Home-equity loans – Arro Payday Loans http://arropaydayloans.com/ Tue, 22 Nov 2022 22:23:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://arropaydayloans.com/wp-content/uploads/2021/07/cropped-icon-32x32.png Home-equity loans – Arro Payday Loans http://arropaydayloans.com/ 32 32 TFS FINANCIAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-K) https://arropaydayloans.com/tfs-financial-corp-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-k/ Tue, 22 Nov 2022 22:23:15 +0000 https://arropaydayloans.com/tfs-financial-corp-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-k/ Insight Our business strategy is to operate as a well capitalized and profitable financial institution dedicated to providing exceptional personal service to our customers. Since being organized in 1938, we grew to become, at the time of our initial public offering of stock in April 2007, the nation's largest mutually-owned savings and loan association based […]]]>

Insight

Our business strategy is to operate as a well capitalized and profitable financial institution dedicated to providing exceptional personal service to our customers.


Since being organized in 1938, we grew to become, at the time of our initial
public offering of stock in April 2007, the nation's largest mutually-owned
savings and loan association based on total assets. We credit our success to our
continued emphasis on our primary values: "Love, Trust, Respect, and a
Commitment to Excellence, along with Having Fun." Our values are reflected in
the design and pricing of our loan and deposit products, as described below. Our
values are further reflected in a long-term revitalization program encompassing
the three-mile corridor of the Broadway-Slavic Village neighborhood in
Cleveland, Ohio where our main office was established and continues to be
located and where the educational programs we have established and/or support
are located. We intend to continue to adhere to our primary values and to
support our customers and the communities in which we operate, as we pursue our
mission to help people achieve the dream of home ownership and financial
security while creating value for our shareholders, our customers, our
communities and our associates.

The following tables present select financial data of the Company for the five
most recent fiscal years.

                                                                                       At September 30,
                                                 2022                  2021                  2020                  2019                  2018
                                                                                        (In thousands)
Selected Financial Condition Data:
Total assets                                $ 15,789,879          $ 

14,057,450 $14,642,221 $14,542,356 $14,137,331
Cash and cash equivalents

                        369,564               488,326               498,033               275,143               269,775
Investment securities - available for sale       457,908               421,783               453,438               547,864               531,965

Loans held for sale                                9,661                 8,848                36,871                 3,666                   659
Loans, net                                    14,257,067            12,509,035            13,103,062            13,195,745            12,871,294
Bank owned life insurance                        304,040               297,332               222,919               217,481               212,021
Prepaid expenses and other assets                 95,428                91,586               104,832                87,957                44,344
Deposits                                       8,921,017             8,993,605             9,225,554             8,766,384             8,491,583
Borrowed funds                                 4,793,221             3,091,815             3,521,745             3,902,981             3,721,699
Shareholders' equity                           1,844,339             1,732,280             1,671,853             1,696,754             1,758,404


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For the years ended September 30,

                                                      2022               2021               2020               2019               2018
                                                                          (In thousands, except per share amounts)
Selected Operating Data:
Interest income                                   $ 409,333          $ 389,351          $ 455,298          $ 482,087          $ 443,045
Interest expense                                    141,937            157,721            213,030            216,666            162,104
Net interest income                                 267,396            231,630            242,268            265,421            280,941
Provision (release) for credit losses on loans        1,000             (9,000)             3,000            (10,000)           (11,000)
Net interest income after provision (release) for
credit losses on loans                              266,396            240,630            239,268            275,421            291,941
Non-interest income                                  23,804             55,299             53,251             20,464             21,536
Non-interest expenses                               198,146            195,835            192,274            193,673            192,313
Earnings before income tax                           92,054            100,094            100,245            102,212            121,164
Income tax expense                                   17,489             19,087             16,928             21,975             35,757
Net earnings after income tax expense             $  74,565          $  

81,007 $83,317 $80,237 $85,407
Basic earnings per share

                                             $    0.26          $    

0.29 $0.30 $0.29 $0.31
Diluted

                                           $    0.26          $    

0.29 $0.29 $0.28 $0.30
Cash dividends declared per share

                 $    1.13          $    

1.12 $1.11 $1.02 $0.760

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                                                                              At or For The Years Ended September 30,
                                                      2022                 2021                 2020                 2019                 2018
Selected Financial Ratios and Other Data:
Performance Ratios:
 Return on average assets                               0.51  %              0.56  %              0.56  %              0.56  %              0.62  %
 Return on average equity                               4.14  %              4.77  %              4.88  %              4.58  %              4.91  %
 Interest rate spread(1)                                1.75  %              1.52  %              1.52  %              1.73  %              1.93  %
 Net interest margin(2)                                 1.88  %              1.66  %              1.69  %              1.92  %              2.08  %
 Efficiency ratio(3)                                   68.04  %             68.25  %             65.06  %             67.75  %             63.58  %
 Non-interest expense to average total assets           1.34  %              1.35  %              1.29  %              1.36  %              1.39  %
 Average interest-earning assets to average
interest-bearing
 liabilities                                          112.42  %            111.92  %            111.41  %            112.28  %            112.96  %

Asset quality ratios:

 Non-performing assets as a percent of total
assets                                                  0.23  %              0.32  %              0.37  %              0.50  %              0.57  %
 Non-accruing loans as a percent of total loans         0.25  %              0.35  %              0.41  %              0.54  %              0.60  %
 Allowance for credit losses on loans as a
percent of
 non-accruing loans                                   204.73  %            145.96  %             87.95  %             54.60  %             54.56  %
 Allowance for credit losses on loans as a
percent of total loans                                  0.51  %              0.51  %              0.36  %              0.29  %              0.33  %
Capital Ratios:
Association

Total capital to risk-weighted assets(4)               18.84  %             21.00  %             19.96  %             19.56  %             20.47  %

Tier 1 (leverage) capital to net average
assets(4)                                              10.33  %             11.15  %             10.39  %             10.54  %             10.87  %

    Tier 1 capital to risk-weighted assets(4)          18.25  %             20.43  %             19.37  %             19.07  %             19.91  %
    Common equity tier 1 capital to
risk-weighted assets(4)                                18.25  %             20.43  %             19.37  %             19.07  %             19.91  %

TSF Financial Corporation


Total capital to risk-weighted assets(4)               21.18  %             23.75  %             22.71  %             22.22  %             22.94  %

Tier 1 (leverage) capital to net average
assets(4)                                              11.66  %             12.65  %             11.88  %             12.05  %             12.25  %

    Tier 1 capital to risk-weighted assets(4)          20.59  %             23.18  %             22.13  %             21.73  %             22.39  %
    Common equity tier 1 capital to
risk-weighted assets(4)                                20.59  %             23.18  %             22.13  %             21.73  %             22.39  %
Average equity to average total assets                 12.23  %             11.72  %             11.50  %             12.30  %             12.56  %
Other Data:
Association:
Number of full service offices                            37                   37                   37                   37                   38
Loan production offices                                    5                    7                    7                    8                    8


______________________

(1)Represents the difference between the weighted average return on interest-bearing assets and the weighted average cost of interest-bearing liabilities for the year.

(2) Net interest margin represents net interest income as a percentage of average interest-earning assets for the year.

(3) The efficiency ratio represents non-interest expenses divided by the sum of net interest income and non-interest income.


(4)In April 2020, the Simplifications to the Capital Rule ("Rule") was adopted,
which simplified certain aspects of the capital rule under Basel III. The impact
of the Rule was not material to the regulatory capital ratios.

Management believes that the following matters are those most critical to our
success: (1) controlling our interest rate risk exposure; (2) monitoring and
limiting our credit risk; (3) maintaining access to adequate liquidity and
diverse funding sources to support our growth; and (4) monitoring and
controlling our operating expenses.

Controlling Our Interest Rate Risk Exposure. Historically, our greatest risk has
been our exposure to changes in interest rates. When we hold longer-term,
fixed-rate assets, funded by liabilities with shorter-term re-pricing
characteristics, we are exposed to potentially adverse impacts from changing
interest rates, and most notably rising interest rates. Generally, and
particularly over extended periods of time that encompass full economic cycles,
interest rates associated with longer-term
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assets, like fixed-rate mortgages, have been higher than interest rates
associated with shorter-term funding sources, like deposits. This difference has
been an important component of our net interest income and is fundamental to our
operations. We manage the risk of holding longer-term, fixed-rate mortgage
assets primarily by maintaining regulatory capital in excess of levels required
to be well capitalized, by promoting adjustable-rate loans and shorter-term
fixed-rate loans, by marketing home equity lines of credit, which carry an
adjustable rate of interest indexed to the prime rate, by opportunistically
extending the duration of our funding sources and selectively selling a portion
of our long-term, fixed-rate mortgage loans in the secondary market.

Levels of Regulatory capital


For most insured depositories, customer and community confidence are critical to
their ability to maintain access to adequate liquidity and to conduct business
in an orderly manner. We believe that a well capitalized institution is one of
the most important factors in nurturing customer and community confidence. At
September 30, 2022, the Company's Tier 1 (leverage) capital totaled $1.82
billion, or 11.66% of net average assets and 20.59% of risk-weighted assets,
while the Association's Tier 1 (leverage) capital totaled $1.61 billion, or
10.33% of net average assets and 18.25% of risk-weighted assets. Each of these
measures was more than twice the requirements currently in effect for the
Association for designation as "well capitalized" under regulatory prompt
corrective action provisions, which set minimum levels of 5.00% of net average
assets and 8.00% of risk-weighted assets. Refer to the Liquidity and Capital
Resources section of this Item 7 for additional discussion regarding regulatory
capital requirements.

Promotion of adjustable-rate loans and shorter-term fixed-rate loans


We market an adjustable-rate mortgage loan that provides us with improved
interest rate risk characteristics when compared to a 30-year, fixed-rate
mortgage loan. Our "Smart Rate" adjustable-rate mortgage offers borrowers an
interest rate lower than that of a 30-year, fixed-rate loan. The interest rate
of the Smart Rate mortgage is locked for three or five years then resets
annually. The Smart Rate mortgage contains a feature to re-lock the rate an
unlimited number of times at our then-current interest rate and fee schedule,
for another three or five years (which must be the same as the original lock
period) without having to complete a full refinance transaction. Re-lock
eligibility is subject to a satisfactory payment performance history by the
borrower (current at the time of re-lock, and no foreclosures or bankruptcies
since the Smart Rate application was taken). In addition to a satisfactory
payment history, re-lock eligibility requires that the property continues to be
the borrower's primary residence. The loan term cannot be extended in connection
with a re-lock nor can new funds be advanced. All interest rate caps and floors
remain as originated.

We also offer a ten-year, fully amortizing fixed-rate, first mortgage loan. The
ten-year, fixed-rate loan has a more desirable interest rate risk profile when
compared to loans with fixed-rate terms of 15 to 30 years and can help to more
effectively manage interest rate risk exposure, yet provides our borrowers with
the certainty of a fixed interest rate throughout the life of the obligation.

The following tables present our production and balances of first mortgage loans broken down by original loan structure.

For the years ended September 30,

                                                                       2022                                        2021
                                                            Amount                 Percent              Amount              Percent
First Mortgage Loan Originations:                                                  (Dollars in thousands)
ARM (all Smart Rate) production                       $      1,029,156                28.2  %       $ 1,089,410                30.0  %

Package production:

  Terms less than or equal to 10 years                         470,806                12.9              540,723                14.9
  Terms greater than 10 years                                2,146,021                58.9            1,997,694                55.1
    Total fixed-rate production                              2,616,827                71.8            2,538,417                70.0
Total First Mortgage Loan Originations:               $      3,645,983               100.0  %       $ 3,627,827               100.0  %


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                                                               September 30, 2022                              September 30, 2021
                                                           Amount                  Percent                 Amount                  Percent
Balances of First Mortgage Loans Held For
Investment:                                                                          (Dollars in thousands)
ARM (primarily Smart Rate) Loans                    $        4,668,089                40.3  %       $        4,646,760                45.2  %

Fixed rate loans:

  Terms less than or equal to 10 years                       1,350,436                11.6                   1,309,407                12.7
  Terms greater than 10 years                                5,574,589                48.1                   4,322,931                42.1
    Total fixed-rate loans                                   6,925,025                59.7                   5,632,338                54.8

Total first mortgages held for investment: $11,593,114

          100.0  %       $       10,279,098               100.0  %


The following table shows the balances at September 30, 2022 for all ARM loans separated by the next scheduled interest rate reset date.

                                       Current Balance of ARM Loans 

Scheduled for

                                                  Interest Rate Reset
During the Fiscal Years Ending
September 30,                                        (in thousands)
2023                                                                        $207,932
2024                                                         354,614
2025                                                         708,993
2026                                                       1,525,895
2027                                                       1,770,027
2028                                                         100,628
   Total                                                                  $4,668,089


At September 30, 2022 and September 30, 2021, mortgage loans held for sale, all
of which were long-term, fixed-rate first mortgage loans and all of which were
held for sale to Fannie Mae, totaled $9.7 million and $8.8 million,
respectively.
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Loan Portfolio Return

The following tables present the balance and interest yield at
September 30, 2022 portfolio of loans held for investment purposes, by type of loan, structure and geographic location.

                                                          September 30, 2022
                                                   Balance           Percent      Yield
                                                        (Dollars in thousands)
Total Loans:
Fixed Rate

Duration less than or equal to 10 years $1,350,436 9.4% 2.62%

   Terms greater than 10 years                       5,574,589        38.8  %     3.51  %
Total Fixed-Rate loans                               6,925,025        48.2  %     3.34  %

ARMs                                                 4,668,089        32.5  %     2.75  %
Home Equity Loans and Lines of Credit                2,633,878        18.4  %     5.30  %
Construction and Other loans                           125,022         0.9  %     3.32  %
Total Loans Receivable                       $      14,352,014       100.0  %     3.51  %



                                                                                  September 30, 2022
                                                                            Fixed Rate
                                                        Balance               Balance              Percent               Yield
                                                                                (Dollars in thousands)
Residential Mortgage Loans
Ohio                                                $  6,483,740          $  4,932,438                 45.2  %             3.30  %
Florida                                                2,123,113             1,027,910                 14.8                3.00  %
Other                                                  2,986,261               964,677                 20.7                2.73  %
   Total Residential Mortgage Loans                   11,593,114             6,925,025                 80.7                3.11  %
Home Equity Loans and Lines of Credit
Ohio                                                     706,641                60,228                  5.0                5.30  %
Florida                                                  537,724                39,968                  3.7                5.25  %
California                                               432,540                27,708                  3.0                5.25  %
Other                                                    956,973                22,832                  6.7                5.35  %
   Total Home Equity Loans and Lines of
Credit                                                 2,633,878               150,736                 18.4                5.30  %
Construction and Other loans                             125,022               125,022                  0.9                3.32  %
Total Loans Receivable                              $ 14,352,014          $  7,200,783                100.0  %             3.51  %



Marketing home equity lines of credit


We actively market home equity lines of credit, which carry an adjustable rate
of interest indexed to the prime rate which provides interest rate sensitivity
to that portion of our assets and is a meaningful strategy to manage our
interest rate risk profile. We plan to enhance our ability to grow the home
equity line of credit portfolio by utilizing partners to attract more home
equity line of credit customers. At September 30, 2022, the principal balance of
home equity lines of credit totaled $2.37 billion. Our home equity lending is
discussed in the preceding Lending Activities section of Item 1. Business in
Part I. THIRD FEDERAL SAVINGS AND LOAN ASSOCIATION OF CLEVELAND.

Extend the duration of funding sources


As a complement to our strategies to shorten the duration of our interest
earning assets, as described above, we also seek to lengthen the duration of our
interest bearing funding sources. These efforts include monitoring the relative
costs of alternative funding sources such as retail deposits, brokered deposits,
longer-term (e.g. four to six years) fixed rate advances from the FHLB of
Cincinnati, and shorter-term (e.g. three months) advances from the FHLB of
Cincinnati, the durations of which are extended by correlated interest rate
exchange contracts. Each funding alternative is monitored and evaluated based on
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its effective interest payment rate, options exercisable by the creditor (early
withdrawal, right to call, etc.), and collateral requirements. The interest
payment rate is a function of market influences that are specific to the nuances
and market competitiveness/breadth of each funding source. Generally, early
withdrawal options are available to our retail CD customers but not to holders
of brokered CDs; issuer call options are not provided on our advances from the
FHLB of Cincinnati; and we are not subject to early termination options with
respect to our interest rate exchange contracts. Additionally, collateral
pledges are not provided with respect to our retail CDs or our brokered CDs; but
are required for our advances from the FHLB of Cincinnati as well as for our
interest rate exchange contracts. Our funding sources are discussed in the
Sources of Funds section of Item 1. Business in Part I. THIRD FEDERAL SAVINGS
AND LOAN ASSOCIATION OF CLEVELAND.

Other interest rate risk management tools


We also manage interest rate risk by selectively selling a portion of our
long-term, fixed-rate mortgage loans in the secondary market. At September 30,
2022, we serviced $2.05 billion of loans for others. In deciding whether to sell
loans to manage interest rate risk, we also consider the level of gains to be
recognized in comparison to the impact to our net interest income. We began
expanding our ability to sell certain fixed rate loans to Fannie Mae in fiscal
2022 and beyond, through the use of more traditional mortgage banking
activities, including risk-based pricing and loan-level pricing adjustments.
This concept is being tested in markets outside of Ohio and Florida, and some
additional startup and marketing costs have been incurred, but have not
significantly impacted our financial results. We can also manage interest rate
risk by selling non-Fannie Mae compliant mortgage loans to private investors,
although those transactions are dependent upon favorable market conditions,
including motivated private investors, and involve more complicated negotiations
and longer settlement timelines. Loan sales are discussed later in this Part II,
Item 7. under the heading Liquidity and Capital Resources, and in Part II, Item
7A. Quantitative and Qualitative Disclosures About Market Risk.

Notwithstanding our efforts to manage interest rate risk, should a rapid and
substantial increase occur in general market interest rates, or an extended
period of a flat or inverted yield curve market persists, it is expected that,
prospectively and particularly over a multi-year time horizon, the level of our
net interest income would be adversely impacted.

Monitoring and Limiting Our Credit Risk. While, historically, we had been
successful in limiting our credit risk exposure by generally imposing high
credit standards with respect to lending, the memory of the 2008 housing market
collapse and financial crisis is a constant reminder to focus on credit risk. In
response to the evolving economic landscape, we continuously revise and update
our quarterly analysis and evaluation procedures, as needed, for each category
of our lending with the objective of identifying and recognizing all appropriate
credit losses. At September 30, 2022, 90% of our assets consisted of residential
real estate loans (both "held for sale" and "held for investment") and home
equity loans and lines of credit. Our analytic procedures and evaluations
include specific reviews of all home equity loans and lines of credit that
become 90 or more days past due, as well as specific reviews of all first
mortgage loans that become 180 or more days past due. We transfer performing
home equity lines of credit subordinate to first mortgages delinquent greater
than 90 days to non-accrual status. We also charge-off performing loans to
collateral value and classify those loans as non-accrual within 60 days of
notification of all borrowers filing Chapter 7 bankruptcy, that have not
reaffirmed or been dismissed, regardless of how long the loans have been
performing.

In an effort to align our credit risk exposure with the low risk appetite
approved by the Board of Directors, the credit eligibility criteria is evaluated
to ensure a successful homeowner has the primary source of repayment, followed
by a collateral position that allows for a secondary source of repayment, if
needed. Products that do not result in an effective mix of repayment ability are
not offered. We use stringent, conservative lending standards for underwriting
to reduce our credit risk. For first mortgage loans originated during the
current fiscal year, the average credit score was 775, and the average LTV was
63%. The delinquency level related to loan originations prior to 2009, compared
to originations in 2009 and after, reflect the higher credit standards to which
we have subjected all new originations. As of September 30, 2022, loans
originated prior to 2009 had a balance of $336.3 million, of which $8.1 million,
or 2.4%, were delinquent, while loans originated in 2009 and after had a balance
of $14.0 billion, of which $13.0 million, or 0.1%, were delinquent.

One aspect of our credit risk concern relates to high concentrations of our
loans that are secured by residential real estate in specific states,
particularly Ohio and Florida, where a large portion of our historical lending
has occurred. At September 30, 2022, approximately 56.1% and 18.3% of the
combined total of our residential Core and construction loans held for
investment and approximately 26.8% and 20.4% of our home equity loans and lines
of credit were secured by properties in Ohio and Florida, respectively. In an
effort to moderate the concentration of our credit risk exposure in individual
states, particularly Ohio and Florida, we have utilized direct mail marketing,
our internet site and our customer service call center to extend our lending
activities to other attractive geographic locations. Currently, in addition to
Ohio and Florida, we are actively lending in 23 other states and the District of
Columbia, and as a result of that activity, the concentration ratios of the
combined total of our residential, Core and construction loans held for
investment in Ohio and Florida have trended downward from their September
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30, 2010 levels when the concentrations were 79.1% in Ohio and 19.0% in Florida.
Of the total mortgage loan originations for the year ended September 30, 2022,
25.4% are secured by properties in states other than Ohio or Florida.

Maintaining Access to Adequate Liquidity and Diverse Funding Sources to Support
our Growth. In managing its level of liquidity, the Company monitors available
funding sources, which include attracting new deposits (including brokered
deposits), borrowing from others, the conversion of assets to cash and the
generation of funds through profitable operations. The Company has traditionally
relied on retail deposits as its primary means in meeting its funding needs. At
September 30, 2022, deposits totaled $8.92 billion (including $575.2 million of
brokered CDs), while borrowings totaled $4.79 billion and borrowers' advances
and servicing escrows totaled $147.2 million, combined. In evaluating funding
sources, we consider many factors, including cost, collateral, duration and
optionality, current availability, expected sustainability, impact on operations
and capital levels.

To attract deposits, we offer our customers attractive rates of return on our
deposit products. Our deposit products typically offer rates that are highly
competitive with the rates on similar products offered by other financial
institutions. We intend to continue this practice, subject to market conditions.

We preserve the availability of alternative funding sources through various
mechanisms. First, by maintaining high capital levels, we retain the flexibility
to increase our balance sheet size without jeopardizing our capital adequacy.
Effectively, this permits us to increase the rates that we offer on our deposit
products thereby attracting more potential customers. Second, we pledge
available real estate mortgage loans with the FHLB of Cincinnati and the
FRB-Cleveland. At September 30, 2022, these collateral pledge support
arrangements provided the Association with the ability to borrow a maximum of
$8.47 billion from the FHLB of Cincinnati and $168.0 million from the
FRB-Cleveland Discount Window. Third, we have the ability to purchase overnight
Fed Funds up to $595.0 million through various arrangements with other
institutions. Fourth, we invest in high quality marketable securities that
exhibit limited market price variability and, to the extent that they are not
needed as collateral for borrowings, can be sold in the institutional market and
converted to cash. At September 30, 2022, our investment securities portfolio
totaled $457.9 million. Finally, cash flows from operating activities have been
a regular source of funds. During the fiscal years ended September 30, 2022 and
2021, cash flows from operations totaled $38.9 million and $83.2 million,
respectively.

First mortgage loans (primarily fixed-rate, mortgage refinances with terms of 15
years or more and Home Ready) are originated under Fannie Mae procedures and are
eligible for sale to Fannie Mae either as whole loans or within mortgage-backed
securities. Most of these agency-compliant loans are classified as held for
investment because the Company has both the intent and ability to hold them in
portfolio. At September 30, 2022, the principal balance of these
agency-compliant loans classified as held for investment was $123.0 million.
During fiscal 2022, we formed a mortgage banking division as part of our
strategy to originate first mortgage loans for sale to Fannie Mae. Loans
originated through this division are Fannie Mae compliant and have interest
rates that closely align with secondary market pricing. At September 30, 2022,
these loans are classified as held for sale totaling $9.7 million. During the
fiscal year ended September 30, 2022, $28.8 million of agency-compliant Home
Ready loans and $99.3 million of long-term, fixed-rate, agency-compliant,
non-Home Ready first mortgage loans were sold to Fannie Mae. We expect that
certain loan types (i.e. our Smart Rate adjustable-rate loans, home purchase
fixed-rate loans and 10-year fixed-rate loans) will continue to be originated
under our legacy procedures, which are not eligible for sale to Fannie Mae. For
loans that are not originated under Fannie Mae procedures, the Association's
ability to reduce interest rate risk via loan sales is limited to those loans
that have established payment histories, strong borrower credit profiles and are
supported by adequate collateral values that meet the requirements of the FHLB's
Mortgage Purchase Program or of private third-party investors.

Overall, while customer and community confidence can never be assured, the Company believes that our liquidity is adequate and that we have adequate access to other sources of funding.


Monitoring and Controlling Operating Expenses. We continue to focus on managing
operating expenses. Our ratio of non-interest expense to average assets was
1.34% for the fiscal year ended September 30, 2022 and 1.35% for the fiscal year
ended September 30, 2021. The increase in average assets during the current
fiscal year contributed to the decrease in the ratio. As of September 30, 2022,
our average assets per full-time associate and our average deposits per
full-time associate were $15.4 million and $8.7 million, respectively. We
believe that each of these measures compares favorably with industry averages.
Our relatively high average deposits (exclusive of brokered accounts) held at
our branch offices ($217.5 million per branch office as of September 30, 2022)
contributes to our expense management efforts by limiting the overhead costs of
serving our customers. We will continue our efforts to control operating
expenses as we grow our business.

Significant Accounting Policies and Estimates

Critical accounting policies and estimates are defined as those that involve significant judgments and uncertainties and could potentially cause results to differ materially under different assumptions and conditions. We believe that the most

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critical accounting policies and estimates upon which our financial condition
and results of operations depend, and which involve the most complex subjective
decisions or assessments, relate to the allowance for credit losses, income
taxes and pension benefits.

Allowance for Credit Losses. The allowance for credit losses is the amount
estimated by management as necessary to absorb credit losses related to both the
loan portfolio and off-balance sheet commitments based on a life of loan
methodology. The amount of the allowance is based on significant estimates and
the ultimate losses may vary from such estimates as more information becomes
available or conditions change. The methodology for determining the allowance
for credit losses is considered a critical accounting policy by management due
to the high degree of judgment involved, the subjectivity of the assumptions
used and the potential for changes in the economic environment that could result
in changes to the amount of the recorded allowance for credit losses. At
September 30, 2022, the allowance for credit losses was $99.9 million or 0.70%
of total loans. An increase or decrease of 10% in the allowance at September 30,
2022 would result in a $10.0 million charge or release, respectively, to income
before income taxes.

As a substantial percentage of our loan portfolio is collateralized by real
estate, appraisals of the underlying value of property securing loans are
critical in determining the charge-offs for specific loans. Assumptions are
instrumental in determining the value of properties. Overly optimistic
assumptions or negative changes to assumptions could significantly affect the
valuation of a property securing a loan and the related allowance determined.
Management carefully reviews the assumptions supporting such appraisals to
determine that the resulting values reasonably reflect amounts realizable on the
related loans.

Management performs a quarterly evaluation of the adequacy of the allowance for
credit losses. We consider a variety of factors in establishing this estimate
including, but not limited to, current economic conditions, delinquency
statistics, geographic concentrations, economic forecasts and how they correlate
to management's view of the future, the adequacy of the underlying collateral,
the financial strength of the borrower, results of internal loan reviews and
other relevant factors. This evaluation is inherently subjective as it requires
material estimates by management that may be susceptible to significant change
based on changes in economic and real estate market conditions. Refer to Note 5.
LOANS AND ALLOWANCES FOR CREDIT LOSSES of the NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS and the Lending Activities section of Item 1. Business in Part I. for
further discussion.

Actual loan losses could be significantly higher than the provisions we have established, which could have a material adverse effect on our financial results.


Income Taxes. Accounting for income taxes involves critical accounting policies
and estimates due to the subjective nature of certain estimates that are
involved in the calculation. We use the asset/liability method of accounting for
income taxes in which deferred tax assets and liabilities are established for
the temporary differences between the financial reporting basis and the tax
basis of our assets and liabilities. We must assess the realization of the
deferred tax asset and, to the extent that we believe that recovery is not
likely, a valuation allowance is established. Adjustments to increase or
decrease existing valuation allowances, if any, are charged or credited,
respectively, to income tax expense. At September 30, 2022, no valuation
allowances were outstanding. Even though we have determined a valuation
allowance is not required for deferred tax assets at September 30, 2022, there
is no guarantee that those assets will be recognizable in the future.

Pension Benefits. The determination of our obligations and expense for pension
benefits is dependent upon certain assumptions used in calculating such amounts.
Key assumptions used in the actuarial valuations include the discount rate and
expected long-term rate of return on plan assets. Actual results could differ
from the assumptions and market driven rates may fluctuate. Significant
differences in actual experience or significant changes in the assumptions could
materially affect future pension obligations and expense.

Comparison of the financial situation at September 30, 2022 and September 30, 2021

Total assets increased $1.73 billioni.e. 12.3%, at $15.79 billion at
September 30, 2022 of $14.06 billion at September 30, 2021. This increase is mainly explained by the fact that new loan originations exceed the total of loan sales and principal repayments.


Cash and cash equivalents decreased $118.7 million, or 24.3%, to $369.6 million
at September 30, 2022 from $488.3 million at September 30, 2021. This decrease
was primarily attributable to the reinvestment of liquid assets into loan
products. We manage cash to maintain the level of liquidity described later in
the Liquidity and Capital Resources section of the Overview.

Investment securities, all of which are classified as available for sale,
increased $36.1 million, or 8.6%, to $457.9 million at September 30, 2022 from
$421.8 million at September 30, 2021. Investment securities increased as $250.0
million in
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purchases exceeded the combined effect of $163.6 million in principal
repayments, a $44.9 million increase in unrealized losses and $5.4 million of
premium amortization that occurred during the year ended September 30, 2022.
There were no sales of investment securities during the year ended September 30,
2022.

Loans held for investment, net, increased $1.75 billion, or 14.0%, to $14.26
billion at September 30, 2022 from $12.51 billion at September 30, 2021.
Residential mortgage loans increased $1.31 billion, or 12.8%, to $11.59 billion
at September 30, 2022. In addition, there was a $419.6 million increase in the
balance of home equity loans and lines of credit during the year ended
September 30, 2022, as new originations and additional draws on existing
accounts exceeded repayments. During the fiscal year ended September 30, 2022,
$1.03 billion of three- and five-year "SmartRate" loans were originated while
$2.62 billion of 10-, 15-, and 30-year fixed-rate first mortgage loans were
originated. Of the total $3.65 billion in first mortgage loan originations for
the fiscal year ended September 30, 2022, 50% were refinance transactions and
50% were purchases, while 28% were adjustable-rate mortgages and 72% were
fixed-rate mortgages. Fixed rate loans with terms of 10 years or less accounted
for 13% of total first mortgage loan originations. During the fiscal year ended
September 30, 2022, we completed $128.1 million in loan sales, which included
$28.8 million of agency-compliant Home Ready loans and $99.3 million of other
long-term, fixed-rate, agency-compliant, first mortgage loans that were sold to
Fannie Mae.

Commitments originated for home equity lines of credit and equity and bridge
loans were $2.16 billion for the year ended September 30, 2022 compared to $1.74
billion for the year ended September 30, 2021. At September 30, 2022, pending
commitments to originate new home equity lines of credit were $84.6 million and
equity and bridge loans were $63.3 million. Refer to the Controlling Our
Interest Rate Risk Exposure section of the Overview for additional information.

The allowance for credit losses was $99.9 million, or 0.70% of total loans
receivable, at September 30, 2022, and included a $27.0 million liability for
unfunded commitments. At September 30, 2021, the allowance for credit losses was
$89.3 million, or 0.71% of total loans receivable and included a $25.0 million
liability for unfunded commitments. During the fiscal year ended September 30,
2022, a $1.0 million provision to the allowance for credit losses was recognized
compared to a $9.0 million release of provision from the allowance for the prior
fiscal year. As a result of loan recoveries exceeding charge-offs, the Company
recorded $9.7 million of net loan recoveries for the fiscal year ended
September 30, 2022, compared to $5.2 million of net loan recoveries for the
fiscal year ended September 30, 2021. Actual loan charge-offs and delinquencies
remained low at September 30, 2022. Refer to Note 5. LOANS AND ALLOWANCE FOR
CREDIT LOSSES of the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS for additional
discussion.

The number of shares held by FHLB increased $49.5 millioni.e. 30.4%, at $212.3 million at September 30, 2022 of $162.8 million at September 30, 2021. FHLB’s share ownership requirements dictate the number of shares held at any given time.

Increase in the total number of life insurance contracts held by banks $6.7 millionat $304.0 million at September 30, 2022of $297.3 million at September 30, 2021primarily due to changes in cash value.


Deposits decreased $72.6 million, or 0.8%, to $8.92 billion at September 30,
2022 from $8.99 billion at September 30, 2021. The decrease in deposits resulted
primarily from a $169.3 million decrease in CDs, partially offset by an $18.6
million increase in savings accounts (consisting of a $82.3 million decrease in
money market accounts in the state of Florida and a $101.5 million increase in
our higher yield savings accounts), and a $77.1 million increase in
interest-bearing checking accounts.With our competitive rates, we believe that
our savings and checking accounts provide a stable source of funds. In addition,
our savings accounts are expected to reprice in a manner similar to our home
equity lending products, and, therefore, assist us in managing interest rate
risk. The balance of brokered CDs at September 30, 2022 was $575.2 million,
which is an increase of $83.2 million from the balance of $492.0 million at
September 30, 2021.

Borrowed funds increased $1.70 billion, or 55.0%, 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 the 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 short-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.
Refer to the Extending the Duration of Funding Sources section of the Overview
and Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk
for additional discussion regarding short-term borrowings and interest-rate
swaps.

Borrowers' advances for insurance and taxes increased by $7.6 million, or 7%, to
$117.2 million at September 30, 2022
from $109.6 million at September 30, 2021. This change primarily reflects the
cyclical nature of real estate tax payments that
have been collected from borrowers and are in the process of being remitted to
various taxing agencies.

Total equity increased $112.1 millioni.e. 6.5%, at $1.84 billion
at September 30, 2022 of $1.73 billion at September 30, 2021. The activity reflects $74.6 million net income, a $91.0 million positive change in other stacks

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comprehensive income and $9.7 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. 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
receipt of its share of each dividend paid. Refer to Item 5. Market for
Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities for additional details regarding the repurchase of shares of
common stock and the payment of dividends.


Net interest income analysis


Net interest income represents the difference between the income we earn on our
interest-earning assets and the expense we pay on our interest-bearing
liabilities. Net interest income depends on the volume of interest-earning
assets and interest-bearing liabilities and the rates earned on such assets and
the rates paid on such liabilities.

Average balances and yields. The following table sets forth average balances,
average yields and costs, and certain other information at and for the fiscal
years indicated. No tax-equivalent yield adjustments were made, as the effects
thereof were not material. Average balances are derived from daily average
balances. Non-accrual loans are included in the computation of average balances,
but only cash payments received on those loans during the period presented are
reflected in the yield. The yields set forth below include the effect of
deferred fees, deferred expenses, discounts and premiums that are amortized or
accreted to interest income or interest expense.

                                                                                                              For the Fiscal Years Ended September 30,
                                                                     2022                                                       2021                                                       2020
                                                                     Interest                                                   Interest                                                   Interest
                                                 Average             Income/            Yield/              Average             Income/            Yield/              Average             Income/            Yield/
                                                 Balance             Expense             Cost               Balance             Expense             Cost               Balance             Expense             Cost
                                                                                                                       (Dollars in thousands)

Interest-bearing assets:


 Interest-earning cash equivalents           $    384,947          $   3,178          0.83%             $    567,035          $     673              0.12  %       $    307,902          $   1,909              0.62  %
 Investment securities                              3,643                 43          1.18%                        -                  -                 -  %                  -                  -                 -  %
 Mortgage-backed securities                       439,269              5,458          1.24%                  428,590              3,822              0.89  %            527,195              9,707              1.84  %
 Loans(1)                                      13,258,517            395,691          2.98%               12,800,542            381,887              2.98  %         13,366,447            440,697              3.30  %
 Federal Home Loan Bank stock                     173,506              4,963          2.86%                  155,322              2,969              1.91  %            120,011              2,985              2.49  %
Total interest-earning assets                  14,259,882            409,333          2.87%               13,951,489            389,351              2.79  %         14,321,555            455,298              3.18  %
Non-interest-earning assets                       482,501                                                    532,786                                                    540,421
Total assets                                 $ 14,742,383                                               $ 14,484,275                                               $ 14,861,976

Interest-bearing debts:

 Checking accounts                           $  1,326,882              4,186          0.32%             $  1,079,699              1,140              0.11  %       $    917,552              1,477              0.16  %
 Savings accounts                               1,859,990              4,553          0.24%                1,742,042              2,992              0.17  %          1,530,977              7,775              0.51  %
 Certificates of deposit                        5,826,286             68,204          1.17%                6,339,412             93,187              1.47  %          6,621,289            130,990              1.98  %
 Borrowed funds                                 3,671,323             64,994          1.77%                3,303,925             60,402              1.83  %          3,785,026             72,788              1.92  %
Total interest-bearing liabilities             12,684,481            141,937          1.12%               12,465,078            157,721              1.27  %         12,854,844            213,030              1.66  %
Non-interest-bearing liabilities                  255,388                                                    321,958                                                    298,520
Total liabilities                              12,939,869                                                 12,787,036                                                 13,153,364
Shareholders' equity                            1,802,514                                                  1,697,239                                                  1,708,612
Total liabilities and
   shareholders' equity                      $ 14,742,383                                               $ 14,484,275                                               $ 14,861,976
Net interest income                                                $ 267,396                                                  $ 231,630                                                  $ 242,268
Interest rate spread(2)                                                                   1.75  %                                                    1.52  %                                                    1.52  %
Net interest-earning assets(3)               $  1,575,401                                               $  1,486,411                                               $  1,466,711
Net interest margin(4)                                                  1.88  %                                                    1.66  %                                                    1.69  %

Average interest-earning assets at

   average interest-bearing liabilities            112.42  %                                                  111.92  %                                                  111.41  %


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(1) Loans include both mortgages held for sale and loans held for investment.

(2) The interest rate spread represents the difference between the return on average interest-bearing 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.


Rate/Volume Analysis. The following table presents the effects of changing rates
(yields) and volumes (average balances) on our net interest income for the
fiscal years indicated. The rate column shows the effects attributable to
changes in rate (changes in rate multiplied by prior volume). The volume column
shows the effects attributable to changes in volume (changes in volume
multiplied by prior rate). The net column represents the sum of the prior
columns. For purposes of this table, changes attributable to both rate and
volume, which cannot be segregated, have been allocated proportionately, based
on the changes due to rate and the changes due to volume.

                                                   For the Fiscal Years Ended September 30, 2022 vs.       For the Fiscal Years Ended September 30, 2021 vs.
                                                                         2021                                                     2020
                                                         Increase (Decrease)                                     Increase (Decrease)
                                                               Due to                                                  Due to
                                                      Volume              Rate               Net              Volume              Rate               Net
                                                                                                 (In thousands)

Interest-bearing assets:

 Interest-earning cash equivalents                 $     (143)         $  2,648          $  2,505          $      944          $ (2,180)         $  (1,236)
 Investment securities                                     43                 -                43                   -                 -                  -
 Mortgage-backed securities                                97             1,539             1,636              (1,566)           (4,319)            (5,885)
 Loans                                                 13,668               136            13,804             (18,112)          (40,698)           (58,810)
 Federal Home Loan Bank stock                             381             1,613             1,994                 764              (780)               (16)
Total interest-earning assets                          14,046             5,936            19,982             (17,970)          (47,977)           (65,947)
Interest-bearing liabilities:
 Checking accounts                                        315             2,731             3,046                 356              (693)              (337)
 Savings accounts                                         214             1,346             1,560               1,259            (6,042)            (4,783)
 Certificates of deposit                               (7,106)          (17,877)          (24,983)             (5,373)          (32,430)           (37,803)
 Borrowed funds                                         6,419            (1,827)            4,592              (8,923)           (3,463)           (12,386)
Total interest-bearing liabilities                       (158)          (15,627)          (15,785)            (12,681)          (42,628)           

(55,309)

Net change in net interest income                  $   14,204          $ 

21,563 $35,767 ($5,289) ($5,349) ($10,638)

Comparison of operating results for the years ended September 30, 2022
and 2021

General. Net income of $74.6 million for the year ended September 30, 2022
decreases $6.4 million compared to $81.0 million for the year ended
September 30, 2021. The decrease is mainly due to a higher provision for credit losses required on the growing loan portfolio and a lower net gain on sale of loans.


Interest and Dividend Income. Interest and dividend income increased $19.9
million, or 5%, to $409.3 million during the year ended September 30, 2022
compared to $389.4 million during the prior year. Interest income on loans
increased $13.8 million, or 4%, to $395.7 million for the year ended
September 30, 2022 compared to $381.9 million for the year ended September 30,
2021. This increase was primarily attributed to a $458.0 million increase in the
average balance of loans to $13.26 billion for the current year compared to
$12.80 billion during the prior year.

Interest income on mortgage-backed securities increased $1.7 million, or 45%, to
$5.5 million during the current year compared to $3.8 million during the year
ended September 30, 2021. This increase was attributed to a 35 basis point
increase in the average yield on mortgage-backed securities, combined with a
$10.7 million increase in the average balance of mortgage-backed securities to
$439.3 million for the current year compared to $428.6 million during the prior
year. During the fiscal year ended September 30, 2022, prepayment speeds of
mortgage-backed securities were slowed due to the higher interest rate
environment, which increased the principal balance of loans included in some of
the mortgage-backed securities pools and hence the interest income generated
from those bonds.

Interest Expense. Interest expense decreased $15.8 million, or 10%, to $141.9
million during the current year compared to $157.7 million during the year ended
September 30, 2021. The decrease primarily resulted from a decrease in interest
expense on certificates of deposits (CDs).
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Interest expense on CDs decreased $25.0 million, or 27%, to $68.2 million during
the year ended September 30, 2022 compared to $93.2 million during the year
ended September 30, 2021. The decrease was attributed primarily to a 30 basis
point decrease in the average rate we paid on CDs to 1.17% during the current
year from 1.47% during the prior year. Additionally, there was a $513.1 million,
or 8%, decrease in the average balance of CDs to $5.83 billion from $6.34
billion during the prior year. Interest expense on savings and checking accounts
increased $1.6 million and $3.1 million, respectively, to $4.6 million and $4.2
million during the year ended September 30, 2022, compared to the prior year due
to an increase in the average rates we paid on the deposits. Rates were adjusted
on deposits in response to changes in general market rates, as well as to
changes in the rates paid by our competition.

Interest expense on borrowed funds increased $4.6 million, or 8%, to $65.0
million during the year ended September 30, 2022 from $60.4 million during the
year ended September 30, 2021. The increase was attributed to a combination of a
$367.4 million, or 11%, increase in the average balance of borrowed funds to
$3.67 billion during the current year from $3.30 billion during the prior year,
partially offset by a six basis point decrease in the average rate paid for
these funds to 1.77% during the year ended September 30, 2022 from 1.83% for the
year ended September 30, 2021. Refer to the Extending the Duration of Funding
Sources section of the Overview and Comparison of Financial Condition for
further discussion.

Net Interest Income. Net interest income increased $35.8 million, or 15%, to
$267.4 million during the year ended September 30, 2022 from $231.6 million
during the year ended September 30, 2021. The increase consisted of a $19.9
million increase in interest income and a $15.8 million reduction in interest
expense.

Average interest-earning assets increased during the current year by $308.4
million, or 2%, when compared to the year ended September 30, 2021. Average
interest-bearing liabilities increased by $219.4 million. The average yield on
interest earning assets increased eight basis points to 2.87% from 2.79%,
compared to a 15 basis point decrease in the average rate paid on
interest-bearing liabilities to 1.12% in the current year from 1.27% in the
prior year. The interest rate spread was 1.75% for the fiscal year ended
September 30, 2022 compared to 1.52% at September 30, 2021. The net interest
margin was 1.88% for the fiscal year ended September 30, 2022 and 1.66% for the
fiscal year ended September 30, 2021.

Provision (Release) for Credit Losses. We recorded a provision to the allowance
for credit losses of $1.0 million during the year ended September 30, 2022
compared to a $9.0 million release of provision from the allowance during the
year ended September 30, 2021. As delinquencies in the portfolio are resolved
through pay-off, short sale or foreclosure, or management determines the
collateral is not sufficient to satisfy the loan, uncollected balances have been
charged against the allowance for credit losses previously provided. When
amounts previously charged off are subsequently collected, the recoveries are
added to the allowance. Future recoveries may continue if housing market
conditions stay favorable and payment performance on previously charged-off
loans continues. For the fiscal year ended September 30, 2022, we recorded net
recoveries of $9.7 million, as compared to net recoveries of $5.2 million for
the year ended September 30, 2021. The allowance for credit losses, including a
$27.0 million liability for unfunded commitments under CECL, was $99.9 million,
or 0.70% of the total amortized cost in loans receivable, at September 30, 2022.
At September 30, 2021, the allowance, including a $25.0 million liability for
unfunded commitments was $89.3 million, or 0.71% of the total amortized cost in
loans receivable. Balances of amortized costs are net of deferred fees, expenses
and any applicable loans-in-process. Refer to the Lending Activities section of
the Overview and Note 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of the NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS for further discussion.

Non-Interest Income. Non-interest income decreased $31.5 million, or 57%, to
$23.8 million during the year ended September 30, 2022 compared to $55.3 million
during the year ended September 30, 2021. The decrease in non-interest income
was primarily due to a decrease in the net gain on sale of loans, which was $1.1
million during the year ended September 30, 2022, compared to $33.1 million
during the year ended September 30, 2021. Loans sold during the fiscal year
ended September 30, 2022 were $128.1 million compared to loan sales of $762.3
million during the year ended September 30, 2021. The decrease in loan sales was
primarily due to the higher interest rate environment in 2022.

Non-Interest Expense. Non-interest expense increased $2.3 million, or 1%, to
$198.1 million during the fiscal year ended September 30, 2022 compared to
$195.8 million during the fiscal year ended September 30, 2021. This increase
resulted primarily from increases in salary and employee benefits as well as
marketing expenses, partially offset by a decrease in other expenses. The
increase in salary and employee benefits was spread between associate
compensation, group health insurance, and stock benefit plan expense.

Income Tax Expense. The provision for income taxes was $17.5 million during the
year ended September 30, 2022 compared to $19.1 million during the year ended
September 30, 2021. The change was a result of a higher deferred tax benefit
compared to prior year. The provision for the current year included $17.1
million of federal income tax provision and $0.4 million of state income tax
provision. The provision for the year ended September 30, 2021 included $17.5
million of federal
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income tax provision and $1.6 million state income tax. Our combined effective tax rate was 19.0% during the year ended September 30, 2022
and 19.1% during the year ended September 30, 2021.


For a comparison of operating results for the fiscal years ended September 30,
2021 and 2020, see the Company's Form 10-K for the fiscal year ended September
30, 2021.

Cash and capital resources


Liquidity is the ability to meet current and future financial obligations of a
short-term nature. Our primary sources of funds consist of deposit inflows, loan
repayments, advances from the FHLB of Cincinnati, borrowings from the
FRB-Cleveland Discount Window, overnight Fed Funds through various arrangements
with other institutions, proceeds from brokered CDs transactions, principal
repayments and maturities of securities, and sales of loans.

In addition to the primary sources of funds described above, we have the ability
to obtain funds through the use of collateralized borrowings in the wholesale
markets, and from sales of securities. Also, debt issuance by the Company and
access to the equity capital markets via a supplemental minority stock offering
or a full conversion (second-step) transaction remain as other potential sources
of liquidity, although these channels generally require up to nine months of
lead time.

While maturities and scheduled amortization of loans and securities are
predictable sources of funds, deposit flows and mortgage prepayments are greatly
influenced by interest rates, economic conditions and competition. The
Association's Asset/Liability Management Committee is responsible for
establishing and monitoring our liquidity targets and strategies in order to
ensure that sufficient liquidity exists for meeting the borrowing needs and
deposit withdrawals of our customers as well as unanticipated contingencies. We
generally seek to maintain a minimum liquidity ratio of 5% (which we compute as
the sum of cash and cash equivalents plus unencumbered investment securities for
which ready markets exist, divided by total assets). For the year ended
September 30, 2022, our liquidity ratio averaged 5.64%. We believe that we had
sufficient sources of liquidity to satisfy our short- and long-term liquidity
needs as of September 30, 2022.

We regularly adjust our investments in liquid assets based upon our assessment
of expected loan demand, expected deposit flows, yields available on
interest-earning deposits and securities, scheduled liability maturities and the
objectives of our asset/liability management program. Excess liquid assets are
generally invested in interest-earning deposits and short- and intermediate-term
securities.

Our most liquid assets are cash and cash equivalents. The levels of these assets
are dependent on our operating, financing, lending and investing activities
during any given period. At September 30, 2022, cash and cash equivalents
totaled $369.6 million, which represented a decrease of 24% from September 30,
2021.

Marketable securities classified as available for sale, which provide additional sources of liquidity, total $457.9 million at September 30, 2022.


During the year ended September 30, 2022, loan sales, including commitments to
sell, totaled $128.1 million, which included sales to Fannie Mae consisting of
$99.3 million of long-term, fixed-rate, agency-compliant, non-Home Ready first
mortgage loans and $28.8 million of loans that qualified under Fannie Mae's Home
Ready initiative. At September 30, 2022, $9.7 million of long-term, fixed-rate
residential first mortgage loans were classified as held for sale.

Our cash flows are derived from operating activities, investing activities and
financing activities as reported in our CONSOLIDATED STATEMENTS OF CASH FLOWS
included in the CONSOLIDATED FINANCIAL STATEMENTS.

At September 30, 2022, we had $538.7 million in outstanding commitments to
originate loans. In addition to commitments to originate loans, we had $4.08
billion in unfunded home equity lines of credit to borrowers. CDs due within one
year of September 30, 2022 totaled $3.02 billion, or 33.8% of total deposits. If
these deposits do not remain with us, we will be required to seek other sources
of funds, including loan sales, sales of investment securities, other deposit
products, including new CDs, brokered CDs, FHLB advances, borrowings from the
FRB-Cleveland Discount Window or other collateralized borrowings. Depending on
market conditions, we may be required to pay higher rates on such deposits or
other borrowings than we currently pay on the CDs due on or before September 30,
2023. We believe, however, based on past experience, that a significant portion
of such deposits will remain with us. Generally, we have the ability to attract
and retain deposits by adjusting the interest rates offered.

Our primary investing activities are originating residential mortgage loans,
home equity loans and lines of credit and purchasing investments. During the
year ended September 30, 2022, we originated $3.65 billion of residential
mortgage loans, and $2.16 billion of commitments for home equity loans and lines
of credit, while during the year ended September 30, 2021, we originated $3.63
billion of residential mortgage loans and $1.74 billion of commitments for home
equity loans and lines of credit. We purchased $250.0 million of securities
during the year ended September 30, 2022, and $297.5 million during the year
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ended September 30, 2021. Also, during the year ended September 30, 2022we purchased long-term, fixed-rate first mortgages with an outstanding balance of $24.3 million at September 30, 2022.


Financing activities consist primarily of changes in deposit accounts, changes
in the balances of principal and interest owed on loans serviced for others,
FHLB advances, including any collateral requirements related to interest rate
swap agreements and borrowings from the FRB-Cleveland Discount Window. We
experienced a net decrease in total deposits of $72.6 million during the year
ended September 30, 2022, which reflected the active management of the offered
rates on maturing CDs compared to a net decrease of $231.9 million during the
year ended September 30, 2021. Deposit flows are affected by the overall level
of interest rates, the interest rates and products offered by us and our local
competitors, and by other factors. During the year ended September 30, 2022,
there was a $83.2 million increase in the balance of brokered CDs (exclusive of
acquisition costs and subsequent amortization), which had a balance of $575.2
million at September 30, 2022. At September 30, 2021, the balance of brokered
CDs was $492.0 million. Principal and interest received on loans serviced for
others and owed to investors experienced a net decrease of $11.6 million to
$29.9 million during the year ended September 30, 2022 compared to a net
decrease of $4.4 million to $41.5 million during the year ended September 30,
2021. During the year ended September 30, 2022, we increased our borrowed funds
by $1.7 billion to manage future interest costs, to fund new loan originations,
and to actively manage our liquidity ratio.

In March 2021, we received a second consecutive "Needs to Improve" rating on our
Community Reinvestment Act (CRA) examination covering the period ended December
31, 2019. The FHFA practice is to place member institutions in this situation on
restriction. If this restriction is established, we will not have access to FHLB
long-term advances (maturities greater than one year) until our rating improves.
However, we have not received notice of this restriction as of November 22,
2022. Existing advances and future advances with less than a one year term,
including 90 day advances used to facilitate longer term interest rate swap
agreements, will not be affected. We expect no impact to our ability to access
funding.

Liquidity management is both a daily and long-term function of business
management. If we require funds beyond our ability to generate them internally,
borrowing agreements exist with the FHLB of Cincinnati, the FRB-Cleveland
Discount Window, and arrangements with other institutions to purchase overnight
Fed Funds, each of which provides an additional source of funds. Also, in
evaluating funding alternatives, we may participate in the brokered deposit
market. At September 30, 2022, we had $4.56 billion of FHLB of Cincinnati
advances, no outstanding borrowings from the FRB-Cleveland Discount Window and
$225 million in Fed Funds. Additionally, at September 30, 2022, we had $575.2
million of brokered CDs. During the year ended September 30, 2022, we had
average outstanding borrowed funds of $3.67 billion as compared to $3.30 billion
during the year ended September 30, 2021. Refer to the Extending the Duration of
Funding Sources section of the Overview and the General section of Item 7A.
Quantitative and Qualitative Disclosures About Market Risk for further
discussion.

The Association and the Company are subject to various regulatory capital
requirements, including a risk-based capital measure. The Basel III capital
framework for U.S. banking organizations ("Basel III Rules") includes both a
revised definition of capital and guidelines for calculating risk-weighted
assets by assigning balance sheet assets and off-balance sheet items to broad
risk categories. In April 2020, the Association adopted the Simplifications to
the Capital Rule ("Rule") which simplified certain aspects of the capital rule
under Basel III. The impact of the Rule was not material to the Association's
regulatory ratios.

In 2019, a final rule adopted by the federal banking agencies provided banking
organizations with the option to phase in, over a three-year period, the adverse
day-one regulatory capital effects of the adoption of the CECL accounting
standard. In 2020, as part of its response to the impact of COVID-19, U.S.
federal banking regulatory agencies issued a final rule which provides banking
organizations that implement CECL during the 2020 calendar year the option to
delay for two years an estimate of CECL's effect on regulatory capital, relative
to the incurred loss methodology's effect on regulatory capital, followed by a
three-year transition period, which the Association and Company have adopted.
During the two-year delay, the Association and Company will add back to common
equity tier 1 capital ("CET1"), 100% of the initial adoption impact of CECL plus
25% of the cumulative quarterly changes in the allowance for credit losses.
After two years the quarterly transitional amounts along with the initial
adoption impact of CECL will be phased out of CET1 capital over the three-year
period.

The Association is subject to the "capital conservation buffer" requirement
level of 2.5%. The requirement limits capital distributions and certain
discretionary bonus payments to management if the institution does not hold a
"capital conservation buffer" in addition to the minimum capital requirements.
At September 30, 2022, the Association exceeded the regulatory requirement for
the "capital conservation buffer".

From September 30, 2022the Association has exceeded all regulatory capital requirements to be considered “well capitalized”.


In addition to the operational liquidity considerations described above, which
are primarily those of the Association, the Company, as a separate legal entity,
also monitors and manages its own, parent company-only liquidity, which provides
the source of funds necessary to support all of the parent company's stand-alone
operations, including its capital distribution

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strategies which encompass its share repurchase and dividend payment programs.
The Company's primary source of liquidity is dividends received from the
Association. The amount of dividends that the Association may declare and pay to
the Company in any calendar year, without the receipt of prior approval from the
OCC but with prior notice to the FRB-Cleveland, cannot exceed net income for the
current calendar year-to-date period plus retained net income (as defined) for
the preceding two calendar years, reduced by prior dividend payments made during
those periods. In December 2021, the Company received a $56.0 million cash
dividend from the Association. Because of its intercompany nature, this dividend
payment had no impact on the Company's capital ratios or its consolidated
statement of condition but reduced the Association's reported capital ratios. At
September 30, 2022, the Company had, in the form of cash and a demand loan from
the Association, $186.1 million of funds readily available to support its
stand-alone operations.

The Company's eighth stock repurchase program, which authorized the repurchase
of up to 10,000,000 shares of the Company's outstanding common stock was
approved by the Board of Directors on October 27, 2016, and repurchases began on
January 6, 2017. There were 4,133,921 shares repurchased under that program
between its start date and September 30, 2022. During the year ended
September 30, 2022, the Company repurchased $5.0 million of its common stock.

The payment of dividends, support of asset growth and strategic stock
repurchases are planned to continue in the future as the focus for future
capital deployment activities. Third Federal Savings, MHC has the approval of
its members to waive dividends aggregating up to $1.13 per share on the common
stock of the Company for the 12 months following the special meeting of members
held on July 12, 2022.

Impact of inflation and price changes


Our consolidated financial statements and related notes have been prepared in
accordance with GAAP. GAAP generally requires the measurement of financial
position and operating results in terms of historical dollars without
consideration for changes in the relative purchasing power of money over time
due to inflation. The impact of inflation is reflected in the increased cost of
our operations. Unlike industrial companies, our assets and liabilities are
primarily monetary in nature. As a result, changes in market interest rates have
a greater impact on performance than the effects of inflation.

Recent accounting pronouncements

Refer to Note 20. RECENT ACCOUNTING PRONOUNCEMENTS in the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS for pending and adopted accounting guidance.

© Edgar Online, source Previews

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California mortgage origination sees record 63% plunge – Daily News https://arropaydayloans.com/california-mortgage-origination-sees-record-63-plunge-daily-news/ Sat, 19 Nov 2022 15:24:31 +0000 https://arropaydayloans.com/california-mortgage-origination-sees-record-63-plunge-daily-news/ “Crash, Correct, or Chill” examines economic and housing trends that offer clues to the depth of housing problems. Buzz: California mortgage origination fell this summer as soaring interest rates made most loans unaffordable. Source: My trusty spreadsheet analyzed the third-quarter mortgage lending trends compiled by Attom. These statistics, from 2000, examine lending in 210 metropolitan […]]]>

“Crash, Correct, or Chill” examines economic and housing trends that offer clues to the depth of housing problems.

Buzz: California mortgage origination fell this summer as soaring interest rates made most loans unaffordable.

Source: My trusty spreadsheet analyzed the third-quarter mortgage lending trends compiled by Attom. These statistics, from 2000, examine lending in 210 metropolitan areas across the country, including 19 areas in California.

Topline

Californians in 19 metropolitan areas took out 177,566 mortgages from July to September.

It is the second slowest of the three months of the century. It’s also a staggering 63% drop from the year-ago period, making it the steepest 12-month drop on record.

Yes, this mortgage crater is deeper than anything we saw during the collapse of the housing bubble in the mid-2000s.

How did it happen?

The Federal Reserve hiked rates to fight soaring inflation. Over the past 12 months, the average 30-year loan has risen from 3.1% to 6.9%, according to Freddie Mac.

Skyrocketing rates slashed a house hunter’s potential borrowing power by 35% in one year and surpassed the 33% drop of 1980, another period of high inflation when rates rose from 10 .5% to 16.3%.

Thus, this summer, mortgage loans granted to buy a house fell by 53% compared to a year ago. And homeowners refinanced 82% fewer loans.

Surprisingly, homeowners took out 74% more home equity loans. This tactic has become the preferred way to get money out of a home without losing the great rates of an older mortgage.

By the way, this isn’t just a California trend. Every U.S. Metro tracked by Attom has seen fewer mortgage deals cut in the past year.

The nation, minus California’s metros, saw 1.8 million mortgages this summer — a 44% year-over-year drop, also the biggest drop on record. There were 30% fewer purchase loans and 66% fewer refis, but 45% more home equity loans.

Crash, fix or chill?

Accident: If you’re doing mortgages to make a living, it’s a huge disaster. No loans. No paychecks.

Mortgage broker Jeff Lazerson, a contributor to the Southern California News Group, recently wrote that he had laid off two-thirds of his staff: “Business has virtually ceased for mortgage lenders. And, yes, it’s far worse than the collapse in mortgage volume I remember from the Great Recession.

Correction: For the housing market as a whole, this is part of a return to normal after a boom fueled by the Fed’s cheap money policies at the start of the pandemic. This year’s rate hike is designed to slow down the overall economy as well as housing.

Coldness: Looking at the bigger picture, this dramatic slowdown in lending is a relatively minor annoyance.

The loss of home sales is an economic minus. But, remember, thanks to 30-year fixed-rate mortgages, the Fed’s gift to any homeowner who has refinanced in recent years remains in place.

This extra money from lower mortgage payments is still being spent. It’s an overheated, inflation-filled slice of the economy. And improved household cash flow can provide a financial cushion against any significant downturn.

the unknown

Lenders have been very cautious about who gets mortgages in this cycle. It is therefore a safe bet that the increase in home equity loans is being done with caution. (Crossed fingers!)

But if the rise in home equity lending is due to financial pressure from borrowers, it’s a worrying trend for the overall economic picture.

Details

How mortgage origination is slowing in some of California’s biggest housing markets, ranked by the magnitude of the year-long decline in lending over the summer…

San Jose: 8,114 mortgages granted in the third quarter, down 71% (the #1 drop among all US metropolises). This comes from 60% fewer closed purchase loans, 89% fewer refinance transactions, but 46% more home equity loans.

San Francisco: 22,048 mortgages, down 67% (#5 out of 210) – 56% fewer purchase loans, 86% fewer refis, but 35% more equity loans.

Ventura County: 4,212 mortgages, down 65% (#8) – 54% fewer purchase loans, 86% fewer refis, but 85% more equity loans.

San Diego: 16,835 mortgages, down 65% (#9) – 56% fewer purchase loans, 84% fewer refis, but 79% more equity loans.

Los Angeles-Orange County: 51,431 mortgages, down 64% (#12) – 55% fewer purchase loans, 83% fewer refis, but 82% more equity loans.

Sacrament: 15,422 mortgages, down 62% (#18) – 49% fewer purchase loans, 83% fewer refis, but 94% more equity loans.

Inner Empire: 28,247 mortgages, down 60% (#22) – 49% fewer purchase loans, 78% fewer refis, but 127% more equity loans.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be contacted at jlansner@scng.com

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It’s a terrible time to buy a house. Here’s what to know if you have to do it anyway https://arropaydayloans.com/its-a-terrible-time-to-buy-a-house-heres-what-to-know-if-you-have-to-do-it-anyway/ Sat, 12 Nov 2022 12:01:00 +0000 https://arropaydayloans.com/its-a-terrible-time-to-buy-a-house-heres-what-to-know-if-you-have-to-do-it-anyway/ There is no coating: it’s a terrible time to buy a house. Mortgage rates for a 30-year fixed-rate loan are now hovering above 7%, more than 4 percentage points higher than a year ago. This reduced the purchasing power of a typical buyer by 14%, according to Black Knight, a mortgage data company. With fewer […]]]>

There is no coating: it’s a terrible time to buy a house.

Mortgage rates for a 30-year fixed-rate loan are now hovering above 7%, more than 4 percentage points higher than a year ago. This reduced the purchasing power of a typical buyer by 14%, according to Black Knight, a mortgage data company.

With fewer people able or interested in buying now, home sales have plummeted. Just 16% of people say now is a good time to buy a home, a record high, according to a monthly survey conducted by Fannie Mae in October.

Yet that has barely made a dent in house prices, which have hit new highs during the pandemic and are only falling from all-time highs.

Another thing holding back sales is the stubbornly low inventory of homes available for sale, said Jackie Lafferty, realtor at Baird & Warner Real Estate in Chicago.

“It’s something I’ve never seen a combination of, this lack of inventory and higher interest rates,” Lafferty said. “There is no motivation for people to move unless they have to.”

But whether people need to move because of a new job, divorce, addition to the family, or just don’t want to give up after years of trying to buy a home, there there are always buyers.

“Even if sales slow down, real estate doesn’t stop,” Lafferty said. “People need a place to live.”

For those in a hurry, here are some ways to avoid buying a home.

Buyers who take out a mortgage now do so with the hope that within a few years rates might drop significantly and they could refinance at a lower rate.

“Yes, rates have risen much further and faster than anyone expected,” said Melissa Cohn, regional vice president of William Raveis Mortgage. “But if you can afford to buy today and you want and need it, you shouldn’t let the higher rate environment stop you, knowing that at some point in the next year, two years at most, rates will likely be considerably lower.”

The wrong side: You will still have to bear the higher rate at this time. There is a risk that interest rates will not fall, or at least not much. And if mortgage rates don’t come down, you could be stuck for a while, said Delyse Berry, CEO and principal broker at Upstate Down in Rhinebeck, New York.

“There could be a rate cut in the middle of 2023,” she said. “If that happens, you can refinance and get a lower interest rate and lower payments. But those rates could now be the new cost of doing business.

In addition, refinancing can be extremely expensive. Typically, closing costs are between 2% and 5% of the principal amount of the loan.

And unforeseen events can prevent you from refinancing, such as the loss of your job or the loss of value of your home.

More and more homebuyers are exploring options other than the standard 30-year fixed rate mortgage. For example, variable rate mortgages, or ARMs, now account for 12% of mortgage applications, up from 3% a year ago, according to the Mortgage Bankers Association.

While the average rate on a 30-year fixed rate loan was 7.08% last week, the rate on the 5-year Treasury-indexed hybrid variable rate mortgage was one percentage point lower than 6.06%, according to Freddie Mac. Although they are still 30-year loans, ARMs offer a fixed rate for a set period – usually 5, 7 or 10 years – after which the interest rate resets to current market rates.

“Buying today is about figuring out what you can do to fill this high-rate environment so you feel comfortable with your acquisition,” Cohn said. “When rates drop, it’s time to see what your most permanent solution will be.”

For buyers who may be moving in 5-7 years anyway, an ARM can be a way to increase buying power.

“For the first 5 or 7 years of an adjustable rate mortgage, it walks, talks and acts like a fixed rate mortgage,” Cohn said. “It has a lower rate and payment because the bank only guarantees it for a shorter period.”

If rates drop, an ARM could be reset at a better rate.

The wrong side: Borrowers must also accept the risk that rates could be even higher when the loan is reset, or at any time during the life of the loan. After the set period, ARMs can be reset annually or every six months.

However, most have caps on how much a rate goes up or down during each reset period and on how long the loan lasts, so it’s important to understand how your loan works.

Borrowers can lower their payments by paying more up front to buy out their mortgage rate. This will reduce the loan interest rate, either permanently or temporarily.

While a permanent buyout changes your rate for the life of a loan, a temporary buyout offers lower rates for a period of time.

On a temporary buyout, borrowers generally benefit from two percentage points on the loan rate for the first year, one percentage point for the second year, and in the third year the loan reverts to its original rate. origin for the remainder of its term. Until then, many borrowers expect interest rates to drop, leaving the possibility of refinancing open.

“That’s a significant difference for the first year of the loan, lowering your rate from 7% to 5%,” Cohn said.

The wrong side: While it’s great to get a lower interest rate, it means shelling out more money up front. It might not make sense financially if you don’t plan on staying in the house for long.

“It takes about five years to break even by redeeming one point,” Cohn said. “Knowing that rates will likely be much lower by then, you might be better off taking the money you’d be using to pay points to pay for a refinance later.”

In some housing markets, competition among buyers has eased and sellers are being forced to be more flexible on offers.

One of the ways a buyer can reduce their payments is to request a credit or concession from the seller as part of the transaction. Buyers can then use this money to lower their mortgage interest rate and lower their monthly payments.

“Sellers are willing to negotiate more now than they have in the past,” said Trudy Kelly, senior home loan specialist at Churchill Mortgage in Oregon.

In September, when mortgage rates were around 5.75%, Kelly worked with borrowers buying a $590,000 home. Rather than offering $15,000 or $20,000 below the asking price to reduce the cost of monthly payments, buyers demanded a seller’s concession of $15,000.

If the buyers had made the lowest bid and got the house for $575,000, their monthly savings would be $78, Kelly said. But by reducing the interest rate by one percentage point, their payments dropped by $340 per month.

“It’s a huge difference,” she said. “At the end of the day, what it did for them was increase their budget. It lowered their debt ratio, which gave them more purchasing power. It puts them in a machine to travel back in time and bring them back to April or May [when rates were lower].”

The wrong side: In many areas, it’s still a seller’s market. Applying for a credit or concession may be less attractive to a seller if they have other offers.

If you have the money to buy a house, now is a good time to do so. Not only will you avoid paying a high mortgage rate, but you’ll likely be able to negotiate a better price.

But few people can afford cash: 97% of buyers in the past year have needed to finance their homes, according to a recent report from the National Association of Realtors.

Even if you don’t have enough for an all-cash deal, spending more money on the down payment will lower your mortgage amount, lower your monthly payments, and mean paying less interest over the term. of the loan. If you own your current home, you can leverage some of the money from your sale or maybe even leverage the equity to increase your down payment.

By making a bigger down payment, you’ll not only reduce your loan balance, but also increase your home’s equity, money you can get back when you sell – assuming the property appreciates.

The wrong side: Using cash for a real estate purchase is always a trade-off, as you will have to give up other potential investments. And for most buyers, coughing up more cash just isn’t an option. The typical down payment for first-time buyers was 6%, while it was 17% for repeat buyers. according to the National Association of Realtors.

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Validea Martin Zweig Strategy Daily Upgrade Report – 11/11/2022 https://arropaydayloans.com/validea-martin-zweig-strategy-daily-upgrade-report-11-11-2022/ Fri, 11 Nov 2022 10:34:00 +0000 https://arropaydayloans.com/validea-martin-zweig-strategy-daily-upgrade-report-11-11-2022/ Here are today’s updates for Validea’s growth investor model based on Martin Zweig’s published strategy. This strategy seeks growth stocks with persistently accelerating earnings and sales growth, reasonable valuations and low leverage. MGIC INVESTMENT CORP (MTG) is a mid-cap value stock in the insurance sector (Prop. & Casualty). The rating under our Martin Zweig-based strategy […]]]>

Here are today’s updates for Validea’s growth investor model based on Martin Zweig’s published strategy. This strategy seeks growth stocks with persistently accelerating earnings and sales growth, reasonable valuations and low leverage.

MGIC INVESTMENT CORP (MTG) is a mid-cap value stock in the insurance sector (Prop. & Casualty). The rating under our Martin Zweig-based strategy rose from 82% to 89% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: MGIC Investment Corporation is a holding company. The Company, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions and ancillary services. The Company’s mortgage loan insurance product offers primary insurance and swimming pool insurance. Principal insurance provides mortgage default protection on individual loans and covers a percentage of the outstanding loan principal, overdue interest, and certain expenses associated with default and subsequent foreclosure of the mortgage or sale of the underlying property. Pool insurance is typically used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance typically covers the amount of loss on a defaulted mortgage that exceeds the claim payment under the primary coverage. Its other products are contract underwriting and others. The Company’s subsidiaries include MGIC Assurance Corporation (MAC) and MGIC Indemnity Corporation (MIC).

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

P/E RATIO: PASS
REVENUE GROWTH VS EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER BENEFITS: PASS
QUARTERLY PROFITS FROM A YEAR AGO: PASS
POSITIVE GROWTH RATE OF RESULTS FOR THE CURRENT QUARTER: PASS
EARNINGS GROWTH RATE OVER THE LAST SEVERAL QUARTER: PASS
EPS GROWTH FOR THE CURRENT QUARTER MUST BE HIGHER THAN THE PREVIOUS 3 QUARTERS: PASS
EPS GROWTH FOR THE CURRENT QUARTER MUST BE ABOVE HISTORICAL GROWTH RATE: PASS
PERSISTENCE OF BENEFITS: FAIL
LONG-TERM EPS GROWTH: PASS
INSIDER TRADING: PASS

Detailed analysis of MGIC INVESTMENT CORP

Complete Guru Analysis for MTG

Full factor report for MTG

NATIONAL FARMERS BENCH CORPORATION (FMNB) is a small cap value stock in the money banking sector. The rating under our Martin Zweig-based strategy rose from 69% to 85% depending on the company’s underlying fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Farmers National Bank Corp. is a financial holding company. The principal activity of the Company consists in owning and supervising its subsidiaries. It provides commercial and retail banking services. The Company’s segment includes Bank segment and Trust segment. The Bank’s commercial and retail banking services include checking accounts, savings accounts and term deposit accounts. It offers commercial, mortgage and installment loans, home equity loans and home equity lines of credit. It offers night deposit, safe deposit boxes, money orders, bank checks, ATMs, internet banking, travel cards and E-Bond transactions. It provides MasterCard and Visa credit cards, brokerage services and other miscellaneous services offered by commercial banks. Its subsidiaries include The Farmers National Bank of Canfield (the Bank or Farmers Bank), Farmers Trust Company (Farmers Trust) and Farmers National Captive, Inc. (Captive).

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

P/E RATIO: PASS
REVENUE GROWTH VS EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER BENEFITS: PASS
QUARTERLY PROFITS FROM A YEAR AGO: PASS
POSITIVE GROWTH RATE OF RESULTS FOR THE CURRENT QUARTER: PASS
EARNINGS GROWTH RATE OVER THE LAST SEVERAL QUARTER: FAIL
EPS GROWTH FOR THE CURRENT QUARTER MUST BE HIGHER THAN THE PREVIOUS 3 QUARTERS: PASS
EPS GROWTH FOR THE CURRENT QUARTER MUST BE ABOVE HISTORICAL GROWTH RATE: PASS
PERSISTENCE OF BENEFITS: PASS
LONG-TERM EPS GROWTH: PASS
INSIDER TRADING: PASS

Detailed analysis of FARMERS NATIONAL BANC CORP

Complete Guru Analysis for FMNB

Full factor report for FMNB

More details on Validea’s Martin Zweig strategy

About Martin Zweig: Over the 15 years of tracking, Zweig’s stock recommendation newsletter has returned an average of 15.9% per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest . Zweig has managed both mutual funds and hedge funds during his career, and he’s put the fortune he amassed to good use. He’s owned what Forbes has reported to be New York’s most expensive apartment, a $70 million penthouse that sits atop Manhattan’s Pierre Hotel, and he’s a collector of all manner of pop culture. and historical memorabilia – among his purchases are the gun used by Clint Eastwood in ‘Dirty Harry’, a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to the ones he had seen at a nearby gas station while growing up in Cleveland, according to published reports.

About Validea: Validea is an investment research service that tracks the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information on Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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4 reasons to consider a hard money loan https://arropaydayloans.com/4-reasons-to-consider-a-hard-money-loan/ Tue, 08 Nov 2022 16:00:55 +0000 https://arropaydayloans.com/4-reasons-to-consider-a-hard-money-loan/ Image source: Getty Images Hard money loans aren’t for everyone, but here’s when they might make sense. Key points Hard money loans are generally short-term loan products designed for real estate investments. While qualifying may be easier than traditional mortgage financing in many cases, hard money lending doesn’t make sense for everyone. When it comes […]]]>

Image source: Getty Images

Hard money loans aren’t for everyone, but here’s when they might make sense.


Key points

  • Hard money loans are generally short-term loan products designed for real estate investments.
  • While qualifying may be easier than traditional mortgage financing in many cases, hard money lending doesn’t make sense for everyone.

When it comes to financing real estate investments, you have several options. In some cases, you may be able to use a traditional mortgage from a bank. For example, the standards of Fannie Mae and Freddie Mac allow home loans. There are asset-based loans specifically designed for properties that will generate rental income. However, many investors use the equity in their existing property to finance all or part of their real estate investments.

A hard money loan is another option, particularly when other methods of financing are impractical or unavailable. These loans are certainly not without drawbacks. They typically have short loan terms and high interest rates and fees. They also tend to require higher down payments than conventional mortgages. But they can make sense in a few cases.

1. You need fixed and reversible financing

By far, the number one use case for hard money loans is house flipping. You usually can’t use a traditional mortgage when flipping a house, especially if you’re hoping to fund renovation costs, and it’s not always practical to use cash to fund an entire project. For these reasons, the short-term nature of hard money loans can be an excellent financial tool.

2. You need a bridge loan for long-term financing

Let’s say you want to buy a currently uninhabitable triplex, renovate it down to the half-timbering and create a beautiful, profitable rental property. In such cases, banks may not be willing to grant a mortgage in the state the property is in.

This could be a great situation for a hard money loan, as long as the numbers still work. For example, you could get a 12 month hard money loan, and once the property is in new condition, refinance and get a conventional mortgage to keep it as a rental property.

3. You need money fast

If you’ve ever gone through the mortgage process, you know that approval and funding doesn’t exactly happen overnight. Conventional mortgages typically take a month or more from start to finish. In contrast, hard money loans can often be granted in just a few days.

More: Our picks for the best FHA mortgage lenders

So even if an investment property that you plan to hold for a long-term rental investment box qualify for a traditional mortgage right away, but you need to be able to close quickly for some reason, a hard money loan can be a good short-term solution.

That said, it is generally not economical to go into debt longer than necessary. These loans typically have interest rates between 10% and 18%, so financing costs can get out of hand pretty quickly. If you end up using a hard money loan for a quick close, keep that in mind.

4. You buy commercial property

Another common use case for hard money loans is for commercial real estate investments, such as an office building, retail building, or apartment building with five or more units. If you’re a new investor, it can be difficult to get approved for traditional business financing, and it’s also common to see hard money loans used for unique properties.

The basics of hard money loans

Hard money loans can be valuable financial tools for real estate investors, but they are not suitable for all situations. Since these are usually expensive, short-term finance vehicles, it’s important to consider all available options to ensure that a hard money loan is truly the best fit for your situation.

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Today’s mortgage, refinance rate: November 5, 2022 https://arropaydayloans.com/todays-mortgage-refinance-rate-november-5-2022/ Sat, 05 Nov 2022 10:00:21 +0000 https://arropaydayloans.com/todays-mortgage-refinance-rate-november-5-2022/ Insider’s experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page. Mortgage rates rose after the Bureau of Labor Statistics released a stronger […]]]>

Insider’s experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Mortgage rates rose after the Bureau of Labor Statistics released a stronger than expected jobs report for October. Although the unemployment rate rose slightly, the United States added 261,000 jobs last month, a sign that the economy remains resilient even as the Federal Reserve rapidly raises the federal funds rate in an attempt to curb inflation.

At his Wednesday press conference, Fed Chairman Jerome Powell reiterated that the Fed is committed to tightening monetary policy until inflation shows lasting signs of easing. Powell specifically pointed to the tight labor market as a sign that the Fed still has room to raise rates further. Friday’s jobs report all but confirmed that the Fed will have to keep raising rates if it wants to slow inflation to its target annual rate of 2%.

Although mortgage rates are not directly affected by changes to the fed funds rate, a still strong economy and a central bank intent on bringing inflation down means borrowers can expect mortgage rates to stay high. in the foreseeable future.

Mortgage rates today

Type of mortgage Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

Mortgage refinance rates today

Type of mortgage Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

mortgage calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.

mortgage calculator

$1,161
Your estimated monthly payment

  • pay one 25% a higher down payment would save you $8,916.08 on interest charges
  • Lower the interest rate by 1% would save you $51,562.03
  • Pay an extra fee $500 each month would reduce the term of the loan by 146 month

By clicking on “More details”, you will also see the amount you will pay over the life of your mortgage, including the amount of principal versus interest.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 6.95%, according to Freddie Mac. This is a decrease from the previous week.

The 30-year fixed rate mortgage is the most common type of mortgage. With this type of mortgage, you’ll pay back what you borrowed over 30 years and your interest rate won’t change for the life of the loan.

The 30-year long term allows you to spread your payments out over a long period, which means you can keep your monthly payments lower and more manageable. The tradeoff is that you’ll get a higher rate than with shorter terms or adjustable rates.

15-year fixed mortgage rates

The average 15-year fixed mortgage rate is 6.29%, down from the previous week, according to data from Freddie Mac. The last time this rate was above 6% was in 2008.

If you’re looking for the predictability that comes with a fixed rate, but are looking to spend less on interest over the life of your loan, a 15-year fixed rate mortgage might be right for you. Since these terms are shorter and have lower rates than 30-year fixed rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will have a higher monthly payment than you would with a longer term.

5/1 Adjustable Mortgage Rates

The average 5/1 adjustable mortgage rate is 5.95%, a very slight drop from the previous week.

Variable rate mortgages can seem very attractive to borrowers when rates are high, as rates on these mortgages are generally lower than fixed mortgage rates. A 5/1 ARM is a 30 year mortgage. For the first five years, you will have a fixed rate. After that, your rate will adjust once a year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than you started with.

If you’re considering an ARM, make sure you understand how much your rate might increase each time it adjusts and how much it might ultimately increase over the life of the loan.

Will mortgage rates increase in 2022?

To help the US economy during the COVID-19 pandemic, the Federal Reserve has been aggressively buying assets, including mortgage-backed securities. This has helped keep mortgage rates at historically low levels.

However, the Fed has started to reduce the assets it holds and is expected to raise the federal funds rate two more times in 2022, following increases in its last five meetings.

Although not directly tied to the fed funds rate, mortgage rates are sometimes pushed higher due to Fed rate hikes and investors’ expectations of the impact of those hikes on the economy. .

Inflation remains high, but has started to slow, which is a good sign for mortgage rates and the economy in general.

What is a Fixed Rate Mortgage or an Adjustable Rate Mortgage?

Historically, adjustable mortgage rates have tended to be lower than 30-year fixed rates. When mortgage rates rise, ARMs may start to look like the best deal, but it depends on your situation.

Fixed rate mortgages lock in your rate for the life of your loan. Variable rate mortgages lock in your rate for the first few years, then your rate increases or decreases periodically.

Because adjustable rates start low, they are attractive options if you plan to sell your home before interest rates change. For example, if you get a 7/1 ARM and want to move before the end of the seven-year fixed rate period, you won’t risk paying a higher rate later.

But if you want to buy a house forever, a fixed rate might still be a better fit because you don’t risk your rate going up in a few years.

Are HELOCs a good idea right now?

Many homeowners have gained great net worth over the past couple of years as home prices have risen at an unprecedented rate. But since rates are so high today, tapping into that equity can be costly.

For homeowners looking to leverage the value of their home to cover a big purchase, like a home improvement, a home equity line of credit (HELOC) can still be a good option.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similar to a credit card in that you borrow what you need rather than getting the full amount you borrow in one lump sum.

Depending on your finances and the type of HELOC you get, you may be able to get a better rate with a HELOC than with a home equity loan or cash refinance. Just keep in mind that HELOC rates are variable, so if rates start to increase further, yours will likely increase as well.

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In the race to invest in homebuyers’ down payment https://arropaydayloans.com/in-the-race-to-invest-in-homebuyers-down-payment/ Thu, 03 Nov 2022 15:37:03 +0000 https://arropaydayloans.com/in-the-race-to-invest-in-homebuyers-down-payment/ A handful of companies offer homeowners cash in exchange for a stake in their home. The next frontier: making investments similar to buyers who need help with a down payment. Companies face significant obstacles in generalizing this product. Loading Something is loading. Thank you for your registration! Access your favorite topics in a personalized feed […]]]>
  • A handful of companies offer homeowners cash in exchange for a stake in their home.
  • The next frontier: making investments similar to buyers who need help with a down payment.
  • Companies face significant obstacles in generalizing this product.

Companies backed by some of the world’s biggest investors are handing out tens of thousands of dollars in cash to homeowners in exchange for a stake in their homes.

However, these types of offers are not yet widely available to first-time buyers who have not built up capital.

Housing today’s market is heavy for these especially younger buyers struggling with inflation, stubbornly high house prices and mortgage rates that have more than doubled over the past year. In this environment, finding enough cash for a large down payment can seem downright impossible.

But some companies are preparing to provide considerable sums to homebuyers who are not shy about giving something back: a part of the equity in their future property.

These deals represent the next frontier for companies like Point, Unlock, and HomePace, which already offer home equity investments to wealthy homeowners on paper but don’t want to pursue traditional debt options, like debt lines. equity in their home. credit, to tap into this wealth.

“It’s an equalizer for those who don’t have generational wealth,” said Point co-founder Eoin Matthews. “We think it has mass market appeal.”

Home equity investment deals took off earlier in the pandemic as soaring home values ​​pushed US homeowners’ net worth to a record $29 trillion, Federal Reserve Data show. Point, one of the largest such companies, has closed nearly $1 billion in such deals since its inception in 2015, with much of that volume occurring in the last year, Matthews said.

These companies now see an opportunity to gain more market share by working with buyers who are desperate to increase their purchasing power in the face of mortgage rates hovering around a 20-year high.

Several companies told Insider that they are moving forward with down payment products, and Point noted that his planned debut was only a few weeks away. While the volumes may be large, they are unlikely to compete with standard real estate investments due to the additional challenges posed by sales transactions, company executives said.

Businesses Think They Can Tackle the Affordability Crisis by Meeting the Money for Down Payments

It is only recently that equity investments have gained widespread acceptance as a legitimate asset class after companies have proven their viability through years of successful returns. Down-payment products could follow a similar trajectory, Point’s Matthews said. His own company will offer investments of up to 15% of the purchase price of a home, up to $250,000, he said.

Buyers are generally required to purchase private mortgage insurance when paying less than 20% of the purchase price of their home. Down payment investments could help them avoid these costs, which can amount to hundreds of dollars per month.

Jim Riccitelli, the CEO of Unlock, estimated that some shoppers could improve their purchasing power by up to 30%, which he called a “huge boost”.

“The affordability problem is unfortunately not going away any time soon, so we are preparing for that,” Riccitelli said, adding that the down payment investments represented “a huge opportunity”.

HomePace, which was founded in September 2020, is another proponent of down payment investments and is developing such a product in partnership with Lennar, the nation’s second-largest homebuilder. In December, the company closed a $7 million Series A funding round led by LenX, the venture capital arm of Lennar.

The waiting list for the company’s anticipated offering includes buyers from 35 states and Washington, DC, Joe Cianciolo, CEO of HomePace, said in an email.

“Once rates become less volatile, HEIs will have a great opportunity to dramatically improve affordability for people who are unable to afford a home in the current environment,” Cianciolo said in the E-mail.

Of course, these deals come with trade-offs, as buyers will have to give up some of the equity in their property. And there are challenges that have prevented this product from going mainstream.

Why it’s so hard to make down payment investments work

In a traditional home equity investment agreement, there are only two parties: the homeowner who agrees to give up a percentage of the future value of their home, and the company offering the investment.

Down payment investments work the same way – a lump sum today in exchange for a slice of equity in the future – but are more complicated as they also require coordination with the mortgage lender, at least two real estate agents , and the seller to ensure that the real estate transaction closes smoothly and on time.

Fannie Mae and Freddie Mac, government-sponsored companies who buy the vast majority of the United States mortgages, will not purchase loans made to buyers who use these equity investments. At least for now, this limits the down payment investment market to the smaller portion of buyers who are willing to go the nonqualified mortgage route, which typically has higher interest rates.

Combine all of these factors, and it’s not hard to see why down payment investing has yet to catch on, despite the fact that real estate investment firms have been around since the mid-2000s. , one of the industry’s pioneers, Unison, stopped offering down payment investments earlier in the pandemic, opting instead to focus on traditional home equity deals.

Additionally, a fintech executive who requested anonymity to protect business relationships doubted any deposit deals would emerge in the next year. Companies haven’t rushed to market, the person said, because this type of investment is a “very difficult product to make decent margins.”

“One of the big mortgage companies is going to have to get involved,” the executive added.

Matthew said the product might initially make sense for high earners such as doctors or lawyers who haven’t reached their full earning potential and are willing to take out an ineligible mortgage, such as a jumbo loan.

He added that he was optimistic that Fannie and Freddie would one day be willing to buy loans from buyers taking advantage of this product.

“But it won’t happen overnight,” Matthews said. “It’s a big effort.”

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October 31, 2022 – Current Refinance Rates Are Rising – Forbes Advisor https://arropaydayloans.com/october-31-2022-current-refinance-rates-are-rising-forbes-advisor/ Mon, 31 Oct 2022 14:12:40 +0000 https://arropaydayloans.com/october-31-2022-current-refinance-rates-are-rising-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. The rate for a 30-year fixed refinance jumped today. The average rate on a 30-year fixed mortgage refinance is 7.17%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

The rate for a 30-year fixed refinance jumped today.

The average rate on a 30-year fixed mortgage refinance is 7.17%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 6.42%. On a 20-year mortgage refinance, the average rate is 7.29% and the average rate on a 5/1 ARM is 5.45%.

Related: Compare current refinance rates

Refinancing rate as of October 31, 2022

30-year fixed rate refinancing rate

Today, the average 30-year fixed rate mortgage refinance rate rose to 7.17% from yesterday. A week ago, the 30-year fixed was 7.27%. The 52-week high is 7.38%.

The APR, or annual percentage rate, over a 30-year period is 7.18%. This time last week it was 7.28%. The APR is the overall cost of your loan.

At the current interest rate of 7.17%, a 30-year fixed mortgage refi would cost $677 per month in principal and interest (excluding taxes and fees) for $100,000, according to mortgage calculator Forbes Advisor. In total interest, you would pay $143,633 over the life of the loan.

20-year refi rate

The average interest rate on the 20-year fixed refinance mortgage is 7.29%. A week ago, the 20-year fixed rate mortgage was at 7.35%.

The APR on a 20-year fixed is 7.31%. Last week it was 7.37%.

A $100,000 20-year fixed rate mortgage refinance with a current interest rate of 7.29% will cost $793 per month in principal and interest. Taxes and fees are not included. Over the term of the loan, you will pay approximately $90,272 in total interest.

Fixed refinancing rates over 15 years

The average interest rate on the 15-year fixed refinance mortgage fell to 6.42%. Yesterday it was 6.43%. At this time last week, the 15-year fixed rate mortgage was at 6.55%. Today’s rate is above the 52-week low of 4.86%.

On a 15-year fixed refinancing, the annual percentage rate of charge is 6.45%. Last week it was 6.58%.

At the current interest rate of 6.42%, a 15-year fixed rate mortgage would cost approximately $867 per month in principal and interest per $100,000. You would pay approximately $56,009 in total interest over the life of the loan.

30-Year Jumbo Mortgage Refinance Rate

The average interest rate on the 30-year fixed rate jumbo mortgage refinance is 7.17%. A week ago, the average rate was 7.28%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 5.51%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with a current interest rate of 7.17% will pay $677 per month in principal and interest per $100,000.

15-Year Jumbo Mortgage Refinance Rate

The average interest rate on the 15-year fixed rate jumbo mortgage refinance fell to 6.40%. Last week, the average rate was 6.58%. The 15-year fixed rate on a jumbo mortgage is higher than the 52-week low of 4.87%.

Borrowers with a 15-year fixed rate jumbo mortgage refinance with a current interest rate of 6.40% will pay $866 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $6,492, and you would pay approximately $418,586 in total interest over the life of the loan.

5/1 Adjustable Rate Mortgage Refinance Rate

The average interest rate on a 5/1 ARM is 5.45%, higher than the 52-week low of 2.83%. Last week, the average rate was 6.94%.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 5.45% will pay $565 per month in principal and interest.

Know when to refinance your home

There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, lower their monthly payments, or pay off their home loan sooner. Refinancing can also help you access equity in your home or eliminate private mortgage insurance (PMI).

A home loan refinance can be a good idea, especially if you plan to stay in your home for a while. Even if you get a lower interest rate, you have to consider the cost of the loan. Calculate the break-even point where your savings from a lower interest rate exceeds your closing costs by dividing your closing costs by the monthly savings from your new payment.

Our Mortgage Refinance Calculator can help you determine if refinancing is right for you.

How to get today’s best refinance rates

Just like when shopping for a mortgage when buying your home, when you refinance, here’s how you can find the lowest refinance rate:

  • Maintain a good credit rating
  • Consider a shorter term loan
  • Reduce your debt to income ratio
  • Monitor mortgage rates

A strong credit score isn’t a guarantee that you’ll get your refinance approved or that you’ll get the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You should also keep an eye on mortgage rates for different loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.

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What is mortgage refinancing and when should you consider it https://arropaydayloans.com/what-is-mortgage-refinancing-and-when-should-you-consider-it/ Fri, 28 Oct 2022 15:00:00 +0000 https://arropaydayloans.com/what-is-mortgage-refinancing-and-when-should-you-consider-it/ The journey to home ownership isn’t always easy and doesn’t end the day you get your keys. Once that day arrives, you usually have between 15 and 30 years of mortgage payments left in front of you. You can expect some changes during this time, especially when it comes to your finances. When this happens, […]]]>

The journey to home ownership isn’t always easy and doesn’t end the day you get your keys. Once that day arrives, you usually have between 15 and 30 years of mortgage payments left in front of you. You can expect some changes during this time, especially when it comes to your finances.

When this happens, you might consider refinancing your mortgage.

What is Mortgage Refinancing?

When you refinance your mortgage, you take out a new loan to pay off your existing mortgage. The difference: This new loan will have new (and hopefully better) terms. Here are some major reasons why you might consider refinancing your mortgage:

  1. This could reduce your monthly payment: When you refinance a loan with a lower interest rate or a longer term, it can significantly reduce the amount of your monthly mortgage payment, making it easier for you to pay it off and cover your other expenses and debts.
  2. You will pay less interest during the term of your loan: When interest rates drop, you may find yourself in a position to secure a lower rate, which could translate into significant savings by the end of your term.
  3. You could access your home equity: Also known as a cash-out refinance, this is when you replace your existing mortgage with a new one with a higher balance. Then you take the difference as cash and use it to fund other expensive expenses or projects.

How does mortgage refinancing work?

Refinancing takes around 30-60 days, and the process itself is similar to the process you went through when you applied for your original mortgage, so try to be prepared by gathering all of your important financial documents ahead of time so you can that the process can be as transparent as possible.

“The lender will need to re-examine your financial situation to determine your ability to repay the new mortgage and will re-evaluate your home to get an updated property value,” says Thomas Parrish, managing director and head of retail lending product management at BMO. . Financial Group. “You will need to provide various documents (income documents, declaration of assets, property insurance policy, etc.) to your lender. Based on the evaluation of all these aspects, your lender will determine if you are eligible for a new mortgage. »

Pro tip: Get pre-approved from multiple mortgage lenders so you can compare interest rates and terms and choose the best option.

Refinancing — in numbers

So how much can you actually save by refinancing? Let’s break it down.

Say you have a 20-year fixed rate mortgage of $300,000 and you still have 15 years left on your loan:

Your interest rate: 6% (the current national average for a 30-year fixed rate loan is 7.04%).
Monthly payment: $2,200
Balance remaining on your mortgage: $270,000

Now suppose you refinance a 15-year mortgage (about the same term as you had left on your original loan) at a lower rate.

Your new interest rate: 3.5%
New loan term: 15 years old

Lowering your interest rate and choosing a 15-year term will help you save:

Your new monthly payment: $1,930.18
Monthly savings: $269.82
Difference of interest: $48,567

Want to try doing the math yourself? Try using our mortgage refinance calculator below:

What are the pros and cons of refinancing?

Many experts agree that while refinancing your mortgage can help you save at least 1%, it may be worth all the extra fees and paperwork. But if the savings aren’t significant, you might be better off sticking with your current mortgage and original terms. Here are some of the pros and cons you should weigh when considering refinancing:

Advantage: you could reduce your monthly payment. One of the obvious benefits of refinancing your mortgage is that you might get a lower interest rate which, in turn, lowers your monthly payment.

Advantage: you could get rid of your private mortgage insurance (PMI). If you paid a smaller down payment when you originally purchased your home, you may need to make monthly PMI payments now to offset the risk your lender has assumed by lending you the funds for your home. Refinancing can be a way to get rid of this requirement. The cost of PMI varies depending on a number of factors, but in general, Freddie Mac estimates that it costs between $30 and $150 per month for every $100,000 borrowed.

Con: You will be responsible for closing costs. Refinancing isn’t free, so you’ll need to crunch the numbers to determine if you’ll save enough to make those extra costs worth it. When you refinance, you will be responsible for closing costs…again. This could range from 2% to 5% of the value of your refinance. “Some aspects that homeowners need to keep in mind when refinancing are the costs associated with it,” says Parrish. “Typically, [there are] closing costs such as loan origination fees, appraisal fees, title searches and insurance, surveys, filing fees, closing attorney fees and taxes.

Disadvantage: refinancing does not always help you save money. If you’re planning to move or can’t get a low enough rate, refinancing may actually cost you more than you can save. For example, if refinancing your loan with a new lender costs $5,000 up front and your new monthly payment is only $50 less than what you were paying before, you will need to stay in your home. for at least 100 months to break even.

The take-out sale

Refinancing is not a panacea for your housing cost problems. This may help some homeowners keep their expenses down, but your financial situation and the rates you are offered will play a huge role in deciding whether or not to refinance your mortgage.

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Evergreen Bank Group reports solid year-to-date asset and profit growth https://arropaydayloans.com/evergreen-bank-group-reports-solid-year-to-date-asset-and-profit-growth/ Tue, 25 Oct 2022 15:00:00 +0000 https://arropaydayloans.com/evergreen-bank-group-reports-solid-year-to-date-asset-and-profit-growth/ OAK BROOK, Ill., October 25, 2022 /PRNewswire/ — Bancorp Financial, Inc. (the “Company”), the parent company of Evergreen Bank Group (the “Bank” or “Evergreen”), today announced its 2022 year-to-date results, highlighted with a solid income of $14.0 millionWhere $4.54 per diluted share. Return on average assets and return on average equity for 2022 were 1.51% […]]]>

OAK BROOK, Ill., October 25, 2022 /PRNewswire/ — Bancorp Financial, Inc. (the “Company”), the parent company of Evergreen Bank Group (the “Bank” or “Evergreen”), today announced its 2022 year-to-date results, highlighted with a solid income of $14.0 millionWhere $4.54 per diluted share. Return on average assets and return on average equity for 2022 were 1.51% and 13.64% respectively. “Year-to-date 2022 results reflect strong loan growth, higher net interest margin, strong asset quality metrics, and significant investment in technology,” said Jill VossExecutive Vice President and Chief Financial Officer.

(PRNewsfoto/Evergreen Bank Group)

Financial Highlights 2022

  • Total assets exceeded $1.40 billion at September 30, 2022i.e. an increase of 16.7% in 2022. This increase comes mainly from $200.8 million growth in National Motorsports Program loans, in addition to consumer loans and variable rate home equity loans to prime borrowers. This growth was funded by excess cash and organic retail promotions in our local markets, generating new customers and cross-selling opportunities.

  • Net interest income was $44.9 million, representing a net interest margin of 4.94%. The Bank’s national powersports portfolio continues to drive strong performance in earning assets. Some degree of margin compression is expected in the fourth quarter as deposit rates are expected to rise faster than lending rates.

  • The provision for loan losses has been $1.68 million for the first nine months of 2022 compared to $0.53 million for the same period of 2021. The increase is mainly due to the provision for additional loan growth. The provision for loan losses stands at 1.50%, still significantly higher than pre-pandemic levels.

  • Non-interest income was $1.67 million for the first nine months of 2022 compared to $2.50 million for the same period of 2021. While commission income received in 2022 is on the rise, in 2021 the Company received non-recurring BOLI income and recorded higher gains on the sale of repossessed vehicles.

  • Non-interest expenses were $26.45 million in 2022, against $22.79 million in 2021 due to additional investments in technology and people related to our balance sheet growth, digital transformation and CRM integration strategies. The Bank continued to maintain a strong efficiency ratio below 60%, at 56.83% despite these significant investments.

  • The Board of Directors declared a quarterly cash dividend of $0.20 per share to common shareholders of record at the close of business on September 30, 2022payable on October 14, 2022. This is the fourth consecutive quarter that our shareholders have received a dividend.

  • President and CEO Darin Campbell said, “We are very pleased with our financial performance in the first three quarters and we are well positioned to continue to deliver strong financial results in the fourth quarter. We remain focused on executing our strategy as a cutting-edge bank with a national footprint, making savings and loans easy and simple We have made great strides in accelerating our digital transformation as we are now positioned to open deposit accounts nationwide on our all-new digital platforms – offering customers the ability to open deposit accounts in just over two minutes. Our new digital solutions and other technology strategies planned over the next few quarters will rival any fintech or tech-savvy bank in the market. We remain very excited and optimistic about our future.

BANCORP FINANCIER, INC

BALANCE SHEET

Assets

Unaudited
09/30/2022

Checked
31/12/2021

Cash and cash equivalents

$107,549,967

$116,536,612

Investments

96,052,347

96 113 046

Loans, net

1,152,111,914

951 287 254

Bank-owned life insurance

12,915,651

12,680,356

other assets

33,164,559

24,179,299

Total assets

$1,401,794,438

$1,200,796,567

Liabilities and equity

Deposits

$1,200,527,698

$994,057,949

Notes payable

44,500,000

57,700,000

Other liabilities

20,821,555

14,510,993

Total responsibilities

$1,265,849,253

$1,066,268,942

Equity

$135,945,185

$134,527,625

Total Liabilities and Equity

$1,401,794,438

$1,200,796,567

Evergreen Bank Group Asset Quality Ratios:

Net charges to average loans (annualized)

0.35%

0.27%

Non-performing loans/total loans (annualized)

0.17%

0.18%

BANCORP FINANCIER, INC

INCOME STATEMENTS

Unaudited
September cumulative since the beginning of the year
2022

Unaudited
September cumulative since the beginning of the year
2021

Interest income on loans

47,723,123

48,930,093

Interest income on investments and cash at bank

$2,393,334

$1,384,872

Total interest income

$50,116,457

$50,314,965

Interest charges on deposits

4,454,750

4,820,733

Interest expense on debt

806 338

1,227,971

Total interest expense

$5,261,088

$6,048,704

Net interest income

$44,855,369

$44,266,261

Allowance for loan losses

1,675,000

525,000

Other non-interest income

1,672,221

2,495,666

Other non-interest expense

26,450,550

22,792,114

Net profit before tax

$18,402,040

$23,444,813

income tax expense

4,406,259

5,602,209

Net revenue

$13,995,781

$17,842,604

Average return on assets

1.51%

1.96%

return on average equity

13.64%

19.58%

NIM

4.94%

4.93%

About Evergreen

Evergreen Bank Group (the “Bank”) is a Illinois-chartered community bank wholly owned by Bancorp Financial, Inc., a Delaware company (the “Company”). The Bank was created in 1999 and became a subsidiary of the Company following a merger operation in 2007. The Bank has its registered office in oak stream, Ill. Evergreen is a technology-focused bank, lending in all 50 states and Porto Rico and is committed to delivering world-class experiences nationwide by making it simple and easy to borrow and save. Evergreen also offers banking services through its lending divisions, FreedomRoad Financial and Performance Finance – two of the most recognizable names in the national motorcycle and powersports lending space. https://evergreenbankgroup.com/

This document contains certain future-oriented statements as defined in applicable federal securities laws. These forward-looking statements describe future plans or strategies and may include the Company’s and the Bank’s expectations regarding future results. The ability of the Company and the Bank to predict the results or the effect of future plans or strategies or qualitative or quantitative changes is inherently uncertain. Actual results may differ materially from stated expectations.

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SOURCE Evergreen Bank Group

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