Tfs Financial Corp (TFSCY) SEC Filing 10-K Annual report for the fiscal year ending Friday, September 30, 2016

Earnings Press Release
10-K Annual Report
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Tfs Financial Corp
Ticker: TFSCY CIK: 1381668

Contact: David Reavis (216) 429-5036 Exhibit 99.1

For release Thursday, October 27, 2016

TFS FINANCIAL REPORTS RECORD YEAR OF EARNINGS

Board Approves Repurchase of Up To 10 Million Shares

(Cleveland, OH - October 27, 2016) - TFS Financial Corporation (NASDAQ: TFSL) (the "Company"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), today announced results for the three months and fiscal year ended September 30, 2016. The Company also announced that the Board of Directors approved the Company’s eighth stock repurchase program, which authorizes the repurchase of up to 10,000,000 shares of the Company’s outstanding common stock. The Company’s seventh repurchase program authorized the repurchase of 10,000,000 shares and began August 4, 2015. Currently over 9,600,000 shares have been repurchased under that plan.

The Company reported net income of $80.6 million for the fiscal year ended September 30, 2016, compared to net income of $72.6 million for the fiscal year ended September 30, 2015. The improvement was primarily due to a combination of a decrease in the provision for loan losses and a decrease in non-interest expenses. The Company reported net income of $22.8 million for the three months ended September 30, 2016, compared to net income of $23.0 million for the three months ended September 30, 2015. While there was no significant change in net income between the three month periods, lower non-interest expenses in the current period were offset by a reduced negative provision for loan losses.

“We’re excited to announce a record year of earnings, as well as continued loan origination growth,” said Chairman and CEO Marc A. Stefanski. “We reported net income of $80.6 million for the fiscal year ended September 30, 2016, the highest in the history of Third Federal. Our growth this year was driven in part by an 11% increase in overall loan originations, including a 15% increase in home purchase originations over last year. Thank you to our customers, associates, shareholders and communities we serve for their contributions and ongoing support during this very successful year."

Loan performance metrics have continued to improve, resulting in a negative provision for loan losses for both the three months and fiscal year ended September 30, 2016. Gross loan charge-offs decreased to $14.9 million in the current fiscal year from $21.4 million in the prior fiscal year, while loan recoveries have stayed strong, $13.1 million in the current fiscal year and $14.5 million in the prior fiscal year, allowing for a reduction in the overall loan loss provision. A negative provision for loan losses of $3.0 million was recorded for the three months ended September 30, 2016 compared to a negative provision of $6.0 million for the three months ended September 30, 2015. The Company recorded a negative provision for loan losses of $8.0 million for the fiscal year ended September 30, 2016 compared to a negative provision of $3.0 million for the fiscal year ended September 30, 2015. The Company reported $29 thousand and $1.8 million of net loan charge-offs for the three months and fiscal year, respectively, ended September 30, 2016, compared to $0.7 million and $6.8 million of net loan charge-offs for the three months and fiscal year, respectively, ended September 30, 2015. Of the $1.8 million of net charge-offs in the current fiscal year, $0.6 million occurred in the residential core portfolio (first mortgage loans other than the Home Today portfolio), $0.1 million of net recoveries occurred in the home equity loans and lines of credit portfolio and $1.3 million occurred in the Home Today portfolio. The allowance for loan losses was $61.8 million, or 0.53% of total loans receivable, at September 30, 2016, compared to $71.6 million, or 0.64% of total loans receivable, at September 30, 2015. The Home Today portfolio, which essentially has been in run-off status since 2009, totaled $121.9 million at September 30, 2016 and $135.7 million at September 30, 2015.

Non-accrual loans decreased $16.8 million to $90.0 million, or 0.76% of total loans, at September 30, 2016 from $106.8 million, or 0.95% of total loans, at September 30, 2015. The $16.8 million decrease in non-accrual loans for the fiscal year ended September 30, 2016 consisted of an $11.0 million decrease in the residential core portfolio; a $2.3 million decrease in the home equity loans and lines of credit portfolio; a $3.1 million decrease in the Home Today portfolio; and a $0.4 million decrease in the construction portfolio.

Total loan delinquencies decreased $13.5 million to $52.0 million, or 0.44% of total loans receivable, at September 30, 2016 from $65.5 million, or 0.58% of total loans receivable, at September 30, 2015. The real estate owned portfolio decreased $10.7 million, or 61.2%, to $6.8 million at September 30, 2016 from $17.5 million at September 30, 2015.

Total troubled debt restructurings decreased $7.7 million, to $170.6 million at September 30, 2016, from $178.3 million at September 30, 2015. Of the $170.6 million of troubled debt restructurings recorded at September 30, 2016, $95.2 million was in the residential core portfolio, $26.8 million was in the home equity loans and lines of credit portfolio and $48.6 million was in the Home Today portfolio. The portion of total troubled debt restructurings included as part of non-accrual loans was $63.7 million at September 30, 2016 and $70.5 million at September 30, 2015.

The following information was filed by Tfs Financial Corp (TFSCY) on Thursday, October 27, 2016 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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