TFS Financial Corporation Reports $21.5 Million Net Income for Quarter Ending June 30, 2025

TFS Financial Corporation reported a net income of $21.5 million for the quarter ending June 30, 2025, marking a 7.5% increase from $20.0 million in the same quarter of the previous year. For the nine months ending June 30, 2025, net income rose to $65.0 million, up from $61.4 million year-over-year. The growth in profitability was primarily driven by an increase in net interest income, which reached $75.0 million for the quarter, up from $69.3 million, and $215.4 million for the nine months, compared to $209.7 million previously. This increase was attributed to a rise in interest income from loans, which grew by $11.2 million in the quarter and $29.9 million over the nine months, reflecting a higher average yield on loans.

Total assets for TFS Financial increased by $284.9 million, or 1.7%, to $17.38 billion as of June 30, 2025, compared to $17.09 billion at the end of the previous fiscal year. This growth was primarily driven by an increase in loans held for investment, which rose to $15.60 billion, up from $15.32 billion. The company also saw a significant increase in mortgage loans held for sale, which surged by 74.2% to $31.0 million. Deposits increased by $146.4 million to $10.34 billion, with a notable rise in certificates of deposit, while borrowed funds also saw a slight increase to $4.88 billion.

In terms of operational metrics, TFS Financial's loan portfolio remains heavily concentrated in residential real estate, with approximately 90% of total assets consisting of residential loans and home equity products. The company reported a total of $3.88 billion in home equity lines of credit and $695.0 million in home equity loans. The allowance for credit losses increased to $102.4 million, reflecting a provision of $1.5 million during the quarter, driven by growth in the home equity loan and line of credit portfolios. The company maintained a low delinquency rate, with only 0.2% of total loans classified as delinquent.

Looking ahead, TFS Financial remains focused on managing interest rate risk and maintaining strong capital ratios, with a Common Equity Tier 1 Capital ratio of 17.75% as of June 30, 2025, exceeding regulatory requirements. The company is committed to its strategic approach of providing competitive loan products while ensuring adequate liquidity and capital to support growth. The management anticipates continued challenges in the economic environment, particularly with fluctuating interest rates, but remains optimistic about its operational strategies and market positioning.