Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — FY2012 Earnings Presentation
14 slides from Tfs Financial's earnings presentation, Oct 30, 2012
Slide 1: Investor Conference Call October 31, 2012
Investor Conference Call October 31, 2012
Slide 2: Forward-Looking Statements
2 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, int
Slide 3: Overview of TFS Financial Corporation
3 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 Sep
Slide 4: Strategic Overview
4 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 Historically a fixed rate lender, b
Slide 5: Markets of Operation
5 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
Slide 6: Financial Highlights
6 Financial Highlights (Dollars in Thousands) 9/30/12 9/30/11 9/30/10 9/30/12 6/30/12 9/30/11 Balance Sheet Assets ($) 11,518,125 10,892,948 11,076,027 11,518,125 11,494,997 10,892,948 Net Loans ($) 10,349,518 9,750,943 9,181,749 10,349,518 10,353,471 9,750,943 Deposits ($) 8,981,419 8,715,910 8,851
Slide 7: Capital Position as of September 30, 2012
7 Capital Position as of September 30, 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 13.31% 15.62% 22.19% 20.94%
Slide 8: Deposit Overview
8 Deposit Overview Deposits have increased while average interest cost has decreased Profile of Retail Deposits $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 Fiscal Year End 9/30/09 Fiscal Year End 9/30/10 Fiscal Year End 9/30/11 Fiscal Year End 9/30/12 (in bi llio ns ) 0% 1% 2% 3% 4% (av era ge co st) CDs Saving
Slide 9: Adjustable Rate Loan Production
9 Adjustable Rate Loan Production Smart Rate adjustable product began July 2010 In the fiscal year ended 9/30/12, total loan production of $2.64 billion was 56% ARM and 44% fixed Average credit score of year ended 9/30/12, ARM production was 783, with average LTV of 61% Fixed vs. Variable Firs
Slide 10: Adjustable Rate Growth
10 Adjustable Rate Growth As of 9/30/12, 47% 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,
Slide 11: Loan Delinquencies and Charge-offs
11 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 eliminati
Slide 12: Loan Portfolio Trends
12 Loan Portfolio Trends NPAs include $34 million and TDRs include $20 million of mostly performing loans due to implementing OCC bankruptcy guidance during quarter ended 9/30/12. Decline in NPAs and delinquencies in quarter ended 12/31/11 was aided by charge off of SVA, which was $55.5 million at
Slide 13: Regulatory Status
13 Regulatory Status Provisions of the February 7, 2011 MOU that require further Company action revolve around future validation of the new Interest Rate Risk modeling system that was implemented during the quarter ended March 31, 2012 and the further refinement and enhancement of our Enterprise R
Slide 14: Investor Questions
14 Investor Conference Call October 31, 2012 Investor Questions