Form 8-K
8-K — TFS Financial CORP
Accession: 0001381668-26-000045
Filed: 2026-10-29
Period: 2026-10-29
CIK: 0001381668
SIC: 6035 (SAVINGS INSTITUTION, FEDERALLY CHARTERED)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — tfsl-20261029.htm (Primary)
EX-99.1 (tfslfy26sept8kexhibits.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K
8-K (Primary)
Filename: tfsl-20261029.htm · Sequence: 1
tfsl-20261029
0001381668FALSE00013816682026-07-302026-07-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 29, 2026
TFS FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
United States of America 001-33390 52-2054948
(State or other jurisdiction
of incorporation) (Commission
File Number) (IRS Employer
Identification No.)
7007 Broadway Ave., Cleveland, Ohio 44105
(Address of principle executive offices) (Zip Code)
Registrant's telephone number, including area code (216) 441-6000
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
Title of each class Trading Symbol(s) Name of each exchange in which registered
Common Stock, par value $0.01 per share TFSL The NASDAQ Stock Market, LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026, TFS Financial Corporation (the "Company”), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), issued a press release announcing its operating results for the three and twelve months ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Report.
The information contained in this Item 2.02 and in the accompanying exhibit 99.1 shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated October 29, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TFS FINANCIAL CORPORATION
(Registrant)
Date: October 29, 2026 By: /s/ Meredith S. Weil
Meredith S. Weil
Chief Financial Officer
EX-99.1
EX-99.1
Filename: tfslfy26sept8kexhibits.htm · Sequence: 2
Document
Contact: Jennifer Rosa (216) 429-5037 Exhibit 99.1
For release October 29, 2026
TFS Financial Reports Record Profit of $100.7 Million in 2026
(Cleveland, OH - October 29, 2026) - TFS Financial Corporation (NASDAQ: TFSL) (the "Company", "we", "our"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), announced net income of $100.7 million for the fiscal year ended September 30, 2026, an increase of $9.7 million, or 10.7%, compared to $91.0 million for the fiscal year ended September 30, 2025. Net income for the quarter ended September 30, 2026 was $24.7 million compared to $30.5 million for the quarter ended June 30, 2026, a decrease of $5.8 million, or 19.0%.
“This year was another milestone for Third Federal, passing $100 million in net income, driven by continued net margin improvement to 1.88%, and a 39% increase in mortgage loan originations from 2025,” said Chairman and CEO Marc A. Stefanski. “With the significant investment we made in a new core banking system and a strong Tier 1 capital leverage ratio of 10.53%, we are well-positioned to continue to grow and effectively serve our customers.”
Fiscal 2026 Results Compared with Fiscal 2025
Net income increased $9.7 million, or 10.7%, to $100.7 million for the fiscal year ended September 30, 2026 compared to net income of $91.0 million for fiscal 2025. The increase reflected $29.1 million of additional net interest income, a $5.0 million favorable change in the provision for credit losses and a $1.2 million increase in non-interest income, partially offset by a $21.1 million increase in non-interest expense.
Net interest income increased $29.1 million, or 9.9%, to $321.8 million for the fiscal year ended September 30, 2026 compared to $292.7 million for the fiscal year ended September 30, 2025. Total interest income increased $46.0 million to $809.2 million, driven by a $53.1 million increase in interest income on loans, partially offset by lower income from investment securities, other interest-earning assets and Federal Home Loan Bank ("FHLB") stock. The average balance of loans increased $529.5 million and the yield improved by 18 basis points. Total interest expense increased $17.0 million to $487.5 million. The interest rate spread was 1.57% for the fiscal year ended September 30, 2026 compared to 1.45% for the fiscal year ended September 30, 2025. The net interest margin was 1.88% for the fiscal year ended September 30, 2026 and 1.76% for the fiscal year ended September 30, 2025.
During the fiscal year ended September 30, 2026, there was a $2.5 million release of provision for credit losses compared to $2.5 million of provision expense during the fiscal year ended September 30, 2025. Net loan recoveries totaled $2.1 million for the fiscal year ended September 30, 2026 and $4.0 million for the prior fiscal year.
The total allowance for credit losses decreased $0.5 million to $103.9 million, or 0.63% of total loans receivable, at September 30, 2026 from $104.4 million, or 0.67% of total loans receivable, at September 30, 2025. The decrease was primarily related to reduced reserve requirements for longer term, fixed-rate home equity loans offset by an increase in reserve requirements due to loan growth. The allowance for credit losses included $28.5 million and $30.1 million in liabilities for unfunded commitments at September 30, 2026 and September 30, 2025, respectively.
Total loan delinquencies increased $26.0 million to $60.7 million, or 0.37% of total loans receivable, at September 30, 2026 from $34.7 million, or 0.22% of total loans receivable, at September 30, 2025. Delinquencies increased across all loan portfolios, most notably among loans less than 90 days past due, including increases of $8.4 million in residential mortgage loans, $15.1 million in home equity lines of credit and $2.7 million in home equity loans and continue to be monitored by management for any specific trend. Non-accrual loans totaled $49.8 million, or 0.30% of total loans receivable, at September 30, 2026, compared to $38.7 million, or 0.25% of total loans receivable, at September 30, 2025.
Total non-interest income increased $1.2 million, or 4.2%, to $30.0 million for the fiscal year ended September 30, 2026, from $28.8 million for the fiscal year ended September 30, 2025. The increase was primarily due to an increase of $1.3 million in loan fees and service charges.
Total non-interest expense increased $21.1 million, or 10.3%, to $225.4 million for the fiscal year ended September 30, 2026 from $204.3 million for the fiscal 2025. Salaries and employee benefits rose $11.3 million primarily due to higher staffing levels, increased stock-based compensation expense and a $2.2 million one-time bonus paid to associates in December 2025, partially offset by a $4.1 million increase in capitalized payroll costs related to the implementation of a new core banking system. Office property, equipment and software expenses increased $3.2 million due to higher technology costs. Other expenses rose $7.6 million, including a $4.6 million unfavorable change in pension (defined benefit) expense, increases of $1.1 million in postage, $1.0 million in credit report expense and $0.5 million in audit expense. A $0.3 million decrease in federal insurance
premium and assessments partially offset the overall increase in expenses. The change in pension expense reflected $2.5 million of settlement expense recognized in the fourth quarter of fiscal 2026; the remainder was attributable to changes in actuarial assumptions. The pension plan was terminated in December 2025 and the remaining obligation is expected to settle during the quarter ending December 31, 2026
Financial Condition at September 30, 2026 vs. September 30, 2025
Total assets increased $735.1 million, or 4.2%, to $18.19 billion at September 30, 2026 from $17.46 billion at September 30, 2025. The increase was mainly the result of increases in cash and cash equivalents, FHLB stock and loans held for investment partially offset by decreases in investment securities available for sale and loans held for sale.
Cash and cash equivalents increased $23.7 million, or 5.5%, to $453.1 million at September 30, 2026 from $429.4 million at September 30, 2025, due to normal fluctuations and liquidity management.
Investment securities available for sale decreased $26.0 million, or 5.0%, to $494.6 million at September 30, 2026 from $520.7 million at September 30, 2025. The decrease was mainly due to the combined effect of cash flows from security repayments and maturities.
Loans held for investment, net of allowance and deferred loan expenses, increased $754.6 million, or 4.8%, to $16.42 billion at September 30, 2026 from $15.66 billion at September 30, 2025. Loans held for sale decreased $56.6 million to $1.1 million at September 30, 2026. Home equity loans and lines of credit increased $871.0 million to $5.68 billion and the residential core mortgage loan portfolio decreased $99.1 million to $10.70 billion.
The changes in loans held for sale and loans held for investment were affected by the volume of loans originated, acquired and sold. During the fiscal year ended September 30, 2026, residential mortgage loan originations and acquisitions totaled $1.66 billion compared to $1.19 billion for the fiscal year ended September 30, 2025. Of total residential mortgage loans originated and acquired during the most recent period, 86% were purchase transactions. Commitments originated for home equity loans and lines of credit were $2.31 billion for the fiscal year ended September 30, 2026 compared to $2.52 billion for the fiscal year ended September 30, 2025. During the fiscal years ended September 30, 2026 and 2025, there were $255.9 million and $411.3 million of loans sold with net gains on the sale of loans totaling $5.5 million and $5.3 million, respectively.
FHLB stock increased $30.1 million, or 12.8%, to $265.5 million at September 30, 2026 from $235.4 million at September 30, 2025.
Deposits decreased $267.8 million, or 2.6%, to $10.18 billion at September 30, 2026 from $10.45 billion at September 30, 2025. The decrease was the result of decreases of $868.8 million in CDs, $33.9 million in money market deposit accounts, and $3.0 million in checking accounts, partially offset by an increase of $646.3 million in savings accounts. The decrease in total CDs included a $984.2 million decrease in retail CDs, the majority of which moved into savings accounts, offset by a $115.4 million increase in brokered CD accounts. There were $1.02 billion in brokered certificates of deposit at September 30, 2026 compared to $900.9 million at September 30, 2025.
Borrowed funds increased $867.0 million, or 17.8%, to $5.74 billion at September 30, 2026 from $4.87 billion at September 30, 2025. The balance of borrowed funds at September 30, 2026 included $1.33 billion of overnight advances, $1.33 billion of term advances with a weighted average maturity of approximately 1.3 years and $3.03 billion of term advances, aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.4 years, all from the FHLB of Cincinnati, and federal funds purchased of $190.0 million.
Total shareholders' equity increased $112.4 million, or 5.9%, to $2.01 billion at September 30, 2026 from $1.89 billion at September 30, 2025. Activity reflects $100.7 million of net income, dividends paid of $62.3 million, $5.5 million in repurchases of the Company's common stock, a $68.3 million net increase in accumulated other comprehensive income and net positive adjustments of $11.2 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.
During the fiscal year ended September 30, 2026, a total of 384,241 shares of the Company's common stock were repurchased at an average cost of $14.31 per share. The Company's eighth stock repurchase program, authorized by the Board of Directors in October 2016, allows for a total of 10,000,000 shares to be repurchased, with 4,559,845 remaining shares authorized for repurchase at September 30, 2026.
The Company declared and paid a quarterly dividend of $0.3175 per share during the fourth fiscal quarter of 2026 and $0.2825 per share during each of the first three fiscal quarters. 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 7, 2026 member vote and the subsequent non-objection of the Federal Reserve, the MHC has the approval to waive receipt of up to $1.27 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 7, 2027). The MHC has conducted the member vote to approve the dividend waiver each of the past 13 years under Federal Reserve regulations and for each of those 13 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, 2026 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 10.53%, its Common Equity Tier 1 and Tier 1 ratios were each 16.64% and its total capital ratio was 17.55%.
Fourth-Quarter Results Compared with the Prior Quarter
Net income decreased $5.8 million, or 19.0%, to $24.7 million for the quarter ended September 30, 2026 compared to $30.5 million for the quarter ended June 30, 2026, The change reflected higher net interest income offset by an unfavorable change in the provision for credit losses, a decrease in non-interest income and an increase in non-interest expense.
Net interest income increased $5.5 million, or 6.8%, to $86.9 million for the quarter ended September 30, 2026 from $81.4 million for the quarter ended June 30, 2026. This increase was primarily attributable to a 17 basis point increase in the yield on interest-earning assets, primarily loans, partially offset by a nine basis point increase in the cost of interest-bearing liabilities. The interest rate spread for the quarter improved by eight basis points over the prior quarter to 1.66%, while the net interest margin increased nine basis points to 1.99%.
For the quarter ended September 30, 2026, the Company recorded a provision for credit losses of $2.0 million compared to a $3.5 million release of provision for the prior quarter. The provision was driven by an increase in reserve requirements related to growth in the residential mortgage and home equity loan portfolios. The total allowance for credit losses increased $1.9 million during the quarter to $103.9 million, or 0.63% of total loans receivable, from $102.0 million, or 0.63% of total loans receivable, at June 30, 2026. The total allowance for credit losses included a $28.5 million liability for unfunded commitments, included in other liabilities, at both September 30, 2026 and June 30, 2026. Net charge-offs were $0.1 million for the quarter ended September 30, 2026 compared to net recoveries of $0.7 million for the previous quarter.
Total loan delinquencies increased $17.2 million to $60.7 million, or 0.37% of total loans receivable, at September 30, 2026 from $43.5 million, or 0.27% of total loans receivable, at June 30, 2026.
Total non-interest income decreased $1.3 million, or 16.5%, to $6.6 million for the quarter ended September 30, 2026 from $7.9 million for the quarter ended June 30, 2026. Changes included an increase of $0.2 million in loan fees and service charges, offset by decreases of $0.8 million from bank owned life insurance contracts, $0.5 million in other non-interest income, primarily related to unrealized losses on interest rate lock commitments treated as derivatives, and a $0.2 million decrease in net gain on the sale of loans.
Total non-interest expense increased $5.6 million, or 10.4%, to $59.7 million for the quarter ended September 30, 2026 from $54.1 million for the quarter ended June 30, 2026. Salaries and employee benefits increased $3.2 million primarily because payroll costs for the implementation of the new core banking system were no longer capitalized once the system began operating in July 2026. Other factors included increased federal payroll taxes, retirement plan expense and group health insurance costs. Other operating expenses increased $2.4 million primarily related to pension termination expense, partially offset by decreases in expenses related to down payment assistance.
Financial Condition at September 30, 2026 vs. June 30, 2026
Total assets increased $116.4 million to $18.19 billion at September 30, 2026 from $18.08 billion at June 30, 2026, mainly due to increases in loans held for investment partially offset by a decrease in cash and cash equivalents.
Cash and cash equivalents decreased $115.8 million, or 20.4%, to $453.1 million at September 30, 2026 from $568.9 million at June 30, 2026, due to normal fluctuations and liquidity management.
Loans held for investment, net of allowance and deferred loan expenses, increased $236.3 million, or 1.5%, to $16.42 billion at September 30, 2026. During the quarter ended September 30, 2026, the combined balances of home equity loans and lines of credit increased $210.5 million to $5.68 billion and residential mortgage loans increased $6.5 million to $10.70 billion. Residential mortgage loan originations and acquisitions were $479.3 million for the quarter ended September 30, 2026 compared to $616.4 million for the quarter ended June 30, 2026 and $427.9 million for the quarter ended September 30, 2025. Loans held for sale decreased $13.4 million to $1.1 million at September 30, 2026, from $14.5 million at June 30, 2026.
Deposits increased $186.8 million, or 1.9%, to $10.18 billion at September 30, 2026, compared to $9.99 billion at June 30, 2026. Certificates of deposit increased $317.3 million primarily reflecting the Company's offering of competitive deposit rates.
Other changes included a $4.1 million decrease in money market deposit accounts, a $7.7 million decrease in checking accounts and a $105.7 million decrease in savings accounts.
Borrowed funds decreased $73.7 million, or 1.3%, to $5.74 billion at September 30, 2026, compared to $5.81 billion at June 30, 2026. The decrease reflected a decrease in advances from the FHLB of Cincinnati, partially offset by increases in federal funds purchased to maintain daily liquidity.
About TFS Financial Corporation
TFS Financial Corporation is the holding company for Third Federal Savings and Loan Association, a leading provider of savings and mortgage products that 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 will celebrate its 90th anniversary in 2028. 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 14 full service branches throughout Florida. As of September 30, 2026, the Company’s assets totaled $18.19 billion.
Presentation slides as of September 30, 2026 will be available on the Company's website, thirdfederal.com, under the Investor Relations link within the "Presentations" menu, beginning October 30, 2026. The Company will not be hosting a conference call to discuss its operating results.
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, prospects, 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 manage operational risk, including cybersecurity risk and artificial intelligence 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, Federal Housing Finance Agency, 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 associates;
●
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,
2026 June 30,
2026 September 30,
2025
ASSETS
Cash and due from banks $ 31,859 $ 28,623 $ 24,176
Other interest-earning cash equivalents 421,247 540,311 405,263
Cash and cash equivalents 453,106 568,934 429,439
Investment securities available for sale 494,637 482,431 520,659
Mortgage loans held for sale 1,063 14,478 57,662
Loans held for investment, net:
Mortgage loans 16,411,444 16,175,429 15,659,460
Other loans 7,374 7,423 8,153
Deferred loan expenses, net 74,536 72,241 69,943
Allowance for credit losses on loans (75,485) (73,516) (74,244)
Loans, net 16,417,869 16,181,577 15,663,312
Mortgage loan servicing rights, net 8,771 8,861 8,549
Federal Home Loan Bank stock, at cost 265,476 268,101 235,363
Real estate owned, net 1,300 1,339 1,921
Premises, equipment, and software, net 46,705 45,646 40,022
Accrued interest receivable 66,962 63,689 62,553
Bank owned life insurance contracts 330,729 329,784 325,149
Other assets 104,767 110,168 111,687
TOTAL ASSETS $ 18,191,385 $ 18,075,008 $ 17,456,316
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits $ 10,179,201 $ 9,992,423 $ 10,446,968
Borrowed funds 5,737,247 5,810,914 4,870,219
Borrowers’ advances for insurance and taxes 120,038 159,734 113,168
Principal, interest, and related escrow owed on loans serviced 31,181 44,683 30,328
Accrued expenses and other liabilities 117,359 109,843 101,709
Total liabilities 16,185,026 16,117,597 15,562,392
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 1,764,213 1,761,637 1,757,813
Treasury stock, at cost (779,328) (778,588) (774,340)
Unallocated ESOP shares (14,084) (15,167) (18,417)
Retained earnings—substantially restricted 985,190 977,589 946,776
Accumulated other comprehensive income (loss) 47,045 8,617 (21,231)
Total shareholders’ equity 2,006,359 1,957,411 1,893,924
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 18,191,385 $ 18,075,008 $ 17,456,316
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,
2026 June 30,
2026 March 31,
2026 December 31,
2025 September 30,
2025
INTEREST AND DIVIDEND INCOME:
Loans, including fees $ 201,094 $ 190,048 $ 183,515 $ 184,946 $ 185,332
Investment securities available for sale 4,472 4,184 3,985 4,241 4,708
Other interest and dividend earning assets 8,319 7,880 7,969 8,585 9,013
Total interest and dividend income 213,885 202,112 195,469 197,772 199,053
INTEREST EXPENSE:
Deposits 73,690 72,552 73,792 79,203 78,636
Borrowed funds 53,281 48,182 43,871 42,889 43,094
Total interest expense 126,971 120,734 117,663 122,092 121,730
NET INTEREST INCOME 86,914 81,378 77,806 75,680 77,323
PROVISION (RELEASE) FOR CREDIT LOSSES 2,000 (3,500) — (1,000) 1,000
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES 84,914 84,878 77,806 76,680 76,323
NON-INTEREST INCOME:
Fees and service charges, net of amortization 2,987 2,753 2,498 2,512 2,617
Net gain on the sale of loans 573 826 1,744 2,329 2,314
Increase in and death benefits from bank owned life insurance contracts 2,588 3,394 2,718 2,764 2,650
Other 473 923 477 443 580
Total non-interest income 6,621 7,896 7,437 8,048 8,161
NON-INTEREST EXPENSE:
Salaries and employee benefits 31,633 28,449 30,184 30,488 27,579
Marketing services 3,761 4,060 4,026 6,239 4,537
Office property, equipment and software 8,555 8,368 7,932 7,756 7,236
Federal insurance premium and assessments 3,639 3,452 3,552 3,247 3,388
State franchise tax 1,112 1,149 1,146 1,067 1,117
Other expenses 11,001 8,618 8,559 7,433 8,188
Total non-interest expense 59,701 54,096 55,399 56,230 52,045
INCOME BEFORE INCOME TAXES 31,834 38,678 29,844 28,498 32,439
INCOME TAX EXPENSE 7,179 8,138 6,597 6,224 6,440
NET INCOME $ 24,655 $ 30,540 $ 23,247 $ 22,274 $ 25,999
Earnings per share - basic and diluted $ 0.09 $ 0.11 $ 0.08 $ 0.08 $ 0.09
Weighted average shares outstanding
Basic 278,954,026 278,850,699 278,858,428 278,754,792 278,764,271
Diluted 280,475,264 280,176,516 279,934,262 279,908,875 279,887,491
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
For the Year Ended
September 30,
2026 2025
INTEREST AND DIVIDEND INCOME:
Loans, including fees $ 759,603 $ 706,483
Investment securities available for sale 16,882 18,734
Other interest and dividend earning assets 32,753 37,963
Total interest and dividend income 809,238 763,180
INTEREST EXPENSE:
Deposits 299,237 308,760
Borrowed funds 188,223 161,726
Total interest expense 487,460 470,486
NET INTEREST INCOME 321,778 292,694
PROVISION (RELEASE) FOR CREDIT LOSSES (2,500) 2,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 324,278 290,194
NON-INTEREST INCOME:
Fees and service charges, net of amortization 10,750 9,529
Net gain on the sale of loans 5,472 5,342
Increase in and death benefits from bank owned life insurance contracts 11,464 10,745
Other 2,316 3,164
Total non-interest income 30,002 28,780
NON-INTEREST EXPENSE:
Salaries and employee benefits 120,754 109,502
Marketing services 18,086 18,633
Office property, equipment and software 32,611 29,350
Federal insurance premium and assessments 13,890 14,165
State franchise tax 4,474 4,567
Other expenses 35,611 28,042
Total non-interest expense 225,426 204,259
INCOME BEFORE INCOME TAXES 128,854 114,715
INCOME TAX EXPENSE 28,138 23,756
NET INCOME $ 100,716 $ 90,959
Earnings per share
Basic $ 0.36 $ 0.32
Diluted $ 0.35 $ 0.32
Weighted average shares outstanding
Basic 278,854,475 278,715,769
Diluted 280,119,148 279,758,525
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Three Months Ended Three Months Ended Three Months Ended
September 30, 2026 June 30, 2026 September 30, 2025
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 $ 385,433 $ 3,628 3.77 % $ 381,320 $ 3,459 3.63 % $ 385,290 $ 4,180 4.34 %
Investment securities 48,403 480 3.97 % 26,013 298 4.58 % 53,974 552 4.09 %
Mortgage-backed securities 434,502 3,992 3.68 % 443,351 3,886 3.51 % 463,128 4,156 3.59 %
Loans (2) 16,364,949 201,094 4.92 % 16,018,277 190,048 4.75 % 15,705,190 185,332 4.72 %
Federal Home Loan Bank stock 264,042 4,691 7.11 % 252,243 4,421 7.01 % 235,975 4,833 8.19 %
Total interest-earning assets 17,497,329 213,885 4.89 % 17,121,204 202,112 4.72 % 16,843,557 199,053 4.73 %
Noninterest-earning assets 502,763 518,146 570,470
Total assets $ 18,000,092 $ 17,639,350 $ 17,414,027
Interest-bearing liabilities:
Checking accounts $ 772,909 20 0.01 % $ 787,158 19 0.01 % $ 797,552 172 0.09 %
Savings accounts 1,814,879 8,456 1.86 % 1,871,979 8,745 1.87 % 1,104,938 3,192 1.16 %
Certificates of deposit 7,466,391 65,214 3.49 % 7,421,813 63,788 3.44 % 8,451,255 75,272 3.56 %
Borrowed funds 5,692,336 53,281 3.74 % 5,320,453 48,182 3.62 % 4,911,194 43,094 3.51 %
Total interest-bearing liabilities 15,746,515 126,971 3.23 % 15,401,403 120,734 3.14 % 15,264,939 121,730 3.19 %
Noninterest-bearing liabilities 259,083 279,674 229,685
Total liabilities 16,005,598 15,681,077 15,494,624
Shareholders’ equity 1,994,494 1,958,273 1,919,403
Total liabilities and shareholders’ equity $ 18,000,092 $ 17,639,350 $ 17,414,027
Net interest income $ 86,914 $ 81,378 $ 77,323
Interest rate spread (1)(3) 1.66 % 1.58 % 1.54 %
Net interest-earning assets (4) $ 1,750,814 $ 1,719,801 $ 1,578,618
Net interest margin (1)(5) 1.99 % 1.90 % 1.84 %
Average interest-earning assets to average interest-bearing liabilities 111.12 % 111.17 % 110.34 %
Selected performance ratios:
Return on average assets (1) 0.55 % 0.69 % 0.60 %
Return on average equity (1) 4.94 % 6.24 % 5.42 %
Average equity to average assets 11.08 % 11.10 % 11.02 %
(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, 2026 September 30, 2025
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 $ 385,956 $ 14,475 3.75 % $ 403,751 $ 18,061 4.47 %
Investment securities 24,607 983 3.99 % 55,584 2,328 4.19 %
Mortgage-backed securities 448,031 15,899 3.55 % 464,581 16,406 3.53 %
Loans (1) 15,994,200 759,603 4.75 % 15,464,682 706,483 4.57 %
Federal Home Loan Bank stock 247,219 18,278 7.39 % 225,865 19,902 8.81 %
Total interest-earning assets 17,100,013 809,238 4.73 % 16,614,463 763,180 4.59 %
Noninterest-earning assets 523,009 544,412
Total assets $ 17,623,022 $ 17,158,875
Interest-bearing liabilities:
Checking accounts $ 785,721 148 0.02 % $ 814,140 439 0.05 %
Savings accounts 1,660,944 28,009 1.69 % 1,241,856 12,640 1.02 %
Certificates of deposit 7,749,607 271,080 3.50 % 8,255,097 295,681 3.58 %
Borrowed funds 5,210,324 188,223 3.61 % 4,675,665 161,726 3.46 %
Total interest-bearing liabilities 15,406,596 487,460 3.16 % 14,986,758 470,486 3.14 %
Noninterest-bearing liabilities 265,869 251,778
Total liabilities 15,672,465 15,238,536
Shareholders’ equity 1,950,557 1,920,339
Total liabilities and shareholders’ equity $ 17,623,022 $ 17,158,875
Net interest income $ 321,778 $ 292,694
Interest rate spread (2) 1.57 % 1.45 %
Net interest-earning assets (3) $ 1,693,417 $ 1,627,705
Net interest margin (4) 1.88 % 1.76 %
Average interest-earning assets to average interest-bearing liabilities 110.99 % 110.86 %
Selected performance ratios:
Return on average assets 0.57 % 0.53 %
Return on average equity 5.16 % 4.74 %
Average equity to average assets 11.07 % 11.19 %
(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.
XML — IDEA: XBRL DOCUMENT
XML
Filename: R1.htm · Sequence: 7
v3.26.3
Document And Entity Information
Jul. 30, 2026
Cover [Abstract]
Document Period End Date
Oct. 29, 2026
Document Type
8-K
Entity Registrant Name
TFS FINANCIAL CORPORATION
Entity Incorporation, State or Country Code
X1
Entity File Number
001-33390
Entity Tax Identification Number
52-2054948
Entity Address, Address Line One
7007 Broadway Ave.,
Entity Address, City or Town
Cleveland,
Entity Address, State or Province
OH
Entity Address, Postal Zip Code
44105
City Area Code
(216)
Local Phone Number
441-6000
Written Communications
false
Soliciting Material
false
Pre-commencement Tender Offer
false
Pre-commencement Issuer Tender Offer
false
Entity Emerging Growth Company
false
Title of 12(b) Security
Common Stock, par value $0.01 per share
Trading Symbol
TFSL
Security Exchange Name
NASDAQ
Entity Central Index Key
0001381668
Amendment Flag
false
X
- Definition
Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
No definition available.
+ Details
Name:
dei_AmendmentFlag
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Area code of city
+ References
No definition available.
+ Details
Name:
dei_CityAreaCode
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Cover page.
+ References
No definition available.
+ Details
Name:
dei_CoverAbstract
Namespace Prefix:
dei_
Data Type:
xbrli:stringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
No definition available.
+ Details
Name:
dei_DocumentPeriodEndDate
Namespace Prefix:
dei_
Data Type:
xbrli:dateItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
No definition available.
+ Details
Name:
dei_DocumentType
Namespace Prefix:
dei_
Data Type:
dei:submissionTypeItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Address Line 1 such as Attn, Building Name, Street Name
+ References
No definition available.
+ Details
Name:
dei_EntityAddressAddressLine1
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the City or Town
+ References
No definition available.
+ Details
Name:
dei_EntityAddressCityOrTown
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Code for the postal or zip code
+ References
No definition available.
+ Details
Name:
dei_EntityAddressPostalZipCode
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the state or province.
+ References
No definition available.
+ Details
Name:
dei_EntityAddressStateOrProvince
Namespace Prefix:
dei_
Data Type:
dei:stateOrProvinceItemType
Balance Type:
na
Period Type:
duration
X
- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityCentralIndexKey
Namespace Prefix:
dei_
Data Type:
dei:centralIndexKeyItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Indicate if registrant meets the emerging growth company criteria.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityEmergingGrowthCompany
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
No definition available.
+ Details
Name:
dei_EntityFileNumber
Namespace Prefix:
dei_
Data Type:
dei:fileNumberItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Two-character EDGAR code representing the state or country of incorporation.
+ References
No definition available.
+ Details
Name:
dei_EntityIncorporationStateCountryCode
Namespace Prefix:
dei_
Data Type:
dei:edgarStateCountryItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityRegistrantName
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityTaxIdentificationNumber
Namespace Prefix:
dei_
Data Type:
dei:employerIdItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Local phone number for entity.
+ References
No definition available.
+ Details
Name:
dei_LocalPhoneNumber
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
+ Details
Name:
dei_PreCommencementIssuerTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
+ Details
Name:
dei_PreCommencementTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Title of a 12(b) registered security.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
+ Details
Name:
dei_Security12bTitle
Namespace Prefix:
dei_
Data Type:
dei:securityTitleItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the Exchange on which a security is registered.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
+ Details
Name:
dei_SecurityExchangeName
Namespace Prefix:
dei_
Data Type:
dei:edgarExchangeCodeItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
Name:
dei_SolicitingMaterial
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
dei_
Data Type:
dei:tradingSymbolItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
Name:
dei_WrittenCommunications
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration