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Contact : Jennifer Rosa ( 216 ) 429-5037 For release July 29 , 2021 Exhibit 99.1 TFS Financial Corporation Announces Third Quarter Results Strong Loan Originations Continue ( Cleveland , OH - July 29 , 2021 ) - 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 and nine months ended June 30 , 2021 . The Company reported net income of $ 16.0 million for the quarter ended June 30 , 2021 compared to net income of $ 26.8 million for the quarter ended June 30 , 2020 , with the decrease mainly from a combination of lower gain on the sale of loans and lower net interest income . Net income of $ 64.0 million was reported for the nine months ended June 30 , 2021 compared to net income of $ 69.7 million for the nine months ended June 30 , 2020. A decline in net interest income and higher expenses for the current nine month period offset the benefit of higher non - interest income and releases from the credit loss provision . " Our commitment to our customers starts with our mission to help them achieve the dream of home ownership , " said Chairman and CEO Marc A. Stefanski . " Their success is our success , and the results show in our more than 30 percent growth in loan originations over last year . " Loan origination volumes remained high , as we originated $ 845 million of first mortgages during the quarter ended June 30 , 2021 , consisting of $ 612 million of fixed - rate loans and $ 233 million of adjustable - rate loans . In the quarter ended June 30 , 2020 , we originated $ 871 million of first mortgages . For the nine months ended June 30 , 2021 and 2020 , first mortgage loan originations were $ 2.91 billion and $ 2.00 billion , respectively . New equity line of credit commitments were $ 387 million and $ 1.17 billion , respectively , for the quarter and nine months ended June 30 , 2021. In the prior year , new equity line of credit commitments were $ 314 million for the quarter and $ 996 million for nine months . Net gain on the sale of loans was $ 3.4 million on loan sales of $ 116.6 million for the quarter ended June 30 , 2021 , compared to a net gain of $ 10.8 million on loan sales of $ 314.9 million for the quarter ended June 30 , 2020. Net gain on the sale of loans was $ 28.8 million on loan sales of $ 634.0 million for the nine months ended June 30 , 2021 , compared to a net gain of $ 16.9 million on loan sales of $ 638.2 million for the nine months ended June 30 , 2020. The cumulative impact of total loan sales of $ 1.48 billion since the beginning of fiscal 2020 contributed to the decline in the loan portfolio and net interest income in the current year . By comparison , loan sales were $ 117.3 million for the fiscal year ended September 30 , 2019 . Net interest income was $ 57.1 million for the quarter ended June 30 , 2021 compared to $ 62.9 million for the quarter ended June 30 , 2020. Net interest income decreased by $ 17.9 million , or 9.32 % , to $ 174.2 million , for the nine months ended June 30 , 2021 from $ 192.1 million for the nine months ended June 30 , 2020. The interest rate spread was 1.50 % and 1.51 % for the quarter and nine months ended June 30 , 2021 compared to 1.60 % and 1.62 % for the quarter and nine months ended June 30 , 2020. The decrease in spread was primarily due to lower yield on loans as many borrowers refinanced to take advantage of the lower rate environment and a decrease in the average balances of loans due to loan sales and payoffs . In addition , the increase in lower yielding cash equivalent investments was a detriment to the overall yield on assets . Funding costs were lowered , partially offsetting the decrease in yield , through a reduction in the average balance of borrowed funds , including maturities and prior year terminations of Federal Home Loan Bank ( " FHLB " ) advances and their related swap contracts ; the repricing of certificates of deposit , as they mature , to market rates of interest ; and the migration from certificates of deposit to lower - priced non - maturity deposit accounts . The net interest margin was 1.63 % and 1.66 % for the quarter and nine months ended June 30 , 2021 , respectively , compared to 1.74 % and 1.79 % for the quarter and nine months ended June 30 , 2020 , respectively . A release of $ 1.0 million was recorded to the allowance for credit losses during the quarter ended June 30 , 2021 compared to no provision for the quarter ended June 30 , 2020 and a release of $ 7.0 million was recorded for the nine months ended June 30 , 2021 compared to a provision of $ 3.0 million for the nine months ended June 30 , 2020. Releases from the allowance for credit losses during the current year reflected improvements in the economic trends and forecasts used to estimate losses for the reasonable and supportable period and decreases in pandemic forbearance balances . On October 1 , 2020 , the Company adopted the Current Expected Credit Loss ( " CECL " ) methodology and recognized a $ 46.2 million increase to the allowance for credit losses and a related $ 35.8 million reduction to retained earnings , net of tax . The allowance for credit losses was $ 89.7 million , or 0.71 % of total loans receivable , at June 30 , 2021 , compared to $ 89.7 million , or 0.70 % of total loans receivable , at March 31 , 2021 and $ 46.9 million , or 0.36 % of total loans receivable , at September 30 , 2020. The allowance for credits losses at June 30 , 2021 included a $ 23.3 million liability for unfunded commitments , primarily undrawn equity line of credit commitments . There was no liability for unfunded commitments recorded at September 30 , 2020. The Company recorded $ 1.0