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Published: 2022-10-27 00:00:00 ET
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Contact: Jennifer Rosa         (216) 429-5037 Exhibit 99.1
For release October 27, 2022

TFS FINANCIAL CORPORATION FINISHES WITH STRONG QUARTER AND FISCAL YEAR

(Cleveland, OH - October 27, 2022) - 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 quarter and fiscal year ended September 30, 2022.
Highlights - Fiscal Year 2022
•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
•Expanded net interest margin by 22 basis points to 1.88%
•Paid a $1.13 dividend per share
“Our efforts have given us a strong quarter and year of growth during a time of rate volatility,” said Chairman and CEO Marc A. Stefanski. “Our net interest income is up 15% from 2021, and while there are heavy interest rate pressures, our loan growth of $1.7 billion this year is a result of our aggressive pursuit of new mortgage customers and opportunities. We continue to meet the challenges of the current economic climate head on.”
The Company reported net income of $74.6 million for the fiscal year ended September 30, 2022, driven by an increase in net interest income. In total, there was a decrease from the prior year net income of $81.0 million, primarily due to an increase in credit loss provision required on the growing loan portfolio and a decrease in net gain on sale of loans.
Net income of $25.4 million was reported for the fourth quarter of fiscal 2022 compared to net income of $17.1 million for the third quarter. The increase mainly consisted of a $4.2 million increase in net interest income and a $4.0 million decrease in credit loss provision between the two periods.
Net interest income increased by $35.8 million, or 15%, to $267.4 million for the fiscal year ended September 30, 2022, compared to $231.6 million for the fiscal year ended September 30, 2021. The increase was driven by loan growth and a higher interest rate environment, partially offset by an increase in borrowed funds, year over year. The interest rate spread was 1.75% for the fiscal year ended September 30, 2022 compared to 1.52% for the fiscal year ended September 30, 2021. The net interest margin was 1.88% for fiscal year 2022 compared to 1.66% for the prior year.
The total provision for credit losses was $1.0 million for the fiscal year ended September 30, 2022 compared to a $9.0 million release of provision for the fiscal year ended September 30, 2021. Net loan recoveries continued to curtail provision requirements. The Company recorded $9.7 million of net loan recoveries during the fiscal year ended September 30, 2022 and $5.2 million of net loan recoveries during the fiscal year ended September 30, 2021.
The total allowance for credit losses was $99.9 million, or 0.70% of total loans receivable, at September 30, 2022 and $89.3 million, or 0.71% of total loans receivable, at September 30, 2021. The allowance for credit losses included $27.0 million and $25.0 million in liability for unfunded commitments at September 30, 2022 and September 30, 2021, respectively. Total loan delinquencies decreased $3.5 million to $21.2 million, or 0.15% of total loans receivable, at September 30, 2022 from $24.7 million, or 0.20% of total loans, at September 30, 2021. Non-accrual loans decreased $8.4 million to $35.6 million, or 0.25% of total loans, at September 30, 2022 from $44.0 million, or 0.35% of total loans, at September 30, 2021.
Total non-interest income for the fiscal year ended September 30, 2022 was $23.8 million compared to $55.3 million for the fiscal year ended September 30, 2021. The drop-off was due to a significant decrease in net gain on loan sales in the current fiscal year. Loan sales tapered as market pricing for loans was less favorable in the current fiscal year. During the fiscal year ended September 30, 2022, there was $128.1 million of loans sold compared to $762.3 million of loans sold during fiscal year 2021. Net gain on sale of loans was $1.1 million during the fiscal year ended September 30, 2022 compared to $33.1 million during fiscal year 2021.
Total non-interest expense for the fiscal year ended September 30, 2022 increased $2.3 million, or 1%, to $198.1 million as compared to fiscal year 2021, mainly due to an increase in marketing costs of $2.1 million.


Total assets increased by $1.73 billion, or 12%, to $15.79 billion at September 30, 2022 from $14.06 billion at September 30, 2021. The increase was mainly the result of new loan originations exceeding the total of loan sales and principal repayments.
Cash and cash equivalents decreased $118.7 million, or 24%, to $369.6 million at September 30, 2022 from $488.3 million at September 30, 2021. The decrease can be attributed to the reinvestment of liquid assets into loan products.
The amount of Federal Home Loan Bank stock owned increased $49.5 million, or 30%, to $212.3 million at September 30, 2022 from $162.8 million at September 30, 2021. The increase was a result of stock ownership requirements of the FHLB that are tied to the level of borrowing.

Loans held for investment, net of allowance and deferred loan expenses, increased $1.75 billion, or 14%, to $14.26 billion at September 30, 2022 from $12.51 billion at September 30, 2021, primarily due to the high level of loans originated and held in portfolio. The residential core mortgage loan portfolio increased $1.32 billion, to $11.54 billion, and home equity loans and lines of credit increased $419.6 million, to $2.63 billion, during the fiscal year. Loan originations, including first mortgages and equity loans and lines of credit, were $5.80 billion and $5.37 billion during the fiscal years ended September 30, 2022 and September 30, 2021.
Deposits decreased $72.6 million, or less than 1%, to $8.92 billion at September 30, 2022 from $8.99 billion at September 30, 2021. The decrease was the result of an $169.3 million decrease in certificates of deposit ("CDs") and an $82.3 million decrease in money market deposit accounts, partially offset by a $77.1 million increase in checking accounts and an $101.5 million increase in savings accounts.
Borrowed funds increased $1.70 billion, or 55%, to $4.79 billion at September 30, 2022 from $3.09 billion at September 30, 2021. The increase was primarily used to fund loan growth. The total balance of borrowed funds at September 30, 2022, mainly from FHLB, included $1.78 billion of overnight advances, $1.24 billion of term advances with a weighted average maturity of approximately 2.9 years, $1.55 billion of term advances, aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.7 years, and $225.0 million in fed fund purchases.
Total shareholders' equity increased $112.1 million, or 6.5%, to $1.84 billion at September 30, 2022 from $1.73 billion at September 30, 2021. Activity reflects $74.6 million of net income, a $91.0 million positive change in accumulated other comprehensive income and $9.8 million of positive adjustments related to our stock compensation and employee stock ownership plans, reduced by $58.2 million of quarterly dividends and $5.0 million in repurchases of common stock. The change in accumulated other comprehensive income is primarily due to a net positive change in unrealized gains and losses on swap contracts. During the fiscal year ended September 30, 2022, a total of 337,259 shares of our common stock were repurchased at an average cost of $14.97 per share. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 5,553,820 shares remaining to be repurchased at September 30, 2022.
The Company declared and paid a quarterly dividend of $0.2825 per share during each of the four quarters of fiscal year 2022. As a result of a mutual member vote, Third Federal Savings and Loan Association of Cleveland, MHC (the "MHC"), the mutual holding company that owns approximately 81% of the outstanding stock of the Company, was able to waive its receipt of its share of the dividend paid. Under Federal Reserve regulations, the MHC is required to obtain the approval of its members every 12 months for the MHC to waive its right to receive dividends. As a result of a July 12, 2022 member vote and the subsequent non-objection of the Federal Reserve, the MHC has the approval to waive receipt of up to $1.13 per share of possible dividends to be declared on the Company’s common stock during the twelve months subsequent to the members’ approval (i.e., through July 12, 2023), including a total of up to $0.8475 during the three quarters ending December 31, 2022, March 31, 2023, and June 30, 2023. The MHC has conducted the member vote to approve the dividend waiver each of the past nine years under Federal Reserve regulations and for each of those nine years, approximately 97% of the votes cast were in favor of the waiver.
The Association operates under the capital requirements for the standardized approach of the Basel III capital framework
for U.S. banking organizations (“Basel III Rules”). At September 30, 2022 all of the Association's capital ratios substantially exceed the amounts required for the Association to be considered "well capitalized" for regulatory capital purposes. The Association’s Tier 1 leverage ratio was 10.33%, its Common Equity Tier 1 and Tier 1 ratios, as calculated under the fully phased-in Basel III Rules, were each 18.25% and its total capital ratio was 18.84%. Additionally, the Company's Tier 1 leverage ratio was 11.66%, its Common Equity Tier 1 and Tier 1 ratios were each 20.59% and its total capital ratio was 21.18%. The current capital ratios of the Association reflect the dilutive impact of $56.0 million of dividends that the Association paid to the Company, its sole shareholder, during the quarter ended December 31, 2021. Because of its intercompany nature, these dividends had no impact on the Company's capital ratios or its consolidated statement of condition.


Presentation slides as of September 30, 2022 will be available on the Company's website, www.thirdfederal.com, under the Investor Relations link within the "Recent Presentations" menu, beginning October 28, 2022. The Company will not be hosting a conference call to discuss its operating results.
Third Federal Savings and Loan Association is a leading provider of savings and mortgage products, and operates under the values of love, trust, respect, a commitment to excellence and fun. Founded in Cleveland in 1938 as a mutual association by Ben and Gerome Stefanski, Third Federal’s mission is to help people achieve the dream of home ownership and financial security. It became part of a public company in 2007 and celebrated its 80th anniversary in May, 2018. Third Federal, which lends in 25 states and the District of Columbia, is dedicated to serving consumers with competitive rates and outstanding service. Third Federal, an equal housing lender, has 21 full service branches in Northeast Ohio, five lending offices in Central and Southern Ohio, and 16 full service branches throughout Florida. As of September 30, 2022, the Company’s assets totaled $15.79 billion.


Forward Looking Statements
     This report contains forward-looking statements, which can be identified by the use of such words as estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions. These forward-looking statements include, among other things:
●statements of our goals, intentions and expectations;
●statements regarding our business plans and prospects and growth and operating strategies;
●
statements concerning trends in our provision for credit losses and charge-offs on loans and off-balance sheet exposures;
●statements regarding the trends in factors affecting our financial condition and results of operations, including credit quality of our loan and investment portfolios; and
●estimates of our risks and future costs and benefits.
     These forward-looking statements are subject to significant risks, assumptions and uncertainties, including, among other things, the following important factors that could affect the actual outcome of future events:
●significantly increased competition among depository and other financial institutions, including with respect to our ability to charge overdraft fees;
●inflation and changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments, or our ability to originate loans;
●general economic conditions, either globally, nationally or in our market areas, including employment prospects, real estate values and conditions that are worse than expected;
●
the strength or weakness of the real estate markets and of the consumer and commercial credit sectors and its impact on the credit quality of our loans and other assets, and changes in estimates of the allowance for credit losses;
●decreased demand for our products and services and lower revenue and earnings because of a recession or other events;
●changes in consumer spending, borrowing and savings habits;
●adverse changes and volatility in the securities markets, credit markets or real estate markets;
●our ability to manage market risk, credit risk, liquidity risk, reputational risk, and regulatory and compliance risk;
●our ability to access cost-effective funding;
●legislative or regulatory changes that adversely affect our business, including changes in regulatory costs and capital requirements and changes related to our ability to pay dividends and the ability of Third Federal Savings, MHC to waive dividends;
●changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board;
●the adoption of implementing regulations by a number of different regulatory bodies, and uncertainty in the exact nature, extent and timing of such regulations and the impact they will have on us;
●our ability to enter new markets successfully and take advantage of growth opportunities, and the possible short-term dilutive effect of potential acquisitions or de novo branches, if any;
●our ability to retain key employees;
●future adverse developments concerning Fannie Mae or Freddie Mac;
●changes in monetary and fiscal policy of the U.S. Government, including policies of the U.S. Treasury and the FRS and changes in the level of government support of housing finance;
●the continuing governmental efforts to restructure the U.S. financial and regulatory system;
●the ability of the U.S. Government to remain open, function properly and manage federal debt limits;
●changes in policy and/or assessment rates of taxing authorities that adversely affect us or our customers;
●changes in accounting and tax estimates;
●
changes in our organization, or compensation and benefit plans and changes in expense trends (including, but not limited to trends affecting non-performing assets, charge-offs and provisions for credit losses);
●the inability of third-party providers to perform their obligations to us;
●the effects of global or national war, conflict or acts of terrorism;
●
civil unrest;
●
cyber-attacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems; and
●the impact of wide-spread pandemic, including COVID-19, and related government action, on our business and the economy.
     Because of these and other uncertainties, our actual future results may be materially different from the results indicated by any forward-looking statements. Any forward-looking statement made by us in this report speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.


TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
(In thousands, except share data)
September 30,
2022		September 30,
2021
ASSETS
Cash and due from banks$18,961 $27,346 
Other interest-earning cash equivalents350,603 460,980 
Cash and cash equivalents369,564 488,326 
Investment securities available for sale457,908 421,783 
Mortgage loans held for sale 9,661 8,848 
Loans held for investment, net:
Mortgage loans14,276,478 12,525,687 
Other loans3,263 2,778 
Deferred loan expenses, net50,221 44,859 
Allowance for credit losses on loans(72,895)(64,289)
Loans, net14,257,067 12,509,035 
Mortgage loan servicing rights, net7,943 8,941 
Federal Home Loan Bank stock, at cost212,290 162,783 
Real estate owned, net1,191 289 
Premises, equipment, and software, net34,531 37,420 
Accrued interest receivable40,256 31,107 
Bank owned life insurance contracts304,040 297,332 
Other assets95,747 91,586 
TOTAL ASSETS$15,790,198 $14,057,450 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits$8,921,017 $8,993,605 
Borrowed funds4,793,221 3,091,815 
Borrowers’ advances for insurance and taxes117,250 109,633 
Principal, interest, and related escrow owed on loans serviced29,913 41,476 
Accrued expenses and other liabilities84,458 88,641 
Total liabilities13,945,859 12,325,170 
Commitments and contingent liabilities
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding— — 
Common stock, $0.01 par value, 700,000,000 shares authorized; 332,318,750 shares issued3,323 3,323 
Paid-in capital1,751,223 1,746,887 
Treasury stock, at cost(771,986)(768,035)
Unallocated ESOP shares(31,417)(35,751)
Retained earnings—substantially restricted870,047 853,657 
Accumulated other comprehensive income (loss)23,149 (67,801)
Total shareholders’ equity1,844,339 1,732,280 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$15,790,198 $14,057,450 




TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
For the three months ended
 September 30,
2022		June 30,
2022		March 31,
2022		December 31,
2021		September 30,
2021
INTEREST AND DIVIDEND INCOME:
Loans, including fees$114,871 $99,576 $91,125 $90,119 $92,002 
Investment securities available for sale1,904 1,282 1,355 960 1,041 
Other interest and dividend earning assets4,236 1,913 981 1,011 1,033 
Total interest and dividend income121,011 102,771 93,461 92,090 94,076 
INTEREST EXPENSE:
Deposits23,582 17,214 16,896 19,251 21,617 
Borrowed funds21,920 14,255 13,824 14,995 15,061 
Total interest expense45,502 31,469 30,720 34,246 36,678 
NET INTEREST INCOME75,509 71,302 62,741 57,844 57,398 
PROVISION (RELEASE) FOR CREDIT LOSSES— 4,000 (1,000)(2,000)(2,000)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES75,509 67,302 63,741 59,844 59,398 
NON-INTEREST INCOME:
Fees and service charges, net of amortization2,220 2,742 2,568 2,404 2,156 
Net gain (loss) on the sale of loans(1,113)(51)113 2,187 4,305 
Increase in and death benefits from bank owned life insurance contracts2,761 2,090 2,222 2,911 2,146 
Other514 896 688 652 74 
Total non-interest income4,382 5,677 5,591 8,154 8,681 
NON-INTEREST EXPENSE:
Salaries and employee benefits27,206 28,756 26,862 26,515 26,912 
Marketing services4,256 4,830 6,551 5,626 4,043 
Office property, equipment and software6,558 6,762 6,824 6,639 6,453 
Federal insurance premium and assessments2,722 2,351 2,276 2,012 2,233 
State franchise tax1,201 1,197 1,237 1,224 1,202 
Other expenses6,799 7,860 6,225 5,657 6,603 
Total non-interest expense48,742 51,756 49,975 47,673 47,446 
INCOME BEFORE INCOME TAXES31,149 21,223 19,357 20,325 20,633 
INCOME TAX EXPENSE5,716 4,076 3,512 4,185 3,618 
NET INCOME$25,433 $17,147 $15,845 $16,140 $17,015 
Earnings per share - basic and diluted $0.09 $0.06 $0.06 $0.06 $0.06 
Weighted average shares outstanding
Basic277,383,038 277,453,439 277,423,493 277,225,121 276,982,904 
Diluted278,505,233 278,555,759 278,819,539 278,903,373 278,880,379 



TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
 For the Year Ended
September 30,
 20222021
INTEREST AND DIVIDEND INCOME:
Loans, including fees$395,691 $381,887 
Investment securities available for sale5,501 3,822 
Other interest and dividend earning assets8,141 3,642 
Total interest and dividend income409,333 389,351 
INTEREST EXPENSE:
Deposits76,943 97,319 
Borrowed funds64,994 60,402 
Total interest expense141,937 157,721 
NET INTEREST INCOME267,396 231,630 
PROVISION (RELEASE) FOR CREDIT LOSSES1,000 (9,000)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES266,396 240,630 
NON-INTEREST INCOME:
Fees and service charges, net of amortization9,934 9,602 
Net gain on the sale of loans1,136 33,082 
Increase in and death benefits from bank owned life insurance contracts9,984 9,961 
Other2,750 2,654 
Total non-interest income23,804 55,299 
NON-INTEREST EXPENSE:
Salaries and employee benefits109,339 108,867 
Marketing services21,263 19,174 
Office property, equipment and software26,783 25,710 
Federal insurance premium and assessments9,361 9,085 
State franchise tax4,859 4,663 
Other expenses26,541 28,336 
Total non-interest expense198,146 195,835 
INCOME BEFORE INCOME TAXES92,054 100,094 
INCOME TAX EXPENSE17,489 19,087 
NET INCOME$74,565 $81,007 
Earnings per share - basic and diluted$0.26 $0.29 
Weighted average shares outstanding
Basic277,370,762 276,694,594 
Diluted278,686,365 278,576,254 


TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Three Months EndedThree Months EndedThree Months Ended
September 30, 2022June 30, 2022September 30, 2021
 Average
Balance		Interest
Income/
Expense		Yield/
Cost (1)		Average
Balance		Interest
Income/
Expense		Yield/
Cost (1)		Average
Balance		Interest
Income/
Expense		Yield/
Cost (1)
 (Dollars in thousands)
Interest-earning assets:
  Interest-earning cash
equivalents		$370,138 $2,118 2.29 %$337,551 $709 0.84 %$570,903 $221 0.15 %
  Investment securities3,758 11 1.17 %3,836 12 1.25 %— — — %
  Mortgage-backed securities458,734 1,893 1.65 %444,972 1,270 1.14 %417,320 1,041 1.00 %
  Loans (2)14,108,190 114,871 3.26 %13,497,362 99,576 2.95 %12,544,760 92,002 2.93 %
  Federal Home Loan Bank stock198,306 2,118 4.27 %170,155 1,204 2.83 %162,783 812 2.00 %
Total interest-earning assets15,139,126 121,011 3.20 %14,453,876 102,771 2.84 %13,695,766 94,076 2.75 %
Noninterest-earning assets474,634 467,329 533,988 
Total assets$15,613,760 $14,921,205 $14,229,754 
Interest-bearing liabilities:
  Checking accounts$1,387,365 2,670 0.77 %$1,475,586 958 0.26 %$1,117,897 263 0.09 %
  Savings accounts1,852,614 2,580 0.56 %1,882,881 931 0.20 %1,805,394 645 0.14 %
  Certificates of deposit5,861,011 18,332 1.25 %5,711,412 15,325 1.07 %6,144,461 20,709 1.35 %
  Borrowed funds4,453,039 21,920 1.97 %3,774,204 14,255 1.51 %3,146,515 15,061 1.91 %
Total interest-bearing liabilities13,554,029 45,502 1.34 %12,844,083 31,469 0.98 %12,214,267 36,678 1.20 %
Noninterest-bearing liabilities220,129 250,437 289,573 
Total liabilities13,774,158 13,094,520 12,503,840 
Shareholders’ equity1,839,602 1,826,685 1,725,914 
Total liabilities and shareholders’ equity$15,613,760 $14,921,205 $14,229,754 
Net interest income$75,509 $71,302 $57,398 
Interest rate spread (1)(3)1.86 %1.86 %1.55 %
Net interest-earning assets (4)$1,585,097 $1,609,793 $1,481,499 
Net interest margin (1)(5)2.00 %1.97 %1.68 %
Average interest-earning assets to average interest-bearing liabilities111.69 %112.53 %112.13 %
Selected performance ratios:
Return on average assets (1)0.65 %0.46 %0.48 %
Return on average equity (1)5.53 %3.75 %3.94 %
Average equity to average assets11.78 %12.24 %12.13 %
 
(1)Annualized.
(2)Loans include both mortgage loans held for sale and loans held for investment.
(3)Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5)Net interest margin represents net interest income divided by total interest-earning assets.








TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Year EndedYear Ended
September 30, 2022September 30, 2021
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
 (Dollars in thousands)
Interest-earning assets:
  Interest-earning cash
  equivalents		$384,947 $3,178 0.83 %$567,035 $673 0.12 %
Investment securities3,643 43 1.18 %— — — %
Mortgage-backed securities439,269 5,458 1.24 %428,590 3,822 0.89 %
  Loans (1)13,258,517 395,691 2.98 %12,800,542 381,887 2.98 %
  Federal Home Loan Bank stock173,506 4,963 2.86 %155,322 2,969 1.91 %
Total interest-earning assets14,259,882 409,333 2.87 %13,951,489 389,351 2.79 %
Noninterest-earning assets482,501 532,786 
Total assets$14,742,383 $14,484,275 
Interest-bearing liabilities:
  Checking accounts$1,326,882 4,186 0.32 %$1,079,699 1,140 0.11 %
  Savings accounts1,859,990 4,553 0.24 %1,742,042 2,992 0.17 %
  Certificates of deposit5,826,286 68,204 1.17 %6,339,412 93,187 1.47 %
  Borrowed funds3,671,323 64,994 1.77 %3,303,925 60,402 1.83 %
Total interest-bearing liabilities12,684,481 141,937 1.12 %12,465,078 157,721 1.27 %
Noninterest-bearing liabilities255,388 321,958 
Total liabilities12,939,869 12,787,036 
Shareholders’ equity1,802,514 1,697,239 
Total liabilities and shareholders’ equity$14,742,383 $14,484,275 
Net interest income$267,396 $231,630 
Interest rate spread (2)1.75 %1.52 %
Net interest-earning assets (3)$1,575,401 $1,486,411 
Net interest margin (4)1.88 %1.66 %
Average interest-earning assets to average interest-bearing liabilities112.42 %111.92 %
Selected performance ratios:
Return on average assets 0.51 %0.56 %
Return on average equity 4.14 %4.77 %
Average equity to average assets12.23 %11.72 %


(1)Loans include both mortgage loans held for sale and loans held for investment.
(2)Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(3)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4)Net interest margin represents net interest income divided by total interest-earning assets.