NASDAQ$TFSL

TFS Financial Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported an increase in net income and loan portfolio growth despite economic headwinds.

TFS Financial Corporation reported a net income of $17.6 million for the quarter ended June 30, 2023, an increase of $1.7 million compared to the previous quarter. The loan portfolio grew by more than $320 million, and total assets increased by $333.3 million to $16.59 billion. Deposits increased by $66 million, and the company paid a $0.2825 dividend per share.

  • Net income increased to $17.6 million.
  • Residential mortgage loans increased by $490 million with an average yield of 5.69%.
  • Total deposits increased by $66 million.
  • Dividend of $0.2825 per share was paid.

Headline financials

Total Revenue

$74.6M

Previous: $77M-3.1%
EPS (adj)

$0.06

Previous: $0.06+0.0%
Tier 1 leverage ratio

11.2%

Previous: 12.1%-7.7%
Interest rate spread

1.5%

No prior period
Net interest margin

1.8%

No prior period
Capital Expenditures

-$4.05M

Previous: -$1.5M-169.5%
Free Cash Flow

$13.6M

Previous: $15.6M-13.4%
Net Income

$17.6M

Previous: $17.1M+2.7%
Operating Income

-$21.2M

Previous: $36.8M-157.7%
Gross Profit

$74.6M

Previous: $73M+2.3%
Cash & Equivalents

$436M

Previous: $388M+12.6%
Total Assets

$16.6B

Previous: $15.4B+7.7%
Stock-Based Comp

$2.38M

Previous: $2.54M-6.4%

Revenue & EPS history

TFS Financial · Revenue · Quarterly

$74.6M

Q3 2023-3.1%vs Q3 2022
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, which can be identified by the use of such words as estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions.

Tailwinds

  • Statements of our goals, intentions and expectations
  • Statements regarding our business plans and prospects and growth and operating strategies
  • Statements concerning trends in our provision for credit losses and charge-offs on loans and off-balance sheet exposures
  • Statements regarding the trends in factors affecting our financial condition and results of operations, including credit quality of our loan and investment portfolios
  • Estimates of our risks and future costs and benefits

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
  • The strength or weakness of the real estate markets and of the consumer and commercial credit sectors and its impact on the credit quality of our loans and other assets, and changes in estimates of the allowance for credit losses
  • Decreased demand for our products and services and lower revenue and earnings because of a recession or other events

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 Q3 2023

Historical avgQ3 2023

+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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