TFS Financial (TFSL) investor relations material

Executive summary

• Net income for the quarter ended December 31, 2025, was $22.3 million, nearly flat compared to $22.4 million a year ago and down from $26.0 million in the prior quarter, as higher non-interest expense offset gains in net interest and non-interest income.

• Total assets increased slightly to $17.50 billion, driven by growth in loans held for investment and other assets.

• The company remains well-capitalized, with a Common Equity Tier 1 Capital ratio of 17.35% and robust liquidity and risk management practices.

• Loan portfolio quality remains high, with a delinquency rate of 0.23% and net recoveries for the ninth consecutive year.

• Annualized dividend of $1.13 per share yields 8.45% at year-end price, with 65.84% of quarterly net income paid as dividends.

Financial highlights

• Net interest income for the quarter was $75.7 million, up $7.4 million year-over-year but down $1.6 million sequentially.

• Net interest margin was 1.79% for the quarter, up from 1.66% a year ago but down from 1.84% in the prior quarter.

• Non-interest income grew 23.1% year-over-year to $8.0 million, mainly from higher loan fees and gains on loan sales.

• Non-interest expense increased 17.3% year-over-year to $56.2 million, primarily due to higher marketing, salaries, and office expenses.

• Provision for credit losses was a net release of $1.0 million, reflecting continued strong credit quality.

Outlook and guidance

• Management expects continued focus on dividends, managed portfolio growth, and strategic share repurchases, while adapting to interest rate changes and deposit competition.

• Forward-looking statements highlight risks from competition, interest rate changes, economic conditions, and regulatory changes.

• The company plans to continue originating adjustable-rate and short-term fixed-rate loans, growing home equity lines, and selectively selling long-term fixed-rate loans.