TFS Financial (TFSL) Q4 2026 earnings summary

Executive summary

• FY26 net income was $100.7M vs. $91.0M in FY25; Q4 net income was $24.7M vs. $26.0M YoY and $30.5M QoQ.

• Sept. 30 assets were $18.19B, deposits $10.18B, and shareholders’ equity $2.01B.

• Lending and funding model centers on residential mortgages, home equity products, retail deposits, FHLB advances, and brokered CDs.

Financial highlights

• FY26 net interest income was $321.8M vs. $292.7M in FY25; net interest margin was 1.88% vs. 1.76%.

• FY26 income before taxes was $128.9M vs. $114.7M; net income was $100.7M vs. $91.0M.

• Q4 net interest income was $86.9M vs. $77.3M YoY and $81.4M QoQ; net income was $24.7M vs. $26.0M YoY and $30.5M QoQ.

• FY26 first mortgage originations/acquisitions were $1.66B; HELOC commitments were $1.69B; equity and bridge originations were $622.4M.

Outlook and guidance

• Loan portfolio interest-rate enrichment is expected to continue as pandemic-era mortgages pay down and are replaced by higher-rate production, and Smart ARMs reset upward; impact depends on rates and mortgage activity.

• $2.59B of ARMs are scheduled to reset in the next 12 months at an average 4.28% coupon; Smart ARM rates as of Sept. 30 were 7.09% for 5/1 30-year and 6.69% for 5/1 15-year products.

• Future capital deployment focus: dividends, managed portfolio growth, and strategic share repurchases.