC (for thrift); Federal Reserve (holding company); CFPB; FDIC Dividends and stock buyback program still subject to regulator
Slide 13: 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 14: 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 15: Investor Questions
Investor Questions Investor Conference Call February 2, 2012 15