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Get filing alertsTFS Financial reports record Q3 earnings of $30.5M; MHC approved to waive up to $1.27/share
Filed July 30, 2026 · Period ending July 30, 2026 · ~1 min read
Key Changes
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MHC received Federal Reserve approval to waive dividends up to $1.27/share over 12 months ending July 2027, allowing capital retention that would otherwise flow to the 81% majority owner; members approved 97% in favor with 59% turnout.
Item 8.01 verify on EDGAR → -
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Q3 2026 net income rose 31.4% to $30.5 million from $23.2 million in the prior quarter, driven by net interest margin expansion, provision release, and strong mortgage originations.
Item 2.02 verify on EDGAR → -
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Net interest margin expanded six basis points to 1.90% in Q3 2026, with interest rate spread improving to 1.58%, driven by nine basis point increase in loan yields partially offset by five basis point increase in deposit costs.
Exhibit 99.1 view on EDGAR → -
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Company released $3.5 million from provision for credit losses in Q3 2026 as longer-term fixed-rate home equity loans outperformed loss model expectations; total allowance decreased to $102.0 million or 0.63% of total loans.
Exhibit 99.1 view on EDGAR → -
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Residential mortgage originations and acquisitions surged to $616.4 million in Q3 2026, more than doubling from $251.7 million in the prior quarter and up from $384.2 million year-ago.
Exhibit 99.1 view on EDGAR →
Summary
TFS Financial disclosed two significant developments: record Q3 2026 earnings and Federal Reserve approval for its mutual holding company to waive dividends. The MHC, which owns 81% of TFSL's common stock, received approval to waive up to $1.27 per share in dividends over the next 12 months.
This waiver allows the company to retain capital that would otherwise flow to the majority owner, potentially strengthening the balance sheet while maintaining dividends to minority public shareholders. Members approved the waiver with 97% support on 59% turnout. The company reported net income of $30.5 million for Q3 2026, up 31.4% from the prior quarter, driven by multiple positive factors.
Net interest margin expanded to 1.90% as loan yields improved faster than deposit costs rose. The company released $3.5 million from credit loss reserves as home equity loans outperformed expectations. Mortgage originations more than doubled sequentially to $616.4 million, reflecting strong market activity and correspondent banking relationships. The combination of improved profitability and the MHC dividend waiver creates flexibility for capital deployment to public shareholders while supporting balance sheet growth.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
TFS Financial announced Q3 and nine-month fiscal 2026 operating results via press release.
Added in current filing · verify on EDGAR →
On July 30, 2026, TFS Financial Corporation (the "Company”), the holding company for Third Federal Savings and Loan Association of Cleveland (the "Association"), issued a press release announcing its operating results for the three and nine months ended June 30, 2026.
The company disclosed its financial results for the three and nine months ended June 30, 2026. The 8-K body does not contain the actual financial figures; those are in the attached press release exhibit.
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Third Federal Savings and Loan Association of Cleveland, MHC (the “MHC”), the mutual holding company of TFS Financial Corporation, announced that it had received the non-objection of the Federal Reserve Bank of Cleveland to waive receipt of dividends on the shares of stock it owns of TFS Financial Corporation, up to $1.27 per share during the 12 months ending July 7, 2027.
The MHC, which owns 81% of TFSL's common stock, received Federal Reserve approval to waive dividends up to $1.27 per share over the next 12 months. This waiver allows the company to retain capital that would otherwise flow to the MHC, potentially strengthening the balance sheet or enabling higher dividends to minority shareholders. The MHC previously waived $1.13 per share during the four quarters ended June 30, 2026.
Added in current filing · verify on EDGAR →
The MHC is the mutual holding company and owner of 227,119,132 shares, or 81% of the Company’s common stock
outstanding
The filing discloses that the MHC owns 227,119,132 shares, representing 81% of TFSL's outstanding common stock. This substantial majority ownership means the waiver decision has significant impact on capital allocation, as the MHC's foregone dividends represent the majority of what would otherwise be total dividend payments.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
As a result of a July 7, 2026 member vote and the subsequent non-objection of the Federal Reserve, the MHC has the approval to waive receipt of up to $1.27 per share of possible dividends to be declared on the Company’s common stock during the twelve months subsequent to the members’ approval (i.e., through July 7, 2027).
The mutual holding company (MHC), which owns approximately 81% of TFS Financial's outstanding stock, received member approval on July 7, 2026 to waive receipt of up to $1.27 per share of dividends over the next twelve months. This waiver allows the company to pay dividends to public shareholders without diluting those payments to the MHC. The company declared and paid a quarterly dividend of $0.2825 per share during each of the first three fiscal quarters of 2026.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 31, 2026 · How we verify