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Published: 2025-10-30 20:08:17 ET
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EX-99.1 2 tfslfy25sept8kexhibits.htm EX-99.1 Document

Contact: Jennifer Rosa         (216) 429-5037 Exhibit 99.1
For release October 30, 2025

TFS Financial Reports Record $91 Million in Earnings for Fiscal Year 2025

(Cleveland, OH - October 30, 2025) - TFS Financial Corporation (NASDAQ: TFSL) (the "Company", "we", "our"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), today announced results for the quarter and fiscal year ended September 30, 2025.
“Third Federal saw record earnings of $91 million in our fiscal year, driven by a continued focus on improving our net interest margin, and an increase in first mortgage and home equity originations,” said Chairman and CEO Marc A. Stefanski. “Retail deposits stayed strong in fiscal year 2025, showing a $567 million increase. With confidence, we resumed stock buybacks, while continuing to report a Tier 1 capital ratio near 11%."
Operating Results for the Quarter Ended September 30, 2025
Net income grew by $4.5 million, or 20.9%, to $26.0 million for the quarter ended September 30, 2025 from $21.5 million for the quarter ended June 30, 2025. The increase was driven by increases in net interest income and non-interest income and decreases in the provision for credit losses and non-interest expense.
Net interest income increased $2.3 million, or 3.1%, to $77.3 million for the quarter ended September 30, 2025 from $75.0 million for the quarter ended June 30, 2025. The increase was primarily due to a 13 basis point increase in the weighted average yield on loans. Residential mortgage loans originated during a lower interest rate environment continue to amortize and be replaced with higher-yielding residential loans, including mortgage loans and home equity loans and lines of credit. The increase in loan yield was partially offset by an eight basis point increase in the weighted average cost of interest-bearing liabilities. The interest rate spread for the quarter ended September 30, 2025 increased four basis points from the previous quarter, to 1.54%, and the net interest margin increased three basis points during the quarter to 1.84%.
The Company recorded a provision for credit losses of $1.0 million for the quarter ended September 30, 2025 compared to $1.5 million for the quarter ended June 30, 2025. The total allowance for credit losses increased $2.0 million during the quarter to $104.4 million, or 0.67% of total loans receivable, from $102.4 million, or 0.66% of total loans receivable, at June 30, 2025. The increase was primarily due to growth in the home equity loan and lines of credit portfolios. The allowance for unfunded commitments, included in other liabilities, increased $0.3 million, to $30.1 million at September 30, 2025, from $29.8 million at June 30, 2025. Net recoveries were $1.0 million for the quarter ended September 30, 2025 compared to $0.9 million for the previous quarter.
Total non-interest income increased $1.2 million, or 17.0%, to $8.2 million for the quarter ended September 30, 2025 from $7.0 million for the quarter ended June 30, 2025. The increase was primarily due to a $1.6 million increase in net gain on the sale of loans, partially offset by a $0.5 million decrease in other non-interest income.
Total non-interest expense decreased $1.2 million, or 2.3%, to $52.0 million for the quarter ended September 30, 2025 from $53.2 million for the quarter ended June 30, 2025. The decrease was mainly due to a decrease of $1.3 million in marketing services which are expensed as incurred.
Financial Condition at September 30, 2025 compared to June 30, 2025
Total assets increased by $80.9 million to $17.46 billion at September 30, 2025 from $17.38 billion at June 30, 2025. The increase was mainly due to increases in loans held for investment and loans held for sale, partially offset by a decrease in cash and cash equivalents.
Cash and cash equivalents decreased $23.1 million, or 5.1%, to $429.4 million at September 30, 2025 from $452.6 million at June 30, 2025, due to normal fluctuations and liquidity management.
Loans held for investment, net of allowance and deferred loan expenses, increased $67.3 million, or less than 1%, to $15.66 billion at September 30, 2025 from $15.60 billion at June 30, 2025. During the quarter ended September 30, 2025, the combined balances of home equity loans and lines of credit increased $236.2 million to $4.81 billion and residential core mortgage loans decreased $166.1 million to $10.80 billion. Loans held for sale increased $26.7 million to $57.7 million at September 30, 2025, from $31.0 million at June 30, 2025, due to an increase in loans committed to future delivery contracts with Fannie Mae.
Deposits increased $105.5 million, or 1%, to $10.45 billion at September 30, 2025, compared to $10.34 billion at June 30, 2025, consisting of a $202.9 million increase in certificates of deposit ("CDs") and decreases of $15.1 million in money market deposit accounts, $24.8 million in checking accounts, and $57.4 million in savings accounts.



Operating Results for the Fiscal Year Ended September 30, 2025
The Company reported net income of $91.0 million for the fiscal year ended September 30, 2025, an increase of $11.4 million, or 14.3%, compared to net income of $79.6 million for the fiscal year ended September 30, 2024. The increase was primarily driven by increases in net interest income and non-interest income, partially offset by an increase in the provision for credit losses.
Net interest income increased $14.2 million, or 5.1%, to $292.7 million for the fiscal year ended September 30, 2025 compared to $278.5 million for the fiscal year ended September 30, 2024. The yield on interest-earning assets for the fiscal year ended September 30, 2025 increased 15 basis points compared to the same period a year ago, while the cost of interest-bearing liabilities increased 8 basis points. The interest rate spread was 1.45% for the fiscal year ended September 30, 2025 compared to 1.38% for the fiscal year ended September 30, 2024. The net interest margin was 1.76% for the fiscal year ended September 30, 2025 and 1.69% for the fiscal year ended September 30, 2024.
During the fiscal year ended September 30, 2025, there was a $2.5 million provision for credit losses compared to a $1.5 million release of provision for the fiscal year ended September 30, 2024. Net loan recoveries totaled $4.0 million for the fiscal year ended September 30, 2025 and $4.7 million for the prior fiscal year.
The total allowance for credit losses increased $6.5 million to $104.4 million, or 0.67% of total loans receivable, from $97.8 million, or 0.64% of total loans receivable, at September 30, 2024. The increase was primarily related to increases in the home equity loan and lines of credit portfolios, as well as an increase in commitments to originate residential loans, including mortgage loans and home equity loans and lines of credit. The allowance for credit losses included $30.1 million and $27.8 million in liabilities for unfunded commitments at September 30, 2025 and September 30, 2024, respectively. Total loan delinquencies increased $2.8 million to $34.7 million, or 0.22% of total loans receivable, at September 30, 2025 from $31.9 million, or 0.21% of total loans receivable, at September 30, 2024. Non-accrual loans totaled $38.7 million, or 0.25% of total loans receivable, at September 30, 2025, compared to $33.6 million, or 0.22% of total loans receivable, at September 30, 2024.
Total non-interest income increased $4.1 million, or 16.6%, to $28.8 million for the fiscal year ended September 30, 2025, from $24.7 million for the fiscal year ended September 30, 2024, primarily due to a $1.4 million increase in fees and service charges, net of amortization, and a $2.6 million increase in net gain on the sale of loans. The increase in fees and service charges was mainly due to an increase in fee income earned on home equity lines of credit. During the fiscal years ended September 30, 2025 and 2024, there were $411.3 million and $247.4 million of loans sold with net gains on the sale of loans totaling $5.3 million and $2.6 million, respectively.
Total non-interest expense for the fiscal year ended September 30, 2025 was consistent with the prior fiscal year at $204.3 million. Compared to the prior fiscal year, there were increases of $1.7 million in salaries and employee benefits and $1.1 million in office property, equipment and software expenses, offset by decreases of $1.1 million in marketing services, $0.4 million in federal insurance premium and assessments and $1.2 million in other expenses. The decrease in other expenses included a $1.7 million positive change in net benefit related to the defined benefit plan, due to the expected return on plan assets exceeding the projected increase in benefit obligation. Additionally, there was a decrease of $0.8 million in down payment subsidies and increases of $0.6 million in each legal and professional consulting expenses.
Financial Condition at September 30, 2025 compared to September 30, 2024
Total assets increased $365.8 million, or 2.1%, to $17.46 billion at September 30, 2025 from $17.09 billion at September 30, 2024. The increase was mainly the result of an increase in loans held for investment.
Loans held for investment, net of allowance and deferred loan expenses, increased $341.3 million, or 2.2%, to $15.66 billion at September 30, 2025 from $15.32 billion at September 30, 2024. Home equity loans and lines of credit increased $927.0 million to $4.81 billion and the residential core mortgage loan portfolio decreased $581.3 million to $10.80 billion. Loans held for sale increased $39.9 million to $57.7 million at September 30, 2025 from $17.8 million at September 30, 2024. Loans originated and acquired during the fiscal year ended September 30, 2025 included $1.19 billion of residential mortgage loans, of which $367.2 million were acquired through correspondent lending transactions, and $2.52 billion of home equity loans and lines of credit compared to $854.2 million of residential mortgage loans and $2.28 billion of home equity loans and lines of credit originated or acquired during the fiscal year ended September 30, 2024. Of the mortgage loans originated and acquired during the fiscal year ended September 30, 2025, 89% were purchases and 9% were adjustable rate loans.
Deposits increased $251.9 million, or 2.5%, to $10.45 billion at September 30, 2025 from $10.20 billion at September 30, 2024. The increase was the result of a $453.4 million increase in certificates of deposit, partially offset by decreases of $84.1


million in savings accounts, $44.1 million in checking accounts and $64.8 million in money market deposit accounts. The increase in certificates of deposit was achieved through competitive rates and enhanced product offerings, supported by marketing efforts, and included a $768.9 million increase in retail certificates of deposit offset by a $315.5 million decrease in brokered accounts. There were $900.9 million in brokered certificates of deposit at September 30, 2025 compared to $1.22 billion at September 30, 2024.
Borrowed funds decreased $77.4 million, or 1.6%, to $4.87 billion at September 30, 2025 from $4.79 billion at September 30, 2024. The balance of borrowed funds at September 30, 2025, all from the Federal Home Loan Bank, included $248.0 million of overnight advances, $1.60 billion of term advances with a weighted average maturity of approximately 1.8 years and $3.00 billion of term advances, aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.8 years.
Total shareholders' equity increased $31.3 million, or 1.7%, to $1.89 billion at September 30, 2025 from $1.86 billion at September 30, 2024. Activity reflects $91.0 million of net income, dividends paid of $59.7 million, $3.2 million in repurchases of the Company's common stock, a $5.6 million net decrease in accumulated other comprehensive income and net positive adjustments of $8.9 million related to our stock compensation and employee stock ownership plans. The change in accumulated other comprehensive income was primarily due to a net decrease in unrealized gains on swap contracts. During the fiscal year ended September 30, 2025, a total of 247,865 shares of the Company's common stock were repurchased at an average cost of $13.05 per share. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 4,944,086 remaining shares authorized for repurchase at September 30, 2025.
The Company declared and paid a quarterly dividend of $0.2825 per share during each quarter of fiscal year 2025. As a result of a mutual member vote, Third Federal Savings and Loan Association of Cleveland, MHC (the "MHC"), the mutual holding company that owns approximately 81% of the outstanding stock of the Company, was able to waive its receipt of its share of the dividends paid. Under Federal Reserve regulations, the MHC is required to obtain the approval of its members every 12 months for the MHC to waive its right to receive dividends. As a result of a July 8, 2025 member vote and subsequent non-objection of the Federal Reserve, the MHC has the approval to waive receipt of up to $1.13 per share of possible dividends to be declared on the Company’s common stock during the twelve months subsequent to the members’ approval (i.e., through July 8, 2026), including a total of up to $0.8475 remaining. The MHC has conducted the member vote to approve the dividend waiver each of the past twelve years under Federal Reserve regulations and for each of those twelve years, approximately 97% of the votes cast were in favor of the waiver.
The Company operates under the capital requirements for the standardized approach of the Basel III capital framework
for U.S. banking organizations (“Basel III Rules”). At September 30, 2025 all of the Company's capital ratios exceed the amounts required for the Company to be considered "well capitalized" for regulatory capital purposes. The Company's Tier 1 leverage ratio was 10.76%, its Common Equity Tier 1 and Tier 1 ratios were each 17.60% and its total capital ratio was 18.46%.
Presentation slides as of September 30, 2025 will be available on the Company's website, thirdfederal.com, under the Investor Relations link under the "Latest Presentation" heading, beginning October 31, 2025. The Company will not be hosting a conference call to discuss its operating results.
Third Federal Savings and Loan Association is a leading provider of savings and mortgage products, and operates under the values of love, trust, respect, a commitment to excellence and fun. Founded in Cleveland in 1938 as a mutual association by Ben and Gerome Stefanski, Third Federal’s mission is to help people achieve the dream of home ownership and financial security while creating value for our customers, communities, associates and shareholders. It became part of a public company in 2007 and celebrated its 85th anniversary in May 2023. Third Federal, which lends in 28 states and the District of Columbia, is dedicated to serving consumers with competitive rates and outstanding service. Third Federal, an equal housing lender, has 21 full service branches in Northeast Ohio, two lending offices in Central and Southern Ohio, and 15 full service branches throughout Florida. As of September 30, 2025, the Company’s assets totaled $17.46 billion.


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





TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
(In thousands, except share data)
September 30,
2025		June 30,
2025		September 30,
2024
ASSETS
Cash and due from banks$24,176 $28,788 $26,287 
Other interest-earning cash equivalents405,263 423,793 437,431 
Cash and cash equivalents429,439 452,581 463,718 
Investment securities available for sale520,659 525,212 526,251 
Mortgage loans held for sale 57,662 30,977 17,775 
Loans held for investment, net:
Mortgage loans15,659,460 15,591,275 15,321,400 
Other loans8,153 7,745 5,705 
Deferred loan expenses, net69,943 69,517 64,956 
Allowance for credit losses on loans(74,244)(72,540)(70,002)
Loans, net15,663,312 15,595,997 15,322,059 
Mortgage loan servicing rights, net8,549 7,771 7,627 
Federal Home Loan Bank stock, at cost235,363 232,538 228,494 
Real estate owned, net1,921 1,240 174 
Premises, equipment, and software, net40,022 39,061 33,187 
Accrued interest receivable62,553 60,434 59,398 
Bank owned life insurance contracts325,149 322,595 317,977 
Other assets111,935 107,260 114,125 
TOTAL ASSETS$17,456,564 $17,375,666 $17,090,785 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits$10,446,968 $10,341,499 $10,195,079 
Borrowed funds4,870,219 4,882,993 4,792,847 
Borrowers’ advances for insurance and taxes113,168 117,899 113,637 
Principal, interest, and related escrow owed on loans serviced30,328 30,237 28,753 
Accrued expenses and other liabilities101,957 115,032 97,845 
Total liabilities15,562,640 15,487,660 15,228,161 
Commitments and contingent liabilities
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding— — — 
Common stock, $0.01 par value, 700,000,000 shares authorized; 332,318,750 shares issued3,323 3,323 3,323 
Paid-in capital1,757,813 1,756,307 1,754,365 
Treasury stock, at cost(774,340)(771,861)(772,195)
Unallocated ESOP shares(18,417)(19,500)(22,750)
Retained earnings—substantially restricted946,776 935,742 915,489 
Accumulated other comprehensive income (21,231)(16,005)(15,608)
Total shareholders’ equity1,893,924 1,888,006 1,862,624 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$17,456,564 $17,375,666 $17,090,785 



TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
For the Three Months Ended
 September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024		September 30,
2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees$185,332 $177,493 $171,506 $172,152 $172,412 
Investment securities available for sale4,708 4,816 4,755 4,455 4,694 
Other interest and dividend earning assets9,013 9,098 9,691 10,161 11,410 
Total interest and dividend income199,053 191,407 185,952 186,768 188,516 
INTEREST EXPENSE:
Deposits78,636 76,803 75,379 77,942 80,196 
Borrowed funds43,094 39,610 38,524 40,498 39,605 
Total interest expense121,730 116,413 113,903 118,440 119,801 
NET INTEREST INCOME77,323 74,994 72,049 68,328 68,715 
PROVISION (RELEASE) FOR CREDIT LOSSES1,000 1,500 1,500 (1,500)1,000 
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES76,323 73,494 70,549 69,828 67,715 
NON-INTEREST INCOME:
Fees and service charges, net of amortization2,617 2,467 2,221 2,224 2,379 
Net gain on the sale of loans2,314 726 1,187 1,115 1,101 
Increase in and death benefits from bank owned life insurance contracts2,650 2,733 2,680 2,682 2,361 
Other580 1,122 980 482 579 
Total non-interest income8,161 7,048 7,068 6,503 6,420 
NON-INTEREST EXPENSE:
Salaries and employee benefits27,579 27,651 27,666 26,606 26,320 
Marketing services4,537 5,810 4,632 3,654 5,334 
Office property, equipment and software7,236 7,653 7,617 6,844 7,158 
Federal insurance premium and assessments3,388 3,519 3,673 3,585 3,522 
State franchise tax1,117 1,204 1,199 1,047 1,086 
Other expenses8,188 7,348 6,301 6,205 7,664 
Total non-interest expense52,045 53,185 51,088 47,941 51,084 
INCOME BEFORE INCOME TAXES32,439 27,357 26,529 28,390 23,051 
INCOME TAX EXPENSE6,440 5,844 5,508 5,964 4,836 
NET INCOME$25,999 $21,513 $21,021 $22,426 $18,215 
Earnings per share - basic and diluted $0.09 $0.08 $0.07 $0.08 $0.06 
Weighted average shares outstanding
Basic278,764,271 278,832,875 278,729,388 278,538,110 278,399,318 
Diluted279,887,491 279,873,274 279,719,382 279,578,652 279,404,704 



TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
 For the Year Ended
September 30,
 20252024
INTEREST AND DIVIDEND INCOME:
Loans, including fees$706,483 $663,685 
Investment securities available for sale18,734 18,228 
Other interest and dividend earning assets37,963 52,161 
Total interest and dividend income763,180 734,074 
INTEREST EXPENSE:
Deposits308,760 292,728 
Borrowed funds161,726 162,888 
Total interest expense470,486 455,616 
NET INTEREST INCOME292,694 278,458 
PROVISION (RELEASE) FOR CREDIT LOSSES2,500 (1,500)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES290,194 279,958 
NON-INTEREST INCOME:
Fees and service charges, net of amortization9,529 8,069 
Net gain on the sale of loans5,342 2,747 
Increase in and death benefits from bank owned life insurance contracts10,745 9,999 
Other3,164 3,887 
Total non-interest income28,780 24,702 
NON-INTEREST EXPENSE:
Salaries and employee benefits109,502 107,782 
Marketing services18,633 19,731 
Office property, equipment and software29,350 28,314 
Federal insurance premium and assessments14,165 14,571 
State franchise tax4,567 4,744 
Other expenses28,042 29,205 
Total non-interest expense204,259 204,347 
INCOME BEFORE INCOME TAXES114,715 100,313 
INCOME TAX EXPENSE23,756 20,725 
NET INCOME$90,959 $79,588 
Earnings per share


Basic$0.32 $0.28 
Diluted$0.32 $0.28 
Weighted average shares outstanding
Basic278,715,769 278,178,496 
Diluted279,758,525 279,143,524 


TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Three Months EndedThree Months EndedThree Months Ended
September 30, 2025June 30, 2025September 30, 2024
 Average
Balance		Interest
Income/
Expense		Yield/
Cost (1)		Average
Balance		Interest
Income/
Expense		Yield/
Cost (1)		Average
Balance		Interest
Income/
Expense		Yield/
Cost (1)
 (Dollars in thousands)
Interest-earning assets:
  Interest-earning cash
equivalents		$385,290 $4,180 4.34 %$388,694 $4,354 4.48 %$460,242 $6,133 5.33 %
  Investment securities53,974 552 4.09 %54,074 550 4.07 %72,427 918 5.07 %
  Mortgage-backed securities463,128 4,156 3.59 %474,245 4,266 3.60 %446,480 3,776 3.38 %
  Loans (2)15,705,190 185,332 4.72 %15,476,380 177,493 4.59 %15,258,648 172,412 4.52 %
  Federal Home Loan Bank stock235,975 4,833 8.19 %221,693 4,744 8.56 %230,335 5,277 9.16 %
Total interest-earning assets16,843,557 199,053 4.73 %16,615,086 191,407 4.61 %16,468,132 188,516 4.58 %
Noninterest-earning assets570,470 548,257 544,705 
Total assets$17,414,027 $17,163,343 $17,012,837 
Interest-bearing liabilities:
  Checking accounts$797,552 172 0.09 %$810,566 88 0.04 %$832,001 91 0.04 %
  Savings accounts1,104,938 3,192 1.16 %1,260,067 3,373 1.07 %1,353,608 4,688 1.39 %
  Certificates of deposit8,451,255 75,272 3.56 %8,311,629 73,342 3.53 %7,909,142 75,417 3.81 %
  Borrowed funds4,911,194 43,094 3.51 %4,595,818 39,610 3.45 %4,787,825 39,605 3.31 %
Total interest-bearing liabilities15,264,939 121,730 3.19 %14,978,080 116,413 3.11 %14,882,576 119,801 3.22 %
Noninterest-bearing liabilities229,685 270,184 217,788 
Total liabilities15,494,624 15,248,264 15,100,364 
Shareholders’ equity1,919,403 1,915,079 1,912,473 
Total liabilities and shareholders’ equity$17,414,027 $17,163,343 $17,012,837 
Net interest income$77,323 $74,994 $68,715 
Interest rate spread (1)(3)1.54 %1.50 %1.36 %
Net interest-earning assets (4)$1,578,618 $1,637,006 $1,585,556 
Net interest margin (1)(5)1.84 %1.81 %1.67 %
Average interest-earning assets to average interest-bearing liabilities110.34 %110.93 %110.65 %
Selected performance ratios:
Return on average assets (1)0.60 %0.50 %0.43 %
Return on average equity (1)5.42 %4.49 %3.81 %
Average equity to average assets11.02 %11.16 %11.24 %
(1)Annualized.
(2)Loans include both mortgage loans held for sale and loans held for investment.
(3)Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5)Net interest margin represents net interest income divided by total interest-earning assets.








TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Year EndedYear Ended
September 30, 2025September 30, 2024
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
 (Dollars in thousands)
Interest-earning assets:
  Interest-earning cash
  equivalents		$403,751 $18,061 4.47 %$549,598 $29,676 5.40 %
Investment securities55,584 2,328 4.19 %70,364 3,581 5.09 %
Mortgage-backed securities464,581 16,406 3.53 %447,942 14,647 3.27 %
  Loans (1)15,464,682 706,483 4.57 %15,207,429 663,685 4.36 %
  Federal Home Loan Bank stock225,865 19,902 8.81 %245,298 22,485 9.17 %
Total interest-earning assets16,614,463 763,180 4.59 %16,520,631 734,074 4.44 %
Noninterest-earning assets544,412 529,310 
Total assets$17,158,875 $17,049,941 
Interest-bearing liabilities:
  Checking accounts$814,140 439 0.05 %$880,893 401 0.05 %
  Savings accounts1,226,633 12,640 1.03 %1,518,453 22,165 1.46 %
  Certificates of deposit8,270,320 295,681 3.58 %7,489,887 270,162 3.61 %
  Borrowed funds4,675,665 161,726 3.46 %4,985,484 162,888 3.27 %
Total interest-bearing liabilities14,986,758 470,486 3.14 %14,874,717 455,616 3.06 %
Noninterest-bearing liabilities251,778 242,634 
Total liabilities15,238,536 15,117,351 
Shareholders’ equity1,920,339 1,932,590 
Total liabilities and shareholders’ equity$17,158,875 $17,049,941 
Net interest income$292,694 $278,458 
Interest rate spread (2)1.45 %1.38 %
Net interest-earning assets (3)$1,627,705 $1,645,914 
Net interest margin (4)1.76 %1.69 %
Average interest-earning assets to average interest-bearing liabilities110.86 %111.07 %
Selected performance ratios:
Return on average assets 0.53 %0.47 %
Return on average equity 4.74 %4.12 %
Average equity to average assets11.19 %11.33 %



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