NEWTOWN, Pa., April 30, 2009 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,020,000 ($0.41 per diluted share) for the first quarter of 2009, compared with $1,281,000 ($0.48 per diluted share) for the first quarter of 2008. The Company also announced that its Board of Directors had declared a quarterly dividend of $0.20 per share, payable May 15, 2009 to shareholders of record on May 11, 2009.
Highlights for the current quarter included:
* Net income decreased by $261,000 or 20.4% compared with the first quarter of 2008. Diluted earnings per share were $0.41, a $0.07 or 14.6% decrease from the first quarter of 2008. Dividends per share paid were $0.20 during both the first quarter of 2009 and 2008. * Net interest income was $5,519,000 which was a $209,000 or 3.9% increase over the fourth quarter of 2008, and a $604,000 or 12.3% increase over the first quarter of 2008. Similarly, the Company's net interest margin expanded to 3.28% compared with 3.09% during the fourth quarter of 2008, and 3.00% during the first quarter of 2008. Volatile and declining market interest rates throughout 2008 stabilized somewhat during the first quarter of 2009, and while the yields on the Company's interest-earning assets fell steadily throughout 2008, the cost of its interest bearing liabilities, mainly deposits, fell at a faster pace late in 2008 and in early 2009. * The Company's provision for loan losses was $665,000 during the quarter compared with $1,010,000 during the fourth quarter of 2008 and $0 during the first quarter of 2008. As economic conditions in the Philadelphia region have continued to soften, the Company has steadily increased its allowance for loan losses to $4,425,000 or 0.81% of loans at quarter end, a 76.8% increase over the $2,503,000 balance at March 31, 2008. * Non-performing loans were $3,486,000 at quarter end compared with $5,279,000 at December 31, 2008. Foreclosed property at March 31, 2009 comprised three parcels of real estate with a combined carrying value of $2,164,000; all of these were transferred from loans during the first quarter of 2009. Total non-performing assets were 0.78% of total assets compared with 0.72% at year end 2008. * Loans outstanding were $542.5 million, essentially unchanged during the first quarter of 2009, reflecting weak commercial real estate loan demand. Loans originated for sale were $12.3 million, producing gains of $148,000, resulting from the high level of residential loan refinancing activity stimulated by low conforming loan rates. * Deposit growth was strong during the quarter. At quarter end, total deposits were $504.5 million, up 12% on an annualized basis over year end 2008.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "In these unprecedented times of economic turmoil, I am pleased to report that TF Financial and its principal subsidiary, Third Federal Bank, continue to attain very respectable earnings and overall performance. However, as you would expect, our efforts have changed somewhat to include working with both individual and business customers to aid them in these difficult times. We are committed to being a good community partner. We have also taken prudent steps to increase our allowance for loan losses and we are working diligently to reduce expenses during these trying times so that we can successfully weather this storm and remain a strong and viable financial institution."
TF Financial Corporation is a holding company whose principal subsidiary is Third Federal Bank, which operates 14 full service retail and commercial banking offices in Philadelphia and Bucks County, Pennsylvania and in Mercer County, New Jersey. In addition, the Bank's website can be found at www.thirdfedbank.com. Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by TF Financial Corporation with the Securities and Exchange Commission from time to time. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
T F FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands
except per share data) QUARTER ENDED PERCENT CHANGE
------------- --------------
3/31/2009 12/31/2008 3/31/2008 1Q09-4Q08 1Q09-1Q08
--------- ---------- --------- --------- ---------
EARNINGS SUMMARY
Interest
income $9,317 $9,618 $9,833 -3.1% -5.2%
Interest
expense 3,798 4,308 4,918 -11.8% -22.8%
Net interest
income 5,519 5,310 4,915 3.9% 12.3%
Loan loss
provision 665 1,010 -- -34.2% n.m.
Non-interest
income 935 927 1,111 0.9% -15.8%
Non-interest
expense 4,424 4,623 4,262 -4.3% 3.8%
Income taxes 345 83 483 315.7% -28.6%
Net income $1,020 $521 $1,281 95.8% -20.4%
PER SHARE
INFORMATION
Earnings
per share,
basic $0.41 $0.20 $0.48 105.0% -14.6%
Earnings
per share,
diluted $0.41 $0.20 $0.48 105.0% -14.6%
Dividends
paid $0.20 $0.20 $0.20 0.0% 0.0%
FINANCIAL
RATIOS
Annualized
return on
average
assets 0.57% 0.28% 0.73% 103.6% -21.9%
Annualized
return on
average
equity 6.08% 3.00% 7.58% 102.7% -19.8%
Efficiency
ratio 76.42% 88.44% 70.73% -13.6% 8.0%
AVERAGE
BALANCES
Loans $545,097 $547,128 $528,865 -0.4% 3.1%
Mortgage-
backed
securities 109,377 109,284 102,223 0.1% 7.0%
Investment
securities 39,458 39,996 41,783 -1.3% -5.6%
Other
interest-
earning
assets 501 629 971 -20.3% -48.4%
Total
earning
assets 694,433 697,037 673,842 -0.4% 3.1%
Non-earning
assets 34,984 36,611 34,879 -4.4% 0.3%
Total assets 729,417 733,648 708,721 -0.6% 2.9%
Deposits 494,969 491,283 473,160 0.8% 4.6%
FHLB
advances
and other
borrowed
money 157,928 165,101 159,051 -4.3% -0.7%
Total
interest
bearing
liabilities 652,897 656,384 632,211 -0.5% 3.3%
Non-interest
bearing
liabilities 8,471 8,271 8,531 2.4% -0.7%
Stockholders'
equity 68,049 68,993 67,979 -1.4% 0.1%
Total
liabilities
& stockholders'
equity $729,417 $733,648 $708,721 -0.6% 2.9%
SPREAD AND
MARGIN
ANALYSIS
Average
yield on:
Loans 5.70% 5.83% 6.22%
Mortgage-
backed
securities 5.14% 4.79% 4.84%
Investment
securities 3.90% 3.84% 5.00%
Other
interest-
earning
assets 0.00% 0.63% 2.49%
Total
interest-
earning
assets 5.50% 5.55% 5.93%
Average
cost of:
Deposits 2.06% 2.32% 2.79%
FHLB
advances
and other
borrowed
money 3.30% 3.48% 4.13%
Total
interest-
bearing
liabilities 2.36% 2.61% 3.13%
Interest rate
spread 3.14% 2.94% 2.80%
Net interest
margin 3.28% 3.09% 3.00%
NON-INTEREST
INCOME DETAIL
Service
fees,
charges and
other $437 $595 $890 -26.6% -50.9%
Bank-owned
life
insurance 160 164 159 -2.4% 0.6%
Gain on
sale of
investments 190 -- -- n.m. n.m.
Gain on
sale of
loans 148 72 62 105.6% 138.7%
Gain on
sale of
real estate -- 96 -- n.m. n.m.
NON-INTEREST
EXPENSE
DETAIL
Salaries
and
benefits $2,671 $2,775 $2,538 -3.7% 5.2%
Occupancy 710 722 728 -1.7% -2.5%
Professional
fees 273 232 254 17.7% 7.5%
Advertising 148 181 144 -18.2% 2.8%
Other 622 713 598 -12.8% 4.0%
T F FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands PERCENT CHANGE
except per share data) PERIOD ENDED --------------
------------ 03/31/09 vs.
3/31/2009 12/31/2008 3/31/2008 12/31/2008 3/31/2008
--------- ---------- --------- ---------- ---------
DEPOSIT
INFORMATION
Non-interest
checking $ 36,123 $ 36,871 $ 36,520 -2.0% -1.1%
Interest
checking 47,365 46,907 46,999 1.0% 0.8%
Money market 100,481 88,609 87,313 13.4% 15.1%
Savings 108,518 111,591 127,855 -2.8% -15.1%
CD's, retail 212,028 205,872 180,277 3.0% 17.6%
OTHER INFORMATION
Per Share
Book value (a) $27.35 $26.92 $26.17
Tangible book
value (a) 25.64 25.20 24.55
Closing market
price 18.19 19.30 24.29
Balance Sheet
Loans, net $542,494 $545,989 $541,706 -0.6% 0.1%
Cash and cash
equivalents 3,896 2,719 4,281 43.3% -9.0%
Mortgage-backed
securities 105,678 111,991 100,676 -5.6% 5.0%
Investment
securities 38,451 41,515 42,161 -7.4% -8.8%
Total assets 723,925 733,708 721,417 -1.3% 0.3%
Total deposits 504,515 489,850 478,964 3.0% 5.3%
FHLB advances
and other
borrowed money 141,576 168,148 163,601 -15.8% -13.5%
Stockholders'
equity 68,901 67,692 69,729 1.8% -1.2%
Asset Quality
Non-performing
loans $3,486 $5,279 $3,144 -34.0% 10.9%
Allowance for
loan losses $4,425 $3,855 $2,503 14.8% 76.8%
Net charge-offs $95 $487 $339 -80.5% -72.0%
Allowance for
loan losses
to gross
loans 0.81% 0.70% 0.46% 15.7% 76.1%
Non-performing
loans to gross
loans 0.64% 0.96% 0.58% -33.3% 10.3%
Non-performing
loans to
total assets 0.48% 0.72% 0.44% -33.3% 9.1%
Foreclosed
property $2,164 $-- $306 n.m. 607.2%
Foreclosed
property to
total assets 0.30% 0.00% 0.04% n.m. 650.0%
Non-performing
assets to
total assets 0.78% 0.72% 0.48% 8.3% 62.5%
Statistical
Shares
outstanding
(000's)(a) 2,519 2,515 2,664
Number of
branch offices 14 14 15
Full time
equivalent
employees 177 181 180
(a) Excludes 144,000, 147,000 and 159,000 unallocated employee
stock ownership plan shares at March 31,2009, December 31, 2008
and March 31, 2008, respectively.
n.m. not meaningful