An OK quarter for TFSL

"… * FY Revenue of $59.6M.

  • Reported net income of $74.6 million
  • Generated over $1.7 billion of loan growth
  • Grew net interest income by 15% to $267.4 million…"

[TFS Financial reports FY results (NASDAQ:TFSL) | Seeking Alpha](TFS Financial reports FY results (NASDAQ:TFSL) | Seeking Alpha

Cheers!
Murph
BL Home Fool
(long TFSL)

1 Like

Hi Murph!

Here is a link to the related presentation slides for the quarter and FY:

Take a look at slide 6 where they say:

Dividends, managed portfolio growth, and strategic share repurchases will represent the focus for future capital deployment.”

It’s taken me a long time but I have warmed up to this dividend-income generator. And 15% growth in net interest income is pretty good.

Murph–do you remember Jim Royal’s estimate of fair value for TFSL? Or, do you have one?

David
(Long TFSL)

1 Like

Hey, David,

Absent a second-step conversion, I think the highest valuation you’ll see here is about 70% of partially converted TBV. (PC TBV = TBV/actually trading shares).

Jim

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Thanks, Jim, for replying so quickly.

So, if I understand your reply, your calculation would place fair value at around $24.00, yes?

David

Yes, that’s about where it will top out on any upswing. Typically the bottom has been about 40% of PC TBV, or about $13.80.

Jim

2 Likes

Thanks, Jim, for your feedback!

David

1 Like

Hi David!

Looks like Jim has responded to your question, and he is the go-to guy on TFSL!

FYI, here is a SA article on the past quarter’s results:

[TFS Financial Corporation: A Unique Shareholder-Friendly Bank (NASDAQ:TFSL) | Seeking Alpha](TFS Financial Corporation: A Unique Shareholder-Friendly Bank (NASDAQ:TFSL) | Seeking Alpha

Cheers!
Murph
BL Home Fool
(long TFSL)

2 Likes

Thanks, Murph!

David

What jumped out at me was the repurchase of 337,259 shares this FY (at an average price of $14.97). Last time they bought back any appreciable number of shares was FY2019 (348,293 shares, if I didn’t make a typo in the spreadsheet where I track all this stuff).

-bakerbenji (long TFSL)

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Yeah, the return to almost any level of repurchase activity was definitely a surprise. It amounted to about 0.6% of public shares in the quarter, but it’s the direction they ought to be going.

Jim

4 Likes