NASDAQ$TFSL

TFS Financial Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported net income of $25.0 million for the quarter ended December 31, 2020.

TFS Financial Corporation reported a net income of $25.0 million for the quarter ended December 31, 2020, compared to $25.6 million for the quarter ended December 31, 2019. The results were driven by a decrease in net interest income, an increase in other operating expenses, and an increase in non-interest income, which was bolstered by increased net gains on the sale of loans.

  • Net income for the quarter was $25.0 million, a slight decrease compared to $25.6 million in the same quarter last year.
  • Net interest income decreased by $5.5 million to $58.7 million due to a reduction in the yield on interest-earning assets.
  • Non-interest income increased by $9.6 million to $21.5 million, driven by higher net gains on the sale of loans.
  • Total assets decreased slightly to $14.57 billion at December 31, 2020, from $14.64 billion at September 30, 2020.

Headline financials

Total Revenue

$80.2M

Previous: $76.1M+5.4%
EPS (adj)

$0.09

Previous: $0.09+0.0%
Tier 1 leverage ratio

12.2%

Previous: 12.0%+1.3%
Common Equity Tier 1

22.3%

Previous: 21.6%+3.3%
Total capital ratio

22.9%

Previous: 22.0%+3.8%
Interest rate spread

1.5%

Previous: 1.6%-7.4%
Net interest margin

1.7%

Previous: 1.8%-8.8%
Capital Expenditures

-$518K

Previous: -$537K+3.5%
Free Cash Flow

$24.5M

Previous: $25.1M-2.5%
Net Income

$25M

Previous: $25.6M-2.5%
Operating Income

$27.4M

Previous: $18.8M+46.2%
Gross Profit

$78.2M

Previous: $76.1M+2.7%
Cash & Equivalents

$500M

Previous: $281M+77.8%
Total Assets

$14.6B

Previous: $14.8B-1.6%
Stock-Based Comp

$3.37M

Previous: $3.28M+2.6%

Revenue & EPS history

TFS Financial · Revenue · Quarterly

$80.2M

Q1 2021+5.4%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

TFS Financial · $11.9M total across 4 segments · Q1 2020

  • Other non-interest income
    $5.3M+326.6%
  • Gain on sale of loans
    $2.93M+2535.1%
  • Fees & service charges
    $2.15M+20.8%
  • BOLI benefits
    $1.56M+0.9%

Forward guidance

This report contains forward-looking statements that are subject to significant risks, assumptions, and uncertainties, including competition, interest rate changes, economic conditions, and regulatory changes.

Tailwinds

  • Statements of our goals, intentions and expectations
  • Statements regarding our business plans and prospects and growth and operating strategies
  • Estimates of our risks and future costs and benefits
  • Our ability to enter new markets successfully and take advantage of growth opportunities, and the possible short-term dilutive effect of potential acquisitions or de novo branches, if any
  • Our ability to retain key employees

Headwinds

  • Significantly increased competition among depository and other financial institutions
  • Inflation and changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments
  • General economic conditions, either globally, nationally or in our market areas, including employment prospects, real estate values and conditions that are worse than expected
  • Legislative or regulatory changes that adversely affect our business, including changes in regulatory costs and capital requirements and changes related to our ability to pay dividends and the ability of Third Federal Savings, MHC to waive dividends
  • The impact of wide-spread pandemic, including COVID-19, on our business and the economy

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.2%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.5%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+8.5%

Q2 2020

Best reaction

-5.5%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.0%+0.4%+5.9%
Q1 2026-4.1%+0.3%-4.6%
Q4 2025-1.0%+3.8%+7.5%
Q2 2025+1.6%+1.1%-0.1%
Q1 2025+7.3%+7.2%+3.1%
Q4 2024-0.7%-1.5%+9.3%
Q3 2024-1.4%-5.7%-2.0%
Q2 2024+4.3%+9.0%+7.5%
Q1 2024-5.3%-5.3%-9.4%
Q4 2023+5.1%+6.8%+22.7%
Q3 2023+2.7%+5.8%-3.5%
Q2 2023-0.5%-3.9%-5.9%
Q1 2023-1.6%-2.9%-1.5%
Q4 2022+8.2%+6.5%+6.2%
Q3 2022+3.0%+3.1%+3.7%
Q2 2022-0.5%-0.7%-0.7%
Q1 2022-1.0%+0.0%-0.5%
Q4 2021+1.2%+1.5%-2.2%
Q3 2021-0.7%-2.5%+1.4%
Q2 2021-2.2%-2.7%+10.7%
Q1 2021-2.9%-3.0%+7.4%
Q4 2020-0.1%+0.9%+12.7%
Q3 2020+3.5%-1.4%+11.4%
Q2 2020+8.5%+7.6%+8.5%
Q1 2020+3.1%+6.6%+3.1%
Q4 2019-0.1%+1.8%+5.3%
Q3 2019-2.3%-4.2%-3.4%
Q2 2019-0.9%+5.3%+3.9%
Q1 2019-2.7%+0.0%+1.7%
Q4 2018+1.6%+3.2%+7.0%
Q3 2018-5.5%-4.1%-5.2%
Q2 2018-0.7%+1.1%+5.5%
Q1 2018-0.6%+2.9%+0.1%
Q4 2017-3.3%-2.4%-3.1%
Q3 2017+1.2%+2.4%-2.0%
Q2 2017+1.3%+0.1%-4.9%
Q1 2017-4.7%-6.3%-6.2%
Q4 2016+0.3%-0.5%+6.7%
Q3 2016+0.5%-0.6%+1.3%
Q2 2016-1.2%
Q1 2016+1.0%
Q4 2015-0.2%
Q3 2015+1.1%
Q2 2015-2.4%
Q1 2015-0.3%
Q4 2014+2.4%
Q3 2014+0.4%
Q2 2014-0.2%
Q1 2014+0.5%
Q4 2013-1.6%
Q3 2013-0.8%
Q2 2013+1.1%
Q1 2013+2.8%
Q4 2012+0.1%
Q3 2012-0.9%
Q2 2012+0.8%
Q1 2012+0.7%
Q4 2011+2.8%
Q3 2011+1.2%
Q2 2011+1.5%
Q1 2011+2.6%
Q4 2010-3.0%
Q4 2009-0.7%
Q3 2010-0.7%
Q2 2010-4.0%

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