Tfs Financial Corporation · NASDAQ:TFSL
Tfs Financial — Q3 FY2012 Earnings Presentation
14 slides from Tfs Financial's earnings presentation, Jul 30, 2012
Slide 1: Investor Conference Call July 31, 2012
Investor Conference Call July 31, 2012 Exhibit 99.1
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 Jun
Slide 4: Strategic Overview
4 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
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) At, or for the year ended, 9/30/11 9/30/10 9/30/09 6/30/12 3/31/12 6/30/11 Balance Sheet Assets ($) 10,892,948 11,076,027 10,598,840 11,494,997 11,286,768 10,877,541 Net Loans ($) 9,750,943 9,181,749 9,219,585 10,353,471 10,117,558 9,698,228 Deposits ($)
Slide 7: Capital Position as of June 30, 2012
7 Capital Position as of June 30, 2012 13.32% 20.82% 22.08% 15.63% 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
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 Quarter End 12/31/11 Quarter End 3/31/12 Quarter End 6/30/12 (in bi llio ns ) 0% 1%
Slide 9: Adjustable Rate Loan Production
9 Adjustable Rate Loan Production Smart Rate adjustable product began July 2010 In the nine months ended 6/30/12, total loan production of $2.07 billion was 57% ARM and 43% fixed Average credit score of quarter ended 6/30/12 ARM production was 783, with average LTV of 61% 0 10 20 30 40 50 60 7
Slide 10: Adjustable Rate Growth
10 Adjustable Rate Growth As of 6/30/12, 46% 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 10 new states PA, NJ, IL, NC, VA, CT, TN, CO, OR and WA New state expansion represents $2
Slide 11: Loan Delinquencies and Charge-offs
11 Loan Delinquencies and Charge-offs 6/30/12 loan balances include $233 million of loans held for sale Information does not include $4.2 billion of loans serviced for others Decline in delinquencies in quarter ended 12/31/11 was greatly aided by charge off of SVA, which was $55.5 million at 9
Slide 12: Loan Portfolio Trends
12 Loan Portfolio Trends Non-performing assets and delinquencies are trending downward Troubled debt restructuring loans have leveled off Non-Performing Assets $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 9/3 0/0 7 9/3 0/0 8 9/3 0/0 9 9/3 0/1 0 9/3 0/1 1 12/ 31/ 11 3/3 1/1 2
Slide 13: Regulatory Status
13 Regulatory Status Provisions of the February 7, 2011 MOU that require further Company action revolve around 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 Risk Management proces
Slide 14: Investor Questions
14 Investor Conference Call July 31, 2012 Investor Questions