TFS Financial Corporation reported net income of $21.5 million for the quarter ended June 30, 2025, an increase from $21.0 million in the prior quarter. For the nine months ended June 30, 2025, net income increased by $3.6 million to $65.0 million compared to $61.4 million in the same period a year ago. This growth was primarily driven by increases in net interest income and non-interest income, alongside a decrease in non-interest expense.
Net interest income for the third quarter increased by $3.0 million, or 4.2%, to $75.0 million, with the net interest margin rising six basis points to 1.81%, marking a nine-quarter high. The company recorded a $1.5 million provision for credit losses for the quarter, and the total allowance for credit losses increased to $102.4 million. Total assets grew by $263.9 million to $17.38 billion at June 30, 2025, mainly due to a $235.9 million increase in loans held for investment.
During the nine months ended June 30, 2025, TFS Financial repurchased 57,500 shares of its common stock at an average cost of $12.87 per share, demonstrating its commitment to returning capital to shareholders. Additionally, the Mutual Holding Company's members approved the dividend waiver on July 8, 2025, for dividends up to $1.13 per share through July 8, 2026, ensuring the continuation of the company's unique dividend structure for minority shareholders. The company's capital ratios remained strong, with a Tier 1 leverage ratio of 10.86% and Common Equity Tier 1 ratio of 17.75%.
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