TFS Financial Corporation Reports 8% Increase in Net Income to $22.4 Million for Quarter Ending December 31, 2024

TFS Financial Corporation reported a net income of $22.4 million for the quarter ending December 31, 2024, marking an increase of 8% from $20.7 million in the same period last year. This growth was primarily driven by a reduction in non-interest expenses, which fell by 5% to $47.9 million, despite a slight decline in net interest income to $68.3 million from $69.1 million. The company's total interest and dividend income rose to $186.8 million, a 5% increase compared to $177.2 million in the prior year, largely due to higher interest income from loans.

In terms of financial position, TFS Financial's total assets decreased slightly by $33.2 million to $17.06 billion as of December 31, 2024. This decline was attributed to reductions in investment securities and mortgage loans held for sale. The company’s loans held for investment increased marginally to $15.34 billion, with notable growth in the home equity loans and lines of credit portfolio, which rose by $236.2 million. Conversely, the residential core mortgage loans decreased by $214.4 million. The total allowance for credit losses remained stable at $97.8 million, reflecting a release of $1.5 million during the quarter.

Operationally, TFS Financial's customer base remains strong, with approximately 80.9% of its common stock held by Third Federal Savings and Loan Association of Cleveland, MHC. The company continues to focus on expanding its lending activities beyond its traditional markets in Ohio and Florida, actively engaging in 25 other states and the District of Columbia. The company’s strategy includes promoting adjustable-rate loans and home equity lines of credit, which are designed to mitigate interest rate risk.

Looking ahead, TFS Financial expressed confidence in its capital ratios, which remain above regulatory requirements, with a Common Equity Tier 1 Capital ratio of 18.32%. The company plans to maintain its focus on managing interest rate risk and controlling operating expenses while continuing to support its community initiatives. The management anticipates that the current economic environment, including interest rate fluctuations, will continue to influence its operations and financial performance in the upcoming quarters.