0001381668FALSE00013816682024-01-302024-01-30

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) October 30, 2024
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,Ohio44105
(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 classTrading Symbol(s)Name of each exchange in which registered
Common Stock, par value $0.01 per shareTFSLThe 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 2.02Results of Operations and Financial Condition.
On October 30, 2024, 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 months and fiscal year ended September 30, 2024. 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 9.01Financial Statements and Exhibits.

 (d) Exhibits.    
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:October 30, 2024  By: /s/ Meredith S. Weil
   Meredith S. Weil
   Chief Financial Officer



Contact: Jennifer Rosa         (216) 429-5037 Exhibit 99.1
For release October 30, 2024

TFS Financial Corporation Announces Fourth Quarter and 2024 Fiscal Year Results
Home Equity and Retail Deposit Growth Among the Highlights
(Cleveland, OH - October 30, 2024) - 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, 2024.
“During the year, Third Federal capitalized on the strong growth in our home equity products, and earnings increased approximately 6% in 2024 from the prior year, to almost $80 million,” said Chairman and CEO Marc A. Stefanski. "We successfully navigated margin compression and reduced our expense-to-asset ratio from 1.30 to 1.20 percent through natural attrition and cost-management efforts. We are proud that much of our $745 million in deposit growth came through our retail branch system in Ohio and Florida. And, to further support Third Federal, our nearly 11% Tier 1 capital ratio keeps us strong, stable and safe.”
The Company reported net income of $18.2 million for the quarter ended September 30, 2024 compared to $20.0 million of net income for the quarter ended June 30, 2024. The decrease was mainly due to the change in the provision for credit losses and a decrease in net interest income between the two periods.
Net interest income decreased $0.6 million, or 0.9%, to $68.7 million for the quarter ended September 30, 2024 from $69.3 million for the quarter ended June 30, 2024. The change was primarily due to an increase in the average balance of total interest-bearing liabilities, primarily certificates of deposit, compared to a decrease in the average balance of total interest-earning assets, primarily cash equivalents. The interest rate spread and net interest margin held steady between the two quarters at 1.36% and 1.67%, respectively.
During the quarter ended September 30, 2024, there was a $1.0 million provision for credit losses compared to a $0.5 million release of provision for the quarter ended June 30, 2024. Net recoveries were $1.1 million for the quarter ended September 30, 2024 compared to $1.4 million for the previous quarter. The total allowance for credit losses increased $2.1 million during the quarter to $97.8 million, or 0.64% of total loans receivable, from $95.7 million, or 0.63% of total loans receivable, at June 30, 2024. The increase was mainly due to growth in loans held for investment, primarily the home equity loans and lines of credit portfolios. The total allowance for credit losses included a liability for unfunded commitments of $27.8 million and $28.2 million at September 30, 2024 and June 30, 2024, respectively.
Total assets increased by $55.8 million, or less than 1%, to $17.09 billion at September 30, 2024 from $17.03 billion at June 30, 2024. The increase was mainly due to increases in loans held for investment and prepaid expenses and other assets, partially offset by a decrease in cash and cash equivalents.
Cash and cash equivalents decreased $96.7 million, or 17%, to $463.7 million at September 30, 2024 from $560.4 million at June 30, 2024 due to normal fluctuations and liquidity management.
Loans held for investment, net of allowance and deferred loan expenses, increased $132.1 million, or less than 1%, to $15.32 billion at September 30, 2024 from $15.19 billion at June 30, 2024. During the quarter ended September 30, 2024, the combined balances of home equity loans and lines of credit increased $296.5 million and residential core mortgage loans decreased $160.4 million. Repayments and sales of residential mortgage loans held for investment outpaced originations during the quarter ended September 30, 2024. The volume of mortgage loan originations remains low due to a relatively high interest rate environment, resulting in minimal refinance activity.
Prepaid expenses and other assets increased $31.0 million, or 37%, to $114.1 million at September 30, 2024 from $83.1 million at June 30, 2024. This increase was primarily due to increases in the net deferred tax asset of $11.6 million, the funded status of the defined benefit plan of $6.5 million and the swap margin receivable, related to changes in the market values of swap instruments, of $6.1 million. Additionally, there was a $7.4 million decrease in uncleared wire transfer receipts, primarily loan repayments, between the periods compared. The change in the net deferred tax asset, which was a net liability at September 30, 2023, was primarily due to a decrease in the net unrealized gain or loss on swap instruments, which are recorded in other comprehensive income net of related tax effect.
Deposits increased $169.1 million, or 2%, to $10.20 billion at September 30, 2024, compared to $10.03 billion at June 30, 2024, consisting of a $277.3 million increase in primarily retail certificates of deposit ("CDs") and decreases of $58.8 million in savings accounts, $15.3 million in money market deposit accounts, and $35.5 million in checking accounts. The increase in retail deposits was achieved through competitive rate and enhanced product offerings, supported by marketing efforts.


Borrowed funds decreased $36.5 million to $4.79 billion at September 30, 2024 from $4.83 billion at June 30, 2024, as maturing borrowings were paid off with cash and partially replaced with retail deposits.
Accrued expenses and other liabilities decreased by $83.1 million, or 46%, to $97.8 million at September 30, 2024 from $180.9 million at June 30, 2024 primarily related to in-transit real estate tax payments that cleared during the quarter.
Fiscal Year 2024
The Company reported net income of $79.6 million for the fiscal year ended September 30, 2024, an increase of $4.3 million compared to net income of $75.3 million for the fiscal year ended September 30, 2023. The change was primarily due to an increase in non-interest income and a decrease in non-interest expense, partially offset by a decrease in net interest income.
Net interest income decreased $5.1 million, or 1.8%, to $278.5 million for the fiscal year ended September 30, 2024 compared to $283.6 million for the fiscal year ended September 30, 2023. The decrease in net interest income was primarily due to an increase in the cost of interest-bearing liabilities, mainly certificates of deposit, partially offset by an increase in the yield on interest-earning assets, primarily loans. The weighted average balance and cost of the certificates of deposit portfolio increased 88% and 127 basis points, respectively. Balance growth was driven both by new deposit accounts and balances that migrated from savings and checking accounts. Certificate of deposit accounts that matured and repriced into a higher interest rate environment contributed to the cost increase. The interest rate spread was 1.38% for the fiscal year ended September 30, 2024, a 19 basis point decrease from 1.57% for the fiscal year ended September 30, 2023. The net interest margin was 1.69% for the fiscal year ended September 30, 2024 compared to 1.80% for the prior year period.
During both the fiscal year ended September 30, 2024 and September 30, 2023, there was a $1.5 million release of provision for credit losses. Continued recoveries of loan amounts previously charged off and low levels of current loan charge-offs resulted in the release of provision. Net loan recoveries totaled $4.7 million for the fiscal year ended September 30, 2024 and $6.4 million for the same period in the prior year.
The total allowance for credit losses at September 30, 2024 was $97.8 million, or 0.64% of total loans receivable, compared to $104.8 million, or 0.69% of total loans receivable, at September 30, 2023. The decrease was mainly due to the October 1, 2023 adoption of accounting guidance related to accounting for troubled debt restructurings ("TDRs"), which resulted in a $10.2 million reduction to the allowance and a $7.9 million adjustment to retained earnings, net of tax. The decrease was partially offset by an increase in total expected loss estimates related to growth in loans held for investment, primarily in the home equity loans and lines of credit portfolios. The allowance for credit losses included $27.8 million and $27.5 million in liabilities for unfunded commitments at September 30, 2024 and September 30, 2023, respectively. Total loan delinquencies increased to $31.9 million, or 0.21% of total loans receivable, at September 30, 2024 from $28.6 million, or 0.19% of total loans receivable, at June 30, 2024 and $23.4 million, or 0.15% of total loans receivable, at September 30, 2023. Non-accrual loans totaled $33.6 million, or 0.22% of total loans receivable, at September 30, 2024, a decrease from $35.4 million, or 0.23% of total loans receivable, at June 30, 2024 and an increase from $31.9 million, or 0.21% of total loans receivable, at September 30, 2023.
Total non-interest income increased $3.3 million, or 15.4%, to $24.7 million for the fiscal year ended September 30, 2024, from $21.4 million for the fiscal year ended September 30, 2023, primarily due to a $2.2 million increase in net gain on the sale of loans and a $0.6 million increase in the yield on bank owned life insurance contracts. There were $247.4 million of residential mortgage loans, primarily long-term fixed-rate loans, sold during the fiscal year ended September 30, 2024, including those in contracts pending settlement at the end of the period, with a net gain on sale of $2.7 million. During the fiscal year ended September 30, 2023, $77.2 million of residential mortgage loans were sold with a net gain on sale of $0.5 million.
Total non-interest expense decreased $8.8 million, or 4.1%, to $204.3 million for the fiscal year ended September 30, 2024, from $213.1 million for the fiscal year ended September 30, 2023. The change included decreases of $5.6 million in marketing costs and $5.0 million in salaries and employee benefits, partially offset by an increase of $1.1 million in federal ("FDIC") insurance premiums. The decrease in salaries and employee benefits was primarily related to decreases in staffing and accruals for discretionary incentive payments. FDIC premiums increased primarily due to growth in the total balance of deposit accounts.
Total assets increased by $172.8 million, or 1%, to $17.09 billion at September 30, 2024 from $16.92 billion at September 30, 2023. The increase was mainly the result of increases in loans held for investment, and to a lesser extent, investment securities and loans held for sale, partially offset by a decrease in Federal Home Loan Bank ("FHLB") stock.
Loans held for investment, net of allowance and deferred loan expenses, increased $156.3 million, or 1%, to $15.32 billion at September 30, 2024 from $15.17 billion at September 30, 2023. Home equity loans and lines of credit increased $854.8 million to $3.89 billion and the residential mortgage loan portfolio decreased $693.0 million to $11.39 billion. The decrease in residential mortgage loans included $247.4 million of loans sold or committed for sale. Loans originated and


purchased during the fiscal year ended September 30, 2024 included $854.2 million of residential mortgage loans and $2.28 billion of equity loans and lines of credit compared to $1.86 billion of residential mortgage loans and $1.70 billion of equity loans and lines of credit originated or purchased during the fiscal year ended September 30, 2023. The decrease in mortgage loan originations was primarily due to a relatively high interest rate environment, resulting in minimal refinance activity. New mortgage loans included 93% purchases and 18% adjustable rate loans during the fiscal year ended September 30, 2024.
Loans held for sale increased $14.5 million to $17.8 million at September 30, 2024, from $3.3 million at September 30, 2023, due to an increase in both loans committed to future delivery contracts with Fannie Mae and loans intended for future sale.
Investment securities increased $17.9 million, or 4%, to $526.3 million at September 30, 2024 from $508.3 million at September 30, 2023 primarily due to changes in fair values related to fluctuations in market interest rates.
FHLB stock decreased $18.6 million to $228.5 million at September 30, 2024 from $247.1 million at September 30, 2023. The decrease is a result of stock redemptions by the FHLB related to a decrease in the balance of FHLB advances. The FHLB has collateral requirements on funds borrowed that dictate the minimum amount of stock owned at any given time.
Deposits increased $745.3 million, or 8%, to $10.20 billion at September 30, 2024 from $9.45 billion at September 30, 2023. The increase was the result of a $1.37 billion increase in primarily retail certificates of deposit, partially offset by a $332.8 million decrease in savings accounts, a $153.5 million decrease in checking accounts and a $153.4 million decrease in money market deposit accounts. There was $1.22 billion in brokered deposits at September 30, 2024 compared to $1.16 billion at September 30, 2023. The increase in retail deposits was achieved through competitive rate and enhanced product offerings, supported by marketing efforts.
Borrowed funds decreased $480.8 million, or 9%, to $4.79 billion at September 30, 2024 from $5.27 billion at September 30, 2023. The decrease was primarily due to a decrease in overnight advances, and term advances, aligned with interest rate swap contracts, paid off at maturity. The total balance of borrowed funds at September 30, 2024, all from the FHLB, included $40.0 million of overnight advances, $1.81 billion of term advances with a weighted average maturity of approximately 2.0 years, and $2.93 billion of term advances, aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 3.2 years. Additional borrowing capacity at the FHLB was $2.09 billion at September 30, 2024.
Total shareholders' equity decreased $64.7 million, or 3%, to $1.86 billion at September 30, 2024 from $1.93 billion at September 30, 2023. Activity reflects $79.6 million of net income, a $7.9 million positive adjustment to retained earnings related to a change in accounting principle described above with respect to changes in the allowance for credit losses, a $100.8 million net decrease in accumulated other comprehensive income, dividends paid of $59.0 million and net positive adjustments of $7.6 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 and losses on swap contracts. There were no stock repurchases during the fiscal year ended September 30, 2024. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 5,191,951 shares authorized for repurchase at September 30, 2024.
The Company declared and paid a quarterly dividend of $0.2825 per share during each quarter of fiscal year 2024. 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 dividend 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 9, 2024 member vote and subsequent non-objection, 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 9, 2025), 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 eleven years under Federal Reserve regulations and for each of those eleven 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, 2024 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 10.89%, its Common Equity Tier 1 and Tier 1 ratios were each 18.50% and its total capital ratio was 19.24%.
Presentation slides as of September 30, 2024 will be available on the Company's website, www.thirdfederal.com, under the Investor Relations link within the "Recent Presentations" menu, beginning October 31, 2024. 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. It became part of a public company in 2007 and celebrated its 85th anniversary in May 2023. Third Federal, which lends in 27 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 16 full service branches throughout Florida. As of September 30, 2024, the Company’s assets totaled $17.09 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;
●changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
●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;
●our ability to retain key employees;
●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;
●the continuing governmental efforts to restructure the U.S. financial and regulatory system;
●the ability of the U.S. Government to remain open, function properly and manage federal debt limits;
●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;
●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 wide-spread pandemic, including COVID-19, 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,
2024		June 30,
2024		September 30,
2023
ASSETS
Cash and due from banks$26,287 $29,411 $29,134 
Other interest-earning cash equivalents437,431 531,024 437,612 
Cash and cash equivalents463,718 560,435 466,746 
Investment securities available for sale526,251 522,967 508,324 
Mortgage loans held for sale 17,775 30,391 3,260 
Loans held for investment, net:
Mortgage loans15,321,400 15,189,683 15,177,844 
Other loans5,705 5,070 4,411 
Deferred loan expenses, net64,956 62,738 60,807 
Allowance for credit losses on loans(70,002)(67,529)(77,315)
Loans, net15,322,059 15,189,962 15,165,747 
Mortgage loan servicing rights, net7,627 7,591 7,400 
Federal Home Loan Bank stock, at cost228,494 232,083 247,098 
Real estate owned, net174 431 1,444 
Premises, equipment, and software, net33,187 33,665 34,708 
Accrued interest receivable59,398 58,615 53,910 
Bank owned life insurance contracts317,977 315,710 312,072 
Other assets114,125 83,090 117,270 
TOTAL ASSETS$17,090,785 $17,034,940 $16,917,979 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits$10,195,079 $10,025,977 $9,449,820 
Borrowed funds4,792,847 4,829,365 5,273,637 
Borrowers’ advances for insurance and taxes113,637 66,757 124,417 
Principal, interest, and related escrow owed on loans serviced28,753 16,867 29,811 
Accrued expenses and other liabilities97,845 180,910 112,933 
Total liabilities15,228,161 15,119,876 14,990,618 
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 issued3,323 3,323 3,323 
Paid-in capital1,754,365 1,753,074 1,755,027 
Treasury stock, at cost(772,195)(772,195)(776,101)
Unallocated ESOP shares(22,750)(23,834)(27,084)
Retained earnings—substantially restricted915,489 912,082 886,984 
Accumulated other comprehensive income (15,608)42,614 85,212 
Total shareholders’ equity1,862,624 1,915,064 1,927,361 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$17,090,785 $17,034,940 $16,917,979 




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,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
INTEREST AND DIVIDEND INCOME:
Loans, including fees$172,412 $166,268 $162,970 $162,035 $154,763 
Investment securities available for sale4,694 4,663 4,476 4,395 4,141 
Other interest and dividend earning assets11,410 13,975 16,047 10,729 9,836 
Total interest and dividend income188,516 184,906 183,493 177,159 168,740 
INTEREST EXPENSE:
Deposits80,196 75,521 72,685 64,326 55,565 
Borrowed funds39,605 40,112 39,430 43,741 42,812 
Total interest expense119,801 115,633 112,115 108,067 98,377 
NET INTEREST INCOME68,715 69,273 71,378 69,092 70,363 
PROVISION (RELEASE) FOR CREDIT LOSSES1,000 (500)(1,000)(1,000)500 
NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES67,715 69,773 72,378 70,092 69,863 
NON-INTEREST INCOME:
Fees and service charges, net of amortization2,379 2,097 1,845 1,748 2,061 
Net gain (loss) on the sale of loans1,101 723 442 481 (119)
Increase in and death benefits from bank owned life insurance contracts2,361 2,254 2,193 3,191 2,204 
Other579 1,171 1,242 895 954 
Total non-interest income6,420 6,245 5,722 6,315 5,100 
NON-INTEREST EXPENSE:
Salaries and employee benefits26,320 26,845 27,501 27,116 28,660 
Marketing services5,334 4,867 5,099 4,431 3,881 
Office property, equipment and software7,158 7,008 7,303 6,845 6,886 
Federal insurance premium and assessments3,522 3,258 4,013 3,778 3,629 
State franchise tax1,086 1,244 1,238 1,176 1,185 
Other expenses7,664 7,566 7,044 6,931 7,243 
Total non-interest expense51,084 50,788 52,198 50,277 51,484 
INCOME BEFORE INCOME TAXES23,051 25,230 25,902 26,130 23,479 
INCOME TAX EXPENSE4,836 5,277 5,189 5,423 3,933 
NET INCOME$18,215 $19,953 $20,713 $20,707 $19,546 
Earnings per share - basic and diluted $0.06 $0.07 $0.07 $0.07 $0.07 
Weighted average shares outstanding
Basic278,399,318 278,291,376 278,183,041 277,841,526 277,589,775 
Diluted279,404,704 279,221,360 279,046,837 279,001,898 278,826,441 



TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
 For the Year Ended
September 30,
 20242023
INTEREST AND DIVIDEND INCOME:
Loans, including fees$663,685 $565,610 
Investment securities available for sale18,228 14,370 
Other interest and dividend earning assets52,161 31,939 
Total interest and dividend income734,074 611,919 
INTEREST EXPENSE:
Deposits292,728 174,201 
Borrowed funds162,888 154,151 
Total interest expense455,616 328,352 
NET INTEREST INCOME278,458 283,567 
PROVISION (RELEASE) FOR CREDIT LOSSES(1,500)(1,500)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES279,958 285,067 
NON-INTEREST INCOME:
Fees and service charges, net of amortization8,069 7,840 
Net gain on the sale of loans2,747 498 
Increase in and death benefits from bank owned life insurance contracts9,999 9,355 
Other3,887 3,736 
Total non-interest income24,702 21,429 
NON-INTEREST EXPENSE:
Salaries and employee benefits107,782 112,785 
Marketing services19,731 25,288 
Office property, equipment and software28,314 27,734 
Federal insurance premium and assessments14,571 13,452 
State franchise tax4,744 4,891 
Other expenses29,205 28,979 
Total non-interest expense204,347 213,129 
INCOME BEFORE INCOME TAXES100,313 93,367 
INCOME TAX EXPENSE20,725 18,117 
NET INCOME$79,588 $75,250 
Earnings per share


Basic$0.28 $0.27 
Diluted$0.28 $0.26 
Weighted average shares outstanding
Basic278,178,496 277,436,382 
Diluted279,143,524 278,583,454 


TFS FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS (unaudited)
Three Months EndedThree Months EndedThree Months Ended
September 30, 2024June 30, 2024September 30, 2023
 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		$460,242 $6,133 5.33 %$618,986 $8,500 5.49 %$370,577 $5,149 5.56 %
  Investment securities72,427 918 5.07 %72,161 906 5.02 %63,231 781 4.94 %
  Mortgage-backed securities446,480 3,776 3.38 %452,224 3,757 3.32 %449,351 3,360 2.99 %
  Loans (2)15,258,648 172,412 4.52 %15,175,535 166,268 4.38 %15,037,776 154,763 4.12 %
  Federal Home Loan Bank stock230,335 5,277 9.16 %235,755 5,475 9.29 %247,098 4,687 7.59 %
Total interest-earning assets16,468,132 188,516 4.58 %16,554,661 184,906 4.47 %16,168,033 168,740 4.17 %
Noninterest-earning assets544,705 513,931 503,865 
Total assets$17,012,837 $17,068,592 $16,671,898 
Interest-bearing liabilities:
  Checking accounts$832,001 91 0.04 %$866,170 94 0.04 %$993,952 125 0.05 %
  Savings accounts1,353,608 4,688 1.39 %1,437,406 4,967 1.38 %1,869,756 7,864 1.68 %
  Certificates of deposit7,909,142 75,417 3.81 %7,654,612 70,460 3.68 %6,369,734 47,576 2.99 %
  Borrowed funds4,787,825 39,605 3.31 %4,892,621 40,112 3.28 %5,294,285 42,812 3.23 %
Total interest-bearing liabilities14,882,576 119,801 3.22 %14,850,809 115,633 3.11 %14,527,727 98,377 2.71 %
Noninterest-bearing liabilities217,788 261,741 226,083 
Total liabilities15,100,364 15,112,550 14,753,810 
Shareholders’ equity1,912,473 1,956,042 1,918,088 
Total liabilities and shareholders’ equity$17,012,837 $17,068,592 $16,671,898 
Net interest income$68,715 $69,273 $70,363 
Interest rate spread (1)(3)1.36 %1.36 %1.46 %
Net interest-earning assets (4)$1,585,556 $1,703,852 $1,640,306 
Net interest margin (1)(5)1.67 %1.67 %1.74 %
Average interest-earning assets to average interest-bearing liabilities110.65 %111.47 %111.29 %
Selected performance ratios:
Return on average assets (1)0.43 %0.47 %0.47 %
Return on average equity (1)3.81 %4.08 %4.08 %
Average equity to average assets11.24 %11.46 %11.50 %
 
(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)
Year EndedYear Ended
September 30, 2024September 30, 2023
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
 (Dollars in thousands)
Interest-earning assets:
  Interest-earning cash
  equivalents		$549,598 $29,676 5.40 %$356,450 $16,826 4.72 %
Investment securities70,364 3,581 5.09 %23,636 1,123 4.75 %
Mortgage-backed securities447,942 14,647 3.27 %464,919 13,247 2.85 %
  Loans (1)15,207,429 663,685 4.36 %14,657,265 565,610 3.86 %
  Federal Home Loan Bank stock245,298 22,485 9.17 %233,013 15,113 6.49 %
Total interest-earning assets16,520,631 734,074 4.44 %15,735,283 611,919 3.89 %
Noninterest-earning assets529,310 515,123 
Total assets$17,049,941 $16,250,406 
Interest-bearing liabilities:
  Checking accounts$880,893 401 0.05 %$1,093,036 6,081 0.56 %
  Savings accounts1,518,453 22,165 1.46 %1,798,663 24,686 1.37 %
  Certificates of deposit7,489,887 270,162 3.61 %6,123,979 143,434 2.34 %
  Borrowed funds4,985,484 162,888 3.27 %5,114,045 154,151 3.01 %
Total interest-bearing liabilities14,874,717 455,616 3.06 %14,129,723 328,352 2.32 %
Noninterest-bearing liabilities242,634 239,387 
Total liabilities15,117,351 14,369,110 
Shareholders’ equity1,932,590 1,881,296 
Total liabilities and shareholders’ equity$17,049,941 $16,250,406 
Net interest income$278,458 $283,567 
Interest rate spread (2)1.38 %1.57 %
Net interest-earning assets (3)$1,645,914 $1,605,560 
Net interest margin (4)1.69 %1.80 %
Average interest-earning assets to average interest-bearing liabilities111.07 %111.36 %
Selected performance ratios:
Return on average assets0.47 %0.46 %
Return on average equity4.12 %4.00 %
Average equity to average assets11.33 %11.58 %


(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.


v3.24.3
Document And Entity Information
Jan. 30, 2024
Cover [Abstract]  
Document Period End Date Oct. 30, 2024
Document Type 8-K
Entity Registrant Name TFS FINANCIAL CORPORATION
Entity Incorporation, State or Country Code X1
Entity File Number 001-33390
Entity Tax Identification Number 52-2054948
Entity Address, Address Line One 7007 Broadway Ave.,
Entity Address, City or Town Cleveland,
Entity Address, State or Province OH
Entity Address, Postal Zip Code 44105
City Area Code (216)
Local Phone Number 441-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol TFSL
Security Exchange Name NASDAQ
Entity Central Index Key 0001381668
Amendment Flag false
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