TFS Financial Corporation Reports Q2 and Fiscal Year-to-Date Results for 2025
Marc A. Stefanski, Chairman and CEO, TFS Financial Corporation
CLEVELAND, April 30, 2025 (FINANCE INTERVIEWS) — Financial services company TFS Financial Corporation, the holding company for Third Federal Savings and Loan Association of Cleveland, has reported second quarter and fiscal year-to-date results for the period ended March 31, 2025.
TFS reported net income of $21.0 million for the quarter, down from $22.4 million in the prior quarter. The company attributed the decrease to higher provision for credit losses and increased non-interest expense, partially offset by higher net interest income.
Net interest income for the quarter rose 5.4% to $72.0 million, primarily driven by a decrease in the weighted average cost of interest-bearing liabilities. The company reported a net interest margin of 1.75%, up from 1.66% in the prior quarter.
The provision for credit losses was $1.5 million, compared to a release of $1.5 million in the prior quarter. According to the company, the allowance for credit losses increased to $99.9 million. The change was primarily related to increased commitments to originate and acquire residential mortgage loans and home equity products.
Total non-interest expense rose 6.7% to $51.1 million, with increases in salaries and benefits, marketing, and data processing costs. Total assets increased to $17.11 billion, up from $17.06 billion at the end of the previous quarter.
Deposits grew by $190.4 million to $10.40 billion, driven by growth in retail certificates of deposit. Borrowed funds decreased $69.0 million to $4.59 billion as maturing debt was replaced by deposits.
For the six months ended March 31, 2025, net income was $43.4 million, compared to $41.4 million in the same period the previous year. Net interest income held steady at $140.4 million year-over-year, while non-interest income rose to $13.6 million.
Non-interest expense declined 3.4% year-over-year to $99.0 million, reflecting decreases in marketing, FDIC premiums, and other administrative costs. The company stated that their Tier 1 leverage ratio was 10.92%, and it continued to meet the criteria to be considered "well-capitalized."
"Our second quarter earnings reflect our ability to successfully operate in any economic climate. My optimism for this year continues to be reinforced by the success we have seen so far, and that our fiscal earnings to date this year are the best we’ve seen since 2021. Our net interest margin increased nearly 10 basis points to 1.75% and commitments to originate and acquire first mortgages and equity loans and lines of credit have increased 40% over last quarter. We continue to exceed the threshold to be considered well-capitalized, our Tier 1 leverage ratio at 10.92% improved by three basis points compared to last quarter," said Marc A. Stefanski, Chairman and CEO of TFS Financial Corporation.
For more information, visit ir.thirdfederal.com.
Source: TFS Financial Corporation
