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Published: 2025-04-30 00:00:00 ET
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EX-99.1 2 tfslfy25mar8kexhibits.htm EX-99.1 Document

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

TFS Financial Reports Second Quarter and 2025 Fiscal Year-To-Date Results
(Cleveland, OH - April 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 six months ended March 31, 2025.
“Our second quarter earnings reflect our ability to successfully operate in any economic climate,” said Chairman and CEO Marc A. Stefanski. “My optimism for this year continues to be reinforced by the success we have seen so far, and that our fiscal earnings to date this year are the best we’ve seen since 2021. Our net interest margin increased nearly 10 basis points to 1.75% and commitments to originate and acquire first mortgages and equity loans and lines of credit have increased 40% over last quarter. We continue to exceed the threshold to be considered well-capitalized, our Tier 1 leverage ratio at 10.92% improved by three basis points compared to last quarter.”
The Company reported net income of $21.0 million for the quarter ended March 31, 2025 following $22.4 million of net income for the quarter ended December 31, 2024. The change in net income,when comparing the two quarters, was mainly attributable to increases in the provision for credit losses and non-interest expense, partially offset by an increase in net interest income.
Net interest income increased $3.7 million, or 5.4%, to $72.0 million for the quarter ended March 31, 2025 from $68.3 million for the quarter ended December 31, 2024. The increase was primarily due to a 14 basis point decrease in the weighted average cost of interest-bearing liabilities. The interest rate spread for the quarter ended March 31, 2025 increased 11 basis points from the previous quarter, to 1.45%, and the net interest margin increased nine basis points during the quarter to 1.75%.
The Company recorded a provision for credit losses of $1.5 million for the quarter ended March 31, 2025 compared to a $1.5 million release of provision for the quarter ended December 31, 2024. The total allowance for credit losses increased $2.2 million during the quarter to $99.9 million, or 0.65% of total loans receivable, from $97.8 million, or 0.64% of total loans receivable, at December 31, 2024. The increase occurred mainly in the allowance for unfunded commitments, included in other liabilities, which increased $2.2 million, to $29.4 million at March 31, 2025, from $27.2 million at December 31, 2024. This increase was primarily due to a 40% increase in commitments to originate and acquire loans, including residential mortgage loans and equity loans and lines of credit. Net recoveries were $0.7 million for the quarter ended March 31, 2025 compared to $1.4 million for the previous quarter.
Total non-interest expense increased $3.2 million, or 6.7%, to $51.1 million for the quarter ended March 31, 2025 from $47.9 million for the quarter ended December 31, 2024. The change included increases of $1.1 million in salaries and employee benefits, $1.0 million in marketing services and $0.8 million in office property, equipment and software, primarily data processing expense. The increase in salaries and employee benefits was primarily the result of wage increases and an increase in staffing, after a period of natural attrition, and was partially offset by a decrease in group health insurance costs.
Total assets increased by $54.1 million to $17.11 billion at March 31, 2025 from $17.06 billion at December 31, 2024. The increase was mainly due to increases in investment securities available for sale and loans held for investment.
Investment securities available for sale increased $26.2 million, or 5%, to $533.9 million at March 31, 2025 from $507.7 million at December 31, 2024 primarily due to purchases exceeding cash flows from security repayments and maturities during the quarter.
Loans held for investment, net of allowance and deferred loan expenses, increased $17.2 million, or less than 1%, to $15.36 billion at March 31, 2025 from $15.34 billion at December 31, 2024. During the quarter ended March 31, 2025, the combined balances of home equity loans and lines of credit increased $193.7 million to $4.32 billion and residential core mortgage loans decreased $175.9 million to $10.99 billion. Repayments and sales of residential mortgage loans held for investment outpaced originations during the quarter ended March 31, 2025. Loans held for sale increased $5.0 million to $5.8 million at March 31, 2025, from $0.8 million at December 31, 2024, due to an increase in both loans committed to future delivery contracts with Fannie Mae and loans intended for future sale.
Deposits increased $190.4 million, or 2%, to $10.40 billion at March 31, 2025, compared to $10.21 billion at December 31, 2024, consisting of a $227.7 million increase in primarily retail certificates of deposit ("CDs") and decreases of $17.8 million in money market deposit accounts, $16.6 million in checking accounts, and $1.2 million in savings accounts. The increase in retail deposits was achieved through competitive rate and enhanced product offerings, supported by marketing efforts.


Borrowed funds decreased $69.0 million to $4.59 billion at March 31, 2025 from $4.66 billion at December 31, 2024, as maturing borrowings were replaced with retail deposits.
Borrowers' advances for insurance and taxes decreased by $39.7 million to $100.3 million at March 31, 2025 from
$140.0 million at December 31, 2024. This change primarily reflects the cyclical nature of real estate tax payments that were collected from borrowers and remitted to various taxing agencies.

Fiscal 2025 Year-To-Date
The Company reported net income of $43.4 million for the six months ended March 31, 2025, an increase of $2.0 million compared to net income of $41.4 million for the six months ended March 31, 2024. The change mainly consisted of an increase in non-interest income and a decrease in non-interest expense, partially offset by an increase in the provision for credit losses.
Net interest income decreased less than 1% to $140.4 million for the six months ended March 31, 2025 compared to $140.5 million for the six months ended March 31, 2024. The interest rate spread was 1.39% for the six months ended March 31, 2025, a one basis point decrease from 1.40% for the six months ended March 31, 2024. The net interest margin was 1.70% for both the six months ended March 31, 2025 and March 31, 2024.
During the six months ended March 31, 2025, there was no provision for credit losses, as provisions recorded during the period were offset by releases of provision. Comparatively, there was a $2.0 million release of provision for the six months ended March 31, 2024. Net loan recoveries totaled $2.1 million for the six months ended March 31, 2025 and $2.3 million for the same period in the prior year.
The total allowance for credit losses at March 31, 2025 was $99.9 million, or 0.65% of total loans receivable, compared to $97.8 million, or 0.64% of total loans receivable, at September 30, 2024. The $2.1 million increase was primarily related to an increase in the equity lines of credit portfolio and undrawn balances, as well as an increase in commitments to originate and acquire loans, including residential mortgage loans and equity loans and lines of credit. The allowance for credit losses included $29.4 million and $27.8 million in liabilities for unfunded commitments at March 31, 2025 and September 30, 2024, respectively. Total loan delinquencies decreased to $31.6 million, or 0.20% of total loans receivable, at March 31, 2025 from $31.9 million, or 0.21% of total loans receivable, at September 30, 2024. Non-accrual loans totaled $37.0 million, or 0.24% of total loans receivable, at March 31, 2025, compared to $33.6 million, or 0.22% of total loans receivable, at September 30, 2024.
Total non-interest income increased $1.6 million, or 13.3%, to $13.6 million for the six months ended March 31, 2025, from $12.0 million for the six months ended March 31, 2024, primarily due to a $1.4 million increase in net gain on the sale of loans.
Total non-interest expense decreased $3.5 million, or 3.4%, to $99.0 million for the six months ended March 31, 2025, from $102.5 million for the six months ended March 31, 2024. The change included decreases of $0.3 million in salaries and employee benefits, $1.2 million in marketing costs, $0.5 million in federal ("FDIC") insurance premiums and $1.5 million in other expenses. The decrease in other expenses was mainly due to an $0.8 million positive change in net periodic benefit, the result of actuarial calculations on the defined benefit plan, and a $0.7 million decrease in appraisal and other third party costs related to home equity line of credit originations.
Total assets increased by $20.9 million, or less than 1%, to $17.11 billion at March 31, 2025 from $17.09 billion at September 30, 2024. The increase was mainly the result of an increase in loans held for investment partially offset by a decrease in loans held for sale.
Loans held for investment, net of allowance and deferred loan expenses, increased $38.1 million, or less than 1%, to $15.36 billion at March 31, 2025 from $15.32 billion at September 30, 2024. Home equity loans and lines of credit increased $430.0 million to $4.32 billion and the residential core mortgage loan portfolio decreased $390.3 million to $10.99 billion. The decrease in residential mortgage loans included $157.5 million of loans sold or committed for sale. Loans held for sale decreased $12.0 million to $5.8 million at March 31, 2025, from $17.8 million at September 30, 2024, due to a decrease in both loans committed to future delivery contracts with Fannie Mae and loans intended for future sale. Loans originated and acquired during the six months ended March 31, 2025 included $376.0 million of residential mortgage loans and $1.20 billion of equity loans and lines of credit compared to $408.8 million of residential mortgage loans and $915.4 million of equity loans and lines of credit originated or acquired during the six months ended March 31, 2024. The volume of mortgage loan originations remains low overall due to a relatively high interest rate environment, resulting in minimal refinance activity. New mortgage loans included 87% purchases and 12% adjustable rate loans during the six months ended March 31, 2025.


Deposits increased $202.6 million, or 2%, to $10.40 billion at March 31, 2025 from $10.20 billion at September 30, 2024. The increase was the result of a $230.1 million increase in primarily retail certificates of deposit and a $12.1 million increase in savings accounts, partially offset by a $2.4 million decrease in checking accounts and a $33.3 million decrease in money market deposit accounts. There was $1.03 billion in brokered deposits at March 31, 2025 compared to $1.22 billion at September 30, 2024. The increase in retail deposits was achieved through competitive rate and enhanced product offerings, supported by marketing efforts.
Borrowed funds decreased $205.5 million, or 4%, to $4.59 billion at March 31, 2025 from $4.79 billion at September 30, 2024. The decrease was primarily due to a decrease in maturing term advances, and to a lesser extent, advances aligned with interest rate swap contracts, partially offset by an increase in overnight advances. The total balance of borrowed funds at March 31, 2025, all from the FHLB, included $139.0 million of overnight advances, $1.56 billion of term advances with a weighted average maturity of approximately 1.8 years, and $2.88 billion of term advances aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.9 years. Additional borrowing capacity at the FHLB was $2.10 billion at March 31, 2025.
Total shareholders' equity increased $34.0 million, or 2%, to $1.90 billion at March 31, 2025 from $1.86 billion at September 30, 2024. Activity reflects $43.4 million of net income, dividends paid of $29.7 million, a $16.4 million net increase in accumulated other comprehensive income and net positive adjustments of $3.9 million related to our stock compensation and employee stock ownership plans. The change in accumulated other comprehensive income was primarily due to a net increase in unrealized gains on swap contracts. There were no stock repurchases during the six months ended March 31, 2025. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 5,191,951 shares authorized for repurchase at March 31, 2025.
The Company declared and paid a quarterly dividend of $0.2825 per share during each of the first two fiscal quarters of 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 dividend paid. Under Federal Reserve regulations, the MHC is required to obtain the approval of its members every 12 months for the MHC to waive its right to receive dividends. As a result of a July 9, 2024 member vote and subsequent non-objection, 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 9, 2025), including a total of up to $0.2825 remaining. The MHC has conducted the member vote to approve the dividend waiver each of the past eleven years under Federal Reserve regulations and for each of those eleven 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 March 31, 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 10.92%, its Common Equity Tier 1 and Tier 1 ratios were each 18.18% and its total capital ratio was 19.04%.
Presentation slides as of March 31, 2025 will be available on the Company's website, thirdfederal.com, under the Investor Relations link under the "Latest Presentation" heading, beginning May 1, 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 27 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 16 full service branches throughout Florida. As of March 31, 2025, the Company’s assets totaled $17.11 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;
●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;
●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)
March 31,
2025		December 31,
2024		September 30,
2024
ASSETS
Cash and due from banks$36,429 $32,582 $26,287 
Other interest-earning cash equivalents427,154 433,349 437,431 
Cash and cash equivalents463,583 465,931 463,718 
Investment securities available for sale533,923 507,710 526,251 
Mortgage loans held for sale 5,803 829 17,775 
Loans held for investment, net:
Mortgage loans15,356,569 15,340,842 15,321,400 
Other loans6,992 6,746 5,705 
Deferred loan expenses, net67,128 65,880 64,956 
Allowance for credit losses on loans(70,546)(70,559)(70,002)
Loans, net15,360,143 15,342,909 15,322,059 
Mortgage loan servicing rights, net7,833 7,721 7,627 
Federal Home Loan Bank stock, at cost219,231 223,972 228,494 
Real estate owned, net— — 174 
Premises, equipment, and software, net38,500 32,693 33,187 
Accrued interest receivable58,050 57,521 59,398 
Bank owned life insurance contracts320,728 320,032 317,977 
Other assets103,926 98,268 114,125 
TOTAL ASSETS$17,111,720 $17,057,586 $17,090,785 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits$10,397,645 $10,207,257 $10,195,079 
Borrowed funds4,587,327 4,656,323 4,792,847 
Borrowers’ advances for insurance and taxes100,263 140,011 113,637 
Principal, interest, and related escrow owed on loans serviced27,249 39,418 28,753 
Accrued expenses and other liabilities102,579 100,300 97,845 
Total liabilities15,215,063 15,143,309 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 capital1,755,054 1,754,241 1,754,365 
Treasury stock, at cost(771,123)(771,572)(772,195)
Unallocated ESOP shares(20,584)(21,667)(22,750)
Retained earnings—substantially restricted929,195 923,139 915,489 
Accumulated other comprehensive income 792 26,813 (15,608)
Total shareholders’ equity1,896,657 1,914,277 1,862,624 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$17,111,720 $17,057,586 $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
 March 31,
2025		December 31,
2024		September 30,
2024		June 30,
2024		March 31,
2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees$171,506 $172,152 $172,412 $166,268 $162,970 
Investment securities available for sale4,755 4,455 4,694 4,663 4,476 
Other interest and dividend earning assets9,691 10,161 11,410 13,975 16,047 
Total interest and dividend income185,952 186,768 188,516 184,906 183,493 
INTEREST EXPENSE:
Deposits75,379 77,942 80,196 75,521 72,685 
Borrowed funds38,524 40,498 39,605 40,112 39,430 
Total interest expense113,903 118,440 119,801 115,633 112,115 
NET INTEREST INCOME72,049 68,328 68,715 69,273 71,378 
PROVISION (RELEASE) FOR CREDIT LOSSES1,500 (1,500)1,000 (500)(1,000)
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES70,549 69,828 67,715 69,773 72,378 
NON-INTEREST INCOME:
Fees and service charges, net of amortization2,221 2,224 2,379 2,097 1,845 
Net gain (loss) on the sale of loans1,187 1,115 1,101 723 442 
Increase in and death benefits from bank owned life insurance contracts2,680 2,682 2,361 2,254 2,193 
Other980 482 579 1,171 1,242 
Total non-interest income7,068 6,503 6,420 6,245 5,722 
NON-INTEREST EXPENSE:
Salaries and employee benefits27,666 26,606 26,320 26,845 27,501 
Marketing services4,632 3,654 5,334 4,867 5,099 
Office property, equipment and software7,617 6,844 7,158 7,008 7,303 
Federal insurance premium and assessments3,673 3,585 3,522 3,258 4,013 
State franchise tax1,199 1,047 1,086 1,244 1,238 
Other expenses6,301 6,205 7,664 7,566 7,044 
Total non-interest expense51,088 47,941 51,084 50,788 52,198 
INCOME BEFORE INCOME TAXES26,529 28,390 23,051 25,230 25,902 
INCOME TAX EXPENSE5,508 5,964 4,836 5,277 5,189 
NET INCOME$21,021 $22,426 $18,215 $19,953 $20,713 
Earnings per share - basic and diluted $0.07 $0.08 $0.06 $0.07 $0.07 
Weighted average shares outstanding
Basic278,729,388 278,538,110 278,399,318 278,291,376 278,183,041 
Diluted279,719,382 279,578,652 279,404,704 279,221,360 279,046,837 



TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
 For the Six Months Ended
March 31,
 20252024
INTEREST AND DIVIDEND INCOME:
Loans, including fees$343,658 $325,005 
Investment securities available for sale9,210 8,871 
Other interest and dividend earning assets19,852 26,776 
Total interest and dividend income372,720 360,652 
INTEREST EXPENSE:
Deposits153,321 137,011 
Borrowed funds79,022 83,171 
Total interest expense232,343 220,182 
NET INTEREST INCOME140,377 140,470 
PROVISION (RELEASE) FOR CREDIT LOSSES— (2,000)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES140,377 142,470 
NON-INTEREST INCOME:
Fees and service charges, net of amortization4,445 3,593 
Net gain on the sale of loans2,302 923 
Increase in and death benefits from bank owned life insurance contracts5,362 5,384 
Other1,462 2,137 
Total non-interest income13,571 12,037 
NON-INTEREST EXPENSE:
Salaries and employee benefits54,272 54,617 
Marketing services8,286 9,530 
Office property, equipment and software14,461 14,148 
Federal insurance premium and assessments7,258 7,791 
State franchise tax2,246 2,414 
Other expenses12,506 13,975 
Total non-interest expense99,029 102,475 
INCOME BEFORE INCOME TAXES54,919 52,032 
INCOME TAX EXPENSE11,472 10,612 
NET INCOME$43,447 $41,420 
Earnings per share


Basic$0.15 $0.15 
Diluted$0.15 $0.15 
Weighted average shares outstanding
Basic278,632,698 278,011,351 
Diluted279,644,307 279,019,468 


TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Three Months EndedThree Months EndedThree Months Ended
March 31, 2025December 31, 2024March 31, 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		$416,911 $4,578 4.39 %$424,111 $4,949 4.67 %$720,657 $9,919 5.51 %
  Investment securities54,105 552 4.08 %60,183 674 4.48 %72,091 907 5.03 %
  Mortgage-backed securities466,617 4,203 3.60 %454,332 3,781 3.33 %448,653 3,569 3.18 %
  Loans (2)15,351,040 171,506 4.47 %15,326,120 172,152 4.49 %15,163,185 162,970 4.30 %
  Federal Home Loan Bank stock219,813 5,113 9.30 %225,977 5,212 9.23 %244,560 6,128 10.02 %
Total interest-earning assets16,508,486 185,952 4.51 %16,490,723 186,768 4.53 %16,649,146 183,493 4.41 %
Noninterest-earning assets534,285 524,634 505,145 
Total assets$17,042,771 $17,015,357 $17,154,291 
Interest-bearing liabilities:
  Checking accounts$822,059 89 0.04 %$826,383 90 0.04 %$887,584 98 0.04 %
  Savings accounts1,219,188 2,722 0.89 %1,289,788 3,353 1.04 %1,561,331 5,598 1.43 %
  Certificates of deposit8,292,210 72,568 3.50 %8,058,740 74,499 3.70 %7,548,314 66,989 3.55 %
  Borrowed funds4,542,318 38,524 3.39 %4,653,328 40,498 3.48 %5,033,253 39,430 3.13 %
Total interest-bearing liabilities14,875,775 113,903 3.06 %14,828,239 118,440 3.19 %15,030,482 112,115 2.98 %
Noninterest-bearing liabilities235,601 271,640 212,206 
Total liabilities15,111,376 15,099,879 15,242,688 
Shareholders’ equity1,931,395 1,915,478 1,911,603 
Total liabilities and shareholders’ equity$17,042,771 $17,015,357 $17,154,291 
Net interest income$72,049 $68,328 $71,378 
Interest rate spread (1)(3)1.45 %1.34 %1.43 %
Net interest-earning assets (4)$1,632,711 $1,662,484 $1,618,664 
Net interest margin (1)(5)1.75 %1.66 %1.71 %
Average interest-earning assets to average interest-bearing liabilities110.98 %111.21 %110.77 %
Selected performance ratios:
Return on average assets (1)0.49 %0.53 %0.48 %
Return on average equity (1)4.35 %4.68 %4.33 %
Average equity to average assets11.33 %11.26 %11.14 %
(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)
Six Months EndedSix Months Ended
March 31, 2025March 31, 2024
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		$420,511 $9,527 4.53 %$559,581 $15,043 5.38 %
Investment securities57,144 1,226 4.29 %68,435 1,757 5.13 %
Mortgage-backed securities460,475 7,984 3.47 %446,532 7,114 3.19 %
  Loans (2)15,338,580 343,658 4.48 %15,197,767 325,005 4.28 %
  Federal Home Loan Bank stock222,895 10,325 9.26 %257,550 11,733 9.11 %
Total interest-earning assets16,499,605 372,720 4.52 %16,529,865 360,652 4.36 %
Noninterest-earning assets529,459 529,303 
Total assets$17,029,064 $17,059,168 
Interest-bearing liabilities:
  Checking accounts$824,221 179 0.04 %$912,701 216 0.05 %
  Savings accounts1,254,488 6,075 0.97 %1,641,398 12,510 1.52 %
  Certificates of deposit8,175,475 147,067 3.60 %7,197,898 124,285 3.45 %
  Borrowed funds4,597,823 79,022 3.44 %5,130,746 83,171 3.24 %
Total interest-bearing liabilities14,852,007 232,343 3.13 %14,882,743 220,182 2.96 %
Noninterest-bearing liabilities253,621 245,503 
Total liabilities15,105,628 15,128,246 
Shareholders’ equity1,923,436 1,930,922 
Total liabilities and shareholders’ equity$17,029,064 $17,059,168 
Net interest income$140,377 $140,470 
Interest rate spread (1)(3)1.39 %1.40 %
Net interest-earning assets (4)$1,647,598 $1,647,122 
Net interest margin (1)(5)1.70 %1.70 %
Average interest-earning assets to average interest-bearing liabilities111.09 %111.07 %
Selected performance ratios:
Return on average assets (1)0.51 %0.49 %
Return on average equity (1)4.52 %4.29 %
Average equity to average assets11.30 %11.32 %


(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.