# EDGAR Filing Document

**Accession Number:** 0001381668
**File Stem:** 0001381668-25-000093
**Filing Date:** 2025-7
**Character Count:** 45031
**Document Hash:** b2f1468fd4e771a887407e79dfa5d002
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001381668-25-000093.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001381668-25-000093

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250730

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TFS Financial CORP
- **CENTRAL INDEX KEY:** 0001381668
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 522054948
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33390
- **FILM NUMBER:** 251166937

**BUSINESS ADDRESS:**
- **STREET 1:** 7007 BROADWAY AVENUE
- **CITY:** CLEVELAND
- **STATE:** OH
- **ZIP:** 44105
- **BUSINESS PHONE:** (216) 441-6000

**MAIL ADDRESS:**
- **STREET 1:** 7007 BROADWAY AVENUE
- **CITY:** CLEVELAND
- **STATE:** OH
- **ZIP:** 44105

?xml version='1.0' encoding='ASCII'? tfsl-20250730

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported) July 30, 2025**

**TFS FINANCIAL CORPORATION** 

**(Exact name of registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **United States of America** | **001-33390** | **52-2054948** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

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| | | | |
|:---|:---|:---|:---|
| **7007 Broadway Ave.,** | **Cleveland,** | **Ohio** | **44105** |
| **(Address of principle executive offices)** | **(Address of principle executive offices)** | **(Address of principle executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code (216) 441-6000** 

**Not applicable**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange in which registered |
| Common Stock, par value $0.01 per share | TFSL | The NASDAQ Stock Market, LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

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| | |
|:---|:---|
| **<u>Item 2.02</u>** | **Results of Operations and Financial Condition.** |

---

On July 30, 2025, TFS Financial Corporation (the "Company"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), issued a press release announcing its operating results for the three and nine months ended June 30, 2025. A copy of the press release is attached as Exhibit 99.1 to this Report.

The information contained in this Item 2.02 and in the accompanying exhibit 99.1 shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof. The information in this report, including the exhibit hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

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| | |
|:---|:---|
| **<u>Item 9.01</u>** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp; (d) Exhibits.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;<u>[99.1](tfslfy25jun8kexhibits.htm)</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Press Release dated July 30, 2025](tfslfy25jun8kexhibits.htm)</u>

104&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document)

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
| | | **TFS FINANCIAL CORPORATION**<br>(Registrant) | **TFS FINANCIAL CORPORATION**<br>(Registrant) |
| Date: | July 30, 2025 | By: | /s/ Meredith S. Weil |
|  |  |  | Meredith S. Weil |
|  |  |  | Chief Financial Officer |

---

## Exhibit 99.1

Contact: Jennifer Rosa &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(216) 429-5037 Exhibit 99.1

**For release** July 30, 2025

**TFS Financial Reports Third Quarter and 2025 Fiscal Year-To-Date Results**

(Cleveland, OH - July 30, 2025) - TFS Financial Corporation (NASDAQ: TFSL) (the "Company", "we", "our"), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), today announced results for the quarter and nine months ended June 30, 2025.

"This quarter's performance further reinforces my optimism for this year," said Chairman and CEO Marc A. Stefanski. "Equity lines of credit originations have grown 17% from 2024, and our net interest margin improved six basis points this quarter to 1.81%, a nine quarter high. Our purchase mortgage activity is strong as we navigate a weaker-than-typical home buying season. Originations and acquired mortgage loans have totaled almost $700 million year-to-date. Our Tier 1 capital ratio of nearly 11% shows that we are well capitalized, and further demonstrates our strength and stability."

**Operating Results for the Quarter Ended June 30, 2025**

The Company reported net income of $21.5 million for the quarter ended June 30, 2025 compared to net income of $21.0 million for the quarter ended March 31, 2025. The increase was mainly attributable to an increase in net interest income, partially offset by an increase in non-interest expense.

Net interest income increased $3.0 million, or 4.2%, to $75.0 million for the quarter ended June 30, 2025 from $72.0 million for the quarter ended March 31, 2025. The increase was primarily due to a ten basis point increase in the weighted average yield of interest-bearing assets, primarily loans, partially offset by a five basis point increase in the weighted average cost of interest-bearing liabilities. Residential mortgage loans originated during a lower interest rate environment continue to amortize and be replaced with higher-yielding residential loans, including mortgage loans and equity loans and lines of credit. The interest rate spread for the quarter ended June 30, 2025 increased five basis points from the previous quarter, to 1.50%, and the net interest margin increased six basis points during the quarter to 1.81%.

The Company recorded a provision for credit losses of $1.5 million for both the quarter ended June 30, 2025 and the quarter ended March 31, 2025. The total allowance for credit losses increased $2.4 million during the quarter to $102.4 million, or 0.66% of total loans receivable, from $99.9 million, or 0.65% of total loans receivable, at March 31, 2025. The increase was primarily due to growth in the equity loans and lines of credit portfolios and a slight deterioration in economic factors utilized in estimating losses. The allowance for unfunded commitments, included in other liabilities, increased $0.4 million, to $29.8 million at June 30, 2025, from $29.4 million at March 31, 2025. Net recoveries were $0.9 million for the quarter ended June 30, 2025 compared to $0.7 million for the previous quarter.

Total non-interest expense increased $2.1 million, or 4.1%, to $53.2 million for the quarter ended June 30, 2025 from $51.1 million for the quarter ended March 31, 2025. The change included increases of $1.2 million in marketing services and $1.0 million in other expenses. Other expenses increased primarily due to a $1.0 million increase in costs related to originating loans, including appraisal and credit report fees and down payment assistance.

**Financial Condition at June 30, 2025 compared to March 31, 2025**

Total assets increased by $263.9 million to $17.38 billion at June 30, 2025 from $17.11 billion at March 31, 2025. The increase was mainly due to increases in loans held for investment and loans held for sale.

Loans held for investment, net of allowance and deferred loan expenses, increased $235.9 million, or 1.5%, to $15.60 billion at June 30, 2025 from $15.36 billion at March 31, 2025. During the quarter ended June 30, 2025, the combined balances of home equity loans and lines of credit increased $260.9 million to $4.58 billion and residential core mortgage loans decreased $25.0 million to $10.97 billion. Loans held for sale increased $25.2 million to $31.0 million at June 30, 2025, from $5.8 million at March 31, 2025, due to an increase in loans committed to future delivery contracts with Fannie Mae.

Deposits decreased $56.1 million, or less than 1%, to $10.34 billion at June 30, 2025, compared to $10.40 billion at March 31, 2025, consisting of a $20.4 million increase in certificates of deposit ("CDs") and decreases of $16.4 million in money market deposit accounts, $16.9 million in checking accounts, and $38.8 million in savings accounts.

Borrowed funds increased $295.7 million to $4.88 billion at June 30, 2025 from $4.59 billion at March 31, 2025. The increase was primarily used to fund growth in the loan portfolio. The total balance of borrowed funds at June 30, 2025, all from the FHLB, included $435.0 million of overnight advances, $1.51 billion of term advances with a weighted average maturity of approximately 1.8 years, and $2.93 billion of term advances aligned with interest rate swap contracts, with a remaining weighted average effective maturity of approximately 2.7 years. Additional borrowing capacity at the FHLB was $1.77 billion at June 30, 2025.

------

**Operating Results for the Nine months ended June 30, 2025** 

The Company reported net income of $65.0 million for the nine months ended June 30, 2025, an increase of $3.6 million compared to net income of $61.4 million for the nine months ended June 30, 2024. The increase was primarily due to increases in net interest income and non-interest income and a decrease in non-interest expense, partially offset by an increase in the provision for credit losses.

Net interest income increased $5.7 million, or 2.7%, to $215.4 million for the nine months ended June 30, 2025 compared to $209.7 million for the nine months ended June 30, 2024. The yield on interest-earning assets for the nine months ended June 30, 2025 increased 15 basis points compared to the same period a year ago, while the cost of interest-bearing liabilities increased 11 basis points. The interest rate spread was 1.43% for the nine months ended June 30, 2025 compared to 1.39% for the nine months ended June 30, 2024. The net interest margin was 1.74% for the nine months ended June 30, 2025 and 1.69% for the nine months ended June 30, 2024.

During the nine months ended June 30, 2025, there was a $1.5 million provision for credit losses compared to a $2.5 million release of provision for the nine months ended June 30, 2024. Net loan recoveries totaled $3.1 million for the nine months ended June 30, 2025 and $3.6 million for the same period in the prior year.

Due to the combined effect of the provision for credit losses and net loan recoveries during the nine months ended June 30, 2025, the total allowance for credit losses increased $4.6 million to $102.4 million, or 0.66% of total loans receivable, from $97.8 million, or 0.64% of total loans receivable, at September 30, 2024. The increase was primarily related to increases in the equity lines of credit portfolio and commitments to originate both residential mortgage loans and equity loans and lines of credit. Also contributing to the increase was a slight deterioration in economic factors utilized to estimate losses. The allowance for credit losses included $29.8 million and $27.8 million in liabilities for unfunded commitments at June 30, 2025 and September 30, 2024, respectively. Total loan delinquencies increased to $34.3 million, or 0.22% of total loans receivable, at June 30, 2025 from $31.9 million, or 0.21% of total loans receivable, at September 30, 2024. Non-accrual loans totaled $37.3 million, or 0.24% of total loans receivable, at June 30, 2025, compared to $33.6 million, or 0.22% of total loans receivable, at September 30, 2024.

Total non-interest income increased $2.3 million, or 12.6%, to $20.6 million for the nine months ended June 30, 2025, from $18.3 million for the nine months ended June 30, 2024, primarily due to a $1.2 million increase in fees and service charges, net of amortization, and a $1.4 million increase in net gain on the sale of loans. The increase in fees and service charges was mainly due to an increase in fee income earned on equity lines of credit.

Total non-interest expense decreased $1.1 million, or 0.7%, to $152.2 million for the nine months ended June 30, 2025, from $153.3 million for the nine months ended June 30, 2024. The decrease was mainly due to a decrease of $1.6 million in other expenses, partially offset by a $0.9 million increase in office property, equipment and software expenses. The decrease in other expenses included a $1.3 million positive change in net benefit related to the defined benefit plan.

**Financial Condition at June 30, 2025 compared to September 30, 2024**

Total assets increased $284.9 million, or 1.7%, to $17.38 billion at June 30, 2025 from $17.09 billion at September 30, 2024. The increase was mainly the result of an increase in loans held for investment.

Loans held for investment, net of allowance and deferred loan expenses, increased $273.9 million, or 1.8%, to $15.60 billion at June 30, 2025 from $15.32 billion at September 30, 2024. Home equity loans and lines of credit increased $690.8 million to $4.58 billion and the residential core mortgage loan portfolio decreased $415.2 million to $10.97 billion. Loans held for sale increased $13.2 million to $31.0 million at June 30, 2025 from $17.8 million at September 30, 2024. Loans originated and acquired during the nine months ended June 30, 2025 included $760.2 million of residential mortgage loans and $1.87 billion of equity loans and lines of credit compared to $598.7 million of residential mortgage loans and $1.62 billion of equity loans and lines of credit originated or acquired during the nine months ended June 30, 2024. Of the mortgage loans originated during the nine months ended June 30, 2025, 86% were purchases and 12% were adjustable rate loans.

Deposits increased $146.4 million, or 1.4%, to $10.34 billion at June 30, 2025 from $10.20 billion at September 30, 2024. The increase was the result of a $250.5 million increase in primarily retail certificates of deposit, partially offset by decreases of $26.7 million in savings accounts, $19.3 million in checking accounts and $49.7 million in money market deposit accounts. There were $976.5 million in brokered deposits at June 30, 2025 compared to $1.22 billion at September 30, 2024. The increase in retail certificate of deposit accounts was achieved through competitive rates and enhanced product offerings, supported by marketing efforts.

Borrowed funds increased $90.1 million, or 1.9%, to $4.88 billion at June 30, 2025 from $4.79 billion at September 30, 2024. The increase was primarily used to fund loan growth.

------

Total shareholders' equity increased $25.4 million, or 1.4%, to $1.89 billion at June 30, 2025 from $1.86 billion at September 30, 2024. Activity reflects $65.0 million of net income, dividends paid of $44.7 million, $0.7 million in repurchases of the Company's common stock, a $0.4 million net decrease in accumulated other comprehensive income and net positive adjustments of $6.3 million related to our stock compensation and employee stock ownership plans. The change in accumulated other comprehensive income was primarily due to a net decrease in unrealized gains on swap contracts. During the nine months ended June 30, 2025, a total of 57,500 shares of the Company's common stock were repurchased at an average cost of $12.87 per share. The Company's eighth stock repurchase program allows for a total of 10,000,000 shares to be repurchased, with 5,134,451 remaining shares authorized for repurchase at June 30, 2025.

The Company declared and paid a quarterly dividend of $0.2825 per share during each of the first three fiscal quarters of 2025. As a result of a mutual member vote, Third Federal Savings and Loan Association of Cleveland, MHC (the "MHC"), the mutual holding company that owns approximately 81% of the outstanding stock of the Company, was able to waive its receipt of its share of the dividends paid. Under Federal Reserve regulations, the MHC is required to obtain the approval of its members every 12 months for the MHC to waive its right to receive dividends. At a July 8, 2025 special meeting of members of the MHC, the members (depositors and certain loan customers of the Association) voted to approve the MHC's proposed waiver of dividends, aggregating up to $1.13 per share, to be declared on the Company's common stock during the twelve months subsequent to the members' approval (i.e., through July 8, 2026). The MHC has filed a notice with, and a request for non-objection from, the Federal Reserve Bank of Cleveland for the proposed dividend waivers. Both the non-objection from the Federal Reserve Bank and the timing of the non-objection are unknown at this point. The MHC has conducted the member vote to approve the dividend waiver each of the past twelve years under Federal Reserve regulations and for each of those twelve years, approximately 97% of the votes cast were in favor of the waiver.

The Company operates under the capital requirements for the standardized approach of the Basel III capital framework

for U.S. banking organizations ("Basel III Rules"). At June 30, 2025 all of the Company's capital ratios exceed the amounts required for the Company to be considered "well capitalized" for regulatory capital purposes. The Company's Tier 1 leverage ratio was 10.86%, its Common Equity Tier 1 and Tier 1 ratios were each 17.75% and its total capital ratio was 18.61%.

Presentation slides as of June 30, 2025 will be available on the Company's website, thirdfederal.com, under the Investor Relations link under the "Latest Presentation" heading, beginning July 31, 2025. The Company will not be hosting a conference call to discuss its operating results.

Third Federal Savings and Loan Association is a leading provider of savings and mortgage products, and operates under the values of love, trust, respect, a commitment to excellence and fun. Founded in Cleveland in 1938 as a mutual association by Ben and Gerome Stefanski, Third Federal's mission is to help people achieve the dream of home ownership and financial security while creating value for our customers, communities, associates and shareholders. It became part of a public company in 2007 and celebrated its 85<sup>th</sup> anniversary in May 2023. Third Federal, which lends in 27 states and the District of Columbia, is dedicated to serving consumers with competitive rates and outstanding service. Third Federal, an equal housing lender, has 21 full service branches in Northeast Ohio, two lending offices in Central and Southern Ohio, and 16 full service branches throughout Florida. As of June 30, 2025, the Company's assets totaled $17.38 billion.

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| | |
|:---|:---|
| Forward Looking Statements | Forward Looking Statements |
| This report contains forward-looking statements, which can be identified by the use of such words as estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions. These forward-looking statements include, among other things: | This report contains forward-looking statements, which can be identified by the use of such words as estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions. These forward-looking statements include, among other things: |
| ● | statements of our goals, intentions and expectations; |
| ● | statements regarding our business plans and prospects and growth and operating strategies; |
| ● | statements concerning trends in our provision for credit losses and charge-offs on loans and off-balance sheet exposures; |
| ● | statements regarding the trends in factors affecting our financial condition and results of operations, including credit quality of our loan and investment portfolios; and |
| ● | estimates of our risks and future costs and benefits. |
| These forward-looking statements are subject to significant risks, assumptions and uncertainties, including, among other things, the following important factors that could affect the actual outcome of future events: | These forward-looking statements are subject to significant risks, assumptions and uncertainties, including, among other things, the following important factors that could affect the actual outcome of future events: |
| ● | significantly increased competition among depository and other financial institutions, including with respect to our ability to charge overdraft fees; |
| ● | inflation and changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments, or our ability to originate loans; |
| ● | general economic conditions, either globally, nationally or in our market areas, including employment prospects, real estate values and conditions that are worse than expected; |
| ● | the strength or weakness of the real estate markets and of the consumer and commercial credit sectors and its impact on the credit quality of our loans and other assets, and changes in estimates of the allowance for credit losses; |
| ● | decreased demand for our products and services and lower revenue and earnings because of a recession or other events; |
| ● | changes in consumer spending, borrowing and savings habits, including repayment speeds on loans; |
| ● | adverse changes and volatility in the securities markets, credit markets or real estate markets; |
| ● | our ability to manage market risk, credit risk, liquidity risk, reputational risk, regulatory risk and compliance risk; |
| ● | our ability to access cost-effective funding; |
| ● | legislative or regulatory changes that adversely affect our business, including changes in regulatory costs and capital requirements and changes related to our ability to pay dividends and the ability of Third Federal Savings, MHC to waive dividends; |
| ● | changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the FASB or the PCAOB; |
| ● | the adoption of implementing regulations by a number of different regulatory bodies, and uncertainty in the exact nature, extent and timing of such regulations and the impact they will have on us; |
| ● | our ability to enter new markets successfully and take advantage of growth opportunities; |
| ● | future adverse developments concerning Fannie Mae or Freddie Mac; |
| ● | changes in monetary and fiscal policy of the U.S. Government, including policies of the U.S. Treasury, the Federal Reserve System, Fannie Mae, the OCC, FDIC, and others, and the effects of tariffs and retaliatory actions; |
| ● | the ability of the U.S. Government to remain open, function properly and manage federal debt limits; |
| ● | the continuing governmental efforts to restructure the U.S. financial and regulatory system; |
| ● | changes in policy and/or assessment rates of taxing authorities that adversely affect us or our customers; |
| ● | changes in accounting and tax estimates; |
| ● | changes in our organization and changes in expense trends, including but not limited to trends affecting non-performing assets, charge-offs and provisions for credit losses; |
| ● | the inability of third-party providers to perform their obligations to us; |
| ● | changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; |
| ● | the effects of global or national war, conflict or acts of terrorism; |
| ● | our ability to retain key employees; |
| ● | civil unrest; |
| ● | cyber-attacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems; and |
| ● | the impact of a wide-spread pandemic, and related government action, on our business and the economy. |
| &nbsp;&nbsp;&nbsp;&nbsp; Because of these and other uncertainties, our actual future results may be materially different from the results indicated by any forward-looking statements. Any forward-looking statement made by us in this report speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. | &nbsp;&nbsp;&nbsp;&nbsp; Because of these and other uncertainties, our actual future results may be materially different from the results indicated by any forward-looking statements. Any forward-looking statement made by us in this report speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. |

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**TFS FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CONDITION (unaudited)**

**(In thousands, except share data)** 

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| | | | |
|:---|:---|:---|:---|
| | **June 30,<br>2025** | **March 31,<br>2025** | **September 30,<br>2024** |
| **ASSETS** | | | |
| Cash and due from banks | $28788 | $36429 | $26287 |
| Other interest-earning cash equivalents | 423793 | 427154 | 437431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 452581 | 463583 | 463718 |
| Investment securities available for sale | 525212 | 533923 | 526251 |
| Mortgage loans held for sale | 30977 | 5803 | 17775 |
| Loans held for investment, net: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 15591275 | 15356569 | 15321400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans | 7745 | 6992 | 5705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred loan expenses, net | 69517 | 67128 | 64956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses on loans | (72540) | (70546) | (70002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, net | 15595997 | 15360143 | 15322059 |
| Mortgage loan servicing rights, net | 7771 | 7833 | 7627 |
| Federal Home Loan Bank stock, at cost | 232538 | 219231 | 228494 |
| Real estate owned, net | 1240 |  | 174 |
| Premises, equipment, and software, net | 39061 | 38500 | 33187 |
| Accrued interest receivable | 60434 | 58050 | 59398 |
| Bank owned life insurance contracts | 322595 | 320728 | 317977 |
| Other assets | 107260 | 103926 | 114125 |
| TOTAL ASSETS | $17375666 | $17111720 | $17090785 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
| Deposits | $10341499 | $10397645 | $10195079 |
| Borrowed funds | 4882993 | 4587327 | 4792847 |
| Borrowers' advances for insurance and taxes | 117899 | 100263 | 113637 |
| Principal, interest, and related escrow owed on loans serviced | 30237 | 27249 | 28753 |
| Accrued expenses and other liabilities | 115032 | 102579 | 97845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 15487660 | 15215063 | 15228161 |
| Commitments and contingent liabilities |  |  |  |
| Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding |  |  |  |
| Common stock, $0.01 par value, 700,000,000 shares authorized; 332,318,750 shares issued | 3323 | 3323 | 3323 |
| Paid-in capital | 1756307 | 1755054 | 1754365 |
| Treasury stock, at cost | (771861) | (771123) | (772195) |
| Unallocated ESOP shares | (19500) | (20584) | (22750) |
| Retained earnings—substantially restricted | 935742 | 929195 | 915489 |
| Accumulated other comprehensive income | (16005) | 792 | (15608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 1888006 | 1896657 | 1862624 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $17375666 | $17111720 | $17090785 |

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**TFS FINANCIAL CORPORATION AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF INCOME (unaudited)** 

**(In thousands, except share and per share data)** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
| | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| INTEREST AND DIVIDEND INCOME: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, including fees | $177493 | $171506 | $172152 | $172412 | $166268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities available for sale | 4816 | 4755 | 4455 | 4694 | 4663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest and dividend earning assets | 9098 | 9691 | 10161 | 11410 | 13975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income | 191407 | 185952 | 186768 | 188516 | 184906 |
| INTEREST EXPENSE: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 76803 | 75379 | 77942 | 80196 | 75521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowed funds | 39610 | 38524 | 40498 | 39605 | 40112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 116413 | 113903 | 118440 | 119801 | 115633 |
| NET INTEREST INCOME | 74994 | 72049 | 68328 | 68715 | 69273 |
| PROVISION (RELEASE) FOR CREDIT LOSSES | 1500 | 1500 | (1500) | 1000 | (500) |
| NET INTEREST INCOME AFTER PROVISION (RELEASE) FOR CREDIT LOSSES | 73494 | 70549 | 69828 | 67715 | 69773 |
| NON-INTEREST INCOME: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and service charges, net of amortization | 2467 | 2221 | 2224 | 2379 | 2097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain (loss) on the sale of loans | 726 | 1187 | 1115 | 1101 | 723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in and death benefits from bank owned life insurance contracts | 2733 | 2680 | 2682 | 2361 | 2254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 1122 | 980 | 482 | 579 | 1171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 7048 | 7068 | 6503 | 6420 | 6245 |
| NON-INTEREST EXPENSE: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 27651 | 27666 | 26606 | 26320 | 26845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing services | 5810 | 4632 | 3654 | 5334 | 4867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office property, equipment and software | 7653 | 7617 | 6844 | 7158 | 7008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal insurance premium and assessments | 3519 | 3673 | 3585 | 3522 | 3258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State franchise tax | 1204 | 1199 | 1047 | 1086 | 1244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 7348 | 6301 | 6205 | 7664 | 7566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 53185 | 51088 | 47941 | 51084 | 50788 |
| INCOME BEFORE INCOME TAXES | 27357 | 26529 | 28390 | 23051 | 25230 |
| INCOME TAX EXPENSE | 5844 | 5508 | 5964 | 4836 | 5277 |
| NET INCOME | $21513 | $21021 | $22426 | $18215 | $19953 |
| Earnings per share - basic and diluted | $0.08 | $0.07 | $0.08 | $0.06 | $0.07 |
| Weighted average shares outstanding |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 278832875 | 278729388 | 278538110 | 278399318 | 278291376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 279873274 | 279719382 | 279578652 | 279404704 | 279221360 |

---

------

**TFS FINANCIAL CORPORATION AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF INCOME (unaudited)** 

**(In thousands, except share and per share data)** 

---

| | | |
|:---|:---|:---|
| | **For the Nine Months Ended** | **For the Nine Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| INTEREST AND DIVIDEND INCOME: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, including fees | $521151 | $491273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities available for sale | 14026 | 13534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest and dividend earning assets | 28950 | 40751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income | 564127 | 545558 |
| INTEREST EXPENSE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 230124 | 212532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowed funds | 118632 | 123283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 348756 | 335815 |
| NET INTEREST INCOME | 215371 | 209743 |
| PROVISION (RELEASE) FOR CREDIT LOSSES | 1500 | (2500) |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 213871 | 212243 |
| NON-INTEREST INCOME: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and service charges, net of amortization | 6912 | 5690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on the sale of loans | 3028 | 1646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in and death benefits from bank owned life insurance contracts | 8095 | 7638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 2584 | 3308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 20619 | 18282 |
| NON-INTEREST EXPENSE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 81923 | 81462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing services | 14096 | 14397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office property, equipment and software | 22114 | 21156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal insurance premium and assessments | 10777 | 11049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State franchise tax | 3450 | 3658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 19854 | 21541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 152214 | 153263 |
| INCOME BEFORE INCOME TAXES | 82276 | 77262 |
| INCOME TAX EXPENSE | 17316 | 15889 |
| NET INCOME | $64960 | $61373 |
| Earnings per share |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.23 | $0.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.23 | $0.22 |
| Weighted average shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 278699423 | 278104352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 279716745 | 279072087 |

---

------

**TFS FINANCIAL CORPORATION AND SUBSIDIARIES**

**AVERAGE BALANCES AND YIELDS (unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield/<br>Cost (1)** | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield/<br>Cost (1)** | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield/<br>Cost (1)** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Interest-earning assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-earning cash<br> equivalents | $388694 | $4354 | 4.48% | $416911 | $4578 | 4.39% | $618986 | $8500 | 5.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 54074 | 550 | 4.07% | 54105 | 552 | 4.08% | 72161 | 906 | 5.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 474245 | 4266 | 3.60% | 466617 | 4203 | 3.60% | 452224 | 3757 | 3.32% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans (2) | 15476380 | 177493 | 4.59% | 15351040 | 171506 | 4.47% | 15175535 | 166268 | 4.38% |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank stock | 221693 | 4744 | 8.56% | 219813 | 5113 | 9.30% | 235755 | 5475 | 9.29% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 16615086 | 191407 | 4.61% | 16508486 | 185952 | 4.51% | 16554661 | 184906 | 4.47% |
| Noninterest-earning assets | 548257 |  |  | 534285 |  |  | 513931 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $17163343 |  |  | $17042771 |  |  | $17068592 |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Checking accounts | $810566 | 88 | 0.04% | $822059 | 89 | 0.04% | $866170 | 94 | 0.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 1260067 | 3373 | 1.07% | 1219188 | 2722 | 0.89% | 1437406 | 4967 | 1.38% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 8311629 | 73342 | 3.53% | 8292210 | 72568 | 3.50% | 7654612 | 70460 | 3.68% |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowed funds | 4595818 | 39610 | 3.45% | 4542318 | 38524 | 3.39% | 4892621 | 40112 | 3.28% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 14978080 | 116413 | 3.11% | 14875775 | 113903 | 3.06% | 14850809 | 115633 | 3.11% |
| Noninterest-bearing liabilities | 270184 |  |  | 235601 |  |  | 261741 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 15248264 |  |  | 15111376 |  |  | 15112550 |  |  |
| Shareholders' equity | 1915079 |  |  | 1931395 |  |  | 1956042 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $17163343 |  |  | $17042771 |  |  | $17068592 |  |  |
| Net interest income |  | $74994 |  |  | $72049 |  |  | $69273 |  |
| Interest rate spread (1)(3) |  |  | 1.50% |  |  | 1.45% |  |  | 1.36% |
| Net interest-earning assets (4) | $1637006 |  |  | $1632711 |  |  | $1703852 |  |  |
| Net interest margin (1)(5) |  | 1.81% |  |  | 1.75% |  |  | 1.67% |  |
| Average interest-earning assets to average interest-bearing liabilities | 110.93% |  |  | 110.98% |  |  | 111.47% |  |  |
| Selected performance ratios: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average assets (1) |  | 0.50% |  |  | 0.49% |  |  | 0.47% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average equity (1) |  | 4.49% |  |  | 4.35% |  |  | 4.08% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average equity to average assets |  | 11.16% |  |  | 11.33% |  |  | 11.46% |  |

---

(1)Annualized.

(2)Loans include both mortgage loans held for sale and loans held for investment.

(3)Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(4)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5)Net interest margin represents net interest income divided by total interest-earning assets.

------

**TFS FINANCIAL CORPORATION AND SUBSIDIARIES**

**AVERAGE BALANCES AND YIELDS (unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield/<br>Cost (1)** | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield/<br>Cost (1)** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-earning cash<br> equivalents | $409905 | $13881 | 4.52% | $579383 | $23543 | 5.42% |
| &nbsp;&nbsp;&nbsp;Investment securities | 56121 | 1776 | 4.22% | 69677 | 2663 | 5.10% |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | 465065 | 12250 | 3.51% | 448429 | 10871 | 3.23% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans (2) | 15384513 | 521151 | 4.52% | 15190356 | 491273 | 4.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank stock | 222495 | 15069 | 9.03% | 250285 | 17208 | 9.17% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 16538099 | 564127 | 4.55% | 16538130 | 545558 | 4.40% |
| Noninterest-earning assets | 535725 |  |  | 524179 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $17073824 |  |  | $17062309 |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Checking accounts | $819669 | 267 | 0.04% | $897190 | 310 | 0.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 1256348 | 9448 | 1.00% | 1573401 | 17477 | 1.48% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 8220860 | 220409 | 3.57% | 7350136 | 194745 | 3.53% |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowed funds | 4597155 | 118632 | 3.44% | 5051371 | 123283 | 3.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 14894032 | 348756 | 3.12% | 14872098 | 335815 | 3.01% |
| Noninterest-bearing liabilities | 259143 |  |  | 250916 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 15153175 |  |  | 15123014 |  |  |
| Shareholders' equity | 1920650 |  |  | 1939295 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $17073825 |  |  | $17062309 |  |  |
| Net interest income |  | $215371 |  |  | $209743 |  |
| Interest rate spread (1)(3) |  |  | 1.43% |  |  | 1.39% |
| Net interest-earning assets (4) | $1644067 |  |  | $1666032 |  |  |
| Net interest margin (1)(5) |  | 1.74% |  |  | 1.69% |  |
| Average interest-earning assets to average interest-bearing liabilities | 111.04% |  |  | 111.20% |  |  |
| Selected performance ratios: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on average assets (1) |  | 0.51% |  |  | 0.48% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on average equity (1) |  | 4.51% |  |  | 4.22% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average equity to average assets |  | 11.25% |  |  | 11.37% |  |

---

(1)Annualized.

(2)Loans include both mortgage loans held for sale and loans held for investment.

(3)Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(4)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5)Net interest margin represents net interest income divided by total interest-earning assets.

<br>