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olivLaw · US equity research

TFS Financial Corporation TFSL

Savings Institution, Federally Chartered · SIC 6035 · Vertical: Savings Institution, Federally Chartered (SIC 6035)

16.71USD+1.64% · 1 dayClose 04 Nov 2026

TFS Financial Corporation, the holding company of Third Federal Savings and Loan Association of Cleveland, is the nation's largest mutually-owned savings and loan association, focused on residential mortgage lending and retail deposits. It matters now because it reported record quarterly earnings for the quarter ended June 30, 2026, with the net interest margin rising to 1.90% amid uncertain interest rate conditions.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, TFS Financial Corporation (TFSL) stock was 16.71 USD (+1.64% on the day), with market capitalisation 4.7 bn USD, P/E 46.0 on diluted EPS of 0.36 USD over the last 12 months, dividend yield 6.76%, beta 0.62, 52-week range 13.29–18.61 USD. Latest reported quarter (Q3 2026): net income of 30.5 m USD (+42.0% YoY), diluted EPS 0.11 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
4.7 bn USD
shares as of 04 Aug 2026
P/E (TTM)
46.0
Diluted EPS TTM 0.36 · TTM to 30 Jun 2026
E/P (TTM)
2.17%
TTM to 30 Jun 2026
Dividend yield
6.76%
DPS 12m 1.13
Beta (2y)
0.62
Volatility (1y) 22%
52-week range
13.2918.61

Price history

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Technical reading

RSI (14)
53.8
neutral
Bollinger (20, 2)
15.97 – 16.88
in the upper half of the band · %B 0.81 · band width 5.5%
SMA 50 / 200
16.75 / 15.99
mixed trend
MACD (12, 26, 9)
-0.01 / -0.06
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−0.4%−2.0%+1.6 pp—
3 months−8.8%−2.2%−6.6 pp—
6 months+10.7%+4.3%+6.4 pp—
Year to date+24.9%+10.6%+14.3 pp—
1 year+24.2%+10.5%+13.8 pp+26.3%
3 years+31.3%+73.7%−42.4 pp+71.9%
5 years−17.3%+61.7%−79.0 pp—
Max drawdown (1y)
−13.6%
04 Aug 2026 → 09 Oct 2026
Max drawdown (5y)
−45.4%
11 Nov 2021 → 23 Oct 2023
Compound annual growth (5y)
−3.7%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Jun 2026

Revenue
unavailable USD
unavailable YoY
Net income
30.5 m USD
+42.0% YoY
Diluted EPS
0.11
+37.5% YoY
net / operating
unavailable / unavailable

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Depreciation & amortisation-9.5 m5.3 m5.6 m ≈5.9 m ≈-12.2 m6.3 m5.8 m ≈6.8 m ≈
Pre-tax income23.1 m28.4 m26.5 m27.4 m32.4 m28.5 m29.8 m38.7 m
Income tax4.8 m6.0 m5.5 m5.8 m6.4 m6.2 m6.6 m8.1 m
Net income18.2 m22.4 m21.0 m21.5 m26.0 m22.3 m23.2 m30.5 m
Diluted EPS0.07 ≈0.080.070.080.09 ≈0.080.080.11
Operating cash flow-58.7 m45.5 m21.2 m ≈26.8 m ≈-11.1 m58.7 m17.6 m ≈32.5 m ≈
Capex715.0 k637.0 k6.9 m ≈1.7 m ≈2.1 m1.7 m4.2 m ≈3.5 m ≈
Dividends paid14.8 m14.9 m14.9 m ≈14.9 m ≈14.9 m15.1 m14.9 m ≈14.9 m ≈
Share repurchases1.0 k767.0 k0 ≈744.0 k ≈2.5 m3.0 m2.1 m ≈1.2 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 28 percentile of its own 39-quarter history (min 40.8, median 49.7, max 72.8; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenueunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Revenue YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Net income85.4 m80.2 m83.3 m81.0 m74.6 m75.3 m79.6 m91.0 m
Net income YoY−3.9%−6.1%+3.8%−2.8%−8.0%+0.9%+5.8%+14.3%
Diluted EPS0.300.280.290.290.260.260.280.32
Diluted EPS YoY−6.3%−6.7%+3.6%0.0%−10.3%0.0%+7.7%+14.3%
net %unavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Free cash flow83.7 m99.2 m118.6 m81.8 m36.2 m85.6 m85.5 m71.0 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 30 Sept 2025

Cash
429.4 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
1.9 bn USD
Total assets
17.5 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
4.8%
ROA
0.5%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Income statement · USD

Net interest income
2023
283.6 m
2024
278.5 m
2025
292.7 m

SEC (XBRL)· 25 Nov 2025verified

Net fee income
2023
21.4 m
2024
24.7 m
2025
28.8 m

SEC (XBRL)· 25 Nov 2025verified

Non-interest expense
2023
213.1 m
2024
204.3 m
2025
204.3 m

SEC (XBRL)· 25 Nov 2025verified

Pre-tax income
2023
93.4 m
2024
100.3 m
2025
114.7 m

SEC (XBRL)· 25 Nov 2025verified

Net income
2023
75.3 m
2024
79.6 m
2025
91.0 m

SEC (XBRL)· 25 Nov 2025verified

Diluted EPS
2023
0.26
2024
0.28
2025
0.32

SEC (XBRL)· 25 Nov 2025verified

Dividend per share
2023
1.13
2024
1.13
2025
1.13

SEC (XBRL)· 25 Nov 2025verified

Balance sheet · USD

Cash
2023
466.7 m
2024
463.7 m
2025
429.4 m

SEC (XBRL)· 25 Nov 2025verified

Loans
2023
15.2 bn
2024
15.3 bn
2025
15.7 bn

SEC (XBRL)· 25 Nov 2025verified

Total assets
2023
16.9 bn
2024
17.1 bn
2025
17.5 bn

SEC (XBRL)· 25 Nov 2025verified

Total liabilities
2023
15.0 bn
2024
15.2 bn
2025
15.6 bn

SEC (XBRL)· 25 Nov 2025verified

Equity
2023
1.9 bn †
2024
1.9 bn †
2025
1.9 bn †

SEC (XBRL)· 25 Nov 2025verified

Cash flow · USD

Dividends paid
2023
58.3 m
2024
59.0 m
2025
59.5 m

SEC (XBRL)· 25 Nov 2025verified

Share repurchases
2023
6.0 m
2024
1.9 m
2025
4.0 m

SEC (XBRL)· 25 Nov 2025verified

Computed indicators

Growth

Revenue growth (YoY)
unavailable
input data missing
Revenue CAGR 3Y
unavailable
input data missing
Revenue CAGR 5Y
unavailable
input data missing
Net income growth (YoY)
14.3%
computed by olivLawFY 2025
Net income CAGR 3Y
6.8%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
1.8%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
14.3%
computed by olivLawFY 2025
EPS CAGR 3Y
7.2%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
2.0%
computed by olivLawFY 2020 → FY 2025

Profitability

Net margin
unavailable
input data missing

Returns

ROE
5.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
0.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
311.4%
computed by olivLawTTM to 30 Jun 2026

Market and valuation

Market capitalisation
4.7 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
45.9x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
46.0x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
2.2%
computed by olivLawTTM to 30 Jun 2026
P/B
2.4x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
unavailable
input data missing
Dividend yield
6.8%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
1.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Banking

Net interest margin
1.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cost-to-income
63.4%
computed by olivLawTTM to 30 Jun 2026
Loan-to-deposit
unavailable
input data missing
NPL ratio
unavailable
input data missing
CET1 ratio
unavailable
input data missing
Cost of risk
unavailable
input data missing

32 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 27 / 100

A scoring methodology on indicators and valuation, not investment advice.

score < 40

Closing price

16.71 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 4.7 bn USD

Key indicators

Market capitalisation
4.7 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
46.0x
computed by olivLawTTM to 30 Jun 2026
P/B
2.4x
computed by olivLawbalance sheet at 30 Jun 2026
ROE
5.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
unavailable
input data missing
Revenue growth (YoY)
unavailable
input data missing
Dividend yield
6.8%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

14/20 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 04 Aug 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2265derived 156

Score by group

  • Growth60
  • Valuation4
  • Quality17
  • Returns100

Estimated value range

Low
6.26
USD per share
Mid
6.39
USD per share
High
6.53
USD per share
Price: 16.71 USD
The price is above the range
Potential to the central value: -61.7% (value / price − 1)
Margin of safety: -161.3% (1 − price / value)
Agreement between methods: low · 5 methods used · 4 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.51 – 19.97 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • Residual income6.26 – 6.53 (Mid 6.39)
  • Justified P/B2.51 – 3.38 (Mid 2.88)
  • Dividend discount (DDM)14.85 – 19.97 (Mid 17.03)
  • Peers: P/E3.95 – 4.85 (Mid 4.47)
    11 companies used · median multiple 12.3x · quartiles 10.9x – 13.4x
    AX, BKU, CFFN, EBC, FCAP, HFBL, HTB, KRNY, NRIM, PFS, WNEB
  • Peers: P/B7.37 – 9.28 (Mid 7.92)
    13 companies used · median multiple 1.1x · quartiles 1.1x – 1.3x
    AX, BKU, CFFN, EBC, FCAP, FDSB, HFBL, HTB, KFFB, KRNY, NRIM, PFS, WNEB
Multiple comparisons use the SIC vertical: Savings Institution, Federally Chartered (SIC 6035)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 27/100

FactorValueScoreWeight used
ROE · Quality5.3%29 (vs peers)22%
ROA · Quality0.6%13 (on a fixed band)8%
Cost-to-income · Quality63.4%7 (on a fixed band)14%
Net interest margin · Quality1.8%10 (on a fixed band)8%
EPS CAGR 3Y · Growth7.2%60 (on a fixed band)11%
Revenue CAGR 3Y · Growthunavailableunavailable—
NPL ratio · Balance sheetunavailableunavailable—
Cost of risk · Balance sheetunavailableunavailable—
Loan-to-deposit · Balance sheetunavailableunavailable—
P/B · Valuation2.4x0 (vs peers)14%
P/E (TTM) · Valuation46.0x8 (vs peers)14%
Dividend yield · Returns6.8%100 (vs peers)11%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth· partial60/100 · 1/2 factors with a value
  • Quality17/100 · 4/4 factors with a value
  • Returns100/100 · 1/1 factors with a value
  • Valuation4/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

TFS FINANCIAL CORPORATION (TFSL). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: net interest income 292.7 m USD in 2025; ROE 5.3%.

The estimated value range is 6.26–6.53 USD per share (median of 5 methods, agreement: low); assumptions are illustrative. Against the central value of 6.39 USD, the price of 16.71 USD leaves a potential of -61.7% (value / price − 1) and a margin of safety of -161.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 27/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, growth. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Dividend yield: 6.8%

What contradicts it

  • ROE: 5.3%
  • ROA: 0.6%
  • Cost-to-income: 63.4%
  • Net interest margin: 1.8%
  • P/B: 2.4x
  • P/E (TTM): 46.0x
  • The price is above the estimated value range
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, NPL ratio, Cost of risk, Loan-to-deposit.

Versus the vertical median

Savings Institution, Federally Chartered (SIC 6035) · same industry (4-digit SIC) · compared with 14 companies

Multiples and returns vs the median

P/E
46.0x
vertical median 12.5x
above median (+268.1%)
EV/EBITDA
—
vertical median —
P/S
—
vertical median 40.4x
P/B
2.4x
vertical median 1.1x
above median (+111.0%)
ROE
5.3%
vertical median 9.3%
below median (−43.0%)
Net margin
—
vertical median 319.0%
EBIT margin
—
vertical median —
Revenue YoY
—
vertical median 7.3%
Net debt/EBITDA
—
vertical median —
Dividend yield
6.8%
vertical median 2.5%
above median (+175.4%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AXAxos Financial, Inc.5.4 bn10.716.7%624.8%+23.5%+15% / +147%
EBCEastern Bankshares, Inc.5.3 bn13.39.4%257.2%+19.1%+24% / +95%
TFSLTfs Financial Corporation4.7 bn46.05.3%—unavailable+24% / +31%
BKUBankUnited, Inc.3.2 bn12.39.2%1,154.5%+7.4%+4% / +63%
PFSProvident Financial Services Inc3.1 bn9.811.1%411.6%+7.1%+23% / +55%
CFFNCapitol Federal Financial, Inc.1.1 bn13.48.0%508.2%+6.5%+33% / +63%
HTBHomeTrust Bancshares, Inc.798.6 m12.511.0%—−1.9%+17% / +107%
KRNYKearny Financial Corp.605.1 m16.44.8%—+36.0%+36% / +18%
NRIMNorthrim Bancorp, Inc.545.0 m9.916.6%21.8%+30.4%−0% / +99%
WNEBWestern New England Bancorp, Inc.281.6 m16.76.9%—−34.3%+15% / +79%
FCAPFirst Capital, Inc.215.3 m11.613.9%252.8%+1.6%+29% / +145%
FDSBFifth District Bancorp, Inc.92.5 m52.41.3%273.6%−2.3%+29% / unavailable
HFBLHome Federal Bancorp, Inc. of Louisiana67.7 m11.110.8%364.5%+30.0%+40% / +72%
KFFBKentucky First Federal Bancorp44.4 m32.02.9%—−11.8%+31% / +18%
BYFCBroadway Financial Corporation——-7.6%-11,027.1%+18.7%+86% / +54%

1- and 3-year price returns: for TFSL from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results).

In brief

TFS Financial Corporation, the holding company of Third Federal Savings and Loan Association of Cleveland, is the nation's largest mutually-owned savings and loan association, focused on residential mortgage lending and retail deposits. It matters now because it reported record quarterly earnings for the quarter ended June 30, 2026, with the net interest margin rising to 1.90% amid uncertain interest rate conditions 3.

SWOT

Strengths

  • The company has high capital levels and a solid liquidity profile with numerous alternative funding sources 2.
  • The deposit base is stable, and most accounts sit within the FDIC insurance limit 2.
  • A history spanning more than eight decades and a top safety rating support customer confidence in the association 1.

Weaknesses

  • Reliance on long-term fixed-rate mortgages makes the margin sensitive to sudden changes in interest rates 1.
  • Competition for deposits has grown, and pressure on funding costs can reduce the margin 2.
  • The physical branch network, though extensive, is geographically limited to a few states 1.

Opportunities

  • Growth in home equity lines of credit and adjustable-rate loans could improve the rate risk profile 1.
  • Completing the new banking system could reduce operating costs and improve customer service 1.
  • Correspondent lending partnerships could extend loan origination to more states 1.

Threats

  • A recession or rising unemployment could weaken borrowers' ability to repay their loans 1.
  • Shifts in federal policy and uncertainty over trade and tariffs could create market volatility 1.
  • If interest rates rise again, deposit costs could exceed the yield on older loans 1.

Risks

  • Interest rate riskhigh

    Net income depends on the gap between interest earned and interest paid, and sudden rate moves can narrow that gap 1.

  • Economic credit riskhigh

    A weaker housing market or regional economy could raise mortgage defaults and credit losses 1.

  • Funding and liquidity riskmedium

    The company relies on deposits and FHLB borrowings, and access to low-cost funding could become harder in stressed markets 2.

  • Regulatory and policy riskmedium

    Changes in banking regulation or federal agency policy could increase compliance costs 1.

  • Operational and technology riskmedium

    Implementing a new banking system and cyber threats could disrupt operations or expose confidential data 2.

Investment thesis

What would need to be true (bull case)

  • The rising net interest margin and higher net income in the quarter ended June 30, 2026 could signal improving profitability 3.
  • High capital levels and a stable deposit base provide a cushion if economic conditions worsen 2.
  • If the new banking system is implemented successfully, operating efficiency could improve in the coming periods 1.

What would break the thesis

  • If interest rates rise again, deposit costs could exceed the yield on the loan portfolio and compress the margin 2.
  • Rising delinquencies, even if still low, could signal weakening loan quality 3.
  • Intense competition for deposits could force the company to pay higher rates and weigh on profitability 1.

What to watch

  • Trend in the net interest margin and cost of depositsQ1 2027
  • Level of loan delinquencies and provisions for credit lossesQ1 2027
  • Completion of the new core banking system and its effect on costs2027
  • Next annual report on loan portfolio mix and funding strategynext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results).

The business

The principal business of TFS Financial Corporation is holding Third Federal Savings and Loan Association of Cleveland, a federally chartered association organized in 1938 and reorganized in 1997 into a two-tier mutual holding company structure 1. The association operates from its main office in Cleveland, Ohio, and from 36 full-service branches and two loan production offices in Ohio and Florida 1. Revenue is derived mainly from interest on loans, supplemented by fees, gains on loan sales and service charges 1.

The lending strategy centers on fixed-rate mortgages of up to 30 years and adjustable-rate mortgages, along with home equity lines of credit and residential construction loans for personal residences 1. The company retains most loans it originates and keeps servicing rights on most loans it sells 1. Mortgage lending is funded mainly by retail deposits, supplemented by FHLB of Cincinnati advances and brokered certificates of deposit 1.

For the quarter ended June 30, 2026, the company reported record earnings of 30.5 million dollars and implemented a new core banking system, with the go-live planned for July 2026 31. The increase was driven by higher net interest income and a release of provision for credit losses 3.

Segments

Residential mortgage loans

Residential mortgage loans are the main segment, totaling 10.84 billion dollars or 69.1% of the loan portfolio at September 30, 2025 1. The portfolio includes fixed-rate and adjustable-rate loans, and the residential core portfolio rose to 10.67 billion dollars at June 30, 2026 2.

Home equity lines of credit and home equity loans

Home equity lines of credit, indexed to the prime rate, amounted to 4.06 billion dollars or 25.9% of the portfolio at September 30, 2025 1. The company actively promotes them to manage interest rate risk, and the combined home equity balances rose to 5.47 billion dollars at June 30, 2026 2.

Retail deposits

Retail deposits are concentrated in the branch network in Ohio and Florida and form the company's funding base 2. At June 30, 2026, 95.6% of the 9.07 billion dollar retail deposit base was within the FDIC insured limit of 250,000 dollars 2.

Market context

The company operates in mortgage and deposit markets in Ohio and Florida, where it holds a meaningful share in Cuyahoga County, Ohio 1. As of June 30, 2025, the association ranked fifth in Cuyahoga County with a 5.44% deposit share and 34th in Florida with a 0.34% share 1. The market remains shaped by interest rate policy, which has moved from a cutting cycle toward possible rate increases 2.

Growth in mortgage lending and deposits depends on regional economic conditions and local housing prices in the company's market areas 1. Competition for deposits has intensified, and competitors that reduce reliance on borrowed funds may make deposit gathering more difficult 1.

Trends

  • Interest rate policy and easing cyclemixed

    The Federal Reserve made three consecutive 25 basis point cuts between September and December 2025, but market expectations have recently shifted toward possible rate hikes 2. If rates stay high, deposit costs could rise and pressure the interest margin 1.

  • Rising net interest margintailwind

    The net interest margin rose to 1.90% in the quarter ended June 30, 2026, supported by higher-yielding loans that replaced older, lower-rate mortgages 3. This trend could continue if asset yields rise faster than funding costs 3.

  • Loan quality and delinquenciesheadwind

    Total loan delinquencies rose to 43.5 million dollars, or 0.27% of loans receivable, at June 30, 2026, but the company says they remain historically low 3. A weaker economy could raise non-performing loans and provisions 1.

  • Modernization of banking systemsmixed

    The association is implementing a new core processing system with go-live planned for July 2026, intended to boost efficiency and improve the customer experience 1. Part of the implementation costs has been capitalized, reducing current-period operating expenses 3.

Competitive position

The association operates in markets with a high concentration of financial institutions, including large money center and regional banks, community banks, credit unions, money market funds, brokerage firms and insurers 1. Competition for deposits is especially intense, and some competitors offer products the company does not, such as commercial business loans and trust services 1.

The company relies on its reputation built over its long history, its high capital levels and its liquidity alternatives to maintain customer confidence, while offering competitive loan and deposit rates 1. Its branch network and customer service focus are its main differentiators against competitors 1.

  • Large money center and regional banks in Ohio

    Financial institutions with a presence in Cuyahoga County and the company's other market areas, competing for mortgages and deposits 1.

  • Community banks and credit unions

    Compete for deposits and mortgages in local markets, with credit unions not included in the company's FDIC-based market share data 1.

  • Money market funds and brokerage firms

    Draw deposits from the same saver base, offering investment alternatives with competitive yields 1.

  • Insurance companies and mutual funds

    Compete for customers' savings, and their products can be more attractive when interest rates are high 1.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / TFS Financial Corporation · 25 Nov 2025
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / TFS Financial Corporation · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / TFS Financial Corporation · 30 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.