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...with waived rights as usual:

https://www.businesswire.com/news/home/20191121005943/en/

Cheers!
Murph
BO and MFPP Home Fool
(long TFSL)
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Murph: “with waived rights as usual”...Why would they do this? What’s the benefit to waiving their rights for a dividend?
Thanks, Brian
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Hi Brian!

I'm not enough of a TFSL expert to totally understand it, so I'll defer to Jim....whose knowledge on TFSL is FAR superior to mine.

Sorry to be of so little help. ;-)

Cheers!
Murph
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From the release:

Third Federal Savings and Loan Association of Cleveland, MHC (the “MHC”), the mutual holding company of the Company and owner of 227,119,132 shares, or 81.1% of the Company’s common stock outstanding, has waived its right to receive the dividend on its shares.

So, if the MHC does not waive its rights to the dividends, then either the dividend is much lower per share or the bank needs to pay out much more money for the yield to remain the same. The MHC is looking at the health of the bank, the income needs of its shareholders, and balancing them. (Read: the Stefanski family's income needs.)
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The MHC representatives don’t actually own the shares yet because they haven’t been sold in the second step of converting from a mutual company. If they didn’t waive, then the dividends would go right back into the mutual holding company from which it came. There is no one to give the dividend to!

It’s kind of a strange thing. I am always curious who the voters are and what they use to base their decision. For instance if you think the dividend increase will increase the stock price it is not obvious you want the price to go up because you will have to buy the stock at whatever price is set for the second step offer. The whole thing is kind of bizarre. It seems like they really should just cancel the second step as unnecessary, but I guess that is not allowed.

As I said, kind of weird. My guess is the voters are also actual stock holders today as well since they vote at like a 97% rate to pass every time. You can’t get a 97% vote for almost anything.

Randy
Long time TFSL holder.
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Once a year TFSL holds a vote among shares represented by the MHC, not every quarter. Ostensibly the voters are voting, but in many, many cases the depositor-owners have allowed their proxy to be voted by the MHC. I have a few accounts at thrifts and they usually just say "sign this card" as part of the account opening process without really explaining that you're signing away your right to vote on these issues to the MHC.

If the MHC didn't approve the waiver, they probably wouldn't pay any dividend at all. The funds would just become retained earnings or perhaps more buybacks (which would be preferable to me).

Jim
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