Loan Portfolio - As of September 30, 2023, the total loan portfolio amounted to $15.21 billion, an increase from $14.35 billion in 2022, representing a growth of approximately 6%[38] - Fixed-rate and adjustable-rate first mortgage residential real estate loans totaled $12.12 billion, accounting for 79.7% of the loan portfolio[35] - Home equity loans and lines of credit reached $3.03 billion, making up 19.9% of the loan portfolio, up from 18.4% in the previous year[38] - The company originated residential construction loans totaling $48.4 million, which is 0.4% of the loan portfolio, down from 0.8% in 2022[38] - Adjustable-rate residential real estate first mortgage loans totaled $4.76 billion, comprising 31.3% of the loan portfolio[35] - The residential core loan portfolio in Ohio increased to $6.89 billion, up from $6.43 billion in 2022, reflecting a growth of approximately 7%[38] - Home equity loans in Ohio rose to $773.3 million, compared to $706.6 million in the previous year, indicating an increase of about 9%[38] - Total net real estate loans amounted to $15.24 billion as of September 30, 2023, compared to $15.21 billion in 2022, reflecting a slight increase[44] - The company reported $12.1 billion in total residential core loans, with a significant portion being in the <80% LTV category, totaling $6.75 billion[44] - Home equity loans and lines of credit totaled $3.07 billion, with $2.66 billion in loans under the <80% LTV category[44] Credit Losses and Delinquency - The total allowance for credit losses on loans was $77.3 million, slightly up from $72.9 million in 2022[38] - The company has $46.5 million in loans outstanding from the Home Today program, with a delinquency rate of 4.0% for loans 30 days or more past due[53] - Total loans seriously delinquent (90 days or more) were 0.09% of total net loans as of September 30, 2023, unchanged from the previous year[76] - The percentage of seriously delinquent loans in the residential Core portfolio decreased from 0.06% to 0.05%[76] - Home equity loans and lines of credit portfolio delinquency increased from 0.02% to 0.03%[76] - The company continues to restructure loans to assist borrowers, with $99.5 million in TDRs recorded as of September 30, 2023[87] - The allowance for credit losses at the end of the year was $104.83 million, reflecting an increase from $99.92 million in 2022[103] - The allowance for credit losses to non-accrual loans was 242.26% at the end of the year, up from 204.73% in 2022[103] - The total allowance for credit losses on loans increased from $72.90 million in 2022 to $77.32 million in 2023[103] Deposits and Borrowings - Total deposits as of September 30, 2023, amounted to $9.45 billion, with checking accounts totaling $983.4 million and savings accounts totaling $1.81 billion[125] - The Association's total certificates of deposit (CDs) reached $6.65 billion, including $1.16 billion in brokered CDs, with $3.42 billion having remaining maturities of one year or less[126] - As of September 30, 2023, the Association had total borrowings of $5.27 billion, with $5.25 billion from the FHLB of Cincinnati and $22.8 million of accrued interest[130] - The maximum borrowing capacity with the FHLB of Cincinnati is $6.63 billion, and the Association can also purchase overnight Fed Funds up to $585.0 million[130] - The average interest rate for borrowings (30 days and under) increased to 4.16% in 2023 from 1.59% in 2022[133] Capital and Regulatory Compliance - The company maintains a strong capital level, having received the highest rating from an independent rating organization for over 100 consecutive quarters[34] - The Association exceeded all regulatory capital requirements to be considered "Well Capitalized" as of September 30, 2023[150] - The Association's total capital to risk-weighted assets ratio is 17.87%, significantly exceeding the required 10% for being considered "Well Capitalized"[169] - The Tier 1 (Leverage) capital to net average assets ratio stands at 9.82%, well above the required 5%[169] - The company is in compliance with the holding company consolidated capital requirements and the capital conservation buffer as of September 30, 2023[184] Employee and Workplace Culture - As of September 30, 2023, the company employed 995 associates, a decrease from 1,025 associates in the previous year, with approximately 74% being women[191] - The voluntary turnover rate for the twelve months ending September 30, 2023, was 4.4%, one of the lowest in the industry[194] - The company emphasizes a workplace culture grounded in core values, including love, trust, respect, and a commitment to excellence[191] - The company supports the growth and development of associates through various training programs and educational reimbursement[192] Market and Economic Conditions - Economic downturns could lead to increased non-performing loans and reduced demand for the company's products and services, adversely affecting operations[211] - Changes in interest rates could negatively impact the company's net interest income and profitability, particularly if mortgage interest rates decline[205] - The monetary policies and regulations of the FRS significantly impact the operating results of financial institutions, with unpredictable effects on business and financial conditions[219] - Strong competition in the banking and financial services industry may limit growth and profitability, with larger competitors having greater resources and market presence[225] Cybersecurity and Technology - Cybersecurity risks have increased due to new technologies and sophisticated cyber-attacks, potentially affecting operations and reputation[229] - The company employs various safeguards to protect confidential information, but risks of mishandling or breaches remain, necessitating ongoing investment in information security measures[231] - The company believes it has not experienced any material breaches, indicating a focus on maintaining information security[232]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents TFS Financial Corporation's unaudited consolidated financial statements and notes for periods ended June 30, 2023 [Consolidated Statements of Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Condition) Total assets increased to **$16.59 billion** by June 30, 2023, driven by loan growth, with liabilities and equity also rising Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$16,594,988** | **$15,789,879** | | Loans, net | $14,883,680 | $14,257,067 | | Investment securities available for sale | $513,303 | $457,908 | | Cash and cash equivalents | $436,215 | $369,564 | | **Total Liabilities** | **$14,708,864** | **$13,945,540** | | Deposits | $9,069,069 | $8,921,017 | | Borrowed funds | $5,452,228 | $4,793,221 | | **Total Shareholders' Equity** | **$1,886,124** | **$1,844,339** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Nine-month net income increased to **$55.7 million** due to higher net interest income, while Q3 net income saw a slight rise Income Statement Summary (in thousands, except per share data) | Metric | Nine Months Ended June 30, 2023 | Nine Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Interest Income | $213,204 | $191,887 | | Provision (Release) for Credit Losses | $(2,000) | $1,000 | | Net Income | $55,704 | $49,132 | | Diluted EPS | $0.20 | $0.17 | | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Interest Income | $68,779 | $71,302 | | Provision (Release) for Credit Losses | — | $4,000 | | Net Income | $17,603 | $17,147 | | Diluted EPS | $0.06 | $0.06 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for the nine months ended June 30, 2023, decreased to **$83.5 million** due to smaller fair value changes in cash flow hedges Comprehensive Income (in thousands) | Component | Nine Months Ended June 30, 2023 | Nine Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Income | $55,704 | $49,132 | | Other Comprehensive Income | $27,836 | $72,755 | | **Total Comprehensive Income** | **$83,540** | **$121,887** | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to **$1.89 billion**, driven by net income and AOCI, partially offset by dividends and share repurchases - Key drivers for the change in shareholders' equity over the nine months were net income, dividends, changes in AOCI, and stock repurchases[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$66.7 million**, with operating and financing activities providing cash, while investing activities used cash Cash Flow Summary (Nine Months Ended June 30, in thousands) | Cash Flow Category | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $76,896 | $51,113 | | Net cash used in investing activities | $(724,101) | $(1,480,110) | | Net cash provided by financing activities | $713,856 | $1,328,201 | | **Net Increase (Decrease) in Cash** | **$66,651** | **$(100,796)** | [Notes to Unaudited Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, covering loan portfolio, deposits, derivatives, fair value, and CECL adoption - The company's principal business is retail consumer banking, with **81.0%** of shares owned by its mutual holding company[21](index=21&type=chunk) - The company is phasing in the regulatory capital impact of the CECL accounting standard over a five-year period, ending in fiscal year **2025**[289](index=289&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance and condition, emphasizing strategies for interest rate risk, credit standards, liquidity, and capital in a rising rate environment [Overview and Business Strategy](index=38&type=section&id=Overview%20and%20Business%20Strategy) Management expresses confidence in its business model, focusing on strong capital, stable deposits, and strategies to manage interest rate and credit risks - The company emphasizes its strong capital position, with a Common Equity Tier 1 (CET1) ratio of **20.01%**[142](index=142&type=chunk)[149](index=149&type=chunk) - The deposit base is stable, with **96.3%** of retail deposits within FDIC insurance limits as of June 30, 2023[143](index=143&type=chunk) - Key strategies to manage interest rate risk include promoting ARMs and HELOCs, using swaps, and selectively selling long-term fixed-rate loans[151](index=151&type=chunk) [Lending Activities and Credit Risk](index=44&type=section&id=Lending%20Activities%20and%20Credit%20Risk) Lending is concentrated in residential real estate, with credit risk managed through stringent underwriting, resulting in decreased non-performing assets to **0.19%** Non-Performing Assets (in thousands) | Category | June 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Non-accrual loans | $30,622 | $35,606 | | Real estate owned | $1,400 | $1,191 | | **Total non-performing assets** | **$32,022** | **$36,797** | | **As a % of Total Assets** | **0.19%** | **0.23%** | - The allowance for credit losses on loans was **$74.8 million**, or **0.50%** of total loans, at June 30, 2023[184](index=184&type=chunk)[192](index=192&type=chunk) - Total seriously delinquent loans (90+ days) were **0.07%** of total net loans at June 30, 2023[217](index=217&type=chunk) [Comparison of Financial Condition](index=58&type=section&id=Comparison%20of%20Financial%20Condition) Total assets increased by **5.1%** to **$16.59 billion**, driven by loan growth funded by increased deposits and borrowed funds - Net loans held for investment increased by **$626.6 million**, or **4.4%**, to **$14.88 billion**[233](index=233&type=chunk) - Deposits increased by **$148.1 million**, or **1.7%**, with a shift into higher-yielding CDs[238](index=238&type=chunk) - Borrowed funds increased by **$659.0 million**, or **13.7%**, to fund loan growth[239](index=239&type=chunk) [Comparison of Operating Results](index=61&type=section&id=Comparison%20of%20Operating%20Results) Nine-month net income increased to **$55.7 million**, but Q3 net interest income decreased, compressing net interest margin to **1.75%** due to rising funding costs Quarterly Performance Comparison (Three Months Ended June 30) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $68.8M | $71.3M | -3.5% | | Net Income | $17.6M | $17.1M | +2.9% | | Net Interest Margin | 1.75% | 1.97% | -22 bps | | Interest Rate Spread | 1.50% | 1.86% | -36 bps | Year-to-Date Performance Comparison (Nine Months Ended June 30) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $213.2M | $191.9M | +11.1% | | Net Income | $55.7M | $49.1M | +13.4% | | Net Interest Margin | 1.82% | 1.83% | -1 bp | | Interest Rate Spread | 1.60% | 1.71% | -11 bps | [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with significant borrowing capacity and capital ratios exceeding 'well capitalized' minimums Association Capital Ratios (as of June 30, 2023) | Ratio | Actual | Well Capitalized Level | | :--- | :--- | :--- | | Total Capital to Risk-Weighted Assets | 18.52% | 10.00% | | Tier 1 (Leverage) Capital to Net Average Assets | 9.93% | 5.00% | | Common Equity Tier 1 Capital to Risk-Weighted Assets | 17.79% | 6.50% | - The company has access to **$3.25 billion** in additional FHLB borrowing capacity and **$670.0 million** in Fed Funds lines[172](index=172&type=chunk) - The MHC, owning **81%** of the company, approved waiving dividends for 12 months, pending Federal Reserve non-objection[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Interest rate risk is the primary market risk, with models showing a **+200 bps** rate shock would decrease EVE by **19.58%** and NII by **1.03%** Economic Value of Equity (EVE) Sensitivity Analysis (at June 30, 2023) | Change in Interest Rates (bps) | Estimated EVE (in thousands) | Change in EVE (%) | | :--- | :--- | :--- | | +300 | $857,989 | (33.30)% | | +200 | $1,034,465 | (19.58)% | | +100 | $1,181,829 | (8.12)% | | 0 | $1,286,296 | — | | -100 | $1,334,826 | 3.77% | - The EaR model estimates a gradual **200 basis point** rate increase would decrease net interest income by **1.03%**[306](index=306&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the reporting period end[311](index=311&type=chunk) - No material changes to internal control over financial reporting occurred during the most recent fiscal quarter[312](index=312&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, but management expects no material adverse effect on financial condition or results - Management does not expect ongoing legal actions to materially affect the company's financial condition or results[313](index=313&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported for the quarter ended June 30, 2023, from prior disclosures - No material changes to risk factors were reported for the quarter ended June 30, 2023[314](index=314&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock, and the MHC approved a 12-month dividend waiver pending Federal Reserve non-objection - The company did not repurchase any common stock during the three months ended June 30, 2023[318](index=318&type=chunk) - On July 11, 2023, MHC members approved a 12-month dividend waiver, up to **$1.13 per share**, pending Federal Reserve non-objection[316](index=316&type=chunk)[317](index=317&type=chunk) [Other Information](index=74&type=section&id=Item%205.%20Other%20Information) Chairman and CEO Marc A. Stefanski adopted a Rule 10b5-1 trading plan for **286,500** stock options on June 14, 2023 - Chairman and CEO Marc A. Stefanski adopted a Rule 10b5-1 trading plan for **286,500** stock options on June 14, 2023[320](index=320&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including Inline XBRL financial statements and CEO/CFO certifications - Filed exhibits include Inline XBRL data files and CEO/CFO certifications pursuant to Sarbanes-Oxley[321](index=321&type=chunk)[323](index=323&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ________________________________________ TFS FINANCIA ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ________________________________________ TFS FINAN ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-K ________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2022 or United States of America 52-2054948 (State or Other Jurisdiction of Incorporation or Organization) 7007 Broadway Avenue Cleveland, Ohio 44105 (Address of Principal Executive Offices) (Zip Code) (I.R.S. Employer Identification No. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ________________________________________ TFS FINANCIAL ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ________________________________________ TFS FINANCIA ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ________________________________________ TFS FINAN ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-K ________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ___________________________________________ TFS FINANCIAL CORPORATION (Exac ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-33390 ________________________________________ TFS FINANCIAL ...