TFS Financial (TFSL) investor relations material

Executive summary

• Net income for the quarter ended March 31, 2026 was $23.2 million, up 10.5% year-over-year and 4% sequentially, driven by higher net interest income and lower non-interest expenses.

• For the six months ended March 31, 2026, net income rose to $45.5 million, reflecting growth in net interest income, loan sales, and a release of credit loss provisions.

• Assets totaled $17.48 billion as of March 31, 2026.

• The company remains well-capitalized, with a Common Equity Tier 1 Capital ratio of 17.22% and all regulatory capital ratios above well-capitalized thresholds.

• Shareholders' equity increased to $1.92 billion.

Financial highlights

• Net interest income for the quarter was $77.8 million, with a net interest margin of 1.84%, both up from prior periods.

• Non-interest income for the quarter was $7.4 million, up year-over-year, mainly from higher loan sales and service charges.

• Non-interest expense for the quarter was $55.4 million, with annualized non-interest expense to average assets at 1.28% for the six months.

• Provision for credit losses was zero for the quarter, with net recoveries of $0.8 million.

• Earnings per share for the quarter were $0.08.

Outlook and guidance

• Management expects continued focus on interest rate risk management, credit quality, and expense control amid economic uncertainty and volatile interest rates.

• Dividend waiver approved through July 8, 2026, with 97% of MHC members voting in favor.

• Focus remains on dividends, managed portfolio growth, and strategic share repurchases, with a 2-year CAGR of 2.1% for managed growth.

• Strong capital ratios provide flexibility for growth, dividends, and share buybacks.