In-line quarter with no guidance catalyst — expect limited stock reaction. Monitor deposit cost trends and loan growth into the spring purchase season; the shift from CDs to higher-cost savings accounts bears watching for margin pressure.
Price Chart
Executive Summary
TFS Financial reported fiscal Q2 2026 net income of $23.2M, up 4.0% sequentially, with record net interest income of $77.8M (+2.8% QoQ). EPS of $0.08 was in line with the $0.08 consensus. Net interest margin expanded 5 bps to 1.84% as deposit costs fell, but non-interest income declined 7.5% and operating expenses remain elevated year-over-year. The stock is unlikely to move materially on this steady, in-line quarter.
Key Financial Metrics
Key Facts
- Net income of $23.2M for Q2 FY2026, up 4.0% from $22.3M in Q1 FY2026
- Net interest income of $77.8M, a record, up 2.8% from $75.7M in Q1 FY2026
- EPS of $0.08, in line with consensus estimate of $0.08
- Net interest margin expanded 5 bps to 1.84% from 1.79% in Q1 FY2026
- Non-interest income fell 7.5% to $7.4M, driven by lower loan sale gains
- Non-interest expense decreased 1.4% QoQ to $55.4M, but was up 17.3% YoY
- No provision for credit losses recorded in Q2 vs. a $1.0M release in Q1
- Total assets of $17.48B, down slightly from $17.50B at Dec 31, 2025
- Quarterly dividend maintained at $0.2825 per share; 288,196 shares repurchased YTD at avg $13.86
- Tier 1 leverage ratio of 10.77%, well above well-capitalized threshold
Financial Impact
Modest sequential improvement in net interest income and margin, offset by declining non-interest income and elevated expense base. No material change to earnings trajectory.
Risk Factors
- Deposit costs rising as CDs roll into higher-rate savings accounts (savings account cost up 56 bps QoQ to 1.70%)
- Non-interest expense up 17.3% YoY, outpacing revenue growth
- Loan delinquencies creeping up to 0.24% of total loans from 0.22% at Sept 30, 2025
- Borrowed funds increased 5.6% to $5.14B, increasing reliance on FHLB advances
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001381668-26-000021 |
| Document: tfsl-20260430.htm | 0001381668-26-000021 |
| Document: 0001381668-26-000021-index-headers.html | 0001381668-26-000021 |
| Document: 0001381668-26-000021-index.html | 0001381668-26-000021 |
| Document: 0001381668-26-000021.txt | 0001381668-26-000021 |
| 8-K Data (Synthetic) | 0001381668-26-000021 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 6w ago | Insider Cluster | $17.07 $16.18 | ▼ −5.24% | ▼ −8.22% | $16.73 (−1.99%) |
Sep 10, 2026 6w ago | Insider Cluster | $17.08 $16.19 | ▼ −5.21% | ▼ −7.34% | $16.73 (−2.05%) |
Sep 4, 2026 7w ago | Insider Cluster | $17.57 $16.77 | ▼ −4.55% | ▼ −5.16% | $16.73 (−4.78%) |
Sep 1, 2026 8w ago | Insider Cluster | $17.38 $16.20 | ▼ −6.79% | ▼ −6.90% | $16.73 (−3.74%) |
Jul 7, 2026 16w ago | 8-K | $17.78 $18.44 | ▲ +3.71% | ▲ +2.38% | $16.73 (−5.91%) |
Jun 11, 2026 19w ago | Institutional Cluster | $16.80 $17.58 | ▲ +4.64% | ▲ +2.75% | $16.73 (−0.42%) |
Jun 4, 2026 20w ago | Insider Cluster | $16.33 $17.84 | ▲ +9.25% | ▲ +10.87% | $16.73 (+2.45%) |
Jun 4, 2026 20w ago | Insider Cluster | $16.33 $17.84 | ▲ +9.25% | ▲ +10.62% | $16.73 (+2.45%) |
Jun 1, 2026 21w ago | Insider Cluster | $15.66 $17.72 | ▲ +13.15% | ▲ +14.45% | $16.73 (+6.83%) |
May 20, 2026 22w ago | Insider Cluster | $15.73 $16.42 | ▲ +4.39% | ▲ +3.65% | $16.73 (+6.36%) |
US Market Status
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