TFS Financial (TFSL) Q4 2025 earnings summary

Executive summary

• Achieved net income of $26.0M for the quarter ended September 30, 2025, up from $21.5M in the prior quarter and $18.2M in the same quarter last year.

• Achieved record net income of $91.0M for fiscal year 2025, up 14.3% year-over-year, driven by improved net interest margin and higher mortgage and home equity originations.

• Assets reached $17.46B and deposits $10.45B at quarter-end, both showing steady growth year-over-year.

• Retail deposits increased by $567M for the year, and stock buybacks resumed with a strong Tier 1 capital ratio near 11%.

• Maintained a strong capital position with Tier I leverage ratio at 10.76% and total risk-based capital at 18.46%.

Financial highlights

• Net interest income for the year rose 5.1% to $292.7M; net interest margin improved to 1.76% from 1.69% year-over-year.

• Net interest income for the quarter was $77.3M, up from $68.7M year-over-year.

• Non-interest income increased 16.6% year-over-year to $28.8M, mainly from higher fees and loan sale gains.

• Allowance for credit losses increased to $104.4M, or 0.67% of total loans.

• Delinquency rate on the $15.66B loan portfolio was 0.21% at quarter-end.

Outlook and guidance

• Focus remains on disciplined loan origination, deposit growth, and maintaining high capital levels.

• Management highlighted confidence in continued deposit growth and capital strength, with ongoing focus on net interest margin and loan origination.

• Dividend policy continues, with a $1.13 annualized dividend per share and an 8.57% yield at quarter-end price.

• Managed portfolio growth with a 2-year CAGR of 2.1%.