TFS Financial TFSL Real Estate Acquired Through Foreclosure Cost To Sell

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 June 30, 2026 and September 30, 2025, were $1,339 and $1,921, 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 June 30, 2026 and September 30, 2025, these adjustments were not significant to reported fair values. At June 30, 2026 and September 30, 2025, $1,677 and $2,355, 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 $338 and $434, respectively. There were no real estate owned carried at their original or adjusted cost basis at June 30, 2026 and September 30, 2025.