TFS Financial Corp. (TSFL) in Cleveland posted a huge spike in quarterly earnings as improved credit quality prompted the company to slash its loan-loss provision.
Third-quarter earnings at the $11.3 billion-asset company rose more than 1,300% from the same period a year ago, to $15.8 million.
The company, the parent of Third Federal Savings and Loan, reduced its loan-loss provision by 86%, to $4 million. It also curtailed net loan chargeoffs by 78%, to $8 million.
TFS Financial's net interest income was basically unchanged at $66 million. The company's net interest margin ticked up six basis points, to 2.43%.
Noninterest income dipped 12%, to $5.3 million, largely because of lower revenue from fees and service charges as well as reduced net gain on loan sales. Noninterest expenses ticked up 2%, to $43.6 million, as expenses from salaries and benefits, marketing and other overhead items rose.