Third Federal Savings and Loan Association of Cleveland, MHC Receives Non-Objection for Dividend Waiver

Rhea-AI Summary

Third Federal Savings and Loan Association of Cleveland, MHC has received non-objection from the Federal Reserve Bank of Cleveland to waive dividends up to $1.13 per share on its TFS Financial (NASDAQ: TFSL) stock for the 12 months ending July 9, 2025. The MHC, owning 80.9% of TFSL's common stock, gained member approval with 97% of votes in favor. Chairman and CEO Marc A. Stefanski highlighted this as an opportunity to maximize dividends for institutional and individual shareholders while focusing on capital preservation. Third Federal, founded in 1938, operates in 26 states and D.C., with assets totaling $17.03 billion as of June 30, 2024.

Positive

• Non-objection received for dividend waiver up to $1.13 per share
• Strong member support with 97% votes in favor of dividend waiver
• Opportunity to maximize dividends for institutional and individual shareholders
• Focus on capital preservation and proactive business approach
• Extensive operational presence in 26 states and D.C.
• Substantial asset base of $17.03 billion as of June 30, 2024

Negative

• None.

CLEVELAND--(BUSINESS WIRE)-- Third Federal Savings and Loan Association of Cleveland, MHC (the “MHC”) is pleased to announce that it 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 (NASDAQ: TFSL) (the “Company”), up to $1.13 per share during the 12 months ending July 9, 2025. Actual dividends during that period are declared at the discretion of the Company’s board of directors.

Chairman and CEO Marc A. Stefanski (Photo: Business Wire)

“We appreciate the ongoing support of our members for the MHC dividend waiver and are pleased to announce the non-objection from the Federal Reserve,” said Chairman and CEO Marc A. Stefanski. “The result will allow us the opportunity to maximize the capability to offer dividends to our institutional and individual shareholders. This, along with a focus on capital preservation, and a proactive approach to our business, keeps us strong, stable, and safe.”

The MHC is the mutual holding company and owner of 227,119,132 shares, or 80.9% of the Company’s common stock outstanding, and on July 9, 2024 received the approval of its members (mainly depositors of Third Federal) with respect to the waiver. The members approved the waiver by casting 58% of the eligible votes, with 97% of the votes cast in favor of the waiver. The MHC previously waived the receipt of dividends paid by the Company in an aggregate amount of $1.13 per share during the four quarters ended June 30, 2024.

Third Federal Savings and Loan Association is a leading provider of savings and mortgage products, and operates under the values of love, trust, respect, a commitment to excellence and fun. Founded in Cleveland in 1938 as a mutual association by Ben and Gerome Stefanski, Third Federal’s mission is to help people achieve the dream of home ownership and financial security. It became part of a public company in 2007 and celebrated its 85th anniversary in May, 2023. Third Federal, which lends in 26 states and the District of Columbia, is dedicated to serving consumers with competitive rates and outstanding service. Third Federal, an equal housing lender, has 21 full service branches in Northeast Ohio, two lending offices in Central and Southern Ohio, and 16 full service branches throughout Florida. As of June 30, 2024, the Company’s assets totaled $17.03 billion.

This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, the Company’s plans regarding its dividends. These forward-looking statements involve risks and uncertainties that could cause the Company’s results to differ materially from management’s current expectations.

The Company’s risks and uncertainties are detailed in its filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Forward-looking statements are based on the beliefs and assumptions of our management and on currently available information. The Company undertakes no responsibility to publicly update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240809722180/en/

Jennifer Rosa

(216) 429-5037

Source: Third Federal Savings and Loan

FAQ

What is the maximum dividend waiver amount for TFSL approved by the Federal Reserve?

The Federal Reserve Bank of Cleveland gave non-objection for Third Federal Savings and Loan Association of Cleveland, MHC to waive dividends up to $1.13 per share on its TFS Financial (TFSL) stock for the 12 months ending July 9, 2025.

How much of TFSL's common stock does the MHC own?

The MHC (Third Federal Savings and Loan Association of Cleveland, MHC) owns 227,119,132 shares, or 80.9% of TFS Financial 's (TFSL) common stock outstanding.

What percentage of TFSL shareholders voted in favor of the dividend waiver?

97% of the votes cast were in favor of the dividend waiver for TFSL. The members approved the waiver by casting 58% of the eligible votes.

What was TFSL's total asset value as of June 30, 2024?

As of June 30, 2024, TFS Financial 's (TFSL) assets totaled $17.03 billion.