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 Association of Cleveland (the "Association"), today announced results for the quarter and fiscal year ended September 30, 2025.

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.

“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%."

Operating Results for the Quarter Ended September 30, 2025

Net 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.

Net 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%.

The 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 during the quarter to $104.4 million, or 0.67% of total loans receivable, from $102.4 million, or 0.66% of total loans receivable, at June 30, 2025. The increase was primarily due to growth in the home equity loan and lines of credit portfolios. The allowance for unfunded commitments, included in other liabilities, increased $0.3 million, to $30.1 million at September 30, 2025, from $29.8 million at June 30, 2025. Net recoveries were $1.0 million for the quarter ended September 30, 2025 compared to $0.9 million for the previous quarter.

Total non-interest income increased $1.2 million, or 17.0%, to $8.2 million for the quarter ended September 30, 2025 from $7.0 million for the quarter ended June 30, 2025. The increase was primarily due to a $1.6 million increase in net gain on the sale of loans, partially offset by a $0.5 million decrease in other non-interest income.

Total non-interest expense decreased $1.2 million, or 2.3%, to $52.0 million for the quarter ended September 30, 2025 from $53.2 million for the quarter ended June 30, 2025. The decrease was mainly due to a decrease of $1.3 million in marketing services which are expensed as incurred.

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

Total assets increased by $80.9 million to $17.46 billion at September 30, 2025 from $17.38 billion at June 30, 2025. The increase was mainly due to increases in loans held for investment and loans held for sale, partially offset by a decrease in cash and cash equivalents.

Cash and cash equivalents decreased $23.1 million, or 5.1%, to $429.4 million at September 30, 2025 from $452.6 million at June 30, 2025, due to normal fluctuations and liquidity management.

Loans held for investment, net of allowance and deferred loan expenses, increased $67.3 million, or less than 1%, to $15.66 billion at September 30, 2025 from $15.60 billion at June 30, 2025. During the quarter ended September 30, 2025, the combined balances of home equity loans and lines of credit increased $236.2 million to $4.81 billion and residential core mortgage loans decreased $166.1 million to $10.80 billion. Loans held for sale increased $26.7 million to $57.7 million at September 30, 2025, from $31.0 million at June 30, 2025, due to an increase in loans committed to future delivery contracts with Fannie Mae.

Deposits increased $105.5 million, or 1%, to $10.45 billion at September 30, 2025, compared to $10.34 billion at June 30, 2025, consisting of a $202.9 million increase in certificates of deposit ("CDs") and decreases of $15.1 million in money market deposit accounts, $24.8 million in checking accounts, and $57.4 million in savings accounts.

Operating Results for the Fiscal Year Ended September 30, 2025

The Company reported net income of $91.0 million for the fiscal year ended September 30, 2025, an increase of $11.4 million, or 14.3%, compared to net income of $79.6 million for the fiscal year ended September 30, 2024. The increase was primarily driven by increases in net interest income and non-interest income, partially offset by an increase in the provision for credit losses.

Net interest income increased $14.2 million, or 5.1%, to $292.7 million for the fiscal year ended September 30, 2025 compared to $278.5 million for the fiscal year ended September 30, 2024. The yield on interest-earning assets for the fiscal year ended September 30, 2025 increased 15 basis points compared to the same period a year ago, while the cost of interest-bearing liabilities increased 8 basis points. The interest rate spread was 1.45% for the fiscal year ended September 30, 2025 compared to 1.38% for the fiscal year ended September 30, 2024. The net interest margin was 1.76% for the fiscal year ended September 30, 2025 and 1.69% for the fiscal year ended September 30, 2024.

During the fiscal year ended September 30, 2025, there was a $2.5 million provision for credit losses compared to a $1.5 million release of provision for the fiscal year ended September 30, 2024. Net loan recoveries totaled $4.0 million for the fiscal year ended September 30, 2025 and $4.7 million for the prior fiscal year.

The total allowance for credit losses increased $6.5 million to $104.4 million, or 0.67% 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 home equity loan and lines of credit portfolios, as well as an increase in commitments to originate residential loans, including mortgage loans and home equity loans and lines of credit. The allowance for credit losses included $30.1 million and $27.8 million in liabilities for unfunded commitments at September 30, 2025 and September 30, 2024, respectively. Total loan delinquencies increased $2.8 million to $34.7 million, or 0.22% of total loans receivable, at September 30, 2025 from $31.9 million, or 0.21% of total loans receivable, at September 30, 2024. Non-accrual loans totaled $38.7 million, or 0.25% of total loans receivable, at September 30, 2025, compared to $33.6 million, or 0.22% of total loans receivable, at September 30, 2024.

Total non-interest income increased $4.1 million, or 16.6%, to $28.8 million for the fiscal year ended September 30, 2025, from $24.7 million for the fiscal year ended September 30, 2024, primarily due to a $1.4 million increase in fees and service charges, net of amortization, and a $2.6 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 home equity lines of credit. During the fiscal years ended September 30, 2025 and 2024, there were $411.3 million and $247.4 million of loans sold with net gains on the sale of loans totaling $5.3 million and $2.6 million, respectively.

Total non-interest expense for the fiscal year ended September 30, 2025 was consistent with the prior fiscal year at $204.3 million. Compared to the prior fiscal year, there were increases of $1.7 million in salaries and employee benefits and $1.1 million in office property, equipment and software expenses, offset by decreases of $1.1 million in marketing services, $0.4 million in federal insurance premium and assessments and $1.2 million in other expenses. The decrease in other expenses included a $1.7 million positive change in net benefit related to the defined benefit plan, due to the expected return on plan assets exceeding the projected increase in benefit obligation. Additionally, there was a decrease of $0.8 million in down payment subsidies and increases of $0.6 million in each legal and professional consulting expenses.

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

Total assets increased $365.8 million, or 2.1%, to $17.46 billion at September 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 $341.3 million, or 2.2%, to $15.66 billion at September 30, 2025 from $15.32 billion at September 30, 2024. Home equity loans and lines of credit increased $927.0 million to $4.81 billion and the residential core mortgage loan portfolio decreased $581.3 million to $10.80 billion. Loans held for sale increased $39.9 million to $57.7 million at September 30, 2025 from $17.8 million at September 30, 2024. Loans originated and acquired during the fiscal year ended September 30, 2025 included $1.19 billion of residential mortgage loans, of which $367.2 million were acquired through correspondent lending transactions, and $2.52 billion of home equity loans and lines of credit compared to $854.2 million of residential mortgage loans and $2.28 billion of home equity loans and lines of credit originated or acquired during the fiscal year ended September 30, 2024. Of the mortgage loans originated and acquired during the fiscal year ended September 30, 2025, 89% were purchases and 9% were adjustable rate loans.

Deposits increased $251.9 million, or 2.5%, to $10.45 billion at September 30, 2025 from $10.20 billion at September 30, 2024. The increase was the result of a $453.4 million increase in certificates of deposit, partially offset by decreases of $84.1 million in savings accounts, $44.1 million in checking accounts and $64.8 million in money market deposit accounts. The increase in certificates of deposit was achieved through competitive rates and enhanced product offerings, supported by marketing efforts, and included a $768.9 million increase in retail certificates of deposit offset by a $315.5 million decrease in brokered accounts. There were $900.9 million in brokered certificates of deposit at September 30, 2025 compared to $1.22 billion at September 30, 2024.

Borrowed funds decreased $77.4 million, or 1.6%, to $4.87 billion at September 30, 2025 from $4.79 billion at September 30, 2024. The balance of borrowed funds at September 30, 2025, all from the Federal Home Loan Bank, included $248.0 million of overnight advances, $1.60 billion of term advances with a weighted average maturity of approximately 1.8 years and $3.00 billion of term advances, aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.8 years.

Total shareholders' equity increased $31.3 million, or 1.7%, to $1.89 billion at September 30, 2025 from $1.86 billion at September 30, 2024. Activity reflects $91.0 million of net income, dividends paid of $59.7 million, $3.2 million in repurchases of the Company's common stock, a $5.6 million net decrease in accumulated other comprehensive income and net positive adjustments of $8.9 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 fiscal year ended September 30, 2025, a total of 247,865 shares of the Company's common stock were repurchased at an average cost of $13.05 per share. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 4,944,086 remaining shares authorized for repurchase at September 30, 2025.

The Company declared and paid a quarterly dividend of $0.2825 per share during each quarter of fiscal year 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. As a result of a July 8, 2025 member vote and subsequent non-objection of the Federal Reserve, the MHC has the approval to waive receipt of up to $1.13 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 8, 2026), including a total of up to $0.8475 remaining. 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 September 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 10.76%, its Common Equity Tier 1 and Tier 1 ratios were each 17.60% and its total capital ratio was 18.46%.

Presentation slides as of September 30, 2025 will be available on the Company's website, thirdfederal.com, under the Investor Relations link under the "Latest Presentation" heading, beginning October 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 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 15 full service branches throughout Florida. As of September 30, 2025, the Company’s assets totaled $17.46 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;

●

the effects of the current federal government shutdown;

●

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)

September 30,

2025

June 30,

2025

September 30,

2024

ASSETS

Cash and due from banks

24,176

28,788

26,287

Other interest-earning cash equivalents

405,263

423,793

437,431

Cash and cash equivalents

429,439

452,581

463,718

Investment securities available for sale

520,659

525,212

526,251

Mortgage loans held for sale

57,662

30,977

17,775

Loans held for investment, net:

Mortgage loans

15,659,460

15,591,275

15,321,400

Other loans

8,153

7,745

5,705

Deferred loan expenses, net

69,943

69,517

64,956

Allowance for credit losses on loans

(74,244

)

(72,540

)

(70,002

)

Loans, net

15,663,312

15,595,997

15,322,059

Mortgage loan servicing rights, net

8,549

7,771

7,627

Federal Home Loan Bank stock, at cost

235,363

232,538

228,494

Real estate owned, net

1,921

1,240

174

Premises, equipment, and software, net

40,022

39,061

33,187

Accrued interest receivable

62,553

60,434

59,398

Bank owned life insurance contracts

325,149

322,595

317,977

Other assets

111,935

107,260

114,125

TOTAL ASSETS

17,456,564

17,375,666

17,090,785

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

10,446,968

10,341,499

10,195,079

Borrowed funds

4,870,219

4,882,993

4,792,847

Borrowers’ advances for insurance and taxes

113,168

117,899

113,637

Principal, interest, and related escrow owed on loans serviced

30,328

30,237

28,753

Accrued expenses and other liabilities

101,957

115,032

97,845

Total liabilities

15,562,640

15,487,660

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

Paid-in capital

1,757,813

1,756,307

1,754,365

Treasury stock, at cost

(774,340

)

(771,861

)

(772,195

)

Unallocated ESOP shares

(18,417

)

(19,500

)

(22,750

)

Retained earnings—substantially restricted

946,776

935,742

915,489

Accumulated other comprehensive income

(21,231

)

(16,005

)

(15,608

)

Total shareholders’ equity

1,893,924

1,888,006

1,862,624

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

17,456,564

17,375,666

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

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

INTEREST AND DIVIDEND INCOME:

Loans, including fees

185,332

177,493

171,506

172,152

172,412

Investment securities available for sale

4,708

4,816

4,755

4,455

4,694

Other interest and dividend earning assets

9,013

9,098

9,691

10,161

11,410

Total interest and dividend income

199,053

191,407

185,952

186,768

188,516

INTEREST EXPENSE:

Deposits

78,636

76,803

75,379

77,942

80,196

Borrowed funds

43,094

39,610

38,524

40,498

39,605

Total interest expense

121,730

116,413

113,903

118,440

119,801

NET INTEREST INCOME

77,323

74,994

72,049

68,328

68,715

PROVISION (RELEASE) FOR CREDIT LOSSES

1,000

1,500

(1,500

)

1,000

NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES

76,323

73,494

70,549

69,828

67,715

NON-INTEREST INCOME:

Fees and service charges, net of amortization

2,617

2,467

2,221

2,224

2,379

Net gain on the sale of loans

2,314

726

1,187

1,115

1,101

Increase in and death benefits from bank owned life insurance contracts

2,650

2,733

2,680

2,682

2,361

Other

580

1,122

980

482

579

Total non-interest income

8,161

7,048

7,068

6,503

6,420

NON-INTEREST EXPENSE:

Salaries and employee benefits

27,579

27,651

27,666

26,606

26,320

Marketing services

4,537

5,810

4,632

3,654

5,334

Office property, equipment and software

7,236

7,653

7,617

6,844

7,158

Federal insurance premium and assessments

3,388

3,519

3,673

3,585

3,522

State franchise tax

1,117

1,204

1,199

1,047

1,086

Other expenses

8,188

7,348

6,301

6,205

7,664

Total non-interest expense

52,045

53,185

51,088

47,941

51,084

INCOME BEFORE INCOME TAXES

32,439

27,357

26,529

28,390

23,051

INCOME TAX EXPENSE

6,440

5,844

5,508

5,964

4,836

NET INCOME

25,999

21,513

21,021

22,426

18,215

Earnings per share - basic and diluted

0.09

0.08

0.07

0.08

0.06

Weighted average shares outstanding

Basic

278,764,271

278,832,875

278,729,388

278,538,110

278,399,318

Diluted

279,887,491

279,873,274

279,719,382

279,578,652

279,404,704

TFS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(In thousands, except share and per share data)

For the Year Ended

September 30,

2025

2024

INTEREST AND DIVIDEND INCOME:

Loans, including fees

706,483

663,685

Investment securities available for sale

18,734

18,228

Other interest and dividend earning assets

37,963

52,161

Total interest and dividend income

763,180

734,074

INTEREST EXPENSE:

Deposits

308,760

292,728

Borrowed funds

161,726

162,888

Total interest expense

470,486

455,616

NET INTEREST INCOME

292,694

278,458

PROVISION (RELEASE) FOR CREDIT LOSSES

2,500

(1,500

)

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

290,194

279,958

NON-INTEREST INCOME:

Fees and service charges, net of amortization

9,529

8,069

Net gain on the sale of loans

5,342

2,747

Increase in and death benefits from bank owned life insurance contracts

10,745

9,999

Other

3,164

3,887

Total non-interest income

28,780

24,702

NON-INTEREST EXPENSE:

Salaries and employee benefits

109,502

107,782

Marketing services

18,633

19,731

Office property, equipment and software

29,350

28,314

Federal insurance premium and assessments

14,165

14,571

State franchise tax

4,567

4,744

Other expenses

28,042

29,205

Total non-interest expense

204,259

204,347

INCOME BEFORE INCOME TAXES

114,715

100,313

INCOME TAX EXPENSE

23,756

20,725

NET INCOME

90,959

79,588

Earnings per share

Basic

0.32

0.28

Diluted

0.32

0.28

Weighted average shares outstanding

Basic

278,715,769

278,178,496

Diluted

279,758,525

279,143,524

TFS FINANCIAL CORPORATION AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS (unaudited)

Three Months Ended

September 30, 2025

June 30, 2025

September 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

385,290

4,180

4.34

388,694

4,354

4.48

460,242

6,133

5.33

Investment securities

53,974

552

4.09

54,074

550

4.07

72,427

918

5.07

Mortgage-backed securities

463,128

4,156

3.59

474,245

4,266

3.60

446,480

3,776

3.38

Loans (2)

15,705,190

185,332

4.72

15,476,380

177,493

4.59

15,258,648

172,412

4.52

Federal Home Loan Bank stock

235,975

4,833

8.19

221,693

4,744

8.56

230,335

5,277

9.16

Total interest-earning assets

16,843,557

199,053

4.73

16,615,086

191,407

4.61

16,468,132

188,516

4.58

Noninterest-earning assets

570,470

548,257

544,705

Total assets

17,414,027

17,163,343

17,012,837

Interest-bearing liabilities:

Checking accounts

797,552

172

0.09

810,566

0.04

832,001

0.04

Savings accounts

1,104,938

3,192

1.16

1,260,067

3,373

1.07

1,353,608

4,688

1.39

Certificates of deposit

8,451,255

75,272

3.56

8,311,629

73,342

3.53

7,909,142

75,417

3.81

Borrowed funds

4,911,194

43,094

3.51

4,595,818

39,610

3.45

4,787,825

39,605

3.31

Total interest-bearing liabilities

15,264,939

121,730

3.19

14,978,080

116,413

3.11

14,882,576

119,801

3.22

Noninterest-bearing liabilities

229,685

270,184

217,788

Total liabilities

15,494,624

15,248,264

15,100,364

Shareholders’ equity

1,919,403

1,915,079

1,912,473

Total liabilities and shareholders’ equity

17,414,027

17,163,343

17,012,837

Net interest income

77,323

74,994

68,715

Interest rate spread (1)(3)

1.54

1.50

1.36

Net interest-earning assets (4)

1,578,618

1,637,006

1,585,556

Net interest margin (1)(5)

1.84

1.81

1.67

Average interest-earning assets to average interest-bearing liabilities

110.34

110.93

110.65

Selected performance ratios:

Return on average assets (1)

0.60

0.50

0.43

Return on average equity (1)

5.42

4.49

3.81

Average equity to average assets

11.02

11.16

11.24

(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.

AVERAGE BALANCES AND YIELDS (unaudited)

Year Ended

September 30, 2025

September 30, 2024

Average

Balance

Interest

Income/

Expense

Yield/

Cost

Average

Balance

Interest

Income/

Expense

Yield/

Cost

(Dollars in thousands)

Interest-earning assets:

Interest-earning cash equivalents

403,751

18,061

4.47

549,598

29,676

5.40

Investment securities

55,584

2,328

4.19

70,364

3,581

5.09

Mortgage-backed securities

464,581

16,406

3.53

447,942

14,647

3.27

Loans (1)

15,464,682

706,483

4.57

15,207,429

663,685

4.36

Federal Home Loan Bank stock

225,865

19,902

8.81

245,298

22,485

9.17

Total interest-earning assets

16,614,463

763,180

4.59

16,520,631

734,074

4.44

Noninterest-earning assets

544,412

529,310

Total assets

17,158,875

17,049,941

Interest-bearing liabilities:

Checking accounts

814,140

439

0.05

880,893

401

0.05

Savings accounts

1,226,633

12,640

1.03

1,518,453

22,165

1.46

Certificates of deposit

8,270,320

295,681

3.58

7,489,887

270,162

3.61

Borrowed funds

4,675,665

161,726

3.46

4,985,484

162,888

3.27

Total interest-bearing liabilities

14,986,758

470,486

3.14

14,874,717

455,616

3.06

Noninterest-bearing liabilities

251,778

242,634

Total liabilities

15,238,536

15,117,351

Shareholders’ equity

1,920,339

1,932,590

Total liabilities and shareholders’ equity

17,158,875

17,049,941

Net interest income

292,694

278,458

Interest rate spread (2)

1.45

1.38

Net interest-earning assets (3)

1,627,705

1,645,914

Net interest margin (4)

1.76

1.69

Average interest-earning assets to average interest-bearing liabilities

110.86

111.07

Selected performance ratios:

Return on average assets

0.53

0.47

Return on average equity

4.74

4.12

Average equity to average assets

11.19

11.33

(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.