Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — Q1 FY2011 Earnings Presentation
19 slides from Tfs Financial's earnings presentation, Feb 9, 2011
Slide 1: Investor Conference Call
Exhibit 99.1 Investor Conference Call February 10, 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 12/3
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 ($M) Share (%) Rank Cleveland-Elyria-Mentor, OH 19 5,483 11.51 2
Slide 5: Strategic Overview
Strategic Overview Our business model is to originate and service first mortgage loans and continue to service existing home equity loans and lines which we fund with core retail deposits Thrift introduced, and is originating, a new adjustable rate mortgage product to act as an interest-rate hedge f
Slide 6: Financial Highlights
Financial Highlights (Dollars in Thousands) At, or for the year ended, 9/30/10 9/30/09 9/30/08 12/31/10 9/30/10 12/31/09 Balance Sheet Assets ($) 11,076,027 10,598,840 10,786,451 11,064,672 11,076,027 10,727,574 Net Loans ($) 9,181,749 9,219,585 9,208,736 9,704,444 9,181,749 9,250,309 Deposits ($) 8
Slide 7: Loan and Deposit Balances
Loan and Deposit Balances Gross Loan Balances 12/31/10 Deposit Data 12/31/10 0% 1% 18% Residential non-Home Certificates of Deposit 28% Today Residential Home Negotiable Order of Today 11% Withdrawal Equity loans and lines Savings 3% of credit 68% Other 71% Accrued Interest 80% of 1-4 family in Ohio
Slide 8: Capital Position as of December 31, 2010
Capital Position as of December 31, 2010* 25.00% 21.32% 20.07% 20.00% 17.46% 16.20% 15.72% 15.00% 13.45% 10.00% 10.92% 9.68% 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/Th
Slide 9: Loan Delinquencies and Charge-offs
Loan Delinquencies and Charge-offs Dollars in millions Loan Delinquencies Charge Offs Balances Quarter-end Fiscal Year End Quarter-end Fiscal Year End 12/31/10 12/31/10 9/30/10 9/30/09 12/31/10 9/30/10 9/30/09 Residential non-Home Today Ohio and Kentucky $5,554 1.7% 1.8% 1.8% $2 $5 $5 Florida 1,241
Slide 10: Memorandum of Understanding
Memorandum of Understanding August 13, 2010, Memorandum of Understanding from the OTS: August, 2010: OTS requests independent assessment of home equity lending portfolio, a plan to reduce concentration limits for home equity loans and lines and enhanced policies and procedures September, 2010: Forma
Slide 11: Home Equity Lending Reduction Plan
Home Equity Lending Reduction Plan Current Status of Plan: Reduce commitments $1 billion, including $300 million in outstanding balances, from June 30, 2010 balances, by December 31, 2011: Commitments have been reduced $738 million from June 30, 2010 Home equity balances have been reduced $159 milli
Slide 12: New Memorandum of Understanding
New Memorandum of Understanding February 7, 2011, Memorandum of Understanding from the OTS, received on behalf of Thrift, mid-tier holding company, and Mutual Holding Company requires: Independent assessment of interest rate and enterprise risk management Third party had already been engaged in Sept
Slide 13: Cash Dividends and Stock Repurchases
Cash Dividends and Stock Repurchases TFS Financial must provide the OTS 45 days written notice and obtain the non-objection of the OTS prior to the Company’s intent to declare and pay dividends to its stockholders or repurchase any of its outstanding stock. The Company understands and shares the vie
Slide 14: Adjustable Rate Growth
Adjustable Rate Growth As of 12/31/2010 booked more 100.0% than $900 million in new 90.0% adjustable mortgages 80.0% New production has shifted 70.0% closer to a 50% fixed rate/50% 60.0% adjustable rate split 50.0% Average credit score of the 40.0% ARM production is 775 30.0% Average LTV is 65% 20.0
Slide 15: Summary
Summary Working diligently to resolve the New MOU with the OTS Focus on our core competency of originating high credit quality 1-4 family residential mortgages in our banking footprint including continued use of our new adjustable rate mortgage loans TFSL has a strong capital position and flexibilit
Slide 16: Appendix: Home Equity Lines of Credit
Appendix: Home Equity Lines of Credit
Slide 17: 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 18: Home Equity Loans & Lines of Credit
Home Equity Loans & Lines of Credit Credit Extended, Balances and Delinquencies by Credit Score As of Dec 2010, dollars in millions Other than Credit Credit Seriously Seriously Total Unused % Seriously Score Extended Delinquent Delinquent* Balances Balances Delinquent < 600 $241 $156 $54 $210 $31 25
Slide 19: Investor Questions
Investor Questions Investor Conference Call February 10, 2011 19