TFS Financial Corp

Latest Results (18.05.2026):

TFS Financial Corp — quarter ended September 30, 2025 (fourth quarter of fiscal year 2025): the company reported quarterly net income of $26.0 million (up 20.9% vs. the prior quarter) and fiscal year net income of $91.0 million (up 14.3% vs. FY2024), driven by higher net interest income, stronger loan yields and increased gains on loan sales; deposits and home equity balances rose, allowance for credit losses increased modestly, and the bank resumed share repurchases while keeping capital ratios above regulatory “well-capitalized” levels.

Quarterly net income

Net income for the quarter ended September 30, 2025 was $25.999 million, up $4.5 million (20.9%) from the prior quarter; diluted and basic EPS for the quarter were $0.09.

Net interest income & margins

Quarterly net interest income rose $2.3 million to $77.3 million (from $75.0M), helped by a 13 bps increase in average loan yields. The interest rate spread widened to 1.54% (up 4 bps) and the net interest margin increased to 1.84% (up 3 bps vs. prior quarter).

Credit provision & reserves

The provision for credit losses was $1.0 million for the quarter (down from $1.5M prior quarter). The total allowance for credit losses increased to $104.4 million (0.67% of loans) due primarily to growth in home equity loans and lines of credit; net recoveries were $1.0 million for the quarter.

Loans and deposits

Loans held for investment (net) rose modestly to $15.66 billion (+$67.3M QoQ). Home equity loans and lines of credit increased $236.2M to $4.81 billion while residential core mortgage balances declined $166.1M to $10.80 billion. Deposits increased $105.5M QoQ to $10.447 billion, led by a $202.9M rise in CDs.

Non‑interest income & expense

Total non‑interest income increased 17.0% QoQ to $8.2 million, largely from a $1.6M jump in net gains on loan sales. Total non‑interest expense declined 2.3% QoQ to $52.0 million, primarily from lower marketing services expense.

Fiscal year results (FY2025)

For the fiscal year ended September 30, 2025, net income was $90.96 million (up 14.3% YoY), net interest income was $292.7 million (up 5.1%), and net interest margin was 1.76% (versus 1.69% in FY2024). Non‑interest income rose to $28.8M and non‑interest expense was essentially flat at $204.3M.

Capital, dividends & buybacks

Capital remained strong: Tier 1 leverage was 10.76%, CET1 and Tier 1 were 17.60%, and total capital was 18.46% — all above “well‑capitalized” requirements. The company paid quarterly dividends of $0.2825 per share each quarter and, during FY2025, repurchased 247,865 shares at an average cost of $13.05 (4,944,086 shares remain authorized under the current program). The MHC has member approval to waive up to $1.13 per share of dividends through July 8, 2026 (approximately $0.8475 remaining).