Regulatory Matters

12 Months Ended

Sep. 30, 2025

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Matters

REGULATORY MATTERS

The Association is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Association. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios (set forth in table below) of Common Equity Tier 1, Tier 1, and Total Capital (as defined in the regulations) to Risk-Weighted Assets (as defined) and Tier 1 Capital (as defined) to Net Average Assets (as defined). The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet assets to broad risk categories.

At September 30, 2025, the Association exceeded all regulatory capital requirements and is considered “well capitalized” under regulatory guidelines.

The Association operates under the capital requirements for the standardized approach of the Basel III capital framework for U.S. banking organizations (“Basel III Rules”), which limits capital distributions and certain discretionary bonus payments to management if the institution does not hold a "capital conservation buffer" consisting of 2.5% in addition to the minimum capital requirements. At September 30, 2025, the Association exceeded the fully phased-in regulatory requirement for the "capital conservation buffer."

The following table summarizes the actual capital amounts and ratios of the Association as of September 30, 2025 and 2024, compared to the minimum capital adequacy requirements and the requirements for classification as a well capitalized institution.

					Minimum Requirements
	Actual				For Capital Adequacy Purposes				To be “Well Capitalized” Under Prompt Corrective Action Provision
	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2025
Total Capital to Risk-Weighted Assets	$	1,852,378	17.40	%	$	851,709	8.00	%	$	1,064,637	10.00	%
Tier 1 (Leverage) Capital to Net Average Assets	1,759,983		10.11	%	696,354		4.00	%	870,442		5.00	%
Tier 1 Capital to Risk-Weighted Assets	1,759,983		16.53	%	638,782		6.00	%	851,709		8.00	%
Common Equity Tier 1 Capital to Risk-Weighted Assets	1,759,983		16.53	%	479,086		4.50	%	692,014		6.50	%
September 30, 2024
Total Capital to Risk-Weighted Assets	$	1,795,509	17.91	%	$	802,146	8.00	%	$	1,002,682	10.00	%
Tier 1 (Leverage) Capital to Net Average Assets	1,721,625		10.11	%	681,298		4.00	%	851,623		5.00	%
Tier 1 Capital to Risk-Weighted Assets	1,721,625		17.17	%	601,609		6.00	%	802,146		8.00	%
Common Equity Tier 1 Capital to Risk-Weighted Assets	1,721,625		17.17	%	451,207		4.50	%	651,744		6.50	%

The Association paid dividends of $40.0 million and $0 to the Company during the fiscal years ended September 30, 2025 and 2024, respectively.

As permitted under interim final rules issued by the FRS on August 12, 2011, a majority of Third Federal Savings, MHC's members eligible to vote approved Third Federal Savings, MHC waiving dividends aggregating up to $1.13 per share on the common stock of the Company for the 12 months following the special meeting of members held on July 8, 2025. Unless the FRS amends its interim rule, a member vote will be required for Third Federal Savings, MHC to waive its right to receive dividends beyond July 8, 2026.