NASDAQ$TFSL

TFS Financial Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a net income consistent with the prior quarter, driven by an increase in net interest income offset by a rise in non-interest expenses.

TFS Financial Corporation announced its Q2 2024 earnings, reporting a net income of $20.7 million, consistent with the previous quarter. The company's Tier 1 capital ratio stands at nearly 11%, with a focus on single-family, owner-occupied mortgages. Deposits have grown by $500 million in the first six months of the fiscal year, and the company is managing costs effectively in a challenging rate environment.

  • Net income remained consistent at $20.7 million compared to the previous quarter.
  • Net interest income increased by $2.3 million, or 3%, reaching $71.4 million.
  • Total non-interest expenses increased by $1.9 million, or 4%, to $52.2 million.
  • Total assets decreased slightly by $36.6 million to $17.02 billion.

Headline financials

Total Revenue

$77.1M

Previous: $74.6M+3.4%
EPS

$0.07

Previous: $0.06+16.7%
Tier 1 leverage ratio

10.7%

Previous: 11.3%-4.9%
Common Equity Tier 1

19.1%

No prior period
Total capital ratio

19.8%

No prior period
Interest rate spread

1.4%

Previous: 1.6%-8.3%
Net interest margin

1.7%

Previous: 1.8%-3.9%
Capital Expenditures

-$1.52M

Previous: -$2.46M+38.5%
Free Cash Flow

$19.2M

Previous: $13.4M+42.8%
Net Income

$20.7M

Previous: $15.9M+30.2%
Operating Income

-$42.1M

Previous: -$12.7M-229.8%
Gross Profit

$76.1M

Previous: $73.6M+3.4%
Stock-Based Comp

$2.6M

Previous: $2.59M+0.6%

Revenue & EPS history

TFS Financial · Revenue · Quarterly

$77.1M

Q2 2024+3.4%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
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, economic conditions, interest rate environment, and regulatory changes. Actual future results may be materially different from the results indicated by any forward-looking statements.

Tailwinds

  • Statements of goals, intentions and expectations
  • Statements regarding business plans and prospects and growth and operating strategies
  • Estimates of risks and future costs and benefits
  • Ability to manage market risk, credit risk, liquidity risk, reputational risk, regulatory risk and compliance risk
  • Ability to access cost-effective funding

Headwinds

  • Significantly increased competition among depository and other financial institutions, including with respect to our ability to charge overdraft fees
  • Inflation and changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments, or our ability to originate loans
  • 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
  • Cyber-attacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems

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 Q2 2024

Historical avgQ2 2024

+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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