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

By: Third Federal Savings and Loan via Business Wire

October 30, 2025 at 16:17 PM EDT

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.

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Chairman and CEO Marc A. Stefanski

“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 85^th 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 equivalents		405,263			423,793			437,431
Cash and cash equivalents		429,439			452,581			463,718
Investment securities available for sale		520,659			525,212			526,251
Mortgage loans held for sale		57,662			30,977			17,775
Loans held for investment, net:
Mortgage loans		15,659,460			15,591,275			15,321,400
Other loans		8,153			7,745			5,705
Deferred loan expenses, net		69,943			69,517			64,956
Allowance for credit losses on loans		(74,244	)		(72,540	)		(70,002	)
Loans, net		15,663,312			15,595,997			15,322,059
Mortgage loan servicing rights, net		8,549			7,771			7,627
Federal Home Loan Bank stock, at cost		235,363			232,538			228,494
Real estate owned, net		1,921			1,240			174
Premises, equipment, and software, net		40,022			39,061			33,187
Accrued interest receivable		62,553			60,434			59,398
Bank owned life insurance contracts		325,149			322,595			317,977
Other assets		111,935			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 funds		4,870,219			4,882,993			4,792,847
Borrowers’ advances for insurance and taxes		113,168			117,899			113,637
Principal, interest, and related escrow owed on loans serviced		30,328			30,237			28,753
Accrued expenses and other liabilities		101,957			115,032			97,845
Total liabilities		15,562,640			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 issued		3,323			3,323			3,323
Paid-in capital		1,757,813			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 restricted		946,776			935,742			915,489
Accumulated other comprehensive income		(21,231	)		(16,005	)		(15,608	)
Total shareholders’ equity		1,893,924			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 sale		4,708		4,816		4,755		4,455			4,694
Other interest and dividend earning assets		9,013		9,098		9,691		10,161			11,410
Total interest and dividend income		199,053		191,407		185,952		186,768			188,516
INTEREST EXPENSE:
Deposits		78,636		76,803		75,379		77,942			80,196
Borrowed funds		43,094		39,610		38,524		40,498			39,605
Total interest expense		121,730		116,413		113,903		118,440			119,801
NET INTEREST INCOME		77,323		74,994		72,049		68,328			68,715
PROVISION (RELEASE) FOR CREDIT LOSSES		1,000		1,500		1,500		(1,500	)		1,000
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES		76,323		73,494		70,549		69,828			67,715
NON-INTEREST INCOME:
Fees and service charges, net of amortization		2,617		2,467		2,221		2,224			2,379
Net gain on the sale of loans		2,314		726		1,187		1,115			1,101
Increase in and death benefits from bank owned life insurance contracts		2,650		2,733		2,680		2,682			2,361
Other		580		1,122		980		482			579
Total non-interest income		8,161		7,048		7,068		6,503			6,420
NON-INTEREST EXPENSE:
Salaries and employee benefits		27,579		27,651		27,666		26,606			26,320
Marketing services		4,537		5,810		4,632		3,654			5,334
Office property, equipment and software		7,236		7,653		7,617		6,844			7,158
Federal insurance premium and assessments		3,388		3,519		3,673		3,585			3,522
State franchise tax		1,117		1,204		1,199		1,047			1,086
Other expenses		8,188		7,348		6,301		6,205			7,664
Total non-interest expense		52,045		53,185		51,088		47,941			51,084
INCOME BEFORE INCOME TAXES		32,439		27,357		26,529		28,390			23,051
INCOME TAX EXPENSE		6,440		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
Basic		278,764,271		278,832,875		278,729,388		278,538,110			278,399,318
Diluted		279,887,491		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,
	2025		2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	706,483	$	663,685
Investment securities available for sale		18,734		18,228
Other interest and dividend earning assets		37,963		52,161
Total interest and dividend income		763,180		734,074
INTEREST EXPENSE:
Deposits		308,760		292,728
Borrowed funds		161,726		162,888
Total interest expense		470,486		455,616
NET INTEREST INCOME		292,694		278,458
PROVISION (RELEASE) FOR CREDIT LOSSES		2,500		(1,500	)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		290,194		279,958
NON-INTEREST INCOME:
Fees and service charges, net of amortization		9,529		8,069
Net gain on the sale of loans		5,342		2,747
Increase in and death benefits from bank owned life insurance contracts		10,745		9,999
Other		3,164		3,887
Total non-interest income		28,780		24,702
NON-INTEREST EXPENSE:
Salaries and employee benefits		109,502		107,782
Marketing services		18,633		19,731
Office property, equipment and software		29,350		28,314
Federal insurance premium and assessments		14,165		14,571
State franchise tax		4,567		4,744
Other expenses		28,042		29,205
Total non-interest expense		204,259		204,347
INCOME BEFORE INCOME TAXES		114,715		100,313
INCOME TAX EXPENSE		23,756		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
Basic		278,715,769		278,178,496
Diluted		279,758,525		279,143,524

TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2025								June 30, 2025								September 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 securities		53,974			552		4.09	%		54,074			550		4.07	%		72,427			918		5.07	%
Mortgage-backed securities		463,128			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 stock		235,975			4,833		8.19	%		221,693			4,744		8.56	%		230,335			5,277		9.16	%
Total interest-earning assets		16,843,557			199,053		4.73	%		16,615,086			191,407		4.61	%		16,468,132			188,516		4.58	%
Noninterest-earning assets		570,470								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 accounts		1,104,938			3,192		1.16	%		1,260,067			3,373		1.07	%		1,353,608			4,688		1.39	%
Certificates of deposit		8,451,255			75,272		3.56	%		8,311,629			73,342		3.53	%		7,909,142			75,417		3.81	%
Borrowed funds		4,911,194			43,094		3.51	%		4,595,818			39,610		3.45	%		4,787,825			39,605		3.31	%
Total interest-bearing liabilities		15,264,939			121,730		3.19	%		14,978,080			116,413		3.11	%		14,882,576			119,801		3.22	%
Noninterest-bearing liabilities		229,685								270,184								217,788
Total liabilities		15,494,624								15,248,264								15,100,364
Shareholders’ equity		1,919,403								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 liabilities		110.34	%							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 assets					11.02	%							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 Ended								Year Ended
	September 30, 2025								September 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 securities		55,584			2,328		4.19	%		70,364			3,581		5.09	%
Mortgage-backed securities		464,581			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 stock		225,865			19,902		8.81	%		245,298			22,485		9.17	%
Total interest-earning assets		16,614,463			763,180		4.59	%		16,520,631			734,074		4.44	%
Noninterest-earning assets		544,412								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 accounts		1,226,633			12,640		1.03	%		1,518,453			22,165		1.46	%
Certificates of deposit		8,270,320			295,681		3.58	%		7,489,887			270,162		3.61	%
Borrowed funds		4,675,665			161,726		3.46	%		4,985,484			162,888		3.27	%
Total interest-bearing liabilities		14,986,758			470,486		3.14	%		14,874,717			455,616		3.06	%
Noninterest-bearing liabilities		251,778								242,634
Total liabilities		15,238,536								15,117,351
Shareholders’ equity		1,920,339								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 liabilities		110.86	%							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 assets					11.19	%							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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251030796379/en/

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.

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Jennifer Rosa (216) 429-5037

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

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