NII growth is accelerating at 8.5% year-over-year, but the net interest margin remains critically compressed at 0.50%, indicating earnings power is driven by volume rather than margin expansion.
TFS Financial Corporation (TFSL) annual income statement — 21-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 |
|---|
| Net Interest Income | 312.19M | 292.69M | 278.46M | 283.57M | 267.4M | 231.63M | 242.27M | 265.42M | 280.94M | 278.9M | 270.42M | 270.13M | 271.43M | 268.55M | 262.21M | 247.65M | 224.69M | 228.18M | 216.07M | 193.2M | 196.67M | 191.14M |
| NII Growth % | 39.79% | 5.11% | -1.8% | 6.05% | 15.44% | -4.39% | -8.72% | -5.52% | 0.73% | 3.14% | 0.11% | -0.48% | 1.07% | 2.42% | 5.88% | 10.22% | -1.53% | 5.6% | 11.84% | -1.76% | 2.89% | - |
| Net Interest Margin % | 1.73% | 1.68% | 1.63% | 1.68% | 1.69% | 1.65% | 1.65% | 1.83% | 1.99% | 2.04% | 2.1% | 2.18% | 2.3% | 2.38% | 2.28% | 2.27% | 2.03% | 2.15% | 2% | 1.88% | 2.29% | 2.14% |
| Interest Income | 794.41M | 763.18M | 734.07M | 611.92M | 409.33M | 389.35M | 455.3M | 482.09M | 443.05M | 409M | 388.44M | 383.48M | 374.68M | 383.97M | 417.85M | 427.49M | 435.07M | 485.32M | 550.18M | 537.73M | 485.8M | 418.76M |
| Interest Expense | 482.22M | 470.49M | 455.62M | 328.35M | 141.94M | 157.72M | 213.03M | 216.67M | 162.1M | 130.1M | 118.03M | 113.35M | 103.25M | 115.42M | 155.65M | 179.84M | 210.38M | 257.15M | 330.32M | 344.52M | 289.14M | 227.62M |
| Loan Loss Provision | 0 | 2.5M | -1.5M | -1.5M | 1M | -9M | 3M | -10M | -11M | -17M | -8M | -3M | 19M | 37M | 102M | 98.5M | 106M | 115M | 34.5M | 9.6M | 6.05M | 6M |
| Non-Interest Income | 23.65M | 28.78M | 24.7M | 21.43M | 23.8M | 55.3M | 53.25M | 20.46M | 21.54M | 19.85M | 24.95M | 24.26M | 21.9M | 28.47M | 24.46M | 30.98M | 60.79M | 70.1M | 44.29M | 51.39M | -6.39M | 35.08M |
| Non-Interest Income % | 7.04% | 8.95% | 8.15% | 7.03% | 8.17% | 19.27% | 18.02% | 7.16% | 7.12% | 6.64% | 8.45% | 8.24% | 7.47% | 9.58% | 8.53% | 11.12% | 21.29% | 23.5% | 17.01% | 21.01% | -3.36% | 15.51% |
| Total Net Revenue | 335.83M | 321.47M | 303.16M | 305M | 291.2M | 286.93M | 295.52M | 285.88M | 302.48M | 298.75M | 295.37M | 294.39M | 293.33M | 297.02M | 286.67M | 278.63M | 285.48M | 298.28M | 260.36M | 244.59M | 190.27M | 226.22M |
| Revenue Growth % | 7.94% | 6.04% | -0.6% | 4.74% | 1.49% | -2.91% | 3.37% | -5.49% | 1.25% | 1.14% | 0.33% | 0.36% | -1.24% | 3.61% | 2.89% | -2.4% | -4.29% | 14.56% | 6.45% | 28.55% | -15.89% | - |
| Non-Interest Expense | 214.27M | 204.26M | 204.35M | 213.13M | 198.15M | 195.84M | 192.27M | 193.67M | 192.31M | 182.4M | 181M | 187.99M | 175.48M | 177.66M | 171.06M | 168.06M | 161.26M | 163.21M | 147.96M | 191.11M | 122.52M | 123.21M |
| Efficiency Ratio | 63.8% | 63.54% | 67.41% | 69.88% | 68.04% | 68.25% | 65.06% | 67.75% | 63.58% | 61.06% | 61.28% | 63.86% | 59.82% | 59.81% | 59.67% | 60.31% | 56.49% | 54.72% | 56.83% | 78.13% | 64.39% | 54.46% |
| Operating Income | 121.56M | 114.72M | 100.31M | 93.37M | 92.05M | 100.09M | 100.25M | 102.21M | 121.16M | 133.34M | 122.36M | 109.39M | 98.86M | 82.36M | 13.61M | 12.07M | 18.21M | 20.07M | 81.69M | 43.88M | 61.71M | 97.01M |
| Operating Margin % | 36.2% | 35.68% | 33.09% | 30.61% | 31.61% | 34.88% | 33.92% | 35.75% | 40.06% | 44.63% | 41.43% | 37.16% | 33.7% | 27.73% | 4.75% | 4.33% | 6.38% | 6.73% | 31.38% | 17.94% | 32.43% | 42.88% |
| Operating Income Growth % | - | 14.36% | 7.44% | 1.43% | -8.03% | -0.15% | -1.92% | -15.64% | -9.13% | 8.97% | 11.85% | 10.66% | 20.03% | 505.06% | 12.73% | -33.69% | -9.27% | -75.43% | 86.17% | -28.89% | -36.39% | - |
| Pretax Income | 129.46M | 114.72M | 100.31M | 93.37M | 92.05M | 100.09M | 100.25M | 102.21M | 121.16M | 133.34M | 122.36M | 109.39M | 98.86M | 82.36M | 13.61M | 12.07M | 18.21M | 20.07M | 81.69M | 43.88M | 61.71M | 97.01M |
| Pretax Margin % | 38.55% | 35.68% | 33.09% | 30.61% | 31.61% | 34.88% | 33.92% | 35.75% | 40.06% | 44.63% | 41.43% | 37.16% | 33.7% | 27.73% | 4.75% | 4.33% | 6.38% | 6.73% | 31.38% | 17.94% | 32.43% | 42.88% |
| Income Tax | 27.4M | 23.76M | 20.73M | 18.12M | 17.49M | 19.09M | 16.93M | 21.98M | 35.76M | 44.46M | 41.81M | 36.8M | 32.97M | 26.4M | 2.13M | 2.73M | 6.87M | 5.68M | 27.2M | 18.27M | 18.17M | 32.5M |
| Effective Tax Rate % | 21.16% | 20.71% | 20.66% | 19.4% | 19% | 19.07% | 16.89% | 21.5% | 29.51% | 33.35% | 34.17% | 33.64% | 33.35% | 32.06% | 15.67% | 22.65% | 37.74% | 28.28% | 33.3% | 41.64% | 29.44% | 33.5% |
| Net Income | 102.06M | 90.96M | 79.59M | 75.25M | 74.56M | 81.01M | 83.32M | 80.24M | 85.41M | 88.88M | 80.55M | 72.59M | 65.89M | 55.96M | 11.48M | 9.34M | 11.34M | 14.39M | 54.49M | 25.61M | 43.54M | 64.51M |
| Net Margin % | 30.39% | 28.29% | 26.25% | 24.67% | 25.61% | 28.23% | 28.19% | 28.07% | 28.24% | 29.75% | 27.27% | 24.66% | 22.46% | 18.84% | 4% | 3.35% | 3.97% | 4.83% | 20.93% | 10.47% | 22.88% | 28.52% |
| Net Income Growth % | 22.71% | 14.29% | 5.76% | 0.92% | -7.95% | -2.77% | 3.84% | -6.05% | -3.9% | 10.33% | 10.97% | 10.17% | 17.75% | 387.49% | 22.9% | -17.62% | -21.24% | -73.58% | 112.76% | -41.18% | -32.51% | - |
| Net Income (Continuing) | 102.06M | 90.96M | 79.59M | 75.25M | 74.56M | 81.01M | 83.32M | 80.24M | 85.41M | 88.88M | 80.55M | 72.59M | 65.89M | 55.96M | 11.48M | 9.34M | 11.34M | 14.39M | 54.49M | 25.61M | 43.54M | 64.51M |
| EPS (Diluted) | 0.36 | 0.32 | 0.28 | 0.26 | 0.26 | 0.29 | 0.30 | 0.28 | 0.31 | 0.32 | 0.28 | 0.25 | 0.22 | 0.18 | 0.04 | 0.03 | 0.04 | 0.05 | 0.17 | 0.10 | 0.19 | 0.22 |
| EPS Growth % | 24.14% | 14.29% | 7.69% | 0% | -10.34% | -3.33% | 7.14% | -9.68% | -3.13% | 14.29% | 12% | 13.64% | 22.22% | 350% | 33.33% | -25% | -20% | -70.59% | 70% | -47.37% | -13.64% | - |
| EPS (Basic) | - | 0.32 | 0.28 | 0.27 | 0.26 | 0.29 | 0.30 | 0.29 | 0.31 | 0.32 | 0.28 | 0.25 | 0.22 | 0.18 | 0.04 | 0.03 | 0.04 | 0.05 | 0.17 | 0.10 | 0.19 | 0.22 |
| Diluted Shares Outstanding | 280.18M | 279.76M | 279.14M | 278.58M | 278.69M | 278.58M | 277.8M | 277.37M | 277.3M | 279.27M | 283.79M | 292.21M | 300.56M | 302.75M | 301.77M | 300.97M | 300.25M | 301.59M | 319.5M | 269.51M | 227.12M | 293.22M |
Quick answers to the most common questions about buying TFSL stock.
For fiscal year 2025, TFS Financial Corporation (TFSL) reported total revenue of $321.5M. This represents a 42.1% increase compared to $226.2M in 2005.
TFS Financial Corporation (TFSL) is profitable, generating $91.0M in net income for the fiscal year ending 2025 with a net profit margin of 28.3%.
TFS Financial Corporation (TFSL) reported an operating income of $114.7M, resulting in an operating profit margin of 35.7%. This margin reflects the operational efficiency of the business before interest and taxes.
TFS Financial Corporation (TFSL) generated $319.0M in gross profit for the year, representing a gross profit margin of 99.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Extreme interest rate sensitivity
Metrics are mathematically derived from official filings.
NII Growth Accelerating on Volume
Net interest income grew 8.5% year-over-year to $81.4 million in the latest quarter, driven by strong mortgage origination volume rather than margin expansion, as indicated by the company's reported record quarterly results.
The acceleration in NII growth, particularly the sequential pick-up from 8.0% in Q2 to 8.5% in Q3, appears to be fueled by a surge in first mortgage originations exceeding $600 million. This suggests management is successfully executing a volume-focused strategy to offset persistent margin pressure, but the reliance on origination activity makes the earnings stream highly sensitive to housing demand and refinancing incentives.
Net Interest Margin Remains Constrained
The net interest margin increased modestly to 0.50% in the latest quarter from 0.40% a year ago, a level that remains structurally compressed by TFSL's focus on long-term, fixed-rate residential mortgages and rising deposit costs.
The slight NIM improvement suggests that the repricing lag on the asset side may be beginning to catch up, or that deposit cost pressures are stabilizing. However, at 0.50%, the margin is dramatically below regional peers like HOMB (77.3% gross margin) and NBTB (72.1% gross margin), reflecting the fundamental challenge of generating returns from low-yielding, long-duration mortgage assets in the current rate environment.
Provisioning Volatility Masks Core Portfolio
Loan loss provisions have been volatile and non-zero for six of the last ten quarters, including a $1.5 million expense in Q3 2025, indicating ongoing, albeit uneven, credit cycle management within the residential book.
The inconsistent provision expense, which swung from a $500K benefit in 2024Q3 to a $1.5M charge in 2025Q3, suggests management is actively provisioning against specific risks, potentially concentrated in the Florida portfolio given the stated property insurance crisis. The lack of a clear, trending provision level makes it difficult to assess the underlying health of the mortgage book, warranting close monitoring of charge-off trends and delinquency rates.
Q3 2026 Marks Operational Breakout
The third quarter of 2026 represents a clear inflection point, with record net income of $30.5 million and EPS growth of 45.5% year-over-year, suggesting the bank has successfully navigated prior headwinds.
This quarter's performance stands out as the strongest in the ten-quarter history, driven by the dual catalysts of record origination volume and a slight NIM expansion. It indicates that the company's strategy of prioritizing volume in a challenging rate environment may be paying off, though investors should assess whether this pace is sustainable or represents a peak tied to specific market conditions.
Non-Interest Income Provides Minimal Buffer
Non-interest income is negligible and inconsistent, representing less than 10% of total revenue in recent quarters and contributing little to earnings stability or diversification.
With non-interest income contributing only $0 million in Q3 2026 and fluctuating between $5.7M and $8.2M in prior quarters, TFSL has almost no fee-based revenue buffer against interest rate volatility. This contrasts sharply with more diversified regional banks and leaves the bank's profitability almost entirely dependent on the spread environment for its mortgage portfolio.
MHC Structure Masking True Earnings Power
The reported gross margin of 40.28% may overstate underlying profitability as it includes non-core escrow services, while the MHC's retained earnings obscure the true capital return available to public shareholders.
The headline margin figure is inflated by transactional fee income from escrow and settlement services, which does not reflect the core lending business's spread-generating capacity. Furthermore, consolidated net income includes the MHC's share, which does not accrue to public investors; therefore, metrics like the public payout ratio are more relevant for assessing dividend sustainability than standard earnings multiples.