TFSL 8-K

TFS Financial CORP (TFSL)

8-K 2025-04-30 For: 2025-04-30

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Added on April 09, 2026


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;
●			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 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.


	March 31, 2025		December 31, 2024		September 30, 2024
ASSETS
Cash and due from banks	$	36,429	$	32,582	$	26,287
Other interest-earning cash equivalents	427,154		433,349		437,431
Cash and cash equivalents	463,583		465,931		463,718
Investment securities available for sale	533,923		507,710		526,251


Mortgage loans held for sale	5,803		829		17,775
Loans held for investment, net:
Mortgage loans	15,356,569		15,340,842		15,321,400
Other loans	6,992		6,746		5,705
Deferred loan expenses, net	67,128		65,880		64,956
Allowance for credit losses on loans	(70,546)		(70,559)		(70,002)
Loans, net	15,360,143		15,342,909		15,322,059
Mortgage loan servicing rights, net	7,833		7,721		7,627
Federal Home Loan Bank stock, at cost	219,231		223,972		228,494
Real estate owned, net	—		—		174
Premises, equipment, and software, net	38,500		32,693		33,187
Accrued interest receivable	58,050		57,521		59,398
Bank owned life insurance contracts	320,728		320,032		317,977
Other assets	103,926		98,268		114,125
TOTAL ASSETS	$	17,111,720	$	17,057,586	$	17,090,785
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	10,397,645	$	10,207,257	$	10,195,079
Borrowed funds	4,587,327		4,656,323		4,792,847
Borrowers’ advances for insurance and taxes	100,263		140,011		113,637
Principal, interest, and related escrow owed on loans serviced	27,249		39,418		28,753
Accrued expenses and other liabilities	102,579		100,300		97,845
Total liabilities	15,215,063		15,143,309		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		3,323		3,323
Paid-in capital	1,755,054		1,754,241		1,754,365
Treasury stock, at cost	(771,123)		(771,572)		(772,195)
Unallocated ESOP shares	(20,584)		(21,667)		(22,750)
Retained earnings—substantially restricted	929,195		923,139		915,489
Accumulated other comprehensive income	792		26,813		(15,608)
Total shareholders’ equity	1,896,657		1,914,277		1,862,624
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	17,111,720	$	17,057,586	$	17,090,785


	For the Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	171,506	$	172,152	$	172,412	$	166,268	$	162,970
Investment securities available for sale	4,755		4,455		4,694		4,663		4,476

Other interest and dividend earning assets	9,691		10,161		11,410		13,975		16,047
Total interest and dividend income	185,952		186,768		188,516		184,906		183,493
INTEREST EXPENSE:
Deposits	75,379		77,942		80,196		75,521		72,685
Borrowed funds	38,524		40,498		39,605		40,112		39,430
Total interest expense	113,903		118,440		119,801		115,633		112,115
NET INTEREST INCOME	72,049		68,328		68,715		69,273		71,378
PROVISION (RELEASE) FOR CREDIT LOSSES	1,500		(1,500)		1,000		(500)		(1,000)
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES	70,549		69,828		67,715		69,773		72,378
NON-INTEREST INCOME:
Fees and service charges, net of amortization	2,221		2,224		2,379		2,097		1,845
Net gain (loss) on the sale of loans	1,187		1,115		1,101		723		442
Increase in and death benefits from bank owned life insurance contracts	2,680		2,682		2,361		2,254		2,193

Other	980		482		579		1,171		1,242
Total non-interest income	7,068		6,503		6,420		6,245		5,722
NON-INTEREST EXPENSE:
Salaries and employee benefits	27,666		26,606		26,320		26,845		27,501
Marketing services	4,632		3,654		5,334		4,867		5,099
Office property, equipment and software	7,617		6,844		7,158		7,008		7,303
Federal insurance premium and assessments	3,673		3,585		3,522		3,258		4,013
State franchise tax	1,199		1,047		1,086		1,244		1,238
Other expenses	6,301		6,205		7,664		7,566		7,044
Total non-interest expense	51,088		47,941		51,084		50,788		52,198
INCOME BEFORE INCOME TAXES	26,529		28,390		23,051		25,230		25,902
INCOME TAX EXPENSE	5,508		5,964		4,836		5,277		5,189
NET INCOME	$	21,021	$	22,426	$	18,215	$	19,953	$	20,713

Earnings per share - basic and diluted	$	0.07	$	0.08	$	0.06	$	0.07	$	0.07



Weighted average shares outstanding
Basic	278,729,388		278,538,110		278,399,318		278,291,376		278,183,041
Diluted	279,719,382		279,578,652		279,404,704		279,221,360		279,046,837


	For the Six Months Ended
	March 31,
	2025		2024
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	343,658	$	325,005
Investment securities available for sale	9,210		8,871

Other interest and dividend earning assets	19,852		26,776
Total interest and dividend income	372,720		360,652
INTEREST EXPENSE:
Deposits	153,321		137,011
Borrowed funds	79,022		83,171
Total interest expense	232,343		220,182
NET INTEREST INCOME	140,377		140,470
PROVISION (RELEASE) FOR CREDIT LOSSES	—		(2,000)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	140,377		142,470
NON-INTEREST INCOME:
Fees and service charges, net of amortization	4,445		3,593
Net gain on the sale of loans	2,302		923
Increase in and death benefits from bank owned life insurance contracts	5,362		5,384

Other	1,462		2,137
Total non-interest income	13,571		12,037
NON-INTEREST EXPENSE:
Salaries and employee benefits	54,272		54,617
Marketing services	8,286		9,530
Office property, equipment and software	14,461		14,148
Federal insurance premium and assessments	7,258		7,791
State franchise tax	2,246		2,414
Other expenses	12,506		13,975
Total non-interest expense	99,029		102,475
INCOME BEFORE INCOME TAXES	54,919		52,032
INCOME TAX EXPENSE	11,472		10,612
NET INCOME	$	43,447	$	41,420

Earnings per share

Basic	$	0.15	$	0.15
Diluted	$	0.15	$	0.15

Weighted average shares outstanding
Basic	278,632,698		278,011,351
Diluted	279,644,307		279,019,468


	Three Months Ended								Three Months Ended								Three Months Ended
	March 31, 2025								December 31, 2024								March 31, 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	$	416,911		$	4,578		4.39	%	$	424,111		$	4,949		4.67	%	$	720,657		$	9,919		5.51	%
Investment securities	54,105			552			4.08	%	60,183			674			4.48	%	72,091			907			5.03	%
Mortgage-backed securities	466,617			4,203			3.60	%	454,332			3,781			3.33	%	448,653			3,569			3.18	%
Loans (2)	15,351,040			171,506			4.47	%	15,326,120			172,152			4.49	%	15,163,185			162,970			4.30	%
Federal Home Loan Bank stock	219,813			5,113			9.30	%	225,977			5,212			9.23	%	244,560			6,128			10.02	%
Total interest-earning assets	16,508,486			185,952			4.51	%	16,490,723			186,768			4.53	%	16,649,146			183,493			4.41	%
Noninterest-earning assets	534,285								524,634								505,145
Total assets	$	17,042,771							$	17,015,357							$	17,154,291
Interest-bearing liabilities:
Checking accounts	$	822,059		89			0.04	%	$	826,383		90			0.04	%	$	887,584		98			0.04	%
Savings accounts	1,219,188			2,722			0.89	%	1,289,788			3,353			1.04	%	1,561,331			5,598			1.43	%
Certificates of deposit	8,292,210			72,568			3.50	%	8,058,740			74,499			3.70	%	7,548,314			66,989			3.55	%
Borrowed funds	4,542,318			38,524			3.39	%	4,653,328			40,498			3.48	%	5,033,253			39,430			3.13	%
Total interest-bearing liabilities	14,875,775			113,903			3.06	%	14,828,239			118,440			3.19	%	15,030,482			112,115			2.98	%
Noninterest-bearing liabilities	235,601								271,640								212,206
Total liabilities	15,111,376								15,099,879								15,242,688
Shareholders’ equity	1,931,395								1,915,478								1,911,603
Total liabilities and shareholders’ equity	$	17,042,771							$	17,015,357							$	17,154,291
Net interest income				$	72,049							$	68,328							$	71,378
Interest rate spread (1)(3)							1.45	%							1.34	%							1.43	%
Net interest-earning assets (4)	$	1,632,711							$	1,662,484							$	1,618,664
Net interest margin (1)(5)				1.75		%						1.66		%						1.71		%
Average interest-earning assets to average interest-bearing liabilities	110.98		%						111.21		%						110.77		%
Selected performance ratios:
Return on average assets (1)				0.49		%						0.53		%						0.48		%
Return on average equity (1)				4.35		%						4.68		%						4.33		%
Average equity to average assets				11.33		%						11.26		%						11.14		%


☐			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))


	Six Months Ended								Six Months Ended
	March 31, 2025								March 31, 2024
	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	$	420,511		$	9,527		4.53	%	$	559,581		$	15,043		5.38	%
Investment securities	57,144			1,226			4.29	%	68,435			1,757			5.13	%
Mortgage-backed securities	460,475			7,984			3.47	%	446,532			7,114			3.19	%
Loans (2)	15,338,580			343,658			4.48	%	15,197,767			325,005			4.28	%
Federal Home Loan Bank stock	222,895			10,325			9.26	%	257,550			11,733			9.11	%
Total interest-earning assets	16,499,605			372,720			4.52	%	16,529,865			360,652			4.36	%
Noninterest-earning assets	529,459								529,303
Total assets	$	17,029,064							$	17,059,168
Interest-bearing liabilities:
Checking accounts	$	824,221		179			0.04	%	$	912,701		216			0.05	%
Savings accounts	1,254,488			6,075			0.97	%	1,641,398			12,510			1.52	%
Certificates of deposit	8,175,475			147,067			3.60	%	7,197,898			124,285			3.45	%
Borrowed funds	4,597,823			79,022			3.44	%	5,130,746			83,171			3.24	%
Total interest-bearing liabilities	14,852,007			232,343			3.13	%	14,882,743			220,182			2.96	%
Noninterest-bearing liabilities	253,621								245,503
Total liabilities	15,105,628								15,128,246
Shareholders’ equity	1,923,436								1,930,922
Total liabilities and shareholders’ equity	$	17,029,064							$	17,059,168
Net interest income				$	140,377							$	140,470
Interest rate spread (1)(3)							1.39	%							1.40	%
Net interest-earning assets (4)	$	1,647,598							$	1,647,122
Net interest margin (1)(5)				1.70		%						1.70		%
Average interest-earning assets to average interest-bearing liabilities	111.09		%						111.07		%
Selected performance ratios:
Return on average assets (1)				0.51		%						0.49		%
Return on average equity (1)				4.52		%						4.29		%
Average equity to average assets				11.30		%						11.32		%


Item 2.02						Results of Operations and Financial Condition.



Item 9.01						Financial Statements and Exhibits.