TFS Financial in Cleveland reported that its quarterly profits increased as net interest income rose and its loan-loss provision shrank.
The $11.5 billion-asset parent of Third Federal Savings and Loan Association of Cleveland said Wednesday that its earnings for the quarter that ended June 30 rose more than 8%, to $17.6 million, from a year earlier.
Net interest income for the company's fiscal-year third quarter increased almost 3%, to $67.9 million, as total interest expense fell almost 8%, to $25.9 million, from lower deposit costs. Investment securities available for sale rose 84%, to $2.3 million, partly offsetting a decline in lower interest income from loans. The net interest margin fell three basis points, 2.41%, from a year earlier.
TFS cut its provision for loan losses by 20%, to $4 million. The company reported $4.9 million of net loan charge-offs, down more than 49% from a year earlier.
Noninterest income fell 35%, to $5.7 million, as net gains on loan sales plunged 83%, to $673,000. This decline was partly offset by a roughly 7% drop in noninterest expense, to $42.8 million.