CluenexThird Federal S&L TFSL
Third Federal S&L scores weak on business quality (2.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Third Federal S&L does
TFS Financial generates income primarily through traditional banking services, focusing on residential real estate mortgage loans and retail deposits as a thrift institution. Management is steering the balance sheet to navigate margin pressures across its branch network in Ohio and Florida.
- What it does best
TFS Financial maintains a conservative debt profile with zero total debt, giving it a pristine liability structure compared to peers like OZK. This shields net interest income from credit shocks but limits aggressive balance-sheet expansion.
- The main risk
Net income of $101.0 million is squeezed by compressed returns on equity sitting in the bottom quartile of its sector at 5.3%. Persistent margin compression threatens the dividend payout of $60.0 million.
Quality, check by check
Scored against its own industry, from company filings.
Net margin stands at 29.4%, but ROE lags at 5.3% due to a heavy equity base. Profitability remains challenged as scale fails to generate efficient returns on equity.
The firm lacks a durable economic moat, ranking in the bottom quartile for return on equity at 5.3%. Retail banking deposits face fierce competition, preventing pricing power.
Revenue grew 6.3% to $344.0 million, showing a slight acceleration from prior years. Growth is anchored by steady loan volumes in its core mortgage portfolio against historical stagnation.
Debt-to-equity sits at zero, insulating the firm from credit crunches. Free cash flow reached $86.0 million, supporting capital returns. Overall financial flexibility remains constrained by thin returns.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
6 sold $857K outside pre-planned sales.
Our sealed record on TFSL
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Third Federal S&L scores weak on the Cluenex quality check (2.5 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 6 sold $857K outside pre-planned sales.
Oct 29, 2026.
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Cite this page: Cluenex, “Third Federal S&L (TFSL)”, https://cluenex.com/stocks/tfsl/, data as of Oct 10, 2026.