3 unchanged sentences
As a result, a fundamental component of our business strategy is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates.
−Removed: Accordingly, our Board of Directors has established risk parameter limits deemed appropriate given our business strategy, operating environment, capital, liquidity and performance objectives.
+Added: Accordingly, our Board of Directors has established risk parameter limits deemed appropriate given our business strategy, operating environment, capital, liquidity
+Added: and performance objectives.
Additionally, our Board of Directors has authorized the formation of an Asset/Liability Management Committee comprised of key operating personnel, which is responsible for managing this risk in a matter that is consistent with the tolerance limits approved by the Board of Directors.
3 unchanged sentences
Economic Value of Equity.
−Removed: Using customized modeling software, the Company and Association prepare periodic estimates of the amounts by which the net present value of cash flows from assets, liabilities and off-balance sheet items (the
−Removed: institution's EVE) would change in the event of a range of assumed changes in market interest rates.
+Added: Using customized modeling software, the Company and Association prepare periodic estimates of the amounts by which the net present value of cash flows from assets, liabilities and off-balance sheet items (the institution's EVE) would change in the event of a range of assumed changes in market interest rates.
The simulation model uses a discounted cash flow analysis and an option-based pricing approach in measuring the interest rate sensitivity of EVE.
32 unchanged sentences
EVE is considered as a point in time calculation with a "liquidation" view of the Company and Association where all the cash flows (including interest, principal and prepayments) are modeled and discounted using discount factors derived from the current market yield curves.
−Removed: It provides a long-term view and helps to define changes in equity and duration as a result of
−Removed: changes in interest rates.
+Added: It provides a long-term view and helps to define changes in equity and duration as a result of changes in interest rates.
On the other hand, NII is based on static balance sheet projections going one year and two years forward and assumes pricing levels based on projected interest rate environments to calculate net interest income.
3 unchanged sentences
In the event that there is a breach of policy limits that extends beyond two consecutive quarter-end measurement periods, management is responsible for taking such action, similar to those described under the preceding heading of General , as may be necessary in order to return the Association's interest rate risk profile to a position that is in compliance with the policy.
−Removed: The following table presents the estimated changes in the Company’s and Association's EVE and NII at December 31, 2025, that would result from the indicated changes in the United States Treasury yield curve and other relevant market interest rates.
+Added: The following table presents the estimated changes in the Company’s and Association's EVE and NII at March 31, 2026, that would result from the indicated changes in the United States Treasury yield curve and other relevant market interest rates.
TFS Financial Corporation
21 unchanged sentences
Estimated EVE assumes an instantaneous uniform change in interest rates at all maturities.
−Removed: (2) Estimated NII is calculated for the prospective 12 months ending December 31, 2026, in the event that market interest rates used in the simulation were adjusted instantaneously (termed a "shocked" format) during the 12 month measurement period to an aggregate increase as indicated in the Change in Interest Rates column.
−Removed: The tables above indicate that at December 31, 2025, in the event of an increase of 200 basis points in all interest rates, the Company and Association would experience a 19.98% and 22.76% decrease in EVE, respectively.
+Added: (2) Estimated NII is calculated for the prospective 12 months ending March 31, 2027 , in the event that market interest rates used in the simulation were adjusted instantaneously (termed a "shocked" format) during the 12 month measurement period to an aggregate increase as indicated in the Change in Interest Rates column.
+Added: The tables above indicate that at March 31, 2026, in the event of an increase of 200 basis points in all interest rates, the Company and Association would experience a 18.54% and 20.45% decrease in EVE, respectively.
In the event of a 100 basis point decrease in interest rates, the Company and Association would experience an 4.64% and 5.12% increase in EVE, respectively.
−Removed: The following tables are based on the calculations contained in the previous tables, and set forth the change in the EVE at a +200 basis point rate of shock at December 31, 2025, with comparative information as of September 30, 2025.
+Added: The following tables are based on the calculations contained in the previous tables, and set forth the change in the EVE at a +200 basis point rate of shock at March 31, 2026, with comparative information as of September 30, 2025.
By regulation, the Association must measure and manage its interest rate risk for interest rate shocks relative to established risk tolerances in EVE.
TFS Financial Corporation
−Removed: Risk Measure (+200 Basis Points Rate Shock) At December 31, 2025 At September 30, 2025
+Added: Risk Measure (+200 Basis Points Rate Shock) At March 31, 2026 At September 30, 2025
Pre-Shock EVE $ 1,729,531 $ 1,560,859
3 unchanged sentences
Third Federal Savings and Loan Association
−Removed: Risk Measure (+200 Basis Points Rate Shock) At December 31, 2025 At September 30, 2025
+Added: Risk Measure (+200 Basis Points Rate Shock) At March 31, 2026 At September 30, 2025
Pre-Shock EVE $ 1,567,989 $ 1,410,325
3 unchanged sentences
Accordingly, although the EVE presented in the tables above provides an indication of our interest rate risk exposure as of the indicated dates, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our EVE and will differ from actual results.
−Removed: In addition to our core business activities, which seek to originate Smart Rate (adjustable) loans, home equity lines of credit (adjustable) and fixed-rate loans funded by retail deposits and borrowings from the FHLB, and which the collective activity is intended to have a favorable impact on our IRR profile, the impact of several other items and events resulted in an improvement of upside +200 shock valuation sensitivity of 1.38% and 0.85% at December 31, 2025, when compared to the measures at September 30, 2025, for the Company and Association, respectively.
−Removed: Factors contributing to the improvement included decrease in market interest rates, capital actions by the Association, and changes due to business activity.
−Removed: While our core business activities, as described at the beginning of this paragraph, are generally intended to have a positive impact on our IRR profile, the actual impact is determined by a number of factors, including the pace of mortgage asset additions (reductions) to our balance sheet (including consideration of outstanding commitments to originate those assets), in comparison to the pace of the addition (reduction) of longer duration funding sources.
+Added: In addition to our core business activities, which seek to originate Smart Rate (adjustable) loans, home equity lines of credit (adjustable) and fixed-rate loans funded by retail deposits and borrowings from the FHLB, and which the collective activity is intended to have a favorable impact on our IRR profile, the impact of several other items and events resulted in an improvement of upside +200 shock valuation sensitivity of 2.81% and 3.17% at March 31, 2026, when compared to the measures at September 30, 2025, for the Company and Association, respectively.
+Added: Factors contributing to the improvement included a decrease in market interest rates, capital actions by the Association, and changes due to business activity.
+Added: While our core business activities, as described at the beginning of this paragraph, are generally intended to manage the interest rate risk inherent in our balance sheet, the actual impact is determined by a number of factors, including the pace of mortgage asset additions (reductions) to our balance sheet (including consideration of outstanding commitments to originate those assets), in comparison to the pace of the addition (reduction) of longer duration funding sources.
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.