NEWTOWN, Pa, Oct. 23, 2008 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,250,000 ($0.47 per diluted share) for the third quarter of 2008, compared with $1,188,000 ($0.44 per diluted share) for the third quarter of 2007. Net income for the nine month period ended September 30, 2008 was $3,715,000 ($1.39 per diluted share) compared with $3,623,000 ($1.32 per diluted share) for the first nine months of 2007. The Company also announced that its Board of Directors declared a quarterly dividend of $0.20 per share, payable November 14, 2008 to shareholders of record on November 7, 2008.
Highlights for the current quarter included:
* Net income and diluted earnings per share increased by 5.2% and 6.8%, respectively, compared to the third quarter of 2007. * Net interest income before the loan loss provision increased by 8.0% compared to the third quarter of 2007, and by 4.2% compared to the linked quarter. * The Company's net interest margin was 3.19% during the quarter ended September 30, 2008, down 1 basis point from the third quarter of 2007, but up 10 basis points from the linked quarter. The increase in the net interest margin since the second quarter of 2008 is mainly due to a 13 basis point decrease in the cost of deposits during the third quarter of 2008. * At September 30, 2008 loans outstanding were $548.3 million, up 5.8% from December 31, 2007. Total deposits were $492.5 million, an increase of 4.3% from December 31, 2007. * Non-performing loans decreased by $2.7 million or 51.2% during the first nine months of 2008. In addition, total non-performing assets as a percentage of total assets decreased to 0.41% at September 30, 2008 compared to 0.76% at December 31, 2007. During the third quarter of 2008 the Company recorded a provision for loan losses of $150,000 compared to no provision during the year earlier quarter, bringing the total loan loss reserve to $3.0 million or 0.54% of total loans at September 30, 2008. * Non-interest income during the quarter was slightly lower than the year earlier period and the second quarter of 2008 largely because the Company experienced a slowing of its loans originated for sale activities. * Non-interest expense benefitted during the quarter from the cost savings associated with the closing of a banking office on Quakerbridge Road in Mercer County, New Jersey, at the end of the second quarter of 2008.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "Our 3rd quarter results continue to reflect very positive performance. We have maintained our conservative, basic banking strategy which includes completely avoiding toxic problems such as sub-prime loans and securities, CDO's, and Fannie Mae and Freddie Mac preferred stock. We are well capitalized, deposits continue to grow, we have money to lend to qualified borrowers, and loan delinquency continues to be low. In these troubled times, TF Financial Corporation's performance continues to be strong, and Third Federal Bank continues to rank near the top of its peer group."
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.
TF FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousand per share data)
QUARTER ENDED PERCENT CHANGE
------------- --------------
3Q08- 3Q08-
9/30/2008 6/30/2008 9/30/2007 2Q08 3Q07
--------------------------------------------
EARNINGS SUMMARY
Interest income $ 9,725 $ 9,656 $ 9,720 0.7% 0.1%
Interest expense 4,348 4,497 4,741 -3.3% -8.3%
Net interest income 5,377 5,159 4,979 4.2% 8.0%
Loan loss provision 150 340 -- -55.9% n.m.
Non-interest income 699 1,138 708 -38.6% -1.3%
Non-interest expense 4,214 4,332 4,057 -2.7% 3.9%
Income taxes 462 441 442 4.8% 4.5%
Net income $ 1,250 $ 1,184 $ 1,188 5.6% 5.2%
PER SHARE INFORMATION
Earnings per share,
basic $ 0.47 $ 0.45 $ 0.44 4.4% 6.8%
Earnings per share,
diluted $ 0.47 $ 0.44 $ 0.44 6.8% 6.8%
Dividends paid $ 0.20 $ 0.20 $ 0.20 0.0% 0.0%
FINANCIAL RATIOS
Annualized return
on average assets 0.69% 0.66% 0.71% 4.5% -2.8%
Annualized return
on average equity 7.14% 6.78% 7.08% 5.3% 0.8%
Efficiency ratio 71.11% 72.72% 71.34% -2.2% -0.3%
AVERAGE BALANCES
Loans $547,748 $545,958 $506,471 0.3% 8.1%
Mortgage-backed
securities 93,100 97,397 87,723 -4.4% 6.1%
Investment securities 40,862 41,915 36,039 -2.5% 13.4%
Other interest-earning
assets 1,102 665 901 65.7% 22.3%
Total earning assets 682,812 685,935 631,134 -0.5% 8.2%
Non-earning assets 36,301 36,265 35,964 0.1% 0.9%
Total assets 719,113 722,200 667,098 -0.4% 7.8%
Deposits 482,521 486,394 476,021 -0.8% 1.4%
FHLB advances 158,385 155,675 113,630 1.7% 39.4%
Total interest bearing
liabilities 640,906 642,069 589,651 -0.2% 8.7%
Non-interest bearing
liabilities 8,552 9,934 10,893 -13.9% -21.5%
Stockholders' equity 69,655 70,197 66,554 -0.8% 4.7%
Total liabilities
& stockholders'
equity $719,113 $722,200 $667,098 -0.4% 7.8%
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 6.00% 6.01% 6.47%
Mortgage-backed
securities 4.61% 4.67% 4.77%
Investment securities 4.76% 4.63% 5.50%
Other interest-earning
assets 2.17% 2.42% 4.84%
Average cost of:
Deposits 2.29% 2.42% 2.94%
FHLB advances 3.96% 4.06% 4.23%
Interest rate spread 3.03% 2.91% 2.99%
Net interest margin 3.19% 3.09% 3.20%
NON-INTEREST INCOME DETAIL
Service fees, charges
and other $ 504 $ 543 $ 503 -7.2% 0.2%
Bank-owned life
insurance 155 156 153 -0.6% 1.3%
Gain on sale of loans 40 97 52 -58.8% -23.1%
Gain on sale of real
estate -- 342 -- n.m. n.m.
NON-INTEREST EXPENSE DETAIL
Salaries and benefits 2,648 2,677 2,598 -1.1% 1.9%
Occupancy 691 740 729 -6.6% -5.2%
Professional fees 142 167 146 -15.0% -2.7%
Advertising 144 145 -- -0.7% n.m.
Other 589 603 584 -2.3% 0.9%
TF FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands per share data)
NINE MONTHS ENDED
----------------- %
9/30/2008 9/30/2007 CHANGE
--------- --------- ------
EARNINGS SUMMARY
Interest income $ 29,214 $ 28,348 3.1%
Interest expense 13,763 13,422 2.5%
Net interest income 15,451 14,926 3.5%
Loan loss provision 490 -- n.m.
Non-interest income 2,948 2,964 -0.5%
Non-interest expense 12,808 12,915 -0.8%
Income taxes 1,386 1,352 2.5%
Net income $ 3,715 $ 3,623 2.5%
PER SHARE INFORMATION
Earnings per share, basic $ 1.40 $ 1.32 6.1%
Earnings per share, diluted $ 1.39 $ 1.32 5.3%
Dividends paid $ 0.60 $ 0.60 0.0%
FINANCIAL RATIOS
Annualized return on average assets 0.69% 0.74% -6.8%
Annualized return on average equity 7.16% 7.27% -1.5%
Efficiency ratio 71.52% 72.19% -0.9%
AVERAGE BALANCES
Loans $ 540,882 $ 497,565 8.7%
Mortgage-backed securities 97,558 85,018 14.7%
Investment securities 41,518 38,227 8.6%
Other interest-earning assets 913 2,502 -63.5%
Total earning assets 680,871 623,312 9.2%
Non-earning assets 35,584 34,847 2.1%
Total assets 716,455 658,159 8.9%
Deposits 480,512 478,790 0.4%
FHLB advances 157,706 105,413 49.6%
Total interest bearing liabilities 638,218 584,203 9.2%
Non-interest bearing liabilities 8,958 7,293 22.8%
Stockholders' equity 69,279 66,663 3.9%
Total liabilities & stockholders'
equity $ 716,455 $ 658,159 8.9%
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 6.07% 6.46%
Mortgage-backed securities 4.71% 4.71%
Investment securities 4.76% 5.44%
Other interest-earning assets 2.34% 5.18%
Average cost of:
Deposits 2.50% 2.84%
FHLB advances 4.05% 4.12%
Interest rate spread 2.91% 3.08%
Net interest margin 3.09% 3.27%
NON-INTEREST INCOME DETAIL
Service fees, charges and other $ 1,937 $ 2,341 -17.3%
Bank-owned life insurance 470 454 3.5%
Gain on sale of loans 199 169 17.8%
Gain on sale of real estate 342 -- n.m.
NON-INTEREST EXPENSE DETAIL
Salaries and benefits 7,863 7,946 -1.0%
Occupancy 2,159 2,133 1.2%
Professional fees 563 503 11.9%
Advertising 433 326 32.8%
Other 1,790 2,007 -10.8%
TF FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousand per share data)
PERCENT CHANGE
PERIOD ENDED 9/30/2008 vs
------------ 6/30/ 12/31/
9/30/2008 6/30/2008 12/31/2007 2008 2007
--------- --------- ---------- ------ ------
DEPOSIT INFORMATION
Non-interest
checking $ 40,204 $ 37,370 $ 35,904 7.6% 12.0%
Interest
checking 46,013 48,273 46,543 -4.7% -1.1%
Money market 80,328 83,500 79,267 -3.8% 1.3%
Savings 116,485 125,346 130,423 -7.1% -10.7%
CD's,retail 209,505 192,505 180,257 8.8% 16.2%
OTHER INFORMATION
Per Share
Book value (a) $ 26.28 $ 26.07 $ 25.40
Tangible book
value (a) $ 24.65 $ 24.44 $ 23.78
Closing market
price $ 21.50 $ 21.51 $ 24.64
Balance Sheet
Loans,net $548,263 $549,519 $518,067 -0.2% 5.8%
Cash and cash
equivalents 4,562 4,327 5,680 5.4% -19.7%
Mortgage-backed
securities 92,979 92,607 104,338 0.4% -10.9%
Investment
securities 39,818 40,547 41,389 -1.8% -3.8%
Total assets 718,113 719,587 701,673 -0.2% 2.3%
Total deposits 492,535 486,994 472,394 1.1% 4.3%
FHLB advances
and other 148,341 154,703 153,221 -4.1% -3.2%
Stockholders'
equity 69,412 69,061 67,843 0.5% 2.3%
Asset Quality
Non-performing
loans 2,615 2,368 5,358 10.4% -51.2%
Loan loss reserves 2,996 2,845 2,842 5.3% 5.4%
Reserves to gross
loans 0.54% 0.52% 0.55% 3.8% -1.8%
Non-performing loans
to gross loans 0.47% 0.43% 1.03% 9.3% -54.4%
Non-performing loans
to total assets 0.36% 0.33% 0.76% 9.1% -52.6%
Foreclosed property 306 306 -- 0.0% n.m.
Foreclosed property
to total assets 0.04% 0.04% 0.00% 0.0% n.m.
Non-performing assets
to total assets 0.41% 0.37% 0.76% 10.8% -46.1%
Statistical
Shares outstanding
(000's) (a) 2,641 2,649 2,671
Number of branch
offices 14 14 15
Full time equivalent
employees 173 179 181
(a) Excludes 150,000, 153,000 and 159,000 unallocated employee
stock ownership plan shares at September 30, 2008, June 30, 2008
and December 31, 2007, respectively.
n.m. not meaningful