CLEVELAND--(BUSINESS WIRE)--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 quarter ended December 31, 2024.

“Our earnings of $22.4 million this quarter show our success in managing margin compression and expenses,” said Chairman and CEO Marc A. Stefanski. “We’ve also developed creative deposit products, leading to more than $350 million growth in our promotional CDs in December alone. Additionally, our Tier I capital ratio remains a source of strength at nearly 11%. As I look forward in 2025, I am encouraged by the economic forecast, interest rates, and their effect on the housing industry.”

Financial Results for the Quarter ended December 31, 2024 Compared to the Quarter ended September 30, 2024

The Company reported net income of $22.4 million for the quarter ended December 31, 2024 compared to $18.2 million for the quarter ended September 30, 2024. The increase in net income was mainly due to a release of provision for credit losses and a decrease in non-interest expense, partially offset by a decrease in net interest income.

Net interest income decreased $0.4 million, or 0.58%, to $68.3 million for the quarter ended December 31, 2024 when compared to the quarter ended September 30, 2024, primarily driven by a decrease in the average balance and yield of interest-earning cash and cash equivalents, the latter being impacted by a decline in short-term interest rates. The interest rate spread for the quarter ended December 31, 2024 was 1.34% compared to 1.36% for the preceding quarter. The net interest margin was 1.66% for the quarter ended December 31, 2024 and 1.67% for the quarter ended September 30, 2024.

During the quarter ended December 31, 2024, there was a $1.5 million release of provision for credit losses compared to a $1.0 million provision for the quarter ended September 30, 2024. The total allowance for credit losses at December 31, 2024 was $97.8 million, or 0.64% of total loans receivable, unchanged from the prior quarter. Net loan recoveries were $1.4 million during the quarter ended December 31, 2024 compared to $1.1 million for the quarter ended September 30, 2024. The total allowance for credit losses included a liability for unfunded commitments of $27.2 million at December 31, 2024 and $27.8 million at September 30, 2024.

Total loan delinquencies increased $4.4 million to $36.3 million, or 0.24% of total loans receivable, at December 31, 2024 from $31.9 million, or 0.21% of total loans receivable, at September 30, 2024. Non-accrual loans increased $2.9 million to $36.5 million, or 0.24% of total loans receivable, at December 31, 2024 from $33.6 million, or 0.22% of total loans receivable, at September 30, 2024.

Financial Results for the Quarter ended December 31, 2024 Compared to the Quarter ended December 31, 2023

The Company reported net income of $22.4 million for the quarter ended December 31, 2024 compared to $20.7 million for the quarter ended December 31, 2023...