TFS Financial (TFSL) - 2024 Q3 - Quarterly Results

Financial Performance - The company reported net income of $20.0 million for the quarter ended June 30, 2024, a decrease from $20.7 million in the previous quarter, with net interest income decreasing by $2.1 million, or 3%[3]. - The company reported a fiscal year-to-date net income of $61.4 million for the nine months ended June 30, 2024, an increase of $5.7 million compared to the same period last year[14]. - The Company reported a net income of $61.4 million, with a $42.6 million net decrease in accumulated other comprehensive income primarily due to unrealized gains and losses on swap contracts[27]. - Net income for Q3 2024 was $19,953, representing a 13.5% increase from $17,603 in Q3 2023[37]. - Earnings per share for Q3 2024 remained stable at $0.07, consistent with Q3 2023[37]. Asset and Liability Management - Total assets increased by $17.8 million, or less than 1%, to $17.03 billion, primarily due to increases in loans held for sale and loans held for investment[7][19]. - Total assets amounted to $17.03 billion as of June 30, 2024, compared to $17.02 billion at March 31, 2024, and $16.92 billion at September 30, 2023[36]. - Total liabilities rose to $15,123,014 thousand as of June 30, 2024, compared to $14,240,878 thousand a year earlier, marking an increase of 6.18%[42]. - Total assets increased to $17,062,309 thousand for the nine months ended June 30, 2024, from $16,109,909 thousand in the previous year, reflecting a growth of 5.91%[42]. Deposits and Loans - Retail deposit growth was 6% in the last three months, attributed to strong CD product offerings, with total deposits increasing by $90.3 million to $10.03 billion[4][12]. - Loan originations totaled $2.2 billion with an average yield of 7.31%, while loans held for investment increased by $40.3 million, or less than 1%, to $15.19 billion[4][11]. - Loans held for sale increased by $20.7 million, or 213%, to $30.4 million, due to an increase in loans committed to forward sales[10][20]. - Deposits increased to $10.03 billion as of June 30, 2024, from $9.94 billion at March 31, 2024, and $9.45 billion at September 30, 2023[36]. Interest Income and Expenses - Total interest and dividend income for Q3 2024 reached $184,906, an increase of 18.0% compared to $156,657 in Q3 2023[37]. - The company reported a total interest expense of $115,633 in Q3 2024, up from $87,878 in Q3 2023, reflecting a significant increase of 31.5%[37]. - Net interest income for the nine months ended June 30, 2024, was $209,743 thousand, slightly down from $213,204 thousand in the previous year, indicating a decrease of 2.16%[42]. - The yield on interest-earning assets rose to 4.40% for the nine months ended June 30, 2024, compared to 3.79% for the same period in 2023, representing an increase of 61 basis points[42]. Credit Losses and Allowances - The total allowance for credit losses increased by $0.9 million to $95.7 million, representing 0.63% of total loans receivable[5][17]. - The allowance for credit losses on loans was $67.5 million as of June 30, 2024, down from $77.3 million at September 30, 2023[36]. - The provision for credit losses for Q3 2024 was a release of $500, compared to a provision of $1,000 in Q2 2024[37]. Equity and Capital Ratios - Total shareholders' equity decreased by $12.3 million, or 1%, to $1.92 billion as of June 30, 2024, from $1.93 billion at September 30, 2023[27]. - The Company's Tier 1 leverage ratio was 10.82%, with Common Equity Tier 1 and Tier 1 ratios each at 18.82%, and total capital ratio at 19.55% as of June 30, 2024[30]. - The Company operates under the capital requirements for the standardized approach of the Basel III capital framework, with all capital ratios exceeding the "well capitalized" requirements[29][30]. - Average equity to average assets ratio was 11.37% for the nine months ended June 30, 2024, slightly down from 11.60% in the same period of 2023[42]. Non-Interest Income and Expenses - Total non-interest expense decreased by $1.4 million, or 3%, to $50.8 million for the quarter, driven by reductions in salaries and employee benefits[6]. - Non-interest income totaled $6,245 in Q3 2024, up from $5,843 in Q3 2023, marking a 6.9% increase[37]. - Total non-interest expense decreased to $50,788 in Q3 2024 from $52,877 in Q3 2023, a reduction of 4.1%[37].