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Dec 31, 2020
TFS Financial Q1 2021 Earnings Report
Reported net income of $25.0 million for the quarter ended December 31, 2020.
Key Takeaways
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.
TFS Financial
TFS Financial
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.
Positive Outlook
- 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
Challenges Ahead
- 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