Tfs Financial Corp (TFSCY) SEC Filing 10-K Annual report for the fiscal year ending Monday, September 30, 2013

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Tfs Financial Corp
Ticker: TFSCY CIK: 1381668

Exhibit 99.1

Contact: David Reavis (216) 429-5036

For release Tuesday, July 30, 2013

TFS Financial Corporation Announces Net Income of $16.2 Million for Quarter Ended June 30, 2013

Results Reflect Highest Quarterly Net Income Since 2007

(Cleveland, OH - July 30, 2013) - TFS Financial Corporation (NASDAQ: TFSL) (the "Company"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), today reported net income of $16.2 million for the three month period ended June 30, 2013.

The Company's latest financial results compare to net income of $0.9 million for the three months ended June 30, 2012. The increase in net income is largely the result of a combination of a lower provision for loan losses and increased gain on sale of loans, partially offset by an increase in non-interest expenses. Net income of $40.2 million was reported for the nine months ended June 30, 2013, compared to net income of $10.4 million for the nine months ended June 30, 2012. The increase in net income for the nine months is largely the result of a lower provision for loan losses and increases in net interest income and gain on sale of loans, partially offset by an increase in non-interest expenses.

"We are very pleased with the significant increase in our net income compared to last year, Chairman and CEO Marc A. Stefanski said. "We continue to experience improvements in loan performance and saw a 34-percent growth in our purchase business last quarter. These are both positive signs that the housing market in Ohio and across the country continues to strengthen.

"Key economic indicators in our markets continue to improve, reflecting the ongoing recovery in the residential real estate market," Stefanski added. "Loan delinquencies have decreased, while hiring this year has remained stable in Ohio and has picked up in Florida. With new home sales at their highest level since 2008, we are very optimistic about the future of our home mortgage business, and remain well positioned to meet our customers' borrowing and savings needs.“

Lower interest rates on deposits, particularly on certificates of deposit, caused net interest income to increase slightly, to $66.1 million for the three months ended June 30, 2013 from $65.9 million for the three months ended June 30, 2012. Net interest income increased $6.6 million, or 3%, to $202.5 million for the nine months ended June 30, 2013 from $195.9 million for the nine months ended June 30, 2012. Low interest rates continue to decrease the yield on interest-earning assets and to a greater extent, the rate paid on deposits. As a result, the interest rate spread has improved from the prior year. The interest rate spread increased 13 basis points in the current quarter to 2.24% compared to 2.11% in the same quarter last year. The interest rate spread for the nine months ended June 30, 2013 was 2.26% compared to 2.11% in the nine month period last year. The net interest margin increased six basis points in the current quarter to 2.44% compared to 2.38% in the same quarter last year. The net interest margin for the nine months ended June 30, 2013 was 2.46% compared to 2.40% in the nine month period last year.

The Company recorded a provision for loan losses of $5.0 million for the three months ended June 30, 2013 compared to $31.0 million for the three months ended June 30, 2012. The Company reported $9.7 million of net loan charge-offs for the three months ended June 30, 2013 compared to $24.9 million for the three months ended June 30, 2012. Of the $9.7 million of net charge-offs in the current quarter, $4.0 million occurred in the equity loans and lines of credit portfolio, $3.7 million occurred in the residential, non-Home Today portfolio and $1.9 million occurred in the Home Today portfolio. The Home Today portfolio, which has had minimal new originations since 2009, is an affordable housing program targeted toward low and moderate income home buyers, totaled $186.5 million at June 30, 2013 and $208.3 million at September 30, 2012. The Company recorded a provision for loan losses of $33.0 million for the nine months ended June 30, 2013 compared to $73.0 million for the nine months ended June 30, 2012. The Company reported $36.9 million of net loan charge-offs for the nine months ended June 30, 2013 compared to $122.6 million for the nine months ended June 30, 2012. Of the $36.9 million of net charge-offs for the nine months ended June 30, 2013, $14.8 million occurred in the equity loans and lines of credit portfolio, $13.0 million occurred in the residential, non-Home Today portfolio and $9.1 million occurred in the Home Today portfolio. Net charge-offs of $122.6 million for the nine months ended June 30, 2012 included the impact of charging off, during that period, the Specific Valuation Allowance (SVA), which was $55.5 million at September 30, 2011. The allowance for loan losses was $96.5 million, or 0.96% of total loans receivable, at June 30, 2013, compared to $100.5 million, or 0.97% of total loans receivable, at September 30, 2012.

Non-accrual loans decreased $23.7 million to $158.9 million, or 1.58% of total loans, at June 30, 2013 from $182.6 million, or 1.77% of total loans, at September 30, 2012. The $23.7 million decrease in non-accrual loans for the nine months ended June 30, 2013, consisted of a $11.5 million decrease in the residential, non-Home Today portfolio; a $6.2 million

The following information was filed by Tfs Financial Corp (TFSCY) on Tuesday, July 30, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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