TFS Financial (TFSL) investor relations material

Executive summary

• Achieved record quarterly net income of $30.5 million for Q3 2026, up 31.4% sequentially, and $76.1 million net income for the nine months ended June 30, 2026, up 17.1% year-over-year.

• Assets grew to $18.08 billion, with deposits at $9.99 billion and shareholders' equity at $1.96 billion as of June 30, 2026.

• Maintained a strong capital position with a Tier I leverage ratio of 10.72%.

• Dividend increase to $1.27 annualized was proposed and approved, the first increase in five years.

• Upgraded primary banking system to enhance operational capabilities.

Financial highlights

• Net interest income for the quarter was $81.4 million, with a net interest margin of 1.90%.

• Return on average assets was 0.69% for Q3 2026 and 0.58% for the nine months ended June 30, 2026.

• Return on average equity was 6.24% for Q3 2026 and 5.24% for the nine months ended June 30, 2026.

• Loans/deposits ratio increased to 161.88% as of June 30, 2026.

• Book value per share (GAAP) was $6.98; book value per minority share was $36.71.

Outlook and guidance

• NIM expansion expected to continue, driven by profitable portfolio growth and strong credit profile.

• Dividend waiver approved through July 2027, supporting continued attractive dividend payments.

• Focus remains on disciplined capital deployment, managed growth, and maintaining high capital levels.

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