TFS Financial Q2 net income rises sequentially on record net interest income

TFS Financial

30/04/2026 21:30

Corrects net income in Key Details table to $23.2 mln from $900,000

Overview

U.S. savings and mortgage lender's fiscal Q2 net income rose 4% from prior quarter

Company posted record $77.8 mln net interest income, aided by lower deposit costs

Company repurchased 288,196 shares during six months ended March 31, 2026

Outlook

Company expects mortgage growth opportunities in the upcoming purchase season

TFS Financial says strong capital ratios may allow for growth, dividends and buybacks

Result Drivers

DEPOSIT COST MANAGEMENT - Co said lower cost of interest-bearing liabilities, particularly a decrease in CD balances and costs, contributed to higher net interest income

SMART RATE ARM RESETS - Co attributed higher net interest income to increasing yields from Smart Rate ARMs resetting

LOWER MARKETING EXPENSES - Co said non-interest expense fell due to reduced media costs in marketing

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
$23.2 mln
Q2 Net Interest Income
$77.80 mln
Q2 Net Interest Margin
1.84%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for TFS Financial Corp is $15.00, about 1.9% above its April 29 closing price of $14.72

The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 37 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)