What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-07 compared with 2025-05-08 · 146 added, 142 removed, 1089 unchanged (21% of the section changed)

10 unchanged sentences

Mortgage loans held for sale ($ 29,303 and $ 10,713 measured at fair value, respectively)

30,977 17,775

Loans held for investment, net:

23 unchanged sentences

332,318,750 shares issued;

280,836,948 and 280,710,854 outstanding at March 31, 2025 and September 30, 2024, respectively

280,779,576 and 280,710,854 outstanding at June 30, 2025 and September 30, 2024, respectively

Paid-in capital 1,756,307 1,754,365

Treasury stock, at cost;

51,481,802 and 51,607,896 shares at March 31, 2025 and September 30, 2024, respectively

51,539,174 and 51,607,896 shares at June 30, 2025 and September 30, 2024, respectively

( 771,861 ) ( 772,195 )

9 unchanged sentences

(In thousands, except share and per share data)

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

38 unchanged sentences

(In thousands)

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

1 unchanged sentence

Other comprehensive income (loss), net of tax:

Net change in unrealized gain (loss) on securities available for sale

Net change in unrealized gain on securities available for sale

2,918 42 2,686 9,108

3 unchanged sentences

( 16,797 ) 196 ( 397 ) ( 42,598 )

Total comprehensive income (loss)

Total comprehensive income

$ 4,716 $ 20,149 $ 64,563 $ 18,775

3 unchanged sentences

(In thousands, except share and per share data)

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Paid-in capital

4 unchanged sentences

Total shareholders' equity

Balance at December 31, 2023 $ 3,323 $ 1,750,440 $ ( 772,195 ) $ ( 26,000 ) $ 900,973 $ 10,186 $ 1,866,727

Balance at March 31, 2024 $ 3,323 $ 1,751,960 $ ( 772,195 ) $ ( 24,917 ) $ 906,908 $ 42,418 $ 1,907,497

— — — — 19,953 — $ 19,953

5 unchanged sentences

— 840 — — — — $ 840

Treasury stock allocated to equity incentive plans

— ( 6 ) — — — — $ ( 6 )

Dividends declared to common shareholders ($ 0.2825 per common share)

— — — — ( 14,779 ) — $ ( 14,779 )

Balance at March 31, 2024 $ 3,323 $ 1,751,960 $ ( 772,195 ) $ ( 24,917 ) $ 906,908 $ 42,418 $ 1,907,497

For the Three Months Ended March 31, 2025

Balance at June 30, 2024 $ 3,323 $ 1,753,074 $ ( 772,195 ) $ ( 23,834 ) $ 912,082 $ 42,614 $ 1,915,064

For the Three Months Ended June 30, 2025

Common Stock Paid-in capital Treasury stock Unallocated common stock held by ESOP Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity

Balance at December 31, 2024 $ 3,323 $ 1,754,241 $ ( 771,572 ) $ ( 21,667 ) $ 923,139 $ 26,813 $ 1,914,277

Balance at March 31, 2025 $ 3,323 $ 1,755,054 $ ( 771,123 ) $ ( 20,584 ) $ 929,195 $ 792 $ 1,896,657

Net Income — — — — 21,513 — 21,513

3 unchanged sentences

Compensation costs for equity incentive plans — 947 — — — — 947

Purchase of treasury stock ( 57,500 shares)

— — ( 740 ) — — — ( 740 )

Treasury stock allocated to equity incentive plans — ( 6 ) 2 — — — ( 4 )

1 unchanged sentence

— — — — ( 14,966 ) — ( 14,966 )

Balance at March 31, 2025 $ 3,323 $ 1,755,054 $ ( 771,123 ) $ ( 20,584 ) $ 929,195 $ 792 $ 1,896,657

For the Six Months Ended March 31, 2024

Balance at June 30, 2025 $ 3,323 $ 1,756,307 $ ( 771,861 ) $ ( 19,500 ) $ 935,742 $ ( 16,005 ) $ 1,888,006

For the Nine Months Ended June 30, 2024

stock Paid-in

17 unchanged sentences

— — — — ( 44,173 ) — ( 44,173 )

Balance at March 31, 2024 $ 3,323 $ 1,751,960 $ ( 772,195 ) $ ( 24,917 ) $ 906,908 $ 42,418 $ 1,907,497

For the Six Months Ended March 31, 2025

Balance at June 30, 2024 $ 3,323 $ 1,753,074 $ ( 772,195 ) $ ( 23,834 ) $ 912,082 $ 42,614 $ 1,915,064

For the Nine Months Ended June 30, 2025

stock Paid-in

12 unchanged sentences

Compensation costs for equity incentive plans — 2,802 — — — — 2,802

Purchase of treasury stock ( 57,500 shares)

— — ( 740 ) — — — ( 740 )

Treasury stock allocated to equity incentive plan — ( 1,845 ) 1,074 — — — ( 771 )

1 unchanged sentence

— — — — ( 44,707 ) — ( 44,707 )

Balance at March 31, 2025 $ 3,323 $ 1,755,054 $ ( 771,123 ) $ ( 20,584 ) $ 929,195 $ 792 $ 1,896,657

Balance at June 30, 2025 $ 3,323 $ 1,756,307 $ ( 771,861 ) $ ( 19,500 ) $ 935,742 $ ( 16,005 ) $ 1,888,006

1 Related to ASU 2022-02 adopted November 2, 2023, based on September 30, 2023 data.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)

For the Six Months Ended March 31,

For the Nine Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

11 unchanged sentences

Net decrease in interest receivable and other assets 7,230 4,212

Net (decrease) increase in accrued expenses and other liabilities ( 4,190 ) 6,143

Net increase in accrued expenses and other liabilities 1,178 92,894

Net cash provided by operating activities 93,522 147,280

13 unchanged sentences

Other 2,487 3,001

Net cash (used in) provided by investing activities ( 46,325 ) 30,133

Net cash used in investing activities ( 310,366 ) ( 12,839 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Net increase in deposits 154,792 564,596

Net decrease in borrowers' advances for insurance and taxes ( 13,374 ) ( 24,925 )

Net decrease in principal and interest owed on loans serviced ( 1,504 ) ( 3,865 )

Net increase (decrease) in borrowers' advances for insurance and taxes 4,262 ( 57,660 )

Net increase (decrease) in principal and interest owed on loans serviced 1,484 ( 12,944 )

Net increase (decrease) in short-term borrowed funds 420,000 ( 742,000 )

4 unchanged sentences

Dividends paid to common shareholders ( 44,669 ) ( 44,203 )

Net cash (used in) provided by financing activities ( 20,580 ) 46,918

Net cash provided by (used in) financing activities 205,707 ( 40,752 )

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 11,137 ) 93,689

7 unchanged sentences

SUPPLEMENTAL SCHEDULES OF NONCASH INVESTING AND FINANCING ACTIVITIES:

Transfer of loans to real estate owned 1,240 247

Transfer of loans from held for investment to held for sale 148,789 112,917

8 unchanged sentences

The principal line of business of the Company is retail consumer banking, including mortgage lending, deposit gathering, and other financial services.

As of March 31, 2025, approximately 80.9 % of the Company’s outstanding shares were owned by the federally chartered mutual holding company, Third Federal Savings and Loan Association of Cleveland, MHC.

As of June 30, 2025, approximately 80.9 % of the Company’s outstanding shares were owned by the federally chartered mutual holding company, Third Federal Savings, MHC.

The thrift subsidiary of TFS Financial Corporation is Third Federal Savings and Loan Association of Cleveland.

5 unchanged sentences

The allowance for credit losses, the valuation of deferred tax assets, and the determination of pension obligations are particularly subject to change.

The unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial condition of the Company at March 31, 2025, and its consolidated results of operations and cash flows for the periods presented.

The unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial condition of the Company at June 30, 2025, and its consolidated results of operations and cash flows for the periods presented.

Such adjustments are the only adjustments reflected in the unaudited interim financial statements.

13 unchanged sentences

Performance share units, determined to be contingently issuable and not participating securities, are excluded from the calculation of basic EPS.

At March 31, 2025 and 2024, the ESOP held 2,058,361 and 2,491,701 shares, respectively, that were neither allocated to participants nor committed to be released to participants.

At June 30, 2025 and 2024, the ESOP held 1,950,026 and 2,383,366 shares, respectively, that were neither allocated to participants nor committed to be released to participants.

The following is a summary of the Company's earnings per share calculations.

For the Three Months Ended March 31,

For the Three Months Ended June 30,

Income Shares Per share

8 unchanged sentences

Income available to common shareholders $ 21,150 279,873,274 $ 0.08 $ 19,610 279,221,360 $ 0.07

For the Six Months Ended March 31,

For the Nine Months Ended June 30,

Income Shares Per share

9 unchanged sentences

The following is a summary of outstanding stock options and restricted and performance share units that are excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive.

For the Three Months Ended March 31, For the Six Months Ended March 31,

For the Three Months Ended June 30, For the Nine Months Ended June 30,

2025 2024 2025 2024

3 unchanged sentences

Investments available for sale are summarized in the tables below.

March 31, 2025

June 30, 2025

Unrealized Fair

11 unchanged sentences

Total $ 553,559 $ 1,368 $ ( 28,676 ) $ 526,251

At March 31, 2025 and September 30, 2024, investment securities included $ 50,236 and $ 68,932 , respectively, of U.S.

At June 30, 2025 and September 30, 2024, investment securities included $ 50,111 and $ 68,932 , respectively, of U.S.

government obligations pledged as collateral on our open swap positions to meet margin requirements established by the clearing organization.

Accrued interest on investment securities is $ 2,599 and $ 2,399 at March 31, 2025 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION .

The following is a summary of our securities portfolio by the period remaining until contractual maturity and by weighted average yield at March 31, 2025 and September 30, 2024.

Accrued interest on investment securities is $ 1,959 and $ 2,399 at June 30, 2025 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION .

The following is a summary of our securities portfolio by the period remaining until contractual maturity and by weighted average yield at June 30, 2025 and September 30, 2024.

Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur.

Weighted average yields are not presented on a tax-equivalent basis and are calculated by multiplying each carry value by its yield and dividing the sum of these results by the total carry values.

We did not hold any tax-exempt securities at March 31, 2025 or September 30, 2024.

March 31, 2025 September 30, 2024

We did not hold any tax-exempt securities at June 30, 2025 or September 30, 2024.

June 30, 2025 September 30, 2024

Amortized Cost Fair Value Weighted Average Yield Amortized Cost Fair Value Weighted Average Yield

4 unchanged sentences

Total $ 549,038 $ 525,212 3.51 % $ 553,559 $ 526,251 3.40 %

Gross unrealized losses on available for sale securities and the estimated fair value of the related securities, aggregated by the length of time the securities have been in a continuous loss position, at March 31, 2025 and September 30, 2024, were as follows:

March 31, 2025

Gross unrealized losses on available for sale securities and the estimated fair value of the related securities, aggregated by the length of time the securities have been in a continuous loss position, at June 30, 2025 and September 30, 2024, were as follows:

June 30, 2025

Less Than 12 Months 12 Months or More Total

24 unchanged sentences

Treasury Department has established financing agreements to ensure Fannie Mae and Freddie Mac meet their obligations to holders of mortgage-backed securities that they have issued or guaranteed.

Since the decline in value is primarily attributable to an increase in market interest rates and not credit quality deterioration, and because there is no intent to sell the securities and it is unlikely that the Company will be required to sell the securities prior to recovery of the amortized cost, the Company did not record an allowance for credit losses on investment securities as of March 31, 2025 or September 30, 2024 .

LOANS AND ALLOWANCE FOR CREDIT LOSSES

17 unchanged sentences

Loans held for investment, net $ 15,595,997 $ 15,322,059

(1) At and for the six months ended March 31, 2025, balances of and activity related to home equity lines of credit and home equity loans are reported as separate line items.

(1) At and for the nine months ended June 30, 2025, balances of and activity related to home equity lines of credit and home equity loans are reported as separate line items.

Prior periods have been reclassified to conform to the current presentation.

Loans held for investment are carried at amortized cost, which includes outstanding principal balance adjusted for any unamortized premiums or discounts, net of deferred fees and expenses and any applicable loans-in-process.

Accrued interest is $ 55,433 and $ 56,982 as of March 31, 2025 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION.

Accrued interest is $ 58,461 and $ 56,982 as of June 30, 2025 and September 30, 2024, respectively, and is reported in accrued interest receivable on the CONSOLIDATED STATEMENTS OF CONDITION.

A large concentration of the Company’s lending is in Ohio and Florida.

At March 31, 2025 and September 30, 2024, the percentage of aggregate Residential Core, Residential Home Today and Construction loans secured by properties in Ohio was 58 % at both dates, and the percentage of those loans secured by properties in Florida was 17 % at both dates.

As of March 31,

2025 and September 30, 2024, home equity lines of credit were concentrated in Ohio ( 22 % and 23 %, respectively), Florida ( 22 % at both dates), and California ( 17 % and 16 %, respectively), and home equity loans were concentrated in Ohio ( 24 % and 26 %, respectively), Florida ( 23 % and 25 %, respectively), and California ( 19 % at both dates).

At June 30, 2025 and September 30, 2024, the percentage of aggregate Residential Core, Residential Home Today and Construction loans secured by properties in Ohio were 59 % and 58 %, respectively, and the percentage of those loans secured by properties in Florida was 17 % at both dates.

June 30, 2025 and September 30, 2024, home equity lines of credit were concentrated in Ohio ( 22 % and 23 %, respectively), Florida ( 22 % at both dates), and California ( 17 % and 16 %, respectively), and home equity loans were concentrated in Ohio ( 24 % and 26 %, respectively), Florida ( 23 % and 25 %, respectively), and California ( 18 % and 19 %, respectively).

Residential Core mortgage loans represent the largest portion of the residential real estate portfolio.

4 unchanged sentences

With limited historical loss experience compared to other types of loans in the portfolio, judgment is required by management in assessing the allowance required on adjustable-rate mortgage loans.

The principal amount of adjustable-rate mortgage loans included in the Residential Core portfolio was $ 4,164,902 and $ 4,379,132 at March 31, 2025 and September 30, 2024, respectively.

The principal amount of adjustable-rate mortgage loans included in the Residential Core portfolio was $ 4,056,491 and $ 4,379,132 at June 30, 2025 and September 30, 2024, respectively.

Home Today was an affordable housing program targeted to benefit low- and moderate-income home buyers.

11 unchanged sentences

Additionally, loans originated or acquired for the held for investment portfolio may later be identified for sale and transferred to the held for sale portfolio, which may include loans originated or acquired within the parameters of programs established by Fannie Mae.

During the three and six months ended March 31, 2025 and March 31, 2024, reclassifications to the held for sale portfolio included loans that were sold during the period, including those in contracts pending settlement at the end of the period, and loans originated for the held for investment portfolio that were later identified for sale.

At March 31, 2025 and September 30, 2024, mortgage loans held for sale totaled $ 5,803 and $ 17,775 , respectively.

During the three and six months ended March 31, 2025, the principal balance of loans sold, according to trade date, was $ 75,159 and $ 147,190 (including loans in contracts pending settlement) compared to $ 33,477 and $ 121,320 (including loans in contracts pending settlement) during the three and six months ended March 31, 2024.

During the three and six months ended March 31, 2025, the amortized cost of loans originated as held for sale that were subsequently transferred to the held for investment portfolio was $ 0 and $ 1,327 , respectively, compared to none during the three and six months ended March 31, 2024.

During the three and nine months ended June 30, 2025 and June 30, 2024, reclassifications to the held for sale portfolio included loans that were sold during the period, including those in contracts pending settlement at the end of the period, and loans originated for the held for investment portfolio that were later identified for sale.

At June 30, 2025 and September 30, 2024, mortgage loans held for sale totaled $ 30,977 and $ 17,775 , respectively.

During the three and nine months ended June 30, 2025, the principal balance of loans sold, according to trade date, was $ 63,372 and $ 210,562 (including loans in contracts pending settlement) compared to $ 69,420 and $ 190,743 (including loans in contracts pending settlement) during the three and nine months ended June 30, 2024.

During the three and nine months ended June 30, 2025, the amortized cost of loans originated as held for sale that were subsequently transferred to the held for investment portfolio was $ 0 and $ 1,327 , respectively, compared to $ 771 during the three and nine months ended June 30, 2024.

DELINQUENCY and NON-ACCRUAL

An aging analysis of the amortized cost in loan receivables that are past due at March 31, 2025 and September 30, 2024, is summarized in the following tables.

An aging analysis of the amortized cost in loan receivables that are past due at June 30, 2025 and September 30, 2024, is summarized in the following tables.

When a loan is more than one month past due on its scheduled payments, the loan is considered 30 days or more past due, regardless of the number of days in each month.

3 unchanged sentences

Due Current Total

March 31, 2025

June 30, 2025

Real estate loans:

33 unchanged sentences

Non-accrual with no ACL describes non-accrual loans which have no quantitative allowance, primarily because they have already been subject to collateral review and any required charge-offs have been taken, but may be included in consideration of qualitative allowance factors.

There are no loans 90 or more days past due and still accruing at March 31, 2025 or September 30, 2024.

March 31, 2025 September 30, 2024

There are no loans 90 or more days past due and still accruing at June 30, 2025 or September 30, 2024.

June 30, 2025 September 30, 2024

Non-accrual with No ACL

8 unchanged sentences

Total non-accrual loans $ 31,937 $ 37,254 $ 30,513 $ 33,610

At March 31, 2025 and September 30, 2024, the amortized cost in non-accrual loans includes $ 22,148 and $ 19,704 , respectively, which are performing according to the terms of their agreement, of which $ 13,253 and $ 11,532 , respectively, are loans in Chapter 7 bankruptcy status, primarily where all borrowers have filed, and have not reaffirmed or been dismissed.

At March 31, 2025 and September 30, 2024, real estate loans include $ 11,183 and $ 10,527 , respectively, of loans that were in the process of foreclosure.

At June 30, 2025 and September 30, 2024, the amortized cost in non-accrual loans includes $ 21,468 and $ 19,704 , respectively, which are performing according to the terms of their agreement, of which $ 13,914 and $ 11,532 , respectively, are loans in Chapter 7 bankruptcy status, primarily where all borrowers have filed, and have not reaffirmed or been dismissed.

At June 30, 2025 and September 30, 2024, real estate loans include $ 10,759 and $ 10,527 , respectively, of loans that were in the process of foreclosure.

Interest on loans in accrual status is recognized in interest income as it accrues on a daily basis.

2 unchanged sentences

Cash payments on loans in non-accrual status are applied to the oldest scheduled, unpaid payment first.

The amount of interest income recognized on non-accrual loans was $ 243 and $ 479 for the three and six months ended March 31, 2025, and $ 162 and $ 324 for the three and six months ended March 31, 2024, respectively.

The amount of interest income recognized on non-accrual loans was $ 278 and $ 757 for the three and nine months ended June 30, 2025, and $ 183 and $ 507 for the three and nine months ended June 30, 2024, respectively.

Cash payments on loans with a partial charge-off are applied fully to principal, then to recovery of the charged off amount prior to interest income being recognized, except cash payments may be applied to interest capitalized in a modification when collection of remaining amounts due is considered probable.

11 unchanged sentences

The qualitative adjustments resulted in a negative ending balance on the allowance for credit losses for the Home Today portfolio, where recoveries are expected to exceed charge-offs over the remaining life of that portfolio.

The net qualitative adjustment at March 31, 2025, was a reduction to the allowance for credit losses of $ 3,122 , compared to a reduction of $ 5,519 at September 30, 2024.

The net qualitative adjustment at June 30, 2025, was a reduction to the allowance for credit losses of $ 3,382 , compared to a reduction of $ 5,519 at September 30, 2024.

Qualitative adjustments are evaluated quarterly, at a minimum, based on current facts and circumstances.

19 unchanged sentences

LOAN COMMITMENTS AND CONTINGENT LIABILITIES for further details on the allowance for unfunded commitments.

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Balance Provisions (Releases) Charge-offs Recoveries Ending

10 unchanged sentences

(1) For all periods presented, the total allowance for unfunded loan commitments is recognized in accrued expenses and other liabilities on the CONSOLIDATED STATEMENTS OF CONDITION and primarily relates to undrawn home equity lines of credit.

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Balance Provisions (Releases) Charge-offs Recoveries Ending

10 unchanged sentences

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Balance Provisions (Releases) Charge-offs Recoveries Ending

12 unchanged sentences

For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 2024

Balance Adoption of ASU 2022-02 2

13 unchanged sentences

(2) The Company adopted ASU 2022-02 on October 1, 2023, which eliminated the accounting for TDRs, and changed the allowance methodology, as reflected above, from using the present value of cash flows.

Instead, losses on loans with modifications to borrowers experiencing financial difficulties, previously identified as TDRs, will be estimated as described above, in the same manner as loans that have not been subject to such modifications.

CLASSIFIED LOANS

8 unchanged sentences

2025 2024 2023 2022 2021 Prior Total

March 31, 2025

June 30, 2025

Real estate loans:

64 unchanged sentences

There were no gross charge-offs in the construction loan portfolios for the periods presented.

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

By fiscal year of origination

7 unchanged sentences

Total real estate loans $ — $ — $ — $ — $ 17 $ 33 $ 393 $ 374 $ 817

For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 2024

By fiscal year of origination

7 unchanged sentences

Total real estate loans $ 11 $ — $ 26 $ 18 $ — $ 298 $ 369 $ 292 $ 1,014

The home equity lines of credit that converted from revolving to term loans during the three and six months ended March 31, 2025, totaled $ 3,872 and $ 6,814 , respectively, and during the three and six months ended March 31, 2024, totaled $ 1,208 and $ 2,294 , respectively.

The home equity lines of credit that converted from revolving to term loans during the three and nine months ended June 30, 2025, totaled $ 5,109 and $ 11,333 , respectively, and during the three and nine months ended June 30, 2024, totaled $ 4,392 and $ 6,558 , respectively.

The amount of conversions to term loans is expected to remain relatively low for several years since the length of the draw period on new originations changed from five to 10 years in 2016.

7 unchanged sentences

Other loans are internally assigned a grade of non-performing when they become 90 days or more past due.

At March 31, 2025 and September 30, 2024, no other loans were graded as non-performing.

At June 30, 2025 and September 30, 2024, no other loans were graded as non-performing.

MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

9 unchanged sentences

The following tables present the amortized cost of modifications by type executed during the periods presented for borrowers experiencing financial difficulty.

For the three and six months ended March 31, 2025 and March 31, 2024, there were no modifications made on construction loans.

For the Three Months Ended March 31, 2025

For the three and nine months ended June 30, 2025 and June 30, 2024, there were no modifications made on construction loans.

For the Three Months Ended June 30, 2025

Interest Rate Reduction

10 unchanged sentences

Total $ — $ 427 $ 924 $ 529 $ — $ 1,880 0.01 %

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Interest Rate Reduction

10 unchanged sentences

Total $ — $ 238 $ 1,130 $ 151 $ — $ 1,519 0.01 %

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Interest Rate Reduction

10 unchanged sentences

Total $ — $ 1,068 $ 2,381 $ 1,274 $ 336 $ 5,059 0.03 %

For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 2024

Interest Rate Reduction

11 unchanged sentences

The following tables present the financial effects of the loan modifications presented above based on the type of modification.

For the Three Months Ended March 31, 2025 For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2025 For the Three Months Ended June 30, 2024

Interest Rate Reduction

14 unchanged sentences

— % — % 0.0 — % — % 0.0

For the Six Months Ended March 31, 2025 For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 2025 For the Nine Months Ended June 30, 2024

Interest Rate Reduction

14 unchanged sentences

Modifications made to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under the modified terms are considered subsequently defaulted.

The following table provides information, by type of modification, about loans that were modified within the last 12 months and subsequently defaulted during the three and six months ended March 31, 2025 and March 31, 2024.

There were no home equity loans that subsequently defaulted for the three and six months ended March 31, 2025 and March 31, 2024.

For the Three Months Ended March 31, 2025

The following table provides information, by type of modification, about loans that were modified within the last 12 months and subsequently defaulted during the three and nine months ended June 30, 2025 and June 30, 2024.

There were no home equity loans that subsequently defaulted for the three and nine months ended June 30, 2025 and June 30, 2024.

For the Three Months Ended June 30, 2025

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

2 unchanged sentences

Home equity lines of credit — — 31 — — 31

— — 30 98 — 128

Total $ — $ — $ 371 $ — $ 336 $ 707

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

3 unchanged sentences

$ — $ — $ 139 $ 14 $ — $ 153

$ — $ — $ 208 $ — $ — $ 208

(1) The Company adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the March 31, 2024 presentation only includes loans modified since adoption.

For the Six Months Ended March 31, 2025

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the June 30, 2024 presentation only includes loans modified since adoption.

For the Nine Months Ended June 30, 2025

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

3 unchanged sentences

Total $ — $ — $ 371 $ — $ 336 $ 707

For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 2024

Interest Rate Reduction Term Extension Significant Payment Delay Combination-Rate Reduction & Term Extension Other Total

4 unchanged sentences

(1) The Company adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the March 31, 2024 presentation only includes loans modified since adoption.

The following tables present performance by loan type as of March 31, 2025 and March 31, 2024, on loans modified during the previous 12 months for borrowers experiencing financial difficulty.

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the June 30, 2024 presentation only includes loans modified since adoption.

The following tables present performance by loan type as of June 30, 2025 and June 30, 2024, on loans modified during the previous 12 months for borrowers experiencing financial difficulty.

The loans in delinquency status primarily consisted of loans with significant payment delays prior to modification, which continue to be reported delinquent based on their original contractual terms.

March 31, 2025 30-59

June 30, 2025 30-59

Past Due 60-89

8 unchanged sentences

Total $ 236 $ 329 $ 1,874 $ 2,439 $ 4,068 $ 6,507

March 31, 2024 30-59

June 30, 2024 30-59

Past Due 60-89

9 unchanged sentences

(1) The Company adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the March 31, 2024 presentation only includes loans modified since adoption.

Troubled Debt Restructurings and Vintage Disclosures effective October 1, 2023, therefore, the June 30, 2024 presentation only includes loans modified since adoption.

Deposit account balances are summarized as follows:

7 unchanged sentences

Total deposits $ 10,341,499 $ 10,195,079

The aggregate amount of CDs in denominations of more than $250 was $ 1,448,876 and $ 1,283,719 at March 31, 2025 and September 30, 2024, respectively.

The aggregate amount of CDs in denominations of more than $250 was $ 1,465,541 and $ 1,283,719 at June 30, 2025 and September 30, 2024, respectively.

In accordance with the DFA, the maximum amount of federal deposit insurance is $250 per depositor for each account ownership category.

Brokered CDs (exclusive of acquisition costs and subsequent amortization), which are used as a cost effective funding alternative, totaled $ 1,031,999 and $ 1,217,303 at March 31, 2025 and September 30, 2024, respectively, of which $675,000 and $725,000 were aligned with interest rate swaps as discussed in Note 13.

Brokered CDs (exclusive of acquisition costs and subsequent amortization), which are used as a cost effective funding alternative, totaled $ 977,499 and $ 1,217,303 at June 30, 2025 and September 30, 2024, respectively, of which $675,000 and $725,000 were aligned with interest rate swaps as discussed in Note 13.

DERIVATIVE INSTRUMENTS .

The FDIC places restrictions on banks with regard to issuing brokered deposits based on the bank's capital classification.

As a well-capitalized institution at March 31, 2025 and September 30, 2024, the Association may accept brokered deposits without FDIC restrictions.

As a well-capitalized institution at June 30, 2025 and September 30, 2024, the Association may accept brokered deposits without FDIC restrictions.

BORROWED FUNDS

At March 31, 2025, the Association had a maximum borrowing capacity of $7,633,810, of which $4,587,327 was outstanding.

At June 30, 2025, the Association had a maximum borrowing capacity of $7,619,351, of which $4,882,993 was outstanding.

Borrowings from the FHLB of Cincinnati are secured by the Association’s investment in the common stock of the FHLB of Cincinnati, as well as by a blanket pledge of its mortgage portfolio not otherwise pledged.

1 unchanged sentence

Additionally, the ability to borrow from the FRB-Cleveland Discount Window is available to the Association and is secured by a pledge of specific loans in the Association’s mortgage portfolio.

Total borrowings at March 31, 2025 are summarized in the table below:

Total borrowings at June 30, 2025 are summarized in the table below:

Borrowing Capacity Borrowings Available Borrowings Outstanding

5 unchanged sentences

Total Borrowings $ 4,882,993

Maturities of borrowings at March 31, 2025 are summarized in the table below:

Maturities of borrowings at June 30, 2025 are summarized in the table below:

Amount Weighted Average Rate

4 unchanged sentences

49 to 60 months

1,001,151 3.46

Over 60 months 1,733 1.40

5 unchanged sentences

Interest is payable monthly for long-term FHLB advances and generally at maturity for FHLB advances with terms of three months or less.

For the three and six months ended March 31, 2025, and March 31, 2024, net interest expense related to short-term borrowings was $ 24,227 and $ 49,426 , and $ 23,067 and $ 56,040 , respectively.

For the three and nine months ended June 30, 2025, and June 30, 2024, net interest expense related to short-term borrowings was $ 24,994 and $ 74,420 , and $ 25,098 and $ 81,137 , respectively.

OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

For the Three Months Ended For the Three Months Ended

March 31, 2025 March 31, 2024

June 30, 2025 June 30, 2024

Unrealized Gains (Losses) on Securities Available for Sale Cash Flow Hedges Defined Benefit Plan Total Unrealized Gains (Losses) on Securities Available for Sale Cash Flow Hedges Defined Benefit Plan Total

6 unchanged sentences

$ 867 $ ( 5,854 ) $ — $ ( 4,987 ) $ 12 $ 14 $ 31 $ 57

For the Six Months Ended For the Six Months Ended

March 31, 2025 March 31, 2024

For the Nine Months Ended For the Nine Months Ended

June 30, 2025 June 30, 2024

10 unchanged sentences

Other Comprehensive Income

Details about Accumulated Other Comprehensive Income Components For the Three Months Ended March 31, For the Six Months Ended March 31, Line Item in the Consolidated Statements of Income

Details about Accumulated Other Comprehensive Income Components For the Three Months Ended June 30, For the Nine Months Ended June 30, Line Item in the Consolidated Statements of Income

2025 2024 2025 2024

12 unchanged sentences

federal jurisdiction and in various state and city jurisdictions.

The Company’s combined federal and state effective income tax rate was 20.9 % and 20.4 % for the six months ended March 31, 2025 and March 31, 2024, respectively.

The Company’s combined federal and state effective income tax rate was 21.0 % and 20.6 % for the nine months ended June 30, 2025 and June 30, 2024, respectively.

The Company is no longer subject to income tax examinations in its major jurisdictions for tax years ended prior to 2021.

3 unchanged sentences

The Company accounts for its interests in LIHTCs using the proportional amortization method.

The impact of the Company's investments in tax credit entities on the provision for income taxes was not material during the six months ended March 31, 2025 and March 31, 2024.

The impact of the Company's investments in tax credit entities on the provision for income taxes was not material during the nine months ended June 30, 2025 and June 30, 2024.

DEFINED BENEFIT PLAN

7 unchanged sentences

The components of net periodic cost recognized in other non-interest expense in the CONSOLIDATED STATEMENTS OF INCOME are as follows:

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

4 unchanged sentences

$ ( 457 ) $ ( 32 ) $ ( 1,370 ) $ ( 96 )

There were no required minimum employer contributions during the six months ended March 31, 2025.

There were no required minimum employer contributions during the nine months ended June 30, 2025.

There are no required minimum employer contributions expected during the remainder of the fiscal year ending September 30, 2025.

EQUITY INCENTIVE PLAN

During the six months ended March 31, 2025, 178,700 restricted stock units, 135,300 performance share units, and 12,000 stock options were granted to directors, executive officers and certain managers of the Company.

During the six months ended March 31, 2025, performance share units granted in December 2022 were reduced by 10,200 units, according to the targeted performance formula.

During the nine months ended June 30, 2025, 178,700 restricted stock units, 135,300 performance share units, and 12,000 stock options were granted to directors, executive officers and certain managers of the Company.

During the nine months ended June 30, 2025, performance share units granted in December 2022 were reduced by 10,200 units, according to the targeted performance formula.

The awards were made pursuant to the Amended and Restated 2008 Equity Incentive Plan, which was approved at the annual meeting of shareholders held on February 22, 2018.

The following table presents share-based compensation expense recognized during the periods presented:

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

3 unchanged sentences

Total stock-based compensation expense $ 947 $ 840 $ 2,802 $ 2,926

At March 31, 2025, 1,447,975 shares were subject to options, with a weighted average exercise price of $ 15.66 per share and a weighted average grant date fair value of $ 2.10 per share.

Expected future expense, relating to the 259,200 non-vested options outstanding as of March 31, 2025, is $ 183 over a weighted average period of 1.6 years.

At March 31, 2025, 422,435 restricted stock units and 288,100 performance share units with a weighted average grant date fair value of $ 13.13 and $ 13.01 per unit, respectively, are unvested.

Expected future compensation expense, relating to the 1,188,183 restricted stock units and 288,100 performance share units outstanding as of March 31, 2025, is $ 3,746 over a weighted average period of 2.0 years and $ 1,780 over a weighted average period of 2.1 years, respectively.

At June 30, 2025, 1,230,475 shares were subject to options, with a weighted average exercise price of $ 15.81 per share and a weighted average grant date fair value of $ 1.94 per share.

Expected future expense, relating to the 258,600 non-vested options outstanding as of June 30, 2025, is $ 154 over a weighted average period of 1.4 years.

At June 30, 2025, 421,990 restricted stock units and 288,100 performance share units with a weighted average grant date fair value of $ 13.13 and $ 13.01 per unit, respectively, are unvested.

Expected future compensation expense, relating to the 1,187,738 restricted stock units and 288,100 performance share units outstanding as of June 30, 2025, is $ 3,094 over a weighted average period of 1.9 years and $ 1,515 over a weighted average period of 2.0 years, respectively.

Each unit is equivalent to one share of common stock.

13 unchanged sentences

Interest rate risk on commitments to extend credit results from the possibility that interest rates may move unfavorably from the position of the Company since the time the commitment was made.

At March 31, 2025, the Company had commitments to originate or acquire loans and related allowances as follows:

At June 30, 2025, the Company had commitments to originate or acquire loans and related allowances as follows:

Commitment Allowance

5 unchanged sentences

Total $ 426,443 $ 3,963

At March 31, 2025, the Company had unfunded commitments outstanding and related allowances as follows:

At June 30, 2025, the Company had unfunded commitments outstanding and related allowances as follows:

Commitment Allowance

2 unchanged sentences

Total $ 5,521,782 $ 25,868

At March 31, 2025, the unfunded commitment on home equity lines of credit, including commitments for accounts suspended as a result of material default or a decline in equity, was $ 5,470,889 .

At March 31, 2025 and September 30, 2024, the Company had $ 15,721 and $ 17,411 , respectively, in commitments to sell mortgage loans.

At March 31, 2025 and September 30, 2024, the Company had $ 79,990 and $ 15,891 , respectively, in commitments to acquire mortgage loans, which are included in mortgage loan commitments above.

At June 30, 2025, the unfunded commitment on home equity lines of credit, including commitments for accounts suspended as a result of material default or a decline in equity, was $ 5,557,905 .

At June 30, 2025 and September 30, 2024, the Company had $ 73,300 and $ 17,411 , respectively, in commitments to sell mortgage loans.

At June 30, 2025 and September 30, 2024, the Company had $ 115,804 and $ 15,891 , respectively, in commitments to acquire mortgage loans, which are included in mortgage loan commitments above.

The above commitments are expected to be funded through normal operations.

The Company is undergoing an escheat audit covering the states of Ohio, Kentucky and Florida.

Any potential loss, or range of potential loss, that may result from this matter is not reasonably estimable at March 31, 2025.

Any potential loss, or range of potential loss, that may result from this matter is not reasonably estimable at June 30, 2025.

The Company and its subsidiaries are subject to various legal actions arising in the normal course of business.

4 unchanged sentences

Investment Securities Available for Sale— Investment securities available for sale are recorded at fair value on a recurring basis.

At March 31, 2025 and September 30, 2024, this includes $ 533,923 and $ 526,251 , respectively, of investments in U.S.

At June 30, 2025 and September 30, 2024, this includes $ 525,212 and $ 526,251 , respectively, of investments in U.S.

government and agency obligations including U.S.

6 unchanged sentences

This election is expected to reduce volatility in earnings related to market fluctuations between the contract trade and settlement dates.

At March 31, 2025 and September 30, 2024, there were $ 4,745 and $ 10,713 of loans held for sale subject to pending agency contracts measured at fair value, respectively, with unpaid principal balances of $ 4,634 and $ 10,336 .

For the three and six months ended March 31, 2025, net gain (loss) on the sale of loans included $ 60 and $( 267 ), respectively, compared to $ 68 for the three and six months ended March 31, 2024, related to gains or losses during the period due to changes in the fair value of loans held for sale subject to pending agency contracts.

At March 31, 2025 and September 30, 2024, there were $ 1,059 and $ 7,061 of loans held for sale carried at cost, respectively.

At June 30, 2025 and September 30, 2024, there were $ 29,303 and $ 10,713 of loans held for sale subject to pending agency contracts measured at fair value, respectively, with unpaid principal balances of $ 28,734 and $ 10,336 .

For the three and nine months ended June 30, 2025, net gain (loss) on the sale of loans included $ 289 and $ 22 , respectively, compared to $ 94 and $ 162 for the three and nine months ended June 30, 2024, related to gains or losses during the period due to changes in the fair value of loans held for sale subject to pending agency contracts.

At June 30, 2025 and September 30, 2024, there were $ 1,675 and $ 7,061 of loans held for sale carried at cost, respectively.

Loans held for sale are included in Level 2 of the hierarchy.

12 unchanged sentences

Real Estate Owned— Real estate owned includes real estate acquired as a result of foreclosure or by deed in lieu of foreclosure and is carried at the lower of the cost basis or fair value, less estimated costs to dispose.

The carrying amounts of real estate owned at March 31, 2025 and September 30, 2024, were $ 0 and $ 174 , respectively.

The carrying amounts of real estate owned at June 30, 2025 and September 30, 2024, were $ 1,240 and $ 174 , respectively.

Fair value is estimated under the market approach using independent third party appraisals.

As these properties are actively marketed, estimated fair values may be adjusted by management to reflect current economic and market conditions.

At March 31, 2025 and September 30, 2024, these adjustments were not significant to reported fair values.

At March 31, 2025 and September 30, 2024, $ 0 and $ 220 , respectively, of real estate owned is included in Level 3 of the hierarchy with assets measured at fair value on a non-recurring basis, where the cost basis equals or exceeds the estimated fair values, less estimated costs to dispose, of $ 0 and $ 46 , respectively.

There were no real estate owned carried at their original or adjusted cost basis at March 31, 2025 and September 30, 2024.

At June 30, 2025 and September 30, 2024, these adjustments were not significant to reported fair values.

At June 30, 2025 and September 30, 2024, $ 1,570 and $ 220 , respectively, of real estate owned is included in Level 3 of the hierarchy with assets measured at fair value on a non-recurring basis, where the cost basis equals or exceeds the estimated fair values, less estimated costs to dispose, of $ 330 and $ 46 , respectively.

There were no real estate owned carried at their original or adjusted cost basis at June 30, 2025 and September 30, 2024.

Derivatives— Derivative instruments include interest rate lock commitments on loans being originated or acquired for the held for sale portfolio, forward commitments on contracts to deliver mortgage loans and interest rate swaps designated as cash flow hedges.

9 unchanged sentences

Forward commitments on contracts to deliver mortgage loans are included in Level 2 of the hierarchy.

Assets and liabilities carried at fair value on a recurring basis in the CONSOLIDATED STATEMENTS OF CONDITION at March 31, 2025 and September 30, 2024, are summarized below.

Assets and liabilities carried at fair value on a recurring basis in the CONSOLIDATED STATEMENTS OF CONDITION at June 30, 2025 and September 30, 2024, are summarized below.

Recurring Fair Value Measurements at Reporting Date Using

32 unchanged sentences

The table below presents a reconciliation of the beginning and ending balances and the location within the CONSOLIDATED STATEMENTS OF INCOME where gains (losses) due to changes in fair value are recognized on interest rate lock commitments which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

Three Months Ended March 31, Six Months Ended March 31,

Three Months Ended June 30, Nine Months Ended June 30,

2025 2024 2025 2024

Beginning balance $ 318 $ 358 $ 395 $ ( 1 )

(Loss)/Gain during the period due to changes in fair value:

Gain during the period due to changes in fair value:

Included in other non-interest income 279 154 202 513

9 unchanged sentences

Collateral-dependent loans, net of allowance $ 43,411 $ — $ — $ 43,411

Real estate owned (1)

1,570 — — 1,570

Total $ 44,981 $ — $ — $ 44,981

11 unchanged sentences

The following provides quantitative information about significant unobservable inputs categorized within Level 3 of the Fair Value Hierarchy.

March 31, 2025 Valuation Technique(s) Unobservable Input Range Weighted Average

June 30, 2025 Valuation Technique(s) Unobservable Input Range Weighted Average

Collateral-dependent loans, net of allowance $ 43,411 Market comparables of collateral discounted to estimated net proceeds Discount appraised value to estimated net proceeds based on historical experience:

6 unchanged sentences

The following tables present the estimated fair value of the Company’s financial instruments and their carrying amounts as reported in the CONSOLIDATED STATEMENTS OF CONDITION .

March 31, 2025

June 30, 2025

Carrying Fair Level 1 Level 2 Level 3

47 unchanged sentences

Quarterly, a quantitative analysis is performed to monitor the ongoing effectiveness of the hedging instrument.

All derivative positions continue to be highly effective as of March 31, 2025.

All derivative positions continue to be highly effective as of June 30, 2025.

The Company enters into forward commitments for the sale of mortgage loans primarily to protect against the risk of lost revenue from adverse interest rate movements on net income.

6 unchanged sentences

The following tables provide the locations within the CONSOLIDATED STATEMENTS OF CONDITION for fair values of derivative instruments at the reporting dates and their related notional values.

March 31, 2025 September 30, 2024

June 30, 2025 September 30, 2024

Weighted Average Weighted Average

8 unchanged sentences

$ 3,650,000 2.7 3.26 % $ 3,650,000 3.1 3.10 %

March 31, 2025 September 30, 2024

June 30, 2025 September 30, 2024

Notional Value Fair Value Notional Value Fair Value

6 unchanged sentences

The following tables present the net gains and losses recorded within the CONSOLIDATED STATEMENTS OF INCOME and the CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME relating to derivative instruments.

Three Months Ended Six Months Ended

Location of Gain or (Loss) March 31, March 31,

Three Months Ended Nine Months Ended

Location of Gain or (Loss) June 30, June 30,

Recognized in Income 2025 2024 2025 2024

8 unchanged sentences

Forward commitments for the sale of mortgage loans Net gain/(loss) on the sale of loans ( 139 ) 132 ( 88 ) ( 19 )

The Company estimates that $ 22,789 of the amounts reported in AOCI will be reclassified as a reduction to interest expense during the twelve months ending March 31, 2026.

The Company estimates that $ 17,562 of the amounts reported in AOCI will be reclassified as a reduction to interest expense during the twelve months ending June 30, 2026.

Derivatives contain an element of credit risk which arises from the possibility that the Company will incur a loss because a counterparty fails to meet its contractual obligations.

4 unchanged sentences

This process shifts the risk away from the counterparty, since the clearing organization acts as an intermediary on each cleared transaction.

At March 31, 2025 and September 30, 2024, there was $ 9,060 and $ 7,844 , respectively, of cash collateral included in other assets, and $ 50,236 and $ 68,932 , respectively, included in investment securities related to initial margin requirements that are held by the central clearing organization.

At June 30, 2025 and September 30, 2024, there was $ 5,977 and $ 7,844 , respectively, of cash collateral included in other assets, and $ 50,111 and $ 68,932 , respectively, included in investment securities related to initial margin requirements that are held by the central clearing organization.

For derivative transactions cleared through certain clearing parties, variation margin payments are recognized as settlements on a

1 unchanged sentence

RECENT ACCOUNTING PRONOUNCEMENTS

Adopted during the six months ended March 31, 2025

Adopted during the nine months ended June 30, 2025

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures.” The amendments in this update improve disclosures about a public entity's reportable segments and addresses requests from investors and other allocators of capital for additional information about a reportable segment's expenses.

3 unchanged sentences

The adoption does not have a material effect on the Company's consolidated financial statements or disclosures.

Issued but not yet adopted as of March 31, 2025

Issued but not yet adopted as of June 30, 2025

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures".

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements