Capital and Liquidity - As of March 31, 2025, the company's Common Equity Tier 1 Capital ratio is 18.13%, exceeding the regulatory requirement for being considered "Well Capitalized" [149] - The Association's Tier 1 (leverage) capital ratio was 10.04% as of March 31, 2025, indicating a well-capitalized status [177] - The company exceeded all regulatory capital requirements to be considered "Well Capitalized" as of March 31, 2025, with total capital to risk-weighted assets at 17.58% [282] - The liquidity ratio averaged 5.60% for the three months ended March 31, 2025, exceeding the minimum target of 5% [268] - The company has a combined additional borrowing capacity of $3.06 billion as of March 31, 2025, from various sources [151] - As of March 31, 2025, the company had the ability to borrow a maximum of $6.67 billion from the FHLB of Cincinnati and $565.0 million from the FRB-Cleveland Discount Window [179] Loan Portfolio and Performance - As of March 31, 2025, total loans receivable amounted to $15.37 billion, with a weighted average yield of 4.60% [163] - The balance of first mortgage loans held for investment is $11.03 billion as of March 31, 2025, compared to $11.43 billion as of September 30, 2024 [161] - The company’s ARM loans (primarily Smart Rate) account for 37.7% of the total first mortgage loans held for investment as of March 31, 2025 [161] - The average credit score for first mortgage loans originated during the current quarter was 777, with an average loan-to-value (LTV) ratio of 68% [175] - The total residential Core loan portfolio amounted to $10,994.9 million, representing 71.6% of total loans as of March 31, 2025 [199] - The home equity lines of credit portfolio increased by 10.5% to $3,671.4 million as of March 31, 2025 [199] - The total unpaid principal balance of home equity loans was $643.9 million, and home equity lines of credit amounted to $3.67 billion [205] - The total home equity lines of credit in the draw period had a principal balance of $3.61 billion, with 0.12% delinquent for 90 days or more [207] Delinquencies and Credit Losses - As of March 31, 2025, 0.2% of loans originated or acquired, totaling $31.6 million, were delinquent [175] - The percentage of loans seriously delinquent (90 days or more) was 0.10% of total net loans as of March 31, 2025, showing a slight increase from 0.09% at September 30, 2024 [213] - The total allowance for credit losses on loans was $70.5 million as of March 31, 2025, compared to $70.0 million at September 30, 2024 [197] - The allowance for credit losses increased to $99.9 million as of March 31, 2025, from $97.8 million at December 31, 2024 [193] - The total charge-offs for the six months ended March 31, 2025, were $597,000, compared to $751,000 for the same period in 2024 [192] - The total allowance for home equity lines of credit increased by 7.0% to $19.5 million, from $18.2 million at December 31, 2024 [195] Income and Expenses - Net income increased by $0.3 million, or 1%, to $21.0 million for the quarter ended March 31, 2025 [236] - Interest and dividend income increased by $2.5 million, or 1%, to $186.0 million during the current quarter [238] - Non-interest income rose by $1.4 million, or 24%, to $7.1 million, primarily due to increases in net gain on loan sales and cash surrender value from bank-owned life insurance contracts [247] - Non-interest expense decreased by $1.1 million, or 2%, to $51.1 million, driven by reductions in marketing and other operating expenses [248] - Net interest income increased by $0.6 million to $72.0 million, mainly due to an increase in the yield of interest-earning assets [243] Interest Rate Sensitivity - The estimated Economic Value of Equity (EVE) for TFS Financial Corporation would decrease by 27.19% to $993,310 in the event of a 200 basis point increase in interest rates [297] - For Third Federal Savings and Loan Association, a 200 basis point increase in interest rates would result in a 31.32% decrease in EVE to $812,351 [299] - The estimated Net Interest Income (NII) for TFS Financial Corporation would increase by 11.85% to $324,206 with a 200 basis point increase in interest rates [297] - The estimated NII for Third Federal Savings and Loan Association would increase by 11.10% to $312,510 under the same interest rate scenario [299] - The simulation model used for EVE and NII sensitivity analyses incorporates numerous assumptions regarding market interest rates, loan prepayments, and deposit decay [290] Operational Efficiency - The ratio of annualized non-interest expense to average assets was 1.16% for the six months ended March 31, 2025, down from 1.20% for the same period in 2024 [181] - Average deposits per full-time employee were $11.1 million as of March 31, 2025, with average assets per full-time employee at $18.2 million [181] - Non-interest expense decreased by $3.5 million, or 3%, to $99.0 million during the six months ended March 31, 2025, from $102.5 million in the prior year [264] Market and Strategic Initiatives - The company actively markets home equity lines of credit to manage interest rate risk and increase loan portfolio yield [165] - The company has extended its lending activities to 25 other states and the District of Columbia to reduce concentration risk in Ohio and Florida [176] - The company plans to continue dividend payments and strategic stock repurchases as part of its future capital deployment activities [285]

Core Viewpoint - TFS Financial (TFSL) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][2]. Earnings Estimate Revisions - Analysts have become increasingly optimistic about TFS Financial's earnings prospects, leading to a rising trend in estimate revisions, which is expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is projected at $0.08 per share, reflecting a year-over-year increase of +14.29% [7]. - For the full year, the earnings estimate is expected to be $0.31 per share, representing a +10.71% change from the previous year [8]. Zacks Rank and Performance - TFS Financial has achieved a Zacks Rank of 2 (Buy), indicating favorable estimate revisions that suggest strong future performance [9]. - Historically, stocks with a Zacks Rank of 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500 [9]. Recent Stock Performance - TFS Financial shares have increased by 15.2% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

分组1 - TFS Financial (TFSL) reported quarterly earnings of $0.07 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $79.12 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.65%, compared to $77.1 million in the same quarter last year [2] - TFS Financial shares have increased approximately 4.3% since the beginning of the year, while the S&P 500 has declined by 5.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $77.4 million, and for the current fiscal year, it is $0.29 on revenues of $305.8 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - The company reported net income of $21.0 million for Q2 2025, a decrease from $22.4 million in Q1 2025, primarily due to increased provision for credit losses and non-interest expenses [2]. - Net income for the six months ended March 31, 2025, was $43,447,000, representing an increase of 4.9% compared to $41,420,000 in the same period of 2024 [30]. - The net income for the first quarter of 2025 was $21.02 million, a decrease from $22.43 million in the previous quarter, representing a decline of 6.3% [29]. - The earnings per share for the first quarter of 2025 were $0.07, consistent with the previous quarter [29]. - Basic and diluted earnings per share remained stable at $0.15 for both the six months ended March 31, 2025, and 2024 [30]. Income and Expenses - Total non-interest expense increased by $3.2 million, or 6.7%, to $51.1 million for Q2 2025, with notable increases in salaries, marketing services, and office expenses [5]. - Total non-interest income increased by $1.6 million, or 13.3%, to $13.6 million for the six months ended March 31, 2025, primarily due to a rise in net gain on the sale of loans [14]. - Non-interest income for the first quarter of 2025 was $7.07 million, an increase from $6.50 million in the previous quarter, showing an 8.7% growth [29]. - Total non-interest expense decreased to $99,029,000 for the six months ended March 31, 2025, down 3.0% from $102,475,000 in 2024 [30]. Assets and Liabilities - Total assets increased by $54.1 million to $17.11 billion at March 31, 2025, mainly due to increases in investment securities and loans held for investment [6]. - The company's total liabilities stood at $15.22 billion as of March 31, 2025, up from $15.14 billion at the end of 2024, reflecting a 0.5% increase [28]. - Total deposits increased to $10.40 billion as of March 31, 2025, up from $10.21 billion at the end of 2024, indicating a growth of 1.8% [28]. - Borrowed funds decreased by $69.0 million to $4.59 billion at March 31, 2025, as maturing borrowings were replaced with retail deposits [9]. Credit Losses - The provision for credit losses was $1.5 million for Q2 2025, compared to a $1.5 million release in Q1 2025, with total allowance for credit losses rising to $99.9 million, or 0.65% of total loans [4]. - The provision for credit losses was $1.50 million for the first quarter of 2025, compared to a release of $1.50 million in the previous quarter [29]. - The allowance for credit losses on loans remained stable at $70.55 million as of March 31, 2025, compared to $70.56 million at the end of 2024 [28]. Capital Ratios - The Tier 1 leverage ratio improved to 10.92% at March 31, 2025, exceeding the threshold for being considered well-capitalized [22]. - Return on average assets for the three months ended March 31, 2025, was 0.49%, slightly down from 0.53% in the previous quarter [31]. - Return on average equity for the three months ended March 31, 2025, was 4.35%, compared to 4.68% in the previous quarter [31]. - Average equity to average assets ratio was 11.30% for the six months ended March 31, 2025 [33]. Interest Income and Margin - Net interest income increased by $3.7 million, or 5.4%, to $72.0 million for Q2 2025, driven by a decrease in the weighted average cost of interest-bearing liabilities [3]. - The net interest income for the three months ended March 31, 2025, was $72.05 million, compared to $68.33 million in the previous quarter, reflecting a 3.5% increase [29]. - Total interest and dividend income for the six months ended March 31, 2025, was $372,720,000, an increase of 3.0% from $360,652,000 in the same period of 2024 [30]. - Net interest margin remained stable at 1.70% for both periods ended March 31, 2025, and March 31, 2024 [33].

Core Viewpoint - TFS Financial Corporation is a community bank with a presence in Ohio and Florida, serving additional states through online operations, founded in 1938 [1] Company Overview - TFS Financial Corporation operates as a community bank with physical locations in Ohio and Florida [1] - The bank also provides services to twenty-seven other states and the District of Columbia through its online platform [1] Investment Perspective - The company is characterized by small capitalization and presents high optionality to the upside compared to relative downside risk [1]

Capital Ratios and Financial Health - The company's Common Equity Tier 1 Capital ratio is 18.32%, exceeding regulatory requirements for being classified as "Well Capitalized" [135] - The company’s Tier 1 (leverage) capital totaled $1.85 billion, representing 10.89% of net average assets as of December 31, 2024 [144] - The Tier 1 (leverage) capital ratio was 9.96% as of December 31, 2024, indicating a well-capitalized status [163] - As of December 31, 2024, the Company reported total capital to risk-weighted assets of $1,940,628, representing a ratio of 19.15% [259] - The Company maintained tier 1 (leverage) capital to net average assets at $1,854,832, with a ratio of 10.89% [259] - The Company’s tier 1 capital to risk-weighted assets was reported at $1,854,832, with a ratio of 18.32% [259] - The Company’s common equity tier 1 capital to risk-weighted assets was also reported at $1,854,832, with a ratio of 18.31% [259] Loan Originations and Portfolio Composition - The total first mortgage loan originations for the three months ended December 31, 2024, amounted to $176.49 million, a decrease from $272.95 million in the same period of 2023 [147] - The balance of first mortgage loans held for investment as of December 31, 2024, was $11.21 billion, compared to $11.43 billion as of September 30, 2024 [148] - Total loans receivable amounted to $15.36 billion, with a weighted average yield of 4.52% as of December 31, 2024 [150] - As of December 31, 2024, 90% of the company's assets consisted of residential real estate loans and home equity loans and lines of credit [160] - The total residential core loans reached $11,170,777,000, accounting for 72.8% of the loan portfolio, down from 74.2% in the prior quarter [187] - Home equity lines of credit totaled $3.51 billion, with an average yield of 6.60% [152] - Home equity loans totaled $608,454,000, which is 4.0% of total loans, up from 3.6% in the previous quarter [187] - The company has extended its lending activities to 25 other states and the District of Columbia to reduce concentration risk in Ohio and Florida [162] Interest Rate Management and Risk Exposure - The company’s marketing strategy includes promoting adjustable-rate loans and shorter-term fixed-rate loans to manage interest rate risk [145] - The yield on ARM loans scheduled for interest rate reset in 2025 is 3.94% with a total current balance of $730.49 million [148] - The Company’s interest rate risk management strategy includes monitoring and managing its net interest income sensitivity to changes in market interest rates [261] - In the event of a 200 basis point increase in interest rates, the Company would experience a 26.35% decrease in estimated economic value of equity (EVE) [271] - A 100 basis point decrease in interest rates would lead to an 8.89% increase in the Company's EVE [274] - The overall interest rate risk exposure is indicated by the EVE measurements, which are not precise forecasts of actual results [276] Credit Quality and Allowance for Losses - The allowance for credit losses on loans at the end of the period was $70.6 million, with a total allowance for credit losses of $97.8 million [180] - The allowance for credit losses on loans was $70,559,000, representing 100% of total loans, consistent with the previous quarter [187] - The percentage of loans seriously delinquent (90 days or more) was 0.10% of total net loans as of December 31, 2024, reflecting a slight increase from 0.09% at September 30, 2024 [204] - Serious delinquencies in the home equity lines of credit portfolio remained stable at 0.03% for both periods [206] - The total charge-offs for the three months ended December 31, 2024, were $317, down from $510 in the same period of 2023 [176] - The company recorded a $1.5 million net release of allowance for credit losses for the period, consisting of a $0.9 million release of provision on loans [180] Income and Expense Trends - Net income increased by $1.7 million, or 8%, to $22.4 million for the quarter ended December 31, 2024 [227] - Interest and dividend income increased by $9.6 million, or 5%, to $186.8 million during the current quarter [230] - Interest expense increased by $10.3 million, or 10%, to $118.4 million during the current quarter, compared to $108.1 million for the quarter ended December 31, 2023 [232] - Non-interest income increased by $0.2 million, or 3%, to $6.5 million during the current quarter, primarily due to an increase in net gain on the sale of loans [239] - Non-interest expense decreased by $2.4 million, or 5%, to $47.9 million during the current quarter, compared to $50.3 million for the quarter ended December 31, 2023 [240] Asset and Deposit Management - Total assets decreased by $33.2 million, or less than 1%, to $17.06 billion at December 31, 2024, from $17.09 billion at September 30, 2024 [213] - Total deposits increased by $12.2 million, or less than 1%, to $10.21 billion at December 31, 2024 [220] - Average deposits per full-time employee were $11.0 million, with average deposits held at branch offices amounting to $246.2 million as of December 31, 2024 [168] - The company retains additional borrowing capacity totaling $3.12 billion under arrangements with the FHLB of Cincinnati and the FRB Cleveland [137] - The company had $158.8 million in cash and a demand loan from the Association available for its operations as of December 31, 2024 [259]

Core Viewpoint - TFS Financial (TFSL) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum for the stock [1][2]. Estimate Revisions - The rising trend in estimate revisions reflects growing analyst optimism regarding TFS Financial's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, TFS Financial is projected to earn $0.07 per share, with a 16.67% increase in the Zacks Consensus Estimate over the last 30 days, indicating no negative revisions [4]. - For the full year, the expected earnings are $0.29 per share, showing a year-over-year change of +3.57%, with an 11.54% increase in consensus estimates over the past month [5]. Zacks Rank - TFS Financial currently holds a Zacks Rank 2 (Buy), supported by favorable estimate revisions, which historically lead to significant outperformance compared to the S&P 500 [6]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have demonstrated a strong track record, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3][6]. Investment Outlook - The stock has increased by 7.6% over the past four weeks due to strong estimate revisions, suggesting potential for further upside, making it a candidate for portfolio addition [7].

Financial Performance - The company reported net income of $22.4 million for Q1 FY2025, an increase of 23.08% from $18.2 million in Q4 FY2024[3] - Net income for the three months ended December 31, 2024, was $22,426 thousand, an increase of 23.8% compared to $18,215 thousand for the previous quarter[30] - The company reported a basic earnings per share of $0.08 for the quarter, compared to $0.06 in the previous quarter, marking a 33.3% increase[30] Income and Expenses - Net interest income decreased by $0.4 million, or 0.58%, to $68.3 million compared to the previous quarter, primarily due to a decline in short-term interest rates[4] - Total interest and dividend income for the quarter was $186,768 thousand, a decrease of 0.4% from $188,516 thousand in the prior quarter[30] - Net interest income after provision for credit losses was $69,828 thousand, up from $67,715 thousand in the previous quarter, reflecting a growth of 3.1%[30] - Non-interest income totaled $6,503 thousand, showing a slight increase from $6,420 thousand in the previous quarter[30] - Total non-interest expense decreased by $3.2 million, or 6.26%, to $47.9 million, driven by reductions in marketing costs and other expenses[7] Asset and Liability Management - Total assets decreased by $33.2 million, or less than 1%, to $17.06 billion, primarily due to declines in investment securities[13] - Total liabilities decreased to $15,143,309 thousand from $15,228,161 thousand, a reduction of 0.56%[29] - Total liabilities stood at $15,099,879 thousand, with total shareholders' equity at $1,915,478 thousand[31] Credit Quality and Risk Management - Total loan delinquencies increased to $36.3 million, or 0.24% of total loans receivable, up from $31.9 million, or 0.21% in the prior quarter[6] - The total allowance for credit losses was $97.8 million, or 0.64% of total loans receivable, unchanged from the previous quarter[5] - The allowance for credit losses on loans increased slightly to $(70,559) thousand from $(70,002) thousand, indicating a cautious approach to credit risk management[29] - The company experienced a provision release for credit losses of $(1,500) thousand, compared to a provision of $1,000 thousand in the previous quarter, indicating improved credit quality[30] Capital and Dividends - The company's Tier 1 capital ratio was reported at 10.89%, indicating strong capital adequacy[23] - The company declared a quarterly dividend of $0.2825 per share during the quarter[22] Deposits and Loans - Deposits increased by $12.2 million, or less than 1%, to $10.21 billion, with a significant contribution from a special CD offering that attracted $350 million in deposits[18] - Loans held for investment increased by $20.9 million, or less than 1%, to $15.34 billion, despite a decrease in the portfolio of loans held for sale[15] - Deposits increased to $10,207,257 thousand from $10,195,079 thousand, reflecting a growth of 0.12%[29] Interest Rates and Margins - The yield on loans was 4.49% for the three months ended December 31, 2024, compared to 4.26% for the same period in 2023[31] - The net interest margin for the three months ended December 31, 2024, was 1.66%, down from 1.68% in December 2023[31] - The interest rate spread decreased to 1.34% for the three months ended December 31, 2024, from 1.39% in December 2023[31] Asset Composition - Total assets decreased slightly to $17,057,586 thousand as of December 31, 2024, from $17,090,785 thousand on September 30, 2024, representing a decline of 0.19%[29] - Total interest-earning assets increased to $16,490,723 thousand for the three months ended December 31, 2024, with a net interest income of $68,328 thousand[31] - The average balance of loans was $15,326,120 thousand, showing a slight increase from $15,232,349 thousand in December 2023[31] - The average balance of certificates of deposit increased to $8,058,740 thousand, with an interest expense of $74,499 thousand, yielding 3.70%[31] - Average interest-earning assets to average interest-bearing liabilities ratio was 111.21% for the three months ended December 31, 2024[31]

Company Overview - TFS Financial (NASDAQ: TFSL) has a unique ownership structure where 81% of shares are owned by Third Federal MHC, with the remaining shares held by institutional and retail investors [1] Investment Insights - The unusual ownership structure may present unique investment opportunities and risks for potential investors [1]

Loan Portfolio - As of September 30, 2024, the total loans receivable amounted to $15.33 billion, an increase from $15.17 billion in the previous year, reflecting a growth of 1.1%[30] - Fixed-rate and adjustable-rate first mortgage residential real estate loans totaled $11.43 billion, representing 74.5% of the loan portfolio, while home equity lines of credit reached $3.32 billion, accounting for 21.7%[30] - The company reported a total of $3.89 billion in home equity loans and lines of credit, which is a 28.2% increase from $3.03 billion in the previous year[32] - Adjustable-rate residential real estate first mortgage loans totaled $4.38 billion, comprising 28.5% of the loan portfolio[30] - The total amount of residential core loans was $11.41 billion, down from $12.08 billion, reflecting a decrease of 5.6%[32] - The total loans receivable as of September 30, 2024, was $15.34 billion, with $11.39 billion in Residential Core loans[40] - The Company originated $888.03 million in net real estate loans, a significant increase from $1.67 billion in the previous year[35] - Home equity loans in Ohio increased to $916.75 million, up from $773.32 million, marking a growth of 18.5%[32] - The Company originated construction loans totaling $21.7 million, which accounted for 0.2% of total loans receivable as of September 30, 2024[55] Credit Quality - The allowance for credit losses on loans decreased to $70.00 million from $77.31 million, indicating improved credit quality[32] - Total loans seriously delinquent (90 days or more) were 0.09% of total net loans as of September 30, 2024, unchanged from the previous year[66] - The percentage of seriously delinquent loans in the residential Core portfolio increased from 0.05% to 0.06% year-over-year[66] - Total non-accrual loans increased to $33.610 million in September 2024 from $31.914 million in September 2023[72] - Total non-performing assets were $33.784 million as of September 30, 2024, compared to $33.358 million in the previous year[72] - The allowance for credit losses includes $42.8 million in substandard assets, with $13.9 million of loans 90 or more days past due[80] - The company modified $7.7 million of loans during the fiscal year, with $3.1 million being less than 90 days past due[72] - Home equity loans and lines of credit portfolio remained at 0.03% for seriously delinquent loans[66] - The total amortized cost of collateral-dependent loans was $39.577 million as of September 30, 2024, compared to $38.229 million in 2023[78] Allowance for Credit Losses - The allowance for credit losses decreased to $97.8 million as of September 30, 2024, down from $104.8 million at September 30, 2023[94] - The allowance balance for loans at the end of the year was $70.0 million, compared to $77.3 million at the beginning of the year[94] - The total allowance for credit losses allocated to home equity loans and lines of credit was $28.2 million, representing 40.3% of the total allowance[94] - The allowance for credit losses on loans to non-accrual loans was 208.28% at the end of the year, compared to 242.26% the previous year[89] - The company established an allowance for unfunded commitments of $27.8 million at the end of the year, up from $27.5 million[94] Deposits and Borrowings - As of September 30, 2024, total deposits amounted to $10.20 billion, with checking accounts totaling $829.9 million and savings accounts totaling $1.32 billion[113] - Certificates of deposit (CDs) totaled $8.02 billion, including $1.22 billion of brokered CDs, with $4.95 billion having remaining maturities of one year or less[114] - The average balance of total deposits increased to $9.89 billion with a weighted average rate of 2.96% for the year ended September 30, 2024[115] - The Association had $4.79 billion in borrowings outstanding, primarily from the FHLB of Cincinnati, with a maximum borrowing capacity of $6.86 billion[116] - Borrowings with terms of 30 days and under decreased from $592 million in 2023 to $40 million in 2024, while the average interest rate increased from 4.16% to 5.40%[118] - Borrowings with terms of 90 days to 12 months totaled $2.925 billion in 2024, with an average interest rate of 5.50%[118] Regulatory Compliance and Capital - The Association exceeded all regulatory capital requirements to be considered "Well Capitalized" [164] - The Association was in compliance with the loans-to-one borrower limitations as of September 30, 2024 [139] - The Association satisfied the Qualified Thrift Lender (QTL) test as of September 30, 2024 [141] - Minimum capital requirements include a common equity Tier 1 capital ratio of 4.5%, a Tier 1 risk-based capital ratio of 6%, and a total capital ratio of 8%[221] - A capital conservation buffer of 2.5% raises the minimum common equity Tier 1 capital ratio to 7.0%, Tier 1 to risk-based assets capital ratio to 8.5%, and total capital ratio to 10.5%[222] - The total capital to risk-weighted assets ratio is 17.91%, with total capital amounting to $1,795,509 million[165] - The Tier 1 capital to risk-weighted assets ratio stands at 17.17%, with Tier 1 capital amounting to $1,721,625 million[165] Operational Performance - The company employed 919 associates, a decrease from 995 associates in the previous year, with approximately 74% being women[193] - The voluntary turnover rate for the twelve months ending September 30, 2024, was 5.5%, one of the lowest in the industry, with 39% of associates having been with the company for fifteen years or more[194] - The company’s performance is significantly impacted by economic conditions in primary markets, particularly in Ohio and Florida, which could lead to increased non-performing loans[200] - The company’s net interest income is sensitive to changes in interest rates, which could negatively affect net income due to the mismatch in maturities of assets and liabilities[208] Community and Social Responsibility - The Company has maintained a commitment to affordable housing programs, targeting low- and moderate-income home buyers[42] - The company actively promotes a culture of diversity and inclusion, with a focus on recruiting minorities and women[194] - The Association received a "Satisfactory" rating from the OCC for compliance with the Community Reinvestment Act for the period from January 1, 2020, to December 31, 2022 [152]