Fifty some years ago, Marc A. Stefanski (now president, chairman and CEO of Third Federal Savings and Loan) was “just a kid in high school wearing jeans” and playing drums in a rock and roll garage band. That’s a memory of Stefanski held by lifelong friend and fellow band member Robert “Bob” Fiala, now mayor of Willoughby. (Actually, the band practiced in the basement of Stefanski’s childhood home, when his mother sometimes “went to get her hair done,” whether she needed to or not.)
At a noisy practice one day, Fiala commented on Stefanski’s unique drum.
“Marc just very humbly said he made it. His father was already successful in business and certainly could have afforded to give Marc a drum. But his parents always told him, ‘If you want something, you get it yourself or you make it yourself.’ And that’s kind of who Marc is today,” says Fiala, a member of Third Federal’s board of directors.
Stefanski is head of the savings and mortgage provider that was founded by his parents, Ben and Gerome Stefanski, in 1938 in Cleveland. He joined Third Federal in 1982, was appointed chairman of the board and CEO in 1987 and president in 2000. Stefanski continues his family’s tradition of offering competitive rates to ensure homeownership and financial security to qualified customers.
“Not everyone should own a house. There are many people who are better off renting in terms of their finances. If they can’t afford it, that just puts them in a foreclosure situation, and that’s the worst-case scenario. And it can ruin neighborhoods,” says Stefanski. “But we try to help most everyone. At times it can seem harder to own a home, depending on interest rates or the economic situation. But Cleveland is still very affordable if you compare it to other places. I, and I think most people, still believe owning a home is the American dream.”
Today Third Federal has 21 full-service branches in Northeast Ohio, two lending offices in Central and Southern Ohio and 16 full-service branches in Florida. It lends in 27 states and the District of Columbia and has 1,000 associates employees. The company’s assets totaled $17.03 billion as of June 2024.
Financial institutions face a number of challenges today, including what some consider the overreach of the federal government and a regulatory environment. But Stefanski considers the “ups and downs” of his industry and carries on.
“My father had a nice recipe for success and that was having more capital than any other company. We pride ourselves in having a high capital ratio. It is as important as not taking credit risk,” says Stefanski, who considers his and his wife Vanessa’s blended family of seven children and seven grandchildren to be his “pride and joy.”
“I like to lead from behind. I don’t need to be the center of attention,” says Stefanski. “That has served me well, and I hope my family learns about modesty and humility from that example.”
The other “secret sauce” that Stefanski identifies as being responsible for Third Federal’s success reflects how customers and his associates (he’s been known to charge someone a dollar if you use the term “employee”) are treated. Company values include love and a general concern for others, trust, commitment to excellence, respect and the ability to have fun, but never at someone’s expense. It appears to be working. The turnover rate at Third Federal is only 3%, as compared to an industry average of 40%.
“We develop our customer service plans and products based on our value system and evaluate our people within our business based on that as well,” says Stefanski, whose personal philosophy is a sincere mix of respect for Eastern religions, the Golden Rule, common sense and kindness. (Stefanski tells his story in a new book, People First: The Third Federal Way to be published January 2025 by Forbes Books.)
Stefanski admits he doesn’t have as much direct contact with customers as he used to. (For one reason, the sheer volume of customers prevents that interaction.) But it’s unusual and somewhat refreshing that both long-time and new customers in Cleveland’s Slavic Village neighborhood (the site of Third Federal’s $20 million corporate campus that opened in 1998) associate his name with the savings and loan. They got their first mortgage, their first saving account, “with Third Federal and Marc.” Stefanski’s respect for others also carries over to his board.
“There is a round table in the board room. To Marc that means, ‘I am the leader, but we are all equals.’ It’s a powerful message. He’s always been laser-focused on running the business, and he’s grown the company to be much larger than when he took over from his father. He’s at the point of his career where he doesn’t have to prove anything to anyone any longer,” says Fiala. “Marc runs his company far differently than many other bankers do. But you can’t argue with 40 years of success. And he’s never lost that humbleness.”
Or his willingness to help.
“I try to complement our banking services with The Third Federal Foundation where we try to support a lot of people who aren’t as well off as others,” says Stefanski of the foundation that provides charitable grants to nonprofit partners.
Rhonda’s Kiss, a nonprofit organization, was founded by Marc and his children to honor Stefanski’s first wife who died from cancer 10 years ago. Significant annual contributions have benefited the Cleveland Clinic, University Hospitals of Cleveland and other medical facilities across the country.
In addition, Rhonda’s Kiss Associate Fund and the Once-A-Month-Club band is one way for Stefanski, Fiala and others to reconnect with their love of music and friendship. But it is also an opportunity to show appreciation to Third Federal associates and raise funds for those in the company and their families facing hardships. Stefanski (who has traded his drums for a keyboard) and his band members have played before more than 3,500 people at his charitable events in Ohio and more than 300 in Florida. And they have been doing it for more than 20 years.
Rock and roll, Third Federal mortgages — you know you’re from Cleveland.
