CLEVELAND, Ohio, April 25, 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 and six month periods ended March 31, 2013.
The Company reported net income of $12.8 million for the three months ended March 31, 2013, compared to net income of $1.0 million for the three months ended March 31, 2012. The increase in net income is largely the result of an increase in net interest income and a lower provision for loan losses, partially offset by an increase in non-interest expenses. Net income of $23.9 million was reported for the six months ended March 31, 2013, compared to net income of $9.5 million for the six months ended March 31, 2012. The increase in net income for the six months is largely the result of increases in net interest income and non-interest income and a lower provision for loan losses, partially offset by an increase in non-interest expenses.
"The trends we are seeing in the housing market fuel my optimism," said Chairman and CEO Marc A. Stefanski. "In our Ohio market, where we make most of our loans, home sales were up 10 percent in February, and already 14 percent for the year. That, coupled with our continued decline in delinquencies and our growth in new markets, gives me even more reason to be positive about our results from this quarter. As we celebrate our 75 th anniversary, we remain true to our commitment to our customers, associates, communities and our stockholders."Lower interest rates on deposits, particularly on certificates of deposit, caused net interest income to increase $2.1 million, or 3%, to $67.9 million for the three months ended March 31, 2013 from $65.8 million for the three months ended March 31, 2012. Net interest income increased $6.3 million, or 5%, to $136.3 million for six months ended March 31, 2013 from $130.0 million for the six months ended March 31, 2012. Low interest rates continue to decrease the yield on interest-earning assets and to a greater extent, the rate paid on deposits. As a result, the interest rate spread has improved from the prior year. The interest rate spread increased 13 basis points in the current quarter to 2.28% compared to 2.15% in the same quarter last year. The interest rate spread for the six months ended March 31, 2013 was 2.26% compared to 2.11% in the six month period last year. The net interest margin increased six basis points in the current quarter to 2.48% compared to 2.42% in the same quarter last year. The net interest margin for the six months ended March 31, 2013 was 2.48% compared to 2.41% in the six month period last year.
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