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TFS Financial Reports Record $91 Million in Earnings for Fiscal Year 2025
CLEVELAND--(BUSINESS WIRE)-- TFS Financial Corporation (NASDAQ: TFSL) (the "Company", "we", "our"), the holding company for Third Federal Savings and Loan
About this update from Tfs Financial Corporation
[{"type":"text","content":" CLEVELAND--(BUSINESS WIRE)--\nTFS 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.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251030796379/en/Chairman and CEO Marc A. Stefanski\n“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%.\"\n\n\nOperating Results for the Quarter Ended September 30, 2025\n\n\nNet 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.\n\n\nNet 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%.\n\n\nThe 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 dur...