TFS Financial Corporation Reports Increase in Total Assets and Net Income for Q1 2025

TFS Financial Corporation reported a slight increase in total assets, reaching $17.11 billion as of March 31, 2025, compared to $17.09 billion at the end of the previous fiscal year. The growth was primarily driven by a $38.1 million increase in loans held for investment, which totaled $15.36 billion, while loans held for sale decreased significantly by 67% to $5.8 million. The company’s net income for the quarter rose to $21.0 million, a 1% increase from $20.7 million in the same period last year, attributed to higher net interest income and non-interest income, despite an increase in the provision for credit losses.

In terms of profitability, TFS Financial's net interest income increased to $72.0 million for the quarter, up from $71.4 million a year earlier. This was supported by a 5% rise in interest income on loans, which reached $171.5 million, driven by a 17 basis point increase in the average yield on loans. However, interest expense also rose, primarily due to higher costs associated with certificates of deposit, which increased by 8% to $72.6 million. The company’s interest rate spread improved slightly to 1.45%, while the net interest margin increased to 1.75%.

Operationally, TFS Financial's total deposits grew by $202.6 million, or 2%, to $10.40 billion, with significant increases in certificates of deposit and savings accounts. The company maintained a strong capital position, with a Common Equity Tier 1 Capital ratio of 18.13%, exceeding regulatory requirements. The total allowance for credit losses increased to $99.9 million, reflecting a proactive approach to managing credit risk amid economic uncertainties.

Looking ahead, TFS Financial remains focused on its strategic objectives, including maintaining a well-capitalized status and managing interest rate risk effectively. The company plans to continue its efforts in geographic expansion beyond its core markets in Ohio and Florida, as well as enhancing its product offerings to meet customer needs. The management expressed confidence in navigating the current economic landscape, emphasizing the importance of liquidity and diverse funding sources to support growth initiatives.