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CLEVELAND, Jan. 30, 2013 (GLOBE NEWSWIRE) -- 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 ended December 31, 2012.
The Company reported net income of $11.2 million for the quarter ended December 31, 2012, compared to net income of $8.5 million for the quarter ended December 31, 2011. The increase in net income for the quarter ended December 31, 2012 is largely the result of increases in net interest income and net gain on the sale of loans, partially offset by a higher provision for loan losses.
"We are pleased with the improvement in earnings this quarter. Indicators point to a stronger housing market and a growing economy in our primary regions. We will continue to offer competitive first and second mortgages and actively hire additional associates where needed," said Chairman and CEO Marc A. Stefanski. "We are even more encouraged by the termination of the Association's Memorandum of Understanding (MOU). We are actively working through the issues with our regulator at the holding company level in order to provide additional value to our stockholders through our long term three-prong approach to managing capital - growth, buybacks and dividends."
"We are optimistic about 2013. We continue to add new customers via our refinance products and are actively managing our funding costs so that we maintain our margin. We remain committed to our mission of helping people achieve the dream of homeownership while creating value for our communities, our customers, and our stockholders," he further said.
Lower interest rates on deposits and borrowed funds caused net interest income to increase $4.1 million, or 6%, to $68.4 million for the quarter ended December 31, 2012 from $64.3 million for the quarter ended December 31, 2011. Low interest rates continue to decrease the yield on interest-earning assets and to a greater extent, the rate paid on deposits and borrowed funds. As a result, the interest rate spread has improved from the prior year. The interest rate spread for the quarter ended December 31, 2012 was 2.24% compared to 2.07% last year. The net interest margin for the quarter ended December 31, 2012 was 2.47% compared to 2.40% last year.