Contact: Jennifer Rosa         (216) 429-5037 Exhibit 99.1
For release Tuesday, April 30, 2019

TFS FINANCIAL CORPORATION GROWS DEPOSITS AND HOME EQUITY LOANS
 
(Cleveland, OH - April 30, 2019) - 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 six months ended March 31, 2019.
The Company reported net income of $20.1 million for the three months ended March 31, 2019, compared to net income of $23.3 million for the three months ended March 31, 2018, and net income of $40.5 million for the six months ended March 31, 2019, compared to net income of $42.9 million for the six months ended March 31, 2018. A combination of a decrease in net interest income and an increase in non-interest expense was partially offset by a lower effective tax rate for both the three-month and six-month periods in the current year, as compared to the same periods last year. Additionally, the provision credit for loan losses decreased compared to the prior six-month period.
“Third Federal is structured to succeed in all interest rate and economic environments,” said Chairman and CEO, Marc A. Stefanski. “This quarter, we continued to focus on objectives that support this strategy. On the loan side of the business, demand for our home equity products has been incredible.  Home equity application volume increased 34 percent, compared to the same quarter in 2018, further growing our variable rate loan portfolio.   The beginning of the home buying season helped increase our home purchase application volume by 25 percent over last quarter.   We also have been successful in retaining and growing retail deposits.  Since the beginning of the fiscal year, retail deposits have increased $241 million.  And finally, we are excited to continue to provide our shareholders with a dividend that currently yields more than 6 percent annually.”
Net interest income was $135.6 million for the six months ended March 31, 2019 and $141.7 million for the six months ended March 31, 2018. Market interest rate increases have impacted both loan yields, particularly home equity lending products that feature interest rates that reset based on the prime rate, as well as funding costs. Interest income was higher in the current six-month period, due to a combination of a $324.6 million increase in the average balance of interest-earning assets, mainly loans, and a higher weighted average yield earned on those assets. The average cost of interest-bearing liabilities was also higher in the current year as a result of extending the duration of funding sources that presently carry higher costs, but help control interest rate risk exposure, and the impact on rates for overnight borrowings from the relatively flat yield curve market. Retail deposit growth has helped to reduce the balance of our wholesale borrowings. Net interest income was $67.8 million for the three months ended March 31, 2019 and $71.7 million for the three months ended March 31, 2018. The interest rate spread was 1.78% for both the three and six months ended March 31, 2019 compared to 1.98% and 1.97%, respectively, for the three and six months ended March 31, 2018. The net interest margin was 1.97% for both the three and six months ended March 31, 2019, as compared to 2.13% and 2.11%, respectively, for the three and six months ended March 31, 2018.
The provision for loan losses was a credit of $4.0 million during both the three months ended March 31, 2019 and the three months ended March 31, 2018. The provision for loan losses was a credit of $6.0 million for the six months ended March 31, 2019 compared to a credit of $7.0 million for the six months ended March 31, 2018. Recoveries of loan amounts previously charged off, low levels of current loan charge-offs and reduced exposure from home equity lines of credit coming to the end of the draw period resulted in the loan provision credits during the periods. Gross loan charge-offs were $2.2 million for the six months ended March 31, 2019 and $4.7 million for the six months ended March 31, 2018, while loan recoveries were $6.1 million in the current year period and $5.9 million in the prior year period. As a result of loan recoveries exceeding charge-offs, the Company reported net loan recoveries of $3.9 million for the six months ended March 31, 2019, and $1.2 million for the six months ended March 31, 2018. The allowance for loan losses was $40.3 million, or 0.31% of total loans receivable, at March 31, 2019, compared to $42.4 million, or 0.33% of total loans receivable, at September 30, 2018 and $43.1 million, or 0.34% of total loans receivable, at March 31, 2018. Of the total allowance for loan losses, $22.9 million was allocated to residential mortgage loans and $17.4 million was allocated to home equity loans and lines of credit at March 31, 2019 and $21.5 million was allocated to residential mortgage loans and $20.9 million was allocated to equity loans and lines of credit at March 31, 2018.
Total loan delinquencies increased $0.3 million, or less than 1%, to $41.7 million, or 0.32% of total loans receivable, at March 31, 2019 from $41.4 million, or 0.32% of total loans receivable, at September 30, 2018. The increase in delinquencies consisted of a $1.4 million increase in core residential mortgage loans partially offset by decreases of $0.6 million in home equity loans and lines of credit and $0.5 million in home today residential mortgage loans.



The following information was filed by Tfs Financial Corp (TFSL) on Tuesday, April 30, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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