Third Federal Savings & Loan of Cleveland Achieves Key Milestones Dividend Waiver Non-Objection and Satisf...

Published / Modified Aug 11 2024
CSIMarket Team / CSIMarket.com

CLEVELAND ' The Third Federal Savings and Loan Association of Cleveland, MHC (the MHC), has recently achieved two significant milestones in its operational and regulatory journey. The MHC announced that it has received a non-objection from the Federal Reserve Bank of Cleveland to waive the receipt of dividends on its shares in TFS Financial Corporation (NASDAQ: TFSL), up to $1.13 per share for the 12 months ending July 9, 2025. Additionally, it received a Satisfactory rating from the Office of the Comptroller of the Currency (OCC) on its Community Reinvestment Act (CRA) exam for the period between January 1, 2020, and December 31, 2022.

Dividend Waiver Non-Objection'

Third Federal Savings and Loan Association of Cleveland, MHC is the majority shareholder of TFS Financial Corporation, the entity through which it engages in various financial services. The non-objection from the Federal Reserve Bank of Cleveland allows the MHC to forgo up to $1.13 per share in dividends on the shares of TFSL it owns for the specified period. The actual dividends to be distributed during this period are subject to the discretion of the Company's Board of Directors.

Comments from Third Federal'

The MHC expressed its gratitude following the Federal Reserve Bank's non-objection. The decision is seen as a strategic move to optimize cash flow management within the holding structure while also providing flexibility in capital planning. Enabling the MHC to forgo receiving these dividends can allow for more efficient utilization of resources for the benefit of stakeholders.

Satisfactory CRA Rating'

On another front, Third Federal Savings and Loan Association of Cleveland also shared that it has secured a Satisfactory rating on its Community Reinvestment Act (CRA) exam, conducted by the Office of the Comptroller of the Currency. The CRA exam evaluated the Association's performance in terms of facilitating access to credit and financial services within the community, particularly among low- and moderate-income segments. This rating applies to the period from January 1, 2020, through December 31, 2022.

Commitment to Community'

Third Federal emphasized that the satisfactory CRA rating aligns with its long-standing commitment to community development and investment. Since its inception, the Association has prioritized initiatives designed to support economic growth and accessibility within the communities it serves. This latest CRA rating underscores its persistent efforts in fostering responsible lending and equitable access to financial services.

Strategic Implications'

Together, these milestones reflect Third Federal's balanced approach toward regulatory compliance and strategic financial planning. The receipt of the dividend waiver non-objection permits greater flexibility in financial operations, while the satisfactory CRA rating reaffirms its role as a pivotal player in community development.

Going Forward'

The Association looks forward to continuing its service to the community and leveraging its robust financial position to offer innovative and accessible financial solutions. Management remains committed to sustaining its core values of community support, regulatory compliance, and shareholder value.

Sources for this article: Tfs Financial Corporation Press release, News Wire, Globe Newswire, Business wire, Pr newswire.... and CSIMarket.com Customer Analytics Research for Tfs Financial Corporation