Third Federal Partners with Clearstead Advisory Solutions for Access to Wealth Management Services for Customers Mar 25, 2026 9:36 AM Eastern Daylight Time Third Federal Partners with Clearstead Advisory Solutions for Access to Wealth Management Services for Customers Share CLEVELAND--(BUSINESS WIRE)--To further support the financial needs and objectives of its customers, Third Federal (Nasdaq: TFSL) is partnering with Clearstead Advisory Solutions (CAS), a division of Cleveland-based Clearstead Advisors, L ...

VersionsEnglishHashtags#banking#bestcompanies#customerfirst#customerserviceexcellence#usatoday---### ContactsJennifer Rosa (216) 429-5037Social Media ProfilesThird Federal on FacebookThird Federal on LinkedinThird Federal on X Cleveland (the "Association†), today announced that the Board of Directors declared a quarterly cash dividend of $0.2825 per share, payable on March 25, 2026, to stockholders of record on March 11, 2026. Third Federal Savings and Loan Association of Cleveland, MHC (the "MHC†), the ...

Group 1 - Gator Capital Management's Gator Financial Partners, LLC returned 4.14%, Gator Offshore Partners, Ltd. returned 3.96%, and Gator Qualified Partners, LLC returned 6.10% in Q4 2025, outperforming the S&P 500 Total Return Index's 2.65% and the S&P 1500 Financials Index's 1.95% [1] - In 2025, Gator Funds achieved returns of 31.94%, 30.90%, and 16.92%, significantly outperforming both the broader market and the Financials sector benchmark [1] Group 2 - TFS Financial Corporation (NASDAQ:TFSL) is highlighted as a key stock, with a one-month return of 5.51% and a 52-week gain of 13.56% [2] - As of February 17, 2026, TFS Financial Corporation's stock closed at $15.33 per share, with a market capitalization of $4.302 billion [2] - Gator Capital Management purchased a position in TFS Financial Corporation in December, noting its unique corporate structure as a majority-owned mutual holding company [3] - The stock of TFS Financial Corporation has underperformed since 2021 due to rising interest rates and an inverted yield curve, but recent declines in short-term rates may indicate a turnaround [3]

Company Overview - TFS Financial Corporation operates as a regional bank focused on retail consumer financial services, primarily in Ohio and Florida, leveraging a strong branch network and diversified product offerings [6][8] - The company reported a revenue of $804.88 million and a net income of $89.34 million for the trailing twelve months (TTM) [4] - TFS Financial has a dividend yield of 7.62%, indicating a stable business model and a disciplined approach to community banking [4][6] Recent Developments - On February 13, 2026, Gator Capital Management, LLC disclosed a new position in TFS Financial Corporation, acquiring 470,125 shares valued at approximately $6.29 million [1][2] - This acquisition represents 1.28% of Gator Capital's reportable 13F assets under management after the trade [3] - As of February 12, 2026, shares of TFS Financial were priced at $14.83, with a one-year total return of 20.0%, outperforming the S&P 500 by 7.1 percentage points [3] Investment Implications - Gator Capital's purchase of TFSL shares may signal a strong buy opportunity for income-seeking investors, reflecting confidence in TFS Financial's cash flow [9]

Group 1: Free Tax Preparation Program - Third Federal partners with various organizations to offer free income tax preparation for individuals and families earning less than $69,000 [1] - The event will take place on February 14, 2026, at Cleveland Central Catholic High School, with IRS-trained tax preparers assisting participants [1] - The program aims to help participants keep more of their income by alleviating the stress and costs associated with tax filing [1] Group 2: Earned Income Tax Credit (EITC) - The EITC, established in 1975, is recognized as the largest poverty relief program in the U.S., aimed at helping working families with children [1] - Recipients of the EITC typically use their refunds to purchase essentials within their local communities, contributing to economic development [1] Group 3: Company Overview - Third Federal Savings and Loan Association, founded in 1938, focuses on providing savings and mortgage products, operating under values of love, trust, respect, and commitment to excellence [1] - As of September 30, 2025, the company's assets totaled $17.5 billion, and it operates in 27 states and the District of Columbia [1]

Capital Ratios and Requirements - The company's Common Equity Tier 1 Capital ratio is 17.35%, exceeding the regulatory requirement for being considered "Well Capitalized" [141] - The company is committed to maintaining regulatory capital in excess of levels required to be considered well capitalized [153] - The Association's Tier 1 (leverage) capital ratio was 9.81% as of December 31, 2025, indicating a well-capitalized status despite a $65 million cash dividend payment [168] - The Company aims to maintain minimum capital ratios exceeding total capital to risk-weighted assets of 13.0%, tier 1 capital to net average assets of 9.0%, and tier 1 capital to risk-weighted assets of 11.0% [258] - As of December 31, 2025, the Company reported total capital to risk-weighted assets of $1,978,291, representing a ratio of 18.31% [260] Loan and Mortgage Activity - First mortgage loan originations for the three months ended December 31, 2025, totaled $315.39 million, a 78.6% increase from $176.49 million in the same period of 2024 [154] - The balance of first mortgage loans held for investment as of December 31, 2025, was $10.68 billion, down from $10.84 billion as of September 30, 2025 [154] - The average credit score for first mortgage loans originated during the current quarter was 772, with an average loan-to-value (LTV) ratio of 71% [166] - As of December 31, 2025, loans originated or acquired had a balance of $15.83 billion, with only $36.8 million, or 0.23%, classified as delinquent [166] - The total residential core loans reached $10.68 billion, with a significant portion being in the <80% loan-to-value (LTV) category, totaling $5.45 billion [194] Interest Rate Management - The company maintains a multi-disciplined risk management program that includes stress testing and scenario analysis for interest rate risk, credit risk, market risk, and liquidity risk [144] - The company utilizes interest rate swaps to convert short-term FHLB advances and brokered certificates of deposit into long-term, fixed-rate borrowings [153] - The company employs interest rate swaps to extend the duration of its funding sources, aiming to manage interest rate risk effectively [160] - The interest rate spread improved to 1.47% for the quarter ended December 31, 2025, compared to 1.34% for the same quarter in 2024 [225] - In the event of a 200 basis point increase in interest rates, the Company would experience a 19.98% decrease in estimated economic value of equity (EVE) to $1,279,286 [272] Credit Losses and Delinquencies - The allowance for credit losses on loans increased to $74.98 million by the end of the period, with total charge-offs amounting to $448,000 [180] - The total allowance for credit losses decreased to $104.1 million from $104.4 million at the end of the previous quarter, with a net release of $1.0 million for the period [183] - The allowance for credit losses on loans to non-accrual loans was 192.39% at the end of the period, indicating strong coverage [180] - The total amount of loans delinquent for 90 days or more was $17.32 million, representing 0.11% of total net loans [206] - Delinquencies in the home equity lines of credit portfolio have shown an upward trend due to elevated interest rates tied to the prime rate [207] Financial Performance - Net income decreased by $0.1 million, or 0.4%, to $22.3 million for the quarter ended December 31, 2025, from $22.4 million for the same quarter in 2024 [227] - Total shareholders' equity increased by $7.0 million, or less than 1%, to $1.90 billion at December 31, 2025, from $1.89 billion at September 30, 2025 [223] - Interest and dividend income increased by $11.0 million, or 5.9%, to $197.8 million compared to $186.8 million in the same quarter last year [229] - Non-interest income rose by $1.5 million, or 23.1%, to $8.0 million, primarily due to increases in loan fees and net gains on loan sales [239] - Non-interest expense increased by $8.3 million, or 17.3%, to $56.2 million, mainly due to higher marketing expenses and salaries [240] Asset Management - Total assets increased by $42.4 million, or less than 1%, to $17.50 billion at December 31, 2025, from $17.46 billion at September 30, 2025 [212] - Cash and cash equivalents rose by $27.3 million, or 6.4%, to $456.7 million at December 31, 2025, compared to $429.4 million at September 30, 2025 [213] - Loans held for investment increased by $78.4 million, or 0.5%, to $15.74 billion at December 31, 2025, from $15.66 billion at September 30, 2025 [216] - The total home equity lines of credit increased to $4.239 billion as of December 31, 2025, from $4.063 billion at September 30, 2025 [189] - The total home equity loans increased to $809.4 million as of December 31, 2025, compared to $749.5 million at September 30, 2025 [189]

Financial Performance - Net income for the quarter ended December 31, 2025, was $22.3 million, a decrease from $26.0 million in the previous quarter[3] - Net income for the three months ended December 31, 2025, was $22,274 thousand, down from $25,999 thousand in the prior quarter, representing a decline of 14%[31] - Earnings per share for the three months ended December 31, 2025, was $0.08, down from $0.09 in the previous quarter, a decrease of 11.11%[31] Interest Income and Expenses - Net interest income decreased by $1.6 million, or 2.07%, to $75.7 million compared to the prior quarter, primarily due to lower average yields on home equity lines of credit[4] - Net interest income for the three months ended December 31, 2025, was $75,680 thousand, a decrease of 2.1% from $77,323 thousand in the previous quarter[31] - Total interest-earning assets increased to $16,893,757 thousand with a net interest income of $75,680 thousand, resulting in a net interest margin of 1.79%[32] - The interest rate spread was recorded at 1.47%, down from 1.54% in the previous quarter[32] Non-Interest Income and Expenses - Total non-interest income rose by $1.5 million, or 23.07%, to $8.0 million, mainly due to an increase in fees and service charges[12] - Total non-interest income for the three months ended December 31, 2025, was $8,048 thousand, compared to $8,161 thousand in the previous quarter, a decrease of 1.38%[31] - Total non-interest expense increased by $4.2 million, or 8.07%, to $56.2 million, driven by higher salaries and employee benefits, and marketing costs[7] Asset and Liability Management - Total assets increased by $42.4 million, or less than 1%, to $17.50 billion at December 31, 2025[14] - Total assets increased to $17,498,683 thousand as of December 31, 2025, compared to $17,456,316 thousand on September 30, 2025, reflecting a growth of 0.24%[30] - Total liabilities increased to $15,597,718 thousand as of December 31, 2025, from $15,562,392 thousand on September 30, 2025, reflecting a growth of 0.23%[30] - Total liabilities reached $15,508,790 thousand, with total assets at $17,430,643 thousand[32] Loans and Delinquencies - Total loan delinquencies rose to $36.9 million, or 0.23% of total loans receivable, up from $34.7 million, or 0.22% in the previous quarter[6] - Loans held for investment increased by $78.4 million, or 0.50%, to $15.74 billion, while loans held for sale decreased by $43.3 million[16] - Loans held for investment, net, increased to $15,741,688 thousand as of December 31, 2025, from $15,663,312 thousand on September 30, 2025, indicating a growth of 0.50%[30] - Loans amounted to $15,793,474 thousand, generating interest income of $184,946 thousand at a yield of 4.68%[32] Capital and Dividends - The Tier 1 capital ratio was 10.75%, indicating the company's strong capital position[24] - The company declared a quarterly dividend of $0.2825 per share during the quarter[23] Credit Losses - The provision for credit losses was a release of $1,000 thousand for the three months ended December 31, 2025, compared to a provision of $1,000 thousand in the prior quarter[31] - The allowance for credit losses on loans was $74,984 thousand as of December 31, 2025, slightly increased from $74,244 thousand on September 30, 2025[30] Deposits - Deposits decreased to $10,372,075 thousand as of December 31, 2025, from $10,446,968 thousand on September 30, 2025, a decline of 0.71%[30] Equity and Ratios - Return on average assets was 0.51%, while return on average equity stood at 4.64%[32] - Average equity to average assets ratio was 11.03%[32] - The average balance of checking accounts was $790,898 thousand, with an interest expense of $70 thousand at a yield of 0.04%[32] - The average interest-earning assets to average interest-bearing liabilities ratio was 110.95%[32] Securities - The average yield on investment securities decreased to 3.87% from 4.48% year-over-year, with interest income of $194 thousand[32] - Mortgage-backed securities generated interest income of $4,047 thousand with a yield of 3.52%[32]

TFS Financial Corporation ® Overview For the quarter ended December 31, 2025 TFSL Shareholder Ownership | | | % of | | --- | --- | --- | | | # of shares | Ownership | | As of Dec 31, 2025 | | | | Owned by Third Federal MHC | 227,119,132 | 80.93% | | Owned by Minority Shareholders | 53,505,667 | 19.07% | | Total shares outstanding | 280,624,799 | 100.00% | | As of April 20, 2007 Minority Offering | | | | Owned by Third Federal MHC | 227,119,132 | 68.30% | | Owned by Minority Shareholders | 105,199,618 | 31.7 ...

Loan Portfolio and Performance - As of September 30, 2025, the total loan portfolio amounted to $15.67 billion, an increase from $15.34 billion in 2024, representing a growth of 2.2%[39] - Fixed-rate and adjustable-rate first mortgage residential loans totaled $10.84 billion, accounting for 69.1% of the loan portfolio[36] - Home equity lines of credit reached $4.06 billion, representing 25.9% of the loan portfolio, up from 21.7% in 2024[39] - Home equity loans increased to $749.5 million, which is 4.8% of the loan portfolio, compared to 3.6% in 2024[39] - The adjustable-rate first mortgage residential loans totaled $3.94 billion, making up 25.2% of the loan portfolio[36] - Total net real estate loans amounted to $15,729,403 thousand as of September 30, 2025, with a significant increase from previous years[45] - The Company reported $10,803,813 thousand in total loans receivable, with $4,062,798 thousand in home equity lines of credit[48] - The delinquency rate for loans originated under the Home Today program was 4.45% for loans 30 days or more past due, compared to 0.18% for Core loans[53] - Total loans seriously delinquent (90 days or more) were 0.11% of total net loans as of September 30, 2025, compared to 0.09% as of September 30, 2024[77] - The percentage of serious delinquencies in the residential Core portfolio increased from 0.06% to 0.07% year over year[77] - Total non-accrual loans increased to $38.706 million in 2025 from $33.610 million in 2024, representing 0.25% of total loans[81] - Total non-performing assets rose to $40.627 million in 2025 from $33.784 million in 2024, accounting for 0.23% of total assets[81] Credit Losses and Allowances - The allowance for credit losses on loans was $74.24 million, slightly increased from $70.00 million in 2024[39] - The allowance for credit losses is based on a life of loan methodology, with qualitative and quantitative general valuation allowances (GVAs) established[90] - The allowance for credit losses on loans increased to $74.2 million as of September 30, 2025, from $70.0 million in 2024, reflecting a net provision of $2.5 million for the year[101] - The total allowance for credit losses increased to $104.4 million as of September 30, 2025, from $97.8 million in 2024[101] - The allowance for credit losses on loans to non-accrual loans was 191.82% at the end of 2025, down from 208.28% in 2024[97] - The provision for credit losses on unfunded commitments was $2.3 million for the year ended September 30, 2025[101] - The total recoveries for the fiscal year ended September 30, 2025, were $5.2 million, compared to $6.0 million in 2024[97] Deposits and Borrowings - As of September 30, 2025, total deposits amounted to $10.45 billion, with checking accounts at $785.8 million and savings accounts at $1.17 billion[119] - The Association's certificates of deposit (CDs) totaled $8.47 billion, including $902.1 million in brokered CDs, with $5.64 billion having maturities of one year or less[119] - The average balance of checking accounts for fiscal year 2025 was $814.1 million, with a weighted average interest rate of 0.05%[121] - The average balance of savings and money market accounts was $1.24 billion, with a weighted average interest rate of 1.02%[121] - The Association's borrowings at September 30, 2025, totaled $4.87 billion, primarily from the FHLB of Cincinnati[123] - The maximum borrowing capacity with the FHLB of Cincinnati is $6.94 billion, with an additional capacity to borrow up to $505.4 million from the FRB-Cleveland[123] Capital and Regulatory Compliance - As of September 30, 2025, the Association exceeded all regulatory capital requirements to be considered "Well Capitalized" and maintained a capital conservation buffer[144] - The Association's capital standards require a common equity Tier 1 capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6%, and a total capital ratio of at least 8%[140] - The Association satisfied the Qualified Thrift Lender test, maintaining at least 65% of its portfolio assets in qualified thrift investments[146] - The Association's capital ratios include a Tier 1 (Leverage) Capital to Net Average Assets ratio of 10.11%, exceeding the required 5.00%[165] - As of September 30, 2025, the company is in compliance with consolidated regulatory capital requirements, including the capital conservation buffer[180] Employee and Operational Insights - The voluntary turnover rate for the twelve months ending September 30, 2025, is 3.8%, one of the lowest in the industry[188] - At September 30, 2025, 36% of current associates have been with the company for fifteen years or more, indicating strong employee retention[188] - The company employs 958 associates, with approximately 71% being women, reflecting a commitment to diversity[186] - The company actively promotes the health and wellness of associates through various programs and flexible work schedules[190] Market and Economic Factors - A significant portion of the residential mortgage loan portfolio is secured by one- to four-family real estate, increasing credit risk due to regional economic conditions[223] - Strong competition in the banking and financial services industry may limit the company's growth and profitability, as larger competitors can price loans more aggressively[230] - Cybersecurity risks have increased due to the proliferation of new technologies, which could adversely affect operations and reputation if breaches occur[232] - The company may face increased costs if required to repurchase mortgage loans sold in the secondary market due to borrower defaults or breaches of representations and warranties[225] - The soundness of other financial institutions could adversely affect the company due to interrelated financial services transactions, exposing it to credit risk[248] Strategic Initiatives - The implementation of a new core banking system is expected to be operational by July 2026, which is a major investment aimed at improving efficiency and customer experience[246] - The company focuses on residential mortgage loans, which generally provide lower interest rate returns compared to commercial loans[222] - The company may need to raise additional capital in the future, which could be challenging depending on market conditions[220] Dividend Policy and Stock Value - The ability to pay dividends is contingent on meeting regulatory capital requirements and total dividends not exceeding net income plus retained net income from the previous two years[250] - The value of the Company's common stock is significantly influenced by its ability to pay dividends, which depends on the availability of cash and earnings from the Association[251] - Third Federal Savings, MHC must notify the FRS of any proposed waiver of dividends, and a majority of eligible members must approve such waivers within twelve months prior to the declaration[252] - The FRS has non-objected to Third Federal Savings, MHC's dividend waivers in the past, but future approvals are not guaranteed, which could negatively impact stock value[252]

Core Points - TFS Financial Corporation announced a quarterly cash dividend of $0.2825 per share [1] - The dividend is payable on December 16, 2025, to stockholders of record on December 2, 2025 [1] - The company is the holding entity for Third Federal Savings and Loan Association of Cleveland [1]