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
−Removed: and performance objectives.
−Removed: 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.
+Added: Accordingly, our Board of Directors has established risk parameter limits deemed appropriate given our business strategy, operating environment, capital, liquidity and performance objectives.
+Added: 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 manner that is consistent with the tolerance limits approved by the Board of Directors.
Further, the Board has established the Director's Risk Committee, which, among other responsibilities, conducts regular oversight and review of the guidelines, policies and deliberations of the Asset/Liability Management Committee.
−Removed: We manage our interest rate risk in order to control the exposure of our earnings and capital to changes in interest rates.
+Added: We manage our interest rate risk in order to control the exposure
+Added: of our earnings and capital to changes in interest rates.
Refer to the Overview section of Item 2 for additional discussion on how we manage interest rate risk.
23 unchanged sentences
The simulation process is subject to continual enhancement, modification, refinement and adaptation.
−Removed: The Company and Association use a "shocked" assumption in preparing the NII sensitivity simulation estimates for us in its public disclosure.
+Added: The Company and Association use a "shocked" assumption in preparing the NII sensitivity simulation estimates for use in its public disclosure.
The "shocked" assumption calculates NII sensitivity in the event that the market interest rates used in the simulation were instantly adjusted.
7 unchanged sentences
From that similar starting point, the models follow divergent paths.
−Removed: EVE is a stochastic model using 250 different interest rate paths to compute market value at the account level for each of the categories on the balance sheet whereas NII uses the month-end curve to compute interest income/expense at the account level for each of the categories on the balance sheet.
+Added: EVE is a stochastic model using 250 different interest rate paths to compute
+Added: market value at the account level for each of the categories on the balance sheet whereas NII uses the month-end curve to compute interest income/expense at the account level for each of the categories on the balance sheet.
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.
5 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 March 31, 2026, 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 June 30, 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 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.
−Removed: 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.
+Added: (2) Estimated NII is calculated for the prospective 12 months ending June 30, 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 June 30, 2026, in the event of an increase of 200 basis points in interest rates, the Company and Association would experience a 23.96% and 26.48% decrease in EVE, respectively.
In the event of a 100 basis point decrease in interest rates, the Company and Association would experience an 7.42% and 8.20% 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 March 31, 2026, 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 June 30, 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 March 31, 2026 At September 30, 2025
+Added: Risk Measure (+200 Basis Points Rate Shock) At June 30, 2026 At September 30, 2025
Pre-Shock EVE $ 1,758,454 $ 1,560,859
3 unchanged sentences
Third Federal Savings and Loan Association
−Removed: Risk Measure (+200 Basis Points Rate Shock) At March 31, 2026 At September 30, 2025
+Added: Risk Measure (+200 Basis Points Rate Shock) At June 30, 2026 At September 30, 2025
Pre-Shock EVE $ 1,591,076 $ 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 2.81% and 3.17% at March 31, 2026, when compared to the measures at September 30, 2025, for the Company and Association, respectively.
−Removed: 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 seek to improve our interest rate risk profile through the origination of Smart Rate (adjustable) loans, home equity lines of credit (adjustable) and fixed-rate loans funded by retail deposits and borrowings from the FHLB, the combined impact of changes in market conditions and balance sheet composition resulted in a deterioration of upside +200 shock valuation sensitivity of 2.61 and 2.86 percentage points at June 30, 2026, when compared to the measures at September 30, 2025, for the Company and Association, respectively.
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.