Monitor credit quality trends closely as loan delinquencies rose to 0.37% from 0.22% a year ago, and non-accrual loans increased to 0.30% from 0.25%. The pension plan termination expected to settle in Q1 fiscal 2027 will add a one-time cash outflow. The new core banking system is now operational, so capitalized payroll costs will normalize, but expense growth may persist.
Price Chart
Executive Summary
TFS Financial reported fiscal 2026 net income of $100.7 million, up 10.7% YoY, driven by a 9.9% increase in net interest income to $321.8 million and a 39% rise in mortgage loan originations. However, Q4 net income fell 19.0% sequentially to $24.7 million due to a $2.0 million provision for credit losses, lower non-interest income, and higher expenses from the new core banking system and pension settlement costs. Loan delinquencies rose to 0.37% from 0.22% a year ago, a notable credit quality deterioration.
Key Financial Metrics
Key Facts
- Fiscal 2026 net income $100.7 million, up 10.7% from $91.0 million in fiscal 2025.
- Q4 net income $24.7 million, down 19.0% from $30.5 million in Q3.
- Net interest income for fiscal 2026 rose 9.9% to $321.8 million; net interest margin improved to 1.88% from 1.76%.
- Mortgage loan originations and acquisitions totaled $1.66 billion in fiscal 2026, up 39% from $1.19 billion in fiscal 2025.
- Total loan delinquencies increased to $60.7 million (0.37% of loans) at September 30, 2026 from $34.7 million (0.22%) a year earlier.
- Non-interest expense rose 10.3% to $225.4 million, driven by higher salaries, technology costs, and a $2.5 million pension settlement charge.
- Quarterly dividend increased to $0.3175 per share in Q4 from $0.2825 in prior quarters.
- Tier 1 leverage ratio was 10.53%, well above well-capitalized minimum.
Financial Impact
Fiscal 2026 net income $100.7M vs $91.0M in fiscal 2025; Q4 net income $24.7M vs $30.5M in Q3.
Risk Factors
- Rising loan delinquencies across all portfolios, particularly home equity lines of credit.
- Non-interest expense growth of 10.3% outpacing revenue growth, driven by technology and pension costs.
- Borrowed funds increased 17.8% to $5.74 billion, increasing interest expense and leverage.
- Deposits declined 2.6% year-over-year, with retail CDs moving to higher-cost savings accounts.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001381668-26-000045 |
| Document: tfsl-20261029.htm | 0001381668-26-000045 |
| Document: 0001381668-26-000045-index-headers.html | 0001381668-26-000045 |
| Document: 0001381668-26-000045-index.html | 0001381668-26-000045 |
| Document: 0001381668-26-000045.txt | 0001381668-26-000045 |
| 8-K Data (Synthetic) | 0001381668-26-000045 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $16.84 | awaiting T+20 | awaiting T+20 | $16.43 (−2.43%) |
Sep 15, 2026 6w ago | Insider Cluster | $17.07 $16.18 | ▼ −5.24% | ▼ −8.22% | $16.43 (−3.75%) |
Sep 10, 2026 7w ago | Insider Cluster | $17.08 $16.19 | ▼ −5.21% | ▼ −7.34% | $16.43 (−3.81%) |
Sep 4, 2026 8w ago | Insider Cluster | $17.57 $16.77 | ▼ −4.55% | ▼ −5.16% | $16.43 (−6.49%) |
Sep 1, 2026 8w ago | Insider Cluster | $17.38 $16.20 | ▼ −6.79% | ▼ −6.90% | $16.43 (−5.47%) |
Jul 7, 2026 16w ago | 8-K | $17.78 $18.44 | ▲ +3.71% | ▲ +2.38% | $16.43 (−7.59%) |
Jun 11, 2026 20w ago | Institutional Cluster | $16.80 $17.58 | ▲ +4.64% | ▲ +2.75% | $16.43 (−2.20%) |
Jun 4, 2026 21w ago | Insider Cluster | $16.33 $17.84 | ▲ +9.25% | ▲ +10.87% | $16.43 (+0.61%) |
Jun 4, 2026 21w ago | Insider Cluster | $16.33 $17.84 | ▲ +9.25% | ▲ +10.62% | $16.43 (+0.61%) |
Jun 1, 2026 21w ago | Insider Cluster | $15.66 $17.72 | ▲ +13.15% | ▲ +14.45% | $16.43 (+4.92%) |
US Market Status
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