TFS Financial Corp (NASDAQ: TFSL) is a savings and loan holding company that operates through its subsidiary, Third Federal Savings and Loan Association of Cleveland, focusing on residential mortgage lending and retail deposit-taking. The company earns money primarily through net interest income, the spread between interest earned on mortgage loans and mortgage-backed securities and interest paid on deposits and borrowed funds. As of September 30, 2025, total assets were $17.46 billion, with loans held for investment of $15.66 billion representing the dominant asset class. Interest and dividend income totaled $763.2 million for FY2025, generated at an average yield of 4.59% on $16.61 billion of average interest-earning assets. The company is 80.97% owned by Third Federal Savings and Loan Association of Cleveland, MHC, a mutual holding company, as of November 21, 2025. Total deposits were $10.45 billion and borrowed funds were $4.87 billion at September 30, 2025, with FHLB of Cincinnati advances as the primary wholesale funding source.

Revenue model

Net interest income from residential mortgage loans and mortgage-backed securities funded by retail deposits and FHLB advances. Average loan yield was 4.57% on $15.46 billion average balance for FY2025. Secondary market mortgage loan sales generate fee income subject to representation and warranty obligations. Loan servicing for others generated $30.3 million in principal and interest passed through to investors for the year ended September 30, 2025.

Products and services

Residential mortgage loans (held for investment and held for sale), mortgage-backed securities, retail deposits including brokered CDs ($902.1 million balance at September 30, 2025), investment securities, bank-owned life insurance contracts ($325.1 million at September 30, 2025), and FHLB stock.

Customers and end markets

Retail depositors and residential mortgage borrowers. The MHC member base consists of depositors and certain loan customers of Third Federal Savings and Loan Association of Cleveland, who voted at the July 8, 2025 special meeting on the dividend waiver proposal.

Value-chain role

Originator and portfolio lender of residential mortgage loans, retail deposit gatherer, and secondary market mortgage seller. Operates an Asset/Liability Management Committee to manage interest rate risk between longer-duration mortgage assets and shorter-duration deposit liabilities.

Geographic exposure

Primary market areas served by Third Federal Savings and Loan Association of Cleveland. FHLB of Cincinnati is the primary wholesale funding counterparty. No specific multi-state or international geographic breakdown is supported by the filing excerpts.

Competitors

Commercial banks, Savings institutions, Mortgage brokerage firms, Credit unions, Finance companies, Mutual funds, Money market funds, Insurance companies, Brokerage and investment banking firms

Source: SEC 10-K, filed 2025-11-25

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