TFS Financial Corp. (TFSL)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$343.7M

Revenue growth

10.5%

Net income, last twelve months

$102.1M

Earnings per share

$0.36

Net margin

29.7%

Free cash flow

$86.3M

Return on equity

5.2%

Market value

$4.7B

Price to earnings

46.4x

Dividend yield

6.8%

Cash

$568.9M

Debt

$5.8B

Debt to equity

2.97

Shares outstanding

280.4M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the third quarter of fiscal 2026 results, filed 30 July 2026.

• Quarterly net income reached $30.5 million. Net income rose 31.4% from $23.2 million in the prior quarter, reflecting higher net interest income, a provision release and higher non-interest income, with lower non-interest expense.
• Pre-tax income and tax expense rose. Income before income taxes was $38.7 million, against $29.8 million in the prior quarter. Income tax expense was $8.1 million, against $6.6 million.
• Nine-month net income up 17.1%. Nine-month net income was $76.1 million, up $11.1 million from $65.0 million a year earlier. Net interest income, non-interest income and a provision release drove the increase, partly offset by higher expenses.
• Net interest margin reached 1.90%. Net interest margin rose six basis points to 1.90%, and the interest rate spread improved four basis points to 1.58%, as yields on interest-earning assets rose more than the cost of interest-bearing liabilities.
• Asset yields lifted the spread. Management attributed the nine-month yield gain to lower-rate residential mortgages being replaced by higher-yielding mortgage loans and home equity products.
• Nine-month margin reached 1.85%. Nine-month net interest margin was 1.85%, against 1.74% a year earlier. Net interest income rose $19.5 million, or 9.1%, to $234.9 million over the same period.
• Provision released $3.5 million. The $3.5 million release reflected lower reserve requirements on longer-term, fixed-rate home equity loans, which management said perform better than the loss model expects, partly offset by reserves for growth.
• Allowance fell to 0.63%. The total allowance for credit losses fell $2.9 million to $102.0 million, or 0.63% of total loans receivable, from 0.67% at March 31, 2026.
• Delinquencies rose from low levels. Loan delinquencies rose $5.1 million to $43.5 million, or 0.27% of total loans receivable. Management said delinquencies have remained historically low for more than 20 years.
• Net recoveries of $0.7 million. Net recoveries were $0.7 million in the quarter, against $0.8 million in the prior quarter.
• Non-accrual loans near 0.25%. Non-accrual loans were $40.3 million, or 0.25% of total loans receivable, at June 30, 2026, against $38.7 million at September 30, 2025.
• Non-interest income rose 6.7%. Non-interest income rose $0.5 million to $7.9 million, with higher loan fees, bank-owned life insurance proceeds and other income, partly offset by a $0.9 million decrease in net gain on loan sales.
• Quarterly expenses fell 2.3%. Non-interest expense fell $1.3 million to $54.1 million. Lower salaries and benefits were partly offset by a $0.5 million increase in office property, equipment and software expense.
• Nine-month expenses rose 8.9%. Non-interest expense for the nine months rose $13.5 million, or 8.9%, to $165.7 million. Higher staffing, stock-based compensation and a $2.2 million December bonus were among the drivers.

Company events

The newest 8-K filings of 225 held.

Every filing

The newest filings with the SEC of 416 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

254 funds held it at 30 Jun 2026: 114 added and 70 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• HSBC Holdings plc (HSBC): revenue $68.3B, market value $296.8B
• Axos Financial, Inc. (AX): revenue $1.5B, market value $5.2B
• Eastern Bankshares, Inc. (EBC): revenue $1.1B, market value $5.2B
• BankUnited, Inc. (BKU): revenue $1.1B, market value $3.1B
• Provident Financial Services Inc. (PFS): revenue $907.3M, market value $3.0B

What the company does

TFS Financial Corporation is the holding company for Third Federal Savings and Loan Association of Cleveland, which the filing calls the Association. The Association is a federally chartered savings and loan association headquartered in Cleveland, Ohio, and was organized in 1938. Its principal business is originating and servicing residential mortgage loans and attracting retail savings deposits. It operates a main office, 36 additional full-service branches and two loan production offices in Ohio and Florida, and employs 958 associates.

How the business is organised

TFS Financial was organized in 1997 as the mid-tier stock holding company for the Association. It completed its initial public stock offering in 2007, issuing 100,199,618 shares, or 30.16% of its post-offering common stock, to subscribers. A further 5,000,000 shares, or 1.50%, went to the Third Federal Foundation. Third Federal Savings, MHC, the mutual holding company parent, owned 80.94% of the common stock at 30 September 2025.

Owning the Association is the company's primary business activity. The company also owns Third Capital, Inc., which holds Third Cap Associates, Inc. That entity owns 49% and 60% of two title agencies providing escrow and settlement services in Ohio, Florida and New Jersey, primarily to Association customers. All of the company's officers are also officers of the Association.

What it lends

The Association mainly makes first mortgage loans of up to 30 years, fixed-rate or adjustable-rate, to buy or refinance homes. At 30 September 2025, first mortgages were 69.1% of the loan portfolio. Home equity lines of credit were 25.9%, home equity loans and bridge loans were 4.8%, and residential construction loans were 0.2%.

Its adjustable-rate product is called Smart Rate. The rate is fixed for three or five years and then resets annually against the Prime Rate. Borrowers can re-lock the rate, generally for a fee. Smart Rate loans are 99.6% of the adjustable-rate mortgage portfolio, and the Association has never offered Option ARM loans. Home equity lines of credit carry an adjustable rate indexed to the Prime Rate. The Association also offers a Home Ready mortgage for low- and moderate-income buyers and has made no new Home Today loans since fiscal 2016.

The Association keeps the majority of the loans it originates. It sells mainly long-term, fixed-rate loans, mostly to Fannie Mae, and generally keeps the servicing rights. It also buys first mortgages through a correspondent lending partner in Ohio, Indiana, Michigan, North Carolina, Pennsylvania and South Carolina. Its revenues come primarily from interest on loans. Smaller sources are interest on deposits and securities, dividends on Federal Home Loan Bank stock, fees, gains on loan sales and service charges.

How it funds itself

Deposits are the primary source of funds. At 30 September 2025, certificates of deposit were 81.2% of total deposits, savings accounts 10.0%, checking accounts 7.6% and money market accounts 1.2%. Of the retail deposit base, 95.9% sits in accounts under the FDIC insured limit of $250,000. The Association also uses brokered certificates of deposit and advances from the FHLB of Cincinnati. It uses interest rate swaps to lengthen the effective term of some of this funding.

Where it operates and competes

In Ohio the Association has 21 full-service offices in Cuyahoga, Lake, Lorain, Medina and Summit counties. It also has loan production offices in Columbus and Cincinnati. In Florida it has 15 full-service branches across eight counties. A customer service call center, its website and direct mail also generate loan applications and deposits. Savings products are available in all 50 states. First mortgages, home equity lines of credit, home equity loans and bridge loans are offered in up to 28 states and the District of Columbia.

The Association had the second largest share of conventional purchase mortgage loans originated in Cuyahoga County and the third largest in the seven northeast Ohio counties around Cleveland and Akron. In Florida it ranked 34th with 0.34%. Competitors include large and regional banks, community banks, credit unions, money market funds, brokerage firms and insurance companies.

Rules it works under

The company is a savings and loan holding company supervised by the FRS. The Association is examined and supervised by the OCC and the CFPB, and its deposits are insured by the FDIC. It is a member of the FHLB of Cincinnati. As a federal savings association it must meet the qualified thrift lender test, which requires at least 65% of portfolio assets in qualified thrift investments. At 30 September 2025 it satisfied that test and exceeded all requirements to be considered "Well Capitalized".

Its people

Of the 958 associates, nearly all work full-time and about 71% are women. About 42% work in branch and loan production offices and another 15% at the customer care call center. At that date 36% of associates had been with the company for fifteen years or more. Nearly all associates are stockholders through the Associate Stock Ownership Plan. Loan personnel are non-commissioned associates.

*From TFS Financial's annual report on Form 10-K for the year ended 30 September 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1381668/000138166825000106/tfsl-20250930.htm)*

From the company's 10-K.