Loan Originations Continue to Drive TFS Financial Corporation Results

About this update from Tfs Financial Corporation

CLEVELAND--(BUSINESS WIRE)-- TFS Financial Corporation (NASDAQ: TFSL) (the "Company"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), today announced results for the three months and six months ended March 31, 2021. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210429006108/en/Chairman and CEO Marc A. Stefanski (Photo: Business Wire) The Company reported net income of $23.0 million for the quarter ended March 31, 2021 compared to net income of $17.3 million for the quarter ended March 31, 2020. Net income of $48.0 million was reported for the six months ended March 31, 2021 compared to net income of $42.9 million for the six months ended March 31, 2020. The increase in net income for the quarter and six month periods is primarily the result of higher net gain on the sale of loans and releases from the allowance for credit losses, partially offset by a decrease in net interest income and an increased income tax provision. Other changes include a decrease in other non-interest income and an increase in general and administrative expenses when comparing the fiscal year-to-date periods. “At Third Federal, we’re seeing sunshine and blue skies ahead as our nation begins to emerge from the pandemic,” said Chairman and CEO Marc A. Stefanski. “Our loan pipeline is strong with refinances, home equities, and the signs of a hot home buying season, while forbearances are half of what they were at year-end.” Loan originations, mainly refinances, continued at an active pace. We sold, or committed to sell, $517.5 million of fixed-rate loans and recorded related gains of $25.4 million during the six months ended March 31, 2021, as we took advantage of the high origination levels, low interest rates and attractive Fannie Mae loan sale prices, while also managing our interest rate risk. Net interest income was $58.4 million for the quarter ended March 31, 2021 compared to $58.7 million for the quarter ended December 31, 2020 and $65.0 million for the quarter ended March 31, 2020. Net interest income decreased by $12.0 million, or 9.29%, to $117.2 million, for the six months ended March 31, 2021 from $129.2 million for the six months ended March 31, 2020. The interest rate spread was 1.54% for the quarter ended March 31, 2021 compared to 1.51% for the quarter ...

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