Form 8-K

8-K — TFS Financial CORP

Accession: 0001381668-26-000036

Filed: 2026-07-30

Period: 2026-07-30

CIK: 0001381668

SIC: 6035 (SAVINGS INSTITUTION, FEDERALLY CHARTERED)

Item: Results of Operations and Financial Condition

Item: Other Events

Documents

8-K — tfsl-20260730.htm (Primary)

EX-99.1 (tfslfy26jun8kexhibits.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: tfsl-20260730.htm · Sequence: 1

tfsl-20260730

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) July 30, 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 July 30, 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 nine months ended June 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 8.01 Other Events.

On July 30, 2026, Third Federal Savings and Loan Association of Cleveland, MHC (the “MHC”), the mutual holding company of TFS Financial Corporation, announced that it had received the non-objection of the Federal Reserve Bank of Cleveland to waive receipt of dividends on the shares of stock it owns of TFS Financial Corporation, up to $1.27 per share during the 12 months ending July 7, 2027. Actual dividends during that period are declared at the discretion of the Company’s board of directors.

The MHC is the mutual holding company and owner of 227,119,132 shares, or 81% of the Company’s common stock

outstanding, and on July 7, 2026 received the approval of its members (mainly depositors of Third Federal) with respect to the

waiver. The members approved the waiver by casting 59% of the eligible votes, with 97% of the votes cast in favor of the

waiver. The MHC previously waived the receipt of dividends paid by the Company in an aggregate amount of $1.13 per share

during the four quarters ended June 30, 2026.

The information contained herein and in the accompanying exhibit 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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release dated July 30, 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: July 30, 2026 By: /s/ Meredith S. Weil

Meredith S. Weil

Chief Financial Officer

EX-99.1

Filename: tfslfy26jun8kexhibits.htm · Sequence: 2

Document

Contact: Jennifer Rosa (216) 429-5037 Exhibit 99.1

For release July 30, 2026

TFS Financial Delivers Record-Breaking Quarter

(Cleveland, OH - July 30, 2026) - 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 nine months ended June 30, 2026.

“I’m proud to share that Third Federal had record earnings of $30.5 million in the third quarter,” said Chairman and CEO Marc A. Stefanski. “First mortgage originations were more than $600 million; our net interest margin increased to 1.90%, and we maintained a Tier 1 capital ratio of 10.72%. And thanks to the hard work of our dedicated associates, we successfully upgraded our primary banking system to support our company and our customers today, and in the future.”

Operating Results for the Quarter Ended June 30, 2026 compared to the Quarter Ended March 31, 2026

Net income rose $7.3 million, or 31.4%, to $30.5 million for the quarter ended June 30, 2026, from $23.2 million in the prior quarter. This increase reflected higher net interest income, a release of provision for credit losses, an increase in non-interest income and a decrease in non-interest expenses.

Net interest income increased $3.6 million, or 4.6%, to $81.4 million for the quarter ended June 30, 2026 from $77.8 million for the quarter ended March 31, 2026. This increase was primarily attributable to a nine basis point increase in the yield on interest-earning assets, primarily loans, partially offset by a five basis point increase in the cost of interest-bearing liabilities. The interest rate spread for the quarter improved by four basis points over the prior quarter to 1.58%, while the net interest margin increased six basis points to 1.90%.

For the quarter ended June 30, 2026, the Company recorded a release of $3.5 million from the provision for credit losses compared to no release or provision recorded for the quarter ended March 31, 2026. The release of provision was driven by a decrease in reserve requirements for longer-term, fixed-rate home equity loans. This segment of the equity loan portfolio has grown in recent years and is outperforming the loss model's expectations. The decrease was partially offset by higher reserve requirements tied to growth in the equity loan and other residential loan portfolios. The total allowance for credit losses decreased $2.9 million during the quarter to $102.0 million, or 0.63% of total loans receivable, from $104.9 million, or 0.67% of total loans receivable, at March 31, 2026. The allowance for unfunded commitments, included in other liabilities, decreased $1.5 million and had a balance of $28.5 million at June 30, 2026 compared to $30.0 million at March 31, 2026. Net recoveries were $0.7 million for the quarter ended June 30, 2026 compared to $0.8 million for the previous quarter. Total loan delinquencies, which have remained historically low for more than 20 years, increased $5.1 million to $43.5 million, or 0.27% of total loans receivable, at June 30, 2026 from $38.4 million, or 0.24% of total loans receivable, at March 31, 2026.

Total non-interest income increased $0.5 million, or 6.7%, to $7.9 million for the quarter ended June 30, 2026 from $7.4 million for the quarter ended March 31, 2026. Changes included increases of $0.2 million in loan fees and service charges, $0.7 million in proceeds from bank owned life insurance contracts, $0.5 million in other non-interest income, primarily related to unrealized gains on interest rate lock commitments treated as derivatives, and a $0.9 million decrease in net gain on the sale of loans.

Total non-interest expense decreased $1.3 million, or 2.3%, to $54.1 million for the quarter ended June 30, 2026 from $55.4 million for the quarter ended March 31, 2026. The change primarily reflected a $1.8 million decrease in salaries and employee benefits, driven by lower group health insurance costs and increases in capitalized payroll costs for loan origination and software development activities. This was partially offset by a $0.5 million increase in office property, equipment and software expense.

Financial Condition at June 30, 2026 compared to March 31, 2026

Total assets increased $595.3 million to $18.08 billion at June 30, 2026 from $17.48 billion at March 31, 2026, mainly due to increases in cash and cash equivalents and mortgage loans held for investment.

Cash and cash equivalents increased $131.6 million, or 30.1%, to $568.9 million at June 30, 2026 from $437.3 million at March 31, 2026, due to normal fluctuations and liquidity management.

Loans held for investment, net of allowance and deferred loan expenses, increased $439.2 million, or 2.8%, to $16.18 billion at June 30, 2026. During the quarter ended June 30, 2026, the combined balances of home equity loans and lines of credit increased $236.1 million to $5.47 billion and residential core mortgage loans increased $201.3 million to $10.67 billion. Marketing efforts and correspondent banking relationships helped drive residential mortgage loan originations and acquisitions to $616.4 million for the quarter ended June 30, 2026 compared to $251.7 for the quarter ended March 31, 2026 and $384.2 for

the quarter ended June 30, 2025. Loans held for sale increased $9.4 million to $14.5 million at June 30, 2026, from $5.1 million at March 31, 2026.

Deposits decreased $195.0 million, or 1.9%, to $9.99 billion at June 30, 2026, compared to $10.19 billion at March 31, 2026. The decrease was primarily driven by a $220.9 million decrease in CDs given the competitive nature of deposit pricing and the Company's strategic attention to managing funding costs at the risk of increasing customer attrition. Other changes included a $10.3 million decrease in money market deposit accounts, a $3.9 million decrease in checking accounts and a $40.8 million increase in savings accounts.

Borrowed funds increased $668.5 million, or 13.0%, to $5.81 billion at June 30, 2026, compared to $5.14 billion at March 31, 2026. The increase in borrowed funds included increases in advances from the Federal Home Loan Bank ("FHLB") of Cincinnati and federal funds purchased and was used to fund loan growth and maintain daily liquidity.

Operating Results for the Nine Months Ended June 30, 2026 compared to the Nine Months Ended June 30, 2025

The Company reported net income of $76.1 million for the nine months ended June 30, 2026, an increase of $11.1 million, or 17.1%, compared to net income of $65.0 million for the nine months ended June 30, 2025. The increase was primarily driven by increases in net interest income and non-interest income along with a release of provision for credit losses, partially offset by an increase in non-interest expenses.

Net interest income increased $19.5 million, or 9.1%, to $234.9 million for the nine months ended June 30, 2026 compared to $215.4 million for the nine months ended June 30, 2025. The yield on interest-earning assets, primarily loans, improved by 13 basis points compared to the prior year period, as lower-rate residential mortgages were replaced with higher-yielding mortgage loans and home equity products. The cost of interest-bearing liabilities increased two basis points. The interest rate spread was 1.54% for the nine months ended June 30, 2026 compared to 1.43% for the nine months ended June 30, 2025. The net interest margin was 1.85% for the nine months ended June 30, 2026 and 1.74% for the nine months ended June 30, 2025.

During the nine months ended June 30, 2026, there was a $4.5 million release of provision for credit losses compared to $1.5 million of provision expense recorded during the nine months ended June 30, 2025. Net loan recoveries totaled $2.2 million for the nine months ended June 30, 2026 and $3.1 million for the same period of the prior year.

The total allowance for credit losses decreased $2.4 million to $102.0 million, or 0.63% of total loans receivable, from $104.4 million, or 0.67% of total loans receivable, at September 30, 2025 and decreased $0.4 million from $102.4 million, or 0.66% of total loans receivable at June 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 for loan growth. The allowance for credit losses included $28.5 million, $30.1 million and $29.8 million in liabilities for unfunded commitments at June 30, 2026, September 30, 2025 and June 30, 2025, respectively. Total loan delinquencies increased $8.8 million to $43.5 million, or 0.27% of total loans receivable, at June 30, 2026 from $34.7 million, or 0.22% of total loans receivable, at September 30, 2025 and increased $6.8 million from $34.3 million, or 0.22% of total loans receivable, at June 30, 2025. Non-accrual loans totaled $40.3 million, or 0.25% of total loans receivable, at June 30, 2026, compared to $38.7 million, or 0.25% of total loans receivable, at September 30, 2025 and $37.3 million, or 0.24% of total loans receivable at June 30, 2025.

Total non-interest income increased $2.8 million, or 13.6%, to $23.4 million for the nine months ended June 30, 2026, from $20.6 million for the nine months ended June 30, 2025. The increase was primarily due to increases of $0.9 million in loan fees and service charges and $1.9 million in net gain on the sale of loans. During the nine months ended June 30, 2026 and 2025, there were $260.3 million and $210.6 million of loans sold with net gains on the sale of loans totaling $4.9 million and $3.0 million, respectively.

Total non-interest expense for the nine months ended June 30, 2026 increased $13.5 million, or 8.9%, to $165.7 million from $152.2 million for the nine months ended June 30, 2025. There were increases of $7.2 million in salaries and employee benefits, $2.0 million in office property, equipment and software expenses and $4.7 million in other expenses, partially offset by a decrease of $0.5 million in federal insurance premium and assessments. The increase in salaries and benefits was mainly the result of higher staffing levels and an increase in stock-based compensation expenses, as well as a one-time bonus provided to associates in December 2025, totaling $2.2 million, recognizing their contributions to record earnings in fiscal year 2025. The increases were partially offset by a $4.3 million increase in capitalized payroll costs related to the implementation of a new core banking system. The increase in other expenses included increases in credit report fees, due to a higher volume of loan pre-approvals, down payment assistance grants and postage expenses. Additionally, while actuarial adjustments to the defined benefit (pension) plan remained positive, they were lower than the previous year.

Financial Condition at June 30, 2026 compared to September 30, 2025

Total assets increased $618.7 million, or 3.5%, to $18.08 billion at June 30, 2026 from $17.46 billion at September 30, 2025. The increase was mainly the result of increases in cash and cash equivalents and loans held for investment.

Cash and cash equivalents increased $139.5 million, or 32.5%, to $568.9 million at June 30, 2026 from $429.4 million at September 30, 2025, due to normal fluctuations and liquidity management.

Loans held for investment, net of allowance and deferred loan expenses, increased $518.3 million, or 3.3%, to $16.18 billion at June 30, 2026 from $15.66 billion at September 30, 2025. The increase was offset by a $43.2 million decrease in loans held for sale, which totaled $14.5 million at June 30, 2026. Home equity loans and lines of credit increased $660.5 million to $5.47 billion and the residential core mortgage loan portfolio decreased $138.4 million to $10.67 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 nine months ended June 30, 2026, residential mortgage loan originations and acquisitions totaled $1.18 billion compared to $760.2 million for the nine months ended June 30, 2025. Of total residential mortgage loans originated and acquired during the most recent period, 84% were purchase transactions. Commitments originated for home equity loans and lines of credit were $1.70 billion for the nine months ended June 30, 2026 compared to $1.87 billion for the nine months ended June 30, 2025.

Deposits decreased $454.6 million, or 4.4%, to $9.99 billion at June 30, 2026 from $10.45 billion at September 30, 2025. The decrease was the result of a $1.19 billion decrease in CDs and a $29.7 million decrease in money market deposit accounts, partially offset by increases of $752.0 million in savings accounts and $4.8 million in checking accounts. The decrease in total CDs included a $1.20 billion decrease in retail CDs, the majority of which moved into savings accounts, and an $18.4 million increase in brokered CD accounts. There were $919.3 million in brokered certificates of deposit at June 30, 2026 compared to $900.9 million at September 30, 2025.

Borrowed funds increased $940.7 million, or 19.3%, to $5.81 billion at June 30, 2026 from $4.87 billion at September 30, 2025. The balance of borrowed funds at June 30, 2026 included $1.34 billion of overnight advances, $1.25 billion of term advances with a weighted average maturity of approximately 1.5 years and $3.05 billion of term advances, aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.6 years, all from the FHLB of Cincinnati, and federal funds purchased of $150.0 million.

Total shareholders' equity increased $63.5 million, or 3.4%, to $1.96 billion at June 30, 2026 from $1.89 billion at September 30, 2025. Activity reflects $76.1 million of net income, dividends paid of $45.2 million, $5.0 million in repurchases of the Company's common stock, a $29.8 million net increase in accumulated other comprehensive income and net positive adjustments of $7.8 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 nine months ended June 30, 2026, a total of 355,241 shares of the Company's common stock were repurchased at an average cost of $14.07 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 4,588,845 remaining shares authorized for repurchase at June 30, 2026.

The Company declared and paid a quarterly dividend of $0.2825 per share during each of the first three fiscal quarters of 2026. 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 June 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 10.72%, its Common Equity Tier 1 and Tier 1 ratios were each 16.88% and its total capital ratio was 17.79%.

Presentation slides as of June 30, 2026 will be available on the Company's website, thirdfederal.com, under the Investor Relations link under the "Presentations" menu, beginning July 31, 2026. 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 85th anniversary in 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 14 full service branches throughout Florida. As of June 30, 2026, the Company’s assets totaled $18.08 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, 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 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;

●

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)

June 30,

2026 March 31,

2026 September 30,

2025

ASSETS

Cash and due from banks $ 28,623 $ 25,122 $ 24,176

Other interest-earning cash equivalents 540,311 412,159 405,263

Cash and cash equivalents 568,934 437,281 429,439

Investment securities available for sale 482,431 454,625 520,659

Mortgage loans held for sale 14,478 5,051 57,662

Loans held for investment, net:

Mortgage loans 16,175,429 15,738,734 15,659,460

Other loans 7,423 8,254 8,153

Deferred loan expenses, net 72,241 70,253 69,943

Allowance for credit losses on loans (73,516) (74,900) (74,244)

Loans, net 16,181,577 15,742,341 15,663,312

Mortgage loan servicing rights, net 8,861 8,975 8,549

Federal Home Loan Bank stock, at cost 268,101 244,361 235,363

Real estate owned, net 1,339 1,383 1,921

Premises, equipment, and software, net 45,646 43,429 40,022

Accrued interest receivable 63,689 59,927 62,553

Bank owned life insurance contracts 329,784 329,360 325,149

Other assets 110,168 152,937 111,687

TOTAL ASSETS $ 18,075,008 $ 17,479,670 $ 17,456,316

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits $ 9,992,423 $ 10,187,391 $ 10,446,968

Borrowed funds 5,810,914 5,142,391 4,870,219

Borrowers’ advances for insurance and taxes 159,734 96,518 113,168

Principal, interest, and related escrow owed on loans serviced 44,683 29,197 30,328

Accrued expenses and other liabilities 109,843 101,703 101,709

Total liabilities 16,117,597 15,557,200 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 1,761,637 1,758,387 1,757,813

Treasury stock, at cost (778,588) (776,404) (774,340)

Unallocated ESOP shares (15,167) (16,250) (18,417)

Retained earnings—substantially restricted 977,589 962,213 946,776

Accumulated other comprehensive income (loss) 8,617 (8,799) (21,231)

Total shareholders’ equity 1,957,411 1,922,470 1,893,924

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 18,075,008 $ 17,479,670 $ 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

June 30,

2026 March 31,

2026 December 31,

2025 September 30,

2025 June 30,

2025

INTEREST AND DIVIDEND INCOME:

Loans, including fees $ 190,048 $ 183,515 $ 184,946 $ 185,332 $ 177,493

Investment securities available for sale 4,184 3,985 4,241 4,708 4,816

Other interest and dividend earning assets 7,880 7,969 8,585 9,013 9,098

Total interest and dividend income 202,112 195,469 197,772 199,053 191,407

INTEREST EXPENSE:

Deposits 72,552 73,792 79,203 78,636 76,803

Borrowed funds 48,182 43,871 42,889 43,094 39,610

Total interest expense 120,734 117,663 122,092 121,730 116,413

NET INTEREST INCOME 81,378 77,806 75,680 77,323 74,994

PROVISION (RELEASE) FOR CREDIT LOSSES (3,500) — (1,000) 1,000 1,500

NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES 84,878 77,806 76,680 76,323 73,494

NON-INTEREST INCOME:

Fees and service charges, net of amortization 2,753 2,498 2,512 2,617 2,467

Net gain on the sale of loans 826 1,744 2,329 2,314 726

Increase in and death benefits from bank owned life insurance contracts 3,394 2,718 2,764 2,650 2,733

Other 923 477 443 580 1,122

Total non-interest income 7,896 7,437 8,048 8,161 7,048

NON-INTEREST EXPENSE:

Salaries and employee benefits 28,449 30,184 30,488 27,579 27,651

Marketing services 4,060 4,026 6,239 4,537 5,810

Office property, equipment and software 8,368 7,932 7,756 7,236 7,653

Federal insurance premium and assessments 3,452 3,552 3,247 3,388 3,519

State franchise tax 1,149 1,146 1,067 1,117 1,204

Other expenses 8,618 8,559 7,433 8,188 7,348

Total non-interest expense 54,096 55,399 56,230 52,045 53,185

INCOME BEFORE INCOME TAXES 38,678 29,844 28,498 32,439 27,357

INCOME TAX EXPENSE 8,138 6,597 6,224 6,440 5,844

NET INCOME $ 30,540 $ 23,247 $ 22,274 $ 25,999 $ 21,513

Earnings per share - basic and diluted $ 0.11 $ 0.08 $ 0.08 $ 0.09 $ 0.08

Weighted average shares outstanding

Basic 278,850,699 278,858,428 278,754,792 278,764,271 278,832,875

Diluted 280,176,516 279,934,262 279,908,875 279,887,491 279,873,274

TFS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(In thousands, except share and per share data)

For the Nine Months Ended

June 30,

2026 2025

INTEREST AND DIVIDEND INCOME:

Loans, including fees $ 558,509 $ 521,151

Investment securities available for sale 12,410 14,026

Other interest and dividend earning assets 24,434 28,950

Total interest and dividend income 595,353 564,127

INTEREST EXPENSE:

Deposits 225,547 230,124

Borrowed funds 134,942 118,632

Total interest expense 360,489 348,756

NET INTEREST INCOME 234,864 215,371

PROVISION (RELEASE) FOR CREDIT LOSSES (4,500) 1,500

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 239,364 213,871

NON-INTEREST INCOME:

Fees and service charges, net of amortization 7,763 6,912

Net gain on the sale of loans 4,899 3,028

Increase in and death benefits from bank owned life insurance contracts 8,876 8,095

Other 1,843 2,584

Total non-interest income 23,381 20,619

NON-INTEREST EXPENSE:

Salaries and employee benefits 89,121 81,923

Marketing services 14,325 14,096

Office property, equipment and software 24,056 22,114

Federal insurance premium and assessments 10,251 10,777

State franchise tax 3,362 3,450

Other expenses 24,610 19,854

Total non-interest expense 165,725 152,214

INCOME BEFORE INCOME TAXES 97,020 82,276

INCOME TAX EXPENSE 20,959 17,316

NET INCOME $ 76,061 $ 64,960

Earnings per share

Basic $ 0.27 $ 0.23

Diluted $ 0.27 $ 0.23

Weighted average shares outstanding

Basic 278,820,927 278,699,423

Diluted 279,982,505 279,716,745

TFS FINANCIAL CORPORATION AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS (unaudited)

Three Months Ended Three Months Ended Three Months Ended

June 30, 2026 March 31, 2026 June 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 $ 381,320 $ 3,459 3.63 % $ 390,194 $ 3,561 3.65 % $ 388,694 $ 4,354 4.48 %

Investment securities 26,013 298 4.58 % 3,948 11 1.11 % 54,074 550 4.07 %

Mortgage-backed securities 443,351 3,886 3.51 % 454,227 3,974 3.50 % 474,245 4,266 3.60 %

Loans (2) 16,018,277 190,048 4.75 % 15,800,101 183,515 4.65 % 15,476,380 177,493 4.59 %

Federal Home Loan Bank stock 252,243 4,421 7.01 % 239,292 4,408 7.37 % 221,693 4,744 8.56 %

Total interest-earning assets 17,121,204 202,112 4.72 % 16,887,762 195,469 4.63 % 16,615,086 191,407 4.61 %

Noninterest-earning assets 518,146 534,228 548,257

Total assets $ 17,639,350 $ 17,421,990 $ 17,163,343

Interest-bearing liabilities:

Checking accounts $ 787,158 19 0.01 % $ 791,919 39 0.02 % $ 810,566 88 0.04 %

Savings accounts 1,871,979 8,745 1.87 % 1,709,180 7,245 1.70 % 1,260,067 3,373 1.07 %

Certificates of deposit 7,421,813 63,788 3.44 % 7,750,278 66,508 3.43 % 8,311,629 73,342 3.53 %

Borrowed funds 5,320,453 48,182 3.62 % 5,001,235 43,871 3.51 % 4,595,818 39,610 3.45 %

Total interest-bearing liabilities 15,401,403 120,734 3.14 % 15,252,612 117,663 3.09 % 14,978,080 116,413 3.11 %

Noninterest-bearing liabilities 279,674 241,772 270,184

Total liabilities 15,681,077 15,494,384 15,248,264

Shareholders’ equity 1,958,273 1,927,606 1,915,079

Total liabilities and shareholders’ equity $ 17,639,350 $ 17,421,990 $ 17,163,343

Net interest income $ 81,378 $ 77,806 $ 74,994

Interest rate spread (1)(3) 1.58 % 1.54 % 1.50 %

Net interest-earning assets (4) $ 1,719,801 $ 1,635,150 $ 1,637,006

Net interest margin (1)(5) 1.90 % 1.84 % 1.81 %

Average interest-earning assets to average interest-bearing liabilities 111.17 % 110.72 % 110.93 %

Selected performance ratios:

Return on average assets (1) 0.69 % 0.53 % 0.50 %

Return on average equity (1) 6.24 % 4.82 % 4.49 %

Average equity to average assets 11.10 % 11.06 % 11.16 %

(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)

Nine Months Ended Nine Months Ended

June 30, 2026 June 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 $ 386,131 $ 10,847 3.75 % $ 409,905 $ 13,881 4.52 %

Investment securities 16,675 503 4.02 % 56,121 1,776 4.22 %

Mortgage-backed securities 452,540 11,907 3.51 % 465,065 12,250 3.51 %

Loans (2) 15,870,617 558,509 4.69 % 15,384,513 521,151 4.52 %

Federal Home Loan Bank stock 241,612 13,587 7.50 % 222,495 15,069 9.03 %

Total interest-earning assets 16,967,575 595,353 4.68 % 16,538,099 564,127 4.55 %

Noninterest-earning assets 529,758 535,725

Total assets $ 17,497,333 $ 17,073,824

Interest-bearing liabilities:

Checking accounts $ 789,992 128 0.02 % $ 819,669 267 0.04 %

Savings accounts 1,609,632 19,553 1.62 % 1,256,348 9,448 1.00 %

Certificates of deposit 7,844,013 205,866 3.50 % 8,220,860 220,409 3.57 %

Borrowed funds 5,049,654 134,942 3.56 % 4,597,155 118,632 3.44 %

Total interest-bearing liabilities 15,293,291 360,489 3.14 % 14,894,032 348,756 3.12 %

Noninterest-bearing liabilities 268,131 259,142

Total liabilities 15,561,422 15,153,174

Shareholders’ equity 1,935,911 1,920,650

Total liabilities and shareholders’ equity $ 17,497,333 $ 17,073,824

Net interest income $ 234,864 $ 215,371

Interest rate spread (1)(3) 1.54 % 1.43 %

Net interest-earning assets (4) $ 1,674,284 $ 1,644,067

Net interest margin (1)(5) 1.85 % 1.74 %

Average interest-earning assets to average interest-bearing liabilities 110.95 % 111.04 %

Selected performance ratios:

Return on average assets (1) 0.58 % 0.51 %

Return on average equity (1) 5.24 % 4.51 %

Average equity to average assets 11.06 % 11.25 %

(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.

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