TFS Financial Reports Third Quarter and 2025 Fiscal Year-To-Date Results

By: Third Federal Savings and Loan via Business Wire

July 30, 2025 at 16:20 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 nine months ended June 30, 2025.

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Chairman and CEO Marc A. Stefanski

“This quarter’s performance further reinforces my optimism for this year,” said Chairman and CEO Marc A. Stefanski. “Equity lines of credit originations have grown 17% from 2024, and our net interest margin improved six basis points this quarter to 1.81%, a nine quarter high. Our purchase mortgage activity is strong as we navigate a weaker-than-typical home buying season. Originations and acquired mortgage loans have totaled almost $700 million year-to-date. Our Tier 1 capital ratio of nearly 11% shows that we are well capitalized, and further demonstrates our strength and stability.”

Operating Results for the Quarter Ended June 30, 2025

The Company reported net income of $21.5 million for the quarter ended June 30, 2025 compared to net income of $21.0 million for the quarter ended March 31, 2025. The increase was mainly attributable to an increase in net interest income, partially offset by an increase in non-interest expense.

Net interest income increased $3.0 million, or 4.2%, to $75.0 million for the quarter ended June 30, 2025 from $72.0 million for the quarter ended March 31, 2025. The increase was primarily due to a ten basis point increase in the weighted average yield of interest-bearing assets, primarily loans, partially offset by a five basis point increase in the weighted average cost of interest-bearing liabilities. 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 equity loans and lines of credit. The interest rate spread for the quarter ended June 30, 2025 increased five basis points from the previous quarter, to 1.50%, and the net interest margin increased six basis points during the quarter to 1.81%.

The Company recorded a provision for credit losses of $1.5 million for both the quarter ended June 30, 2025 and the quarter ended March 31, 2025. The total allowance for credit losses increased $2.4 million during the quarter to $102.4 million, or 0.66% of total loans receivable, from $99.9 million, or 0.65% of total loans receivable, at March 31, 2025. The increase was primarily due to growth in the equity loans and lines of credit portfolios and a slight deterioration in economic factors utilized in estimating losses. The allowance for unfunded commitments, included in other liabilities, increased $0.4 million, to $29.8 million at June 30, 2025, from $29.4 million at March 31, 2025. Net recoveries were $0.9 million for the quarter ended June 30, 2025 compared to $0.7 million for the previous quarter.

Total non-interest expense increased $2.1 million, or 4.1%, to $53.2 million for the quarter ended June 30, 2025 from $51.1 million for the quarter ended March 31, 2025. The change included increases of $1.2 million in marketing services and $1.0 million in other expenses. Other expenses increased primarily due to a $1.0 million increase in costs related to originating loans, including appraisal and credit report fees and down payment assistance.

Financial Condition at June 30, 2025 compared to March 31, 2025

Total assets increased by $263.9 million to $17.38 billion at June 30, 2025 from $17.11 billion at March 31, 2025. The increase was mainly due to increases in loans held for investment and loans held for sale.

Loans held for investment, net of allowance and deferred loan expenses, increased $235.9 million, or 1.5%, to $15.60 billion at June 30, 2025 from $15.36 billion at March 31, 2025. During the quarter ended June 30, 2025, the combined balances of home equity loans and lines of credit increased $260.9 million to $4.58 billion and residential core mortgage loans decreased $25.0 million to $10.97 billion. Loans held for sale increased $25.2 million to $31.0 million at June 30, 2025, from $5.8 million at March 31, 2025, due to an increase in loans committed to future delivery contracts with Fannie Mae.

Deposits decreased $56.1 million, or less than 1%, to $10.34 billion at June 30, 2025, compared to $10.40 billion at March 31, 2025, consisting of a $20.4 million increase in certificates of deposit ("CDs") and decreases of $16.4 million in money market deposit accounts, $16.9 million in checking accounts, and $38.8 million in savings accounts.

Borrowed funds increased $295.7 million to $4.88 billion at June 30, 2025 from $4.59 billion at March 31, 2025. The increase was primarily used to fund growth in the loan portfolio. The total balance of borrowed funds at June 30, 2025, all from the FHLB, included $435.0 million of overnight advances, $1.51 billion of term advances with a weighted average maturity of approximately 1.8 years, and $2.93 billion of term advances aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.7 years. Additional borrowing capacity at the FHLB was $1.77 billion at June 30, 2025.

Operating Results for the Nine months ended June 30, 2025

The Company reported net income of $65.0 million for the nine months ended June 30, 2025, an increase of $3.6 million compared to net income of $61.4 million for the nine months ended June 30, 2024. The increase was primarily due to increases in net interest income and non-interest income and a decrease in non-interest expense, partially offset by an increase in the provision for credit losses.

Net interest income increased $5.7 million, or 2.7%, to $215.4 million for the nine months ended June 30, 2025 compared to $209.7 million for the nine months ended June 30, 2024. The yield on interest-earning assets for the nine months ended June 30, 2025 increased 15 basis points compared to the same period a year ago, while the cost of interest-bearing liabilities increased 11 basis points. The interest rate spread was 1.43% for the nine months ended June 30, 2025 compared to 1.39% for the nine months ended June 30, 2024. The net interest margin was 1.74% for the nine months ended June 30, 2025 and 1.69% for the nine months ended June 30, 2024.

During the nine months ended June 30, 2025, there was a $1.5 million provision for credit losses compared to a $2.5 million release of provision for the nine months ended June 30, 2024. Net loan recoveries totaled $3.1 million for the nine months ended June 30, 2025 and $3.6 million for the same period in the prior year.

Due to the combined effect of the provision for credit losses and net loan recoveries during the nine months ended June 30, 2025, the total allowance for credit losses increased $4.6 million to $102.4 million, or 0.66% 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 equity lines of credit portfolio and commitments to originate both residential mortgage loans and equity loans and lines of credit. Also contributing to the increase was a slight deterioration in economic factors utilized to estimate losses. The allowance for credit losses included $29.8 million and $27.8 million in liabilities for unfunded commitments at June 30, 2025 and September 30, 2024, respectively. Total loan delinquencies increased to $34.3 million, or 0.22% of total loans receivable, at June 30, 2025 from $31.9 million, or 0.21% of total loans receivable, at September 30, 2024. Non-accrual loans totaled $37.3 million, or 0.24% of total loans receivable, at June 30, 2025, compared to $33.6 million, or 0.22% of total loans receivable, at September 30, 2024.

Total non-interest income increased $2.3 million, or 12.6%, to $20.6 million for the nine months ended June 30, 2025, from $18.3 million for the nine months ended June 30, 2024, primarily due to a $1.2 million increase in fees and service charges, net of amortization, and a $1.4 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 equity lines of credit.

Total non-interest expense decreased $1.1 million, or 0.7%, to $152.2 million for the nine months ended June 30, 2025, from $153.3 million for the nine months ended June 30, 2024. The decrease was mainly due to a decrease of $1.6 million in other expenses, partially offset by a $0.9 million increase in office property, equipment and software expenses. The decrease in other expenses included a $1.3 million positive change in net benefit related to the defined benefit plan.

Financial Condition at June 30, 2025 compared to September 30, 2024

Total assets increased $284.9 million, or 1.7%, to $17.38 billion at June 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 $273.9 million, or 1.8%, to $15.60 billion at June 30, 2025 from $15.32 billion at September 30, 2024. Home equity loans and lines of credit increased $690.8 million to $4.58 billion and the residential core mortgage loan portfolio decreased $415.2 million to $10.97 billion. Loans held for sale increased $13.2 million to $31.0 million at June 30, 2025 from $17.8 million at September 30, 2024. Loans originated and acquired during the nine months ended June 30, 2025 included $760.2 million of residential mortgage loans and $1.87 billion of equity loans and lines of credit compared to $598.7 million of residential mortgage loans and $1.62 billion of equity loans and lines of credit originated or acquired during the nine months ended June 30, 2024. Of the mortgage loans originated during the nine months ended June 30, 2025, 86% were purchases and 12% were adjustable rate loans.

Deposits increased $146.4 million, or 1.4%, to $10.34 billion at June 30, 2025 from $10.20 billion at September 30, 2024. The increase was the result of a $250.5 million increase in primarily retail certificates of deposit, partially offset by decreases of $26.7 million in savings accounts, $19.3 million in checking accounts and $49.7 million in money market deposit accounts. There were $976.5 million in brokered deposits at June 30, 2025 compared to $1.22 billion at September 30, 2024. The increase in retail certificate of deposit accounts was achieved through competitive rates and enhanced product offerings, supported by marketing efforts.

Borrowed funds increased $90.1 million, or 1.9%, to $4.88 billion at June 30, 2025 from $4.79 billion at September 30, 2024. The increase was primarily used to fund loan growth.

Total shareholders' equity increased $25.4 million, or 1.4%, to $1.89 billion at June 30, 2025 from $1.86 billion at September 30, 2024. Activity reflects $65.0 million of net income, dividends paid of $44.7 million, $0.7 million in repurchases of the Company's common stock, a $0.4 million net decrease in accumulated other comprehensive income and net positive adjustments of $6.3 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 nine months ended June 30, 2025, a total of 57,500 shares of the Company's common stock were repurchased at an average cost of $12.87 per share. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 5,134,451 remaining shares authorized for repurchase at June 30, 2025.

The Company declared and paid a quarterly dividend of $0.2825 per share during each of the first three 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 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. At a July 8, 2025 special meeting of members of the MHC, the members (depositors and certain loan customers of the Association) voted to approve the MHC’s proposed waiver of dividends, aggregating up to $1.13 per share, to be declared on the Company’s common stock during the twelve months subsequent to the members’ approval (i.e., through July 8, 2026). The MHC has filed a notice with, and a request for non-objection from, the Federal Reserve Bank of Cleveland for the proposed dividend waivers. Both the non-objection from the Federal Reserve Bank and the timing of the non-objection are unknown at this point. 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 June 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 10.86%, its Common Equity Tier 1 and Tier 1 ratios were each 17.75% and its total capital ratio was 18.61%.

Presentation slides as of June 30, 2025 will be available on the Company's website, thirdfederal.com, under the Investor Relations link under the "Latest Presentation" heading, beginning July 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 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 June 30, 2025, the Company’s assets totaled $17.38 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;

● 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)

	June 30, 2025			March 31, 2025			September 30, 2024
ASSETS
Cash and due from banks	$	28,788		$	36,429		$	26,287
Other interest-earning cash equivalents		423,793			427,154			437,431
Cash and cash equivalents		452,581			463,583			463,718
Investment securities available for sale		525,212			533,923			526,251
Mortgage loans held for sale		30,977			5,803			17,775
Loans held for investment, net:
Mortgage loans		15,591,275			15,356,569			15,321,400
Other loans		7,745			6,992			5,705
Deferred loan expenses, net		69,517			67,128			64,956
Allowance for credit losses on loans		(72,540	)		(70,546	)		(70,002	)
Loans, net		15,595,997			15,360,143			15,322,059
Mortgage loan servicing rights, net		7,771			7,833			7,627
Federal Home Loan Bank stock, at cost		232,538			219,231			228,494
Real estate owned, net		1,240			—			174
Premises, equipment, and software, net		39,061			38,500			33,187
Accrued interest receivable		60,434			58,050			59,398
Bank owned life insurance contracts		322,595			320,728			317,977
Other assets		107,260			103,926			114,125
TOTAL ASSETS	$	17,375,666		$	17,111,720		$	17,090,785
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	10,341,499		$	10,397,645		$	10,195,079
Borrowed funds		4,882,993			4,587,327			4,792,847
Borrowers’ advances for insurance and taxes		117,899			100,263			113,637
Principal, interest, and related escrow owed on loans serviced		30,237			27,249			28,753
Accrued expenses and other liabilities		115,032			102,579			97,845
Total liabilities		15,487,660			15,215,063			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		1,756,307			1,755,054			1,754,365
Treasury stock, at cost		(771,861	)		(771,123	)		(772,195	)
Unallocated ESOP shares		(19,500	)		(20,584	)		(22,750	)
Retained earnings—substantially restricted		935,742			929,195			915,489
Accumulated other comprehensive income		(16,005	)		792			(15,608	)
Total shareholders’ equity		1,888,006			1,896,657			1,862,624
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	17,375,666		$	17,111,720		$	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
	June 30, 2025		March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	177,493	$	171,506	$	172,152		$	172,412	$	166,268
Investment securities available for sale		4,816		4,755		4,455			4,694		4,663
Other interest and dividend earning assets		9,098		9,691		10,161			11,410		13,975
Total interest and dividend income		191,407		185,952		186,768			188,516		184,906
INTEREST EXPENSE:
Deposits		76,803		75,379		77,942			80,196		75,521
Borrowed funds		39,610		38,524		40,498			39,605		40,112
Total interest expense		116,413		113,903		118,440			119,801		115,633
NET INTEREST INCOME		74,994		72,049		68,328			68,715		69,273
PROVISION (RELEASE) FOR CREDIT LOSSES		1,500		1,500		(1,500	)		1,000		(500	)
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES		73,494		70,549		69,828			67,715		69,773
NON-INTEREST INCOME:
Fees and service charges, net of amortization		2,467		2,221		2,224			2,379		2,097
Net gain (loss) on the sale of loans		726		1,187		1,115			1,101		723
Increase in and death benefits from bank owned life insurance contracts		2,733		2,680		2,682			2,361		2,254
Other		1,122		980		482			579		1,171
Total non-interest income		7,048		7,068		6,503			6,420		6,245
NON-INTEREST EXPENSE:
Salaries and employee benefits		27,651		27,666		26,606			26,320		26,845
Marketing services		5,810		4,632		3,654			5,334		4,867
Office property, equipment and software		7,653		7,617		6,844			7,158		7,008
Federal insurance premium and assessments		3,519		3,673		3,585			3,522		3,258
State franchise tax		1,204		1,199		1,047			1,086		1,244
Other expenses		7,348		6,301		6,205			7,664		7,566
Total non-interest expense		53,185		51,088		47,941			51,084		50,788
INCOME BEFORE INCOME TAXES		27,357		26,529		28,390			23,051		25,230
INCOME TAX EXPENSE		5,844		5,508		5,964			4,836		5,277
NET INCOME	$	21,513	$	21,021	$	22,426		$	18,215	$	19,953
Earnings per share - basic and diluted	$	0.08	$	0.07	$	0.08		$	0.06	$	0.07
Weighted average shares outstanding
Basic		278,832,875		278,729,388		278,538,110			278,399,318		278,291,376
Diluted		279,873,274		279,719,382		279,578,652			279,404,704		279,221,360

TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)

	For the Nine Months Ended
	June 30,
	2025		2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	521,151	$	491,273
Investment securities available for sale		14,026		13,534
Other interest and dividend earning assets		28,950		40,751
Total interest and dividend income		564,127		545,558
INTEREST EXPENSE:
Deposits		230,124		212,532
Borrowed funds		118,632		123,283
Total interest expense		348,756		335,815
NET INTEREST INCOME		215,371		209,743
PROVISION (RELEASE) FOR CREDIT LOSSES		1,500		(2,500	)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		213,871		212,243
NON-INTEREST INCOME:
Fees and service charges, net of amortization		6,912		5,690
Net gain on the sale of loans		3,028		1,646
Increase in and death benefits from bank owned life insurance contracts		8,095		7,638
Other		2,584		3,308
Total non-interest income		20,619		18,282
NON-INTEREST EXPENSE:
Salaries and employee benefits		81,923		81,462
Marketing services		14,096		14,397
Office property, equipment and software		22,114		21,156
Federal insurance premium and assessments		10,777		11,049
State franchise tax		3,450		3,658
Other expenses		19,854		21,541
Total non-interest expense		152,214		153,263
INCOME BEFORE INCOME TAXES		82,276		77,262
INCOME TAX EXPENSE		17,316		15,889
NET INCOME	$	64,960	$	61,373
Earnings per share
Basic	$	0.23	$	0.22
Diluted	$	0.23	$	0.22
Weighted average shares outstanding
Basic		278,699,423		278,104,352
Diluted		279,716,745		279,072,087

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

	Three Months Ended								Three Months Ended								Three Months Ended
	June 30, 2025								March 31, 2025								June 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	$	388,694		$	4,354		4.48	%	$	416,911		$	4,578		4.39	%	$	618,986		$	8,500		5.49	%
Investment securities		54,074			550		4.07	%		54,105			552		4.08	%		72,161			906		5.02	%
Mortgage-backed securities		474,245			4,266		3.60	%		466,617			4,203		3.60	%		452,224			3,757		3.32	%
Loans (2)		15,476,380			177,493		4.59	%		15,351,040			171,506		4.47	%		15,175,535			166,268		4.38	%
Federal Home Loan Bank stock		221,693			4,744		8.56	%		219,813			5,113		9.30	%		235,755			5,475		9.29	%
Total interest-earning assets		16,615,086			191,407		4.61	%		16,508,486			185,952		4.51	%		16,554,661			184,906		4.47	%
Noninterest-earning assets		548,257								534,285								513,931
Total assets	$	17,163,343							$	17,042,771							$	17,068,592
Interest-bearing liabilities:
Checking accounts	$	810,566			88		0.04	%	$	822,059			89		0.04	%	$	866,170			94		0.04	%
Savings accounts		1,260,067			3,373		1.07	%		1,219,188			2,722		0.89	%		1,437,406			4,967		1.38	%
Certificates of deposit		8,311,629			73,342		3.53	%		8,292,210			72,568		3.50	%		7,654,612			70,460		3.68	%
Borrowed funds		4,595,818			39,610		3.45	%		4,542,318			38,524		3.39	%		4,892,621			40,112		3.28	%
Total interest-bearing liabilities		14,978,080			116,413		3.11	%		14,875,775			113,903		3.06	%		14,850,809			115,633		3.11	%
Noninterest-bearing liabilities		270,184								235,601								261,741
Total liabilities		15,248,264								15,111,376								15,112,550
Shareholders’ equity		1,915,079								1,931,395								1,956,042
Total liabilities and shareholders’ equity	$	17,163,343							$	17,042,771							$	17,068,592
Net interest income				$	74,994							$	72,049							$	69,273
Interest rate spread (1)(3)							1.50	%							1.45	%							1.36	%
Net interest-earning assets (4)	$	1,637,006							$	1,632,711							$	1,703,852
Net interest margin (1)(5)					1.81	%							1.75	%							1.67	%
Average interest-earning assets to average interest-bearing liabilities		110.93	%							110.98	%							111.47	%
Selected performance ratios:
Return on average assets (1)					0.50	%							0.49	%							0.47	%
Return on average equity (1)					4.49	%							4.35	%							4.08	%
Average equity to average assets					11.16	%							11.33	%							11.46	%

(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)

	Nine Months Ended								Nine Months Ended
	June 30, 2025								June 30, 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	$	409,905		$	13,881		4.52	%	$	579,383		$	23,543		5.42	%
Investment securities		56,121			1,776		4.22	%		69,677			2,663		5.10	%
Mortgage-backed securities		465,065			12,250		3.51	%		448,429			10,871		3.23	%
Loans (2)		15,384,513			521,151		4.52	%		15,190,356			491,273		4.31	%
Federal Home Loan Bank stock		222,495			15,069		9.03	%		250,285			17,208		9.17	%
Total interest-earning assets		16,538,099			564,127		4.55	%		16,538,130			545,558		4.40	%
Noninterest-earning assets		535,725								524,179
Total assets	$	17,073,824							$	17,062,309
Interest-bearing liabilities:
Checking accounts	$	819,669			267		0.04	%	$	897,190			310		0.05	%
Savings accounts		1,256,348			9,448		1.00	%		1,573,401			17,477		1.48	%
Certificates of deposit		8,220,860			220,409		3.57	%		7,350,136			194,745		3.53	%
Borrowed funds		4,597,155			118,632		3.44	%		5,051,371			123,283		3.25	%
Total interest-bearing liabilities		14,894,032			348,756		3.12	%		14,872,098			335,815		3.01	%
Noninterest-bearing liabilities		259,143								250,916
Total liabilities		15,153,175								15,123,014
Shareholders’ equity		1,920,650								1,939,295
Total liabilities and shareholders’ equity	$	17,073,825							$	17,062,309
Net interest income				$	215,371							$	209,743
Interest rate spread (1)(3)							1.43	%							1.39	%
Net interest-earning assets (4)	$	1,644,067							$	1,666,032
Net interest margin (1)(5)					1.74	%							1.69	%
Average interest-earning assets to average interest-bearing liabilities		111.04	%							111.20	%
Selected performance ratios:
Return on average assets (1)					0.51	%							0.48	%
Return on average equity (1)					4.51	%							4.22	%
Average equity to average assets					11.25	%							11.37	%

(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.