NEWTOWN, Pa., Oct. 24, 2013 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,966,000 ($0.64 per diluted share) for the third quarter of 2013, a 33.5% increase over the $1,473,000 ($0.54 per diluted share) reported for the third quarter of 2012. In addition, net income increased 9.2% when compared with net income of $1,800,000 reported for the second quarter of 2013.
Net income for the nine-month period ended September 30, 2013 was $4,989,000 ($1.75 per diluted share) a 28.7% increase when compared with $3,877,000 ($1.42 per diluted share) reported for the first nine months of 2012. The Company also announced that its Board of Directors declared a quarterly dividend of $0.10 per share, payable November 15, 2013 to shareholders of record on November 8, 2013.
"We are pleased to have closed our acquisition of Roebling Financial Corp, Inc. ("Roebling") in early July. Throughout the third quarter our merger integration team worked diligently to convert the Roebling's former operating systems and customer accounts to 3rd Fed Bank's platform. That complex process, along with the changeover in branch signage, was successfully completed during the third quarter. We believe that this strategic expansion of our franchise will help us to create value for our shareholders over time," said Kent C. Lufkin, President and Chief Executive Officer. "Also during the quarter, we continued to focus intensively on asset quality, working to reduce total nonperforming loans (excluding those acquired via the Roebling transaction) and real estate owned to pre-recession levels. Economic conditions are gradually improving across our footprint and accordingly we have added several new business development and commercial lending personnel to help grow our share of that business."
Results for the third quarter included:
- On July 2, 2013 the Company completed the acquisition of Roebling and its wholly owned subsidiary, Roebling Bank. The Company issued 306,873 shares of its common stock and paid $7.3 million in cash for Roebling, and acquired approximately $148.5 million in total assets, $102.7 million in loans receivable, and $127.3 million in total deposits contained in Roebling's five branches. On September 28, 2013 the Company completed the computer systems and other operations integration of the former Roebling Bank offices into 3rd Fed Bank. The significant non-recurring impacts on the Company's third quarter 2013 operating results were a purchase accounting gain, both before and after tax, of $1.2 million and conversion costs, before tax, of $1.4 million. Much of the remaining operating results comparisons described below are driven by the inclusion of Roebling beginning on July 3, 2013.
- Net interest income was $6,885,000 compared with $5,806,000 for the second quarter of 2013. The Company's net interest margin was 3.53% compared with 3.59% during the second quarter of 2013.
- Asset quality showed improvement, with total non-performing assets at 1.52% of total assets at September 30, 2013, which is down from 1.70% at June 30, 2013. Non-performing loans were $6.9 million at quarter-end compared with $6.0 million at June 30, 2013 due to the inclusion in the third quarter of non-performing loans obtained in the Roebling acquisition. Foreclosed property was $5.8 million at September 30, 2013 compared with $6.2 million at June 30, 2013.
- There was no provision for loan losses and net charge-offs were $225,000 during the third quarter of 2013. The Company's allowance for loan losses was $6,691,000 or 97.2% of non-performing loans at quarter end.
- Total loans were $623.0 million at September 30, 2013 compared with $531.5 million at June 30, 2013. Total deposits were $681.8 million, compared with $571.4 million at June 30, 2013. Checking, savings, and money market accounts totaled $488.5 million or 71.6% of total deposits at September 30, 2013, compared with $406.1 million or 71.1% of total deposits at June 30, 2013.
- Capital ratios were minimally impacted by the Roebling acquisition. Book value per share and tangible book value per share were $29.48 and $27.94, respectively, at September 30, 2013, compared with $29.36 and $27.84, respectively, at June 30, 2013. Regulatory capital comprised Tier 1 Leverage and Total Risk-Based ratios of 10.21% and 17.64%, respectively, at September 30, 2013, compared with 10.74% and 18.77%, respectively, at June 30, 2013. Capital levels are well above the regulatory minimums required to be considered well-capitalized.
About TF Financial Corporation
TF Financial Corporation is a holding company whose principal subsidiary is 3rd Fed Bank, which operates 13 full service retail and commercial banking offices in Philadelphia and Bucks County, Pennsylvania and in Mercer County, New Jersey, and with the acquisition of Roebling Bank on July 2, 2013, also operates five additional full service branches in Burlington and Ocean Counties in New Jersey. Deposits at 3rd Fed Bank are insured up to the maximum amount by the Federal Deposit Insurance Corporation (FDIC). In addition, 3rd Fed Bank's website can be found at www.3rdfedbank.com.
Forward Looking Statements
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, the possibility that any remaining integration of Roebling's business and operations with those of 3rd Fed Bank may be more difficult and/or take longer than anticipated, may be more costly than anticipated and may have unanticipated adverse results relating to the existing business of the Company, the challenges of integrating and retaining key employees, our ability to reduce total nonperforming loans and real estate owned, as well as 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 | NINE MONTHS ENDED | |||||
| 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 9/30/2013 | 9/30/2012 | |
| EARNINGS SUMMARY | |||||||
| Interest income | $ 7,903 | $ 6,744 | $ 6,857 | $ 7,234 | $ 7,395 | $ 21,504 | $ 21,986 |
| Interest expense | 1,018 | 938 | 979 | 1,048 | 1,141 | 2,935 | 3,889 |
| Net interest income | 6,885 | 5,806 | 5,878 | 6,186 | 6,254 | 18,569 | 18,097 |
| Loan loss provision | 0 | 400 | 439 | 650 | 750 | 839 | 1,750 |
| Non-interest income | 2,046 | 1,947 | 1,395 | 1,196 | 914 | 5,388 | 2,890 |
| Non-interest expense | 6,782 | 5,132 | 5,030 | 4,690 | 4,466 | 16,944 | 14,171 |
| Income before taxes | 2,149 | 2,221 | 1,804 | 2,042 | 1,952 | 6,174 | 5,066 |
| Income taxes | 183 | 421 | 581 | 536 | 479 | 1,185 | 1,189 |
| Net income | $ 1,966 | $ 1,800 | $ 1,223 | $ 1,506 | $ 1,473 | $ 4,989 | $ 3,877 |
| PER SHARE INFORMATION | |||||||
| Earnings per share, basic | $ 0.64 | $ 0.66 | $ 0.45 | $ 0.55 | $ 0.54 | $ 1.75 | $ 1.42 |
| Earnings per share, diluted | $ 0.64 | $ 0.66 | $ 0.45 | $ 0.55 | $ 0.54 | $ 1.75 | $ 1.42 |
| Weighted average basic shares (000's) | 3,053 | 2,743 | 2,738 | 2,733 | 2,729 | 2,884 | 2,724 |
| Weighted average diluted shares (000's) | 3,053 | 2,743 | 2,742 | 2,734 | 2,732 | 2,884 | 2,727 |
| Dividends paid | $ 0.10 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.20 | $ 0.15 |
| FINANCIAL RATIOS | |||||||
| Annualized return on average assets | 0.92% | 1.01% | 0.70% | 0.86% | 0.84% | 0.88% | 0.75% |
| Annualized return on average equity | 8.55% | 8.55% | 5.92% | 7.21% | 7.21% | 7.85% | 6.50% |
| Efficiency ratio (1) | 67.42% | 68.07% | 64.56% | 60.98% | 60.24% | 66.72% | 67.02% |
| REGULATORY CAPITAL RATIOS | |||||||
| Tier 1 leverage ratio | 10.21% | 10.74% | 10.50% | 10.45% | 10.47% | ||
| Total risk-based capital ratio | 17.64% | 18.77% | 17.90% | 17.89% | 17.62% | ||
| Tier 1 risk-based capital ratio | 16.39% | 17.51% | 16.65% | 16.63% | 16.37% | ||
| T F FINANCIAL CORPORATION | |||||||
| UNAUDITED FINANCIAL INFORMATION | |||||||
| (dollars in thousands except per share data) | QUARTER ENDED | NINE MONTHS ENDED | |||||
| 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 9/30/2013 | 9/30/2012 | |
| AVERAGE BALANCES | |||||||
| Loans | $ 622,416 | $ 524,728 | $ 525,275 | $ 530,026 | $ 527,195 | $ 557,829 | $ 507,521 |
| Mortgage-backed securities | 50,737 | 37,523 | 41,988 | 49,383 | 55,820 | 43,448 | 59,776 |
| Investment securities | 86,942 | 68,211 | 65,131 | 63,773 | 64,304 | 73,508 | 66,498 |
| Other interest-earning assets | 35,294 | 39,111 | 28,877 | 6,482 | 393 | 34,451 | 5,676 |
| Total earning assets | 795,389 | 669,573 | 661,271 | 649,664 | 647,712 | 709,236 | 639,471 |
| Non-earning assets | 48,404 | 45,938 | 46,572 | 46,985 | 46,168 | 46,974 | 48,345 |
| Total assets | 843,793 | 715,511 | 707,843 | 696,649 | 693,880 | 756,209 | 687,816 |
| Deposits | 691,646 | 570,271 | 560,750 | 539,653 | 538,637 | 609,531 | 547,700 |
| FHLB advances and other borrowed money | 55,358 | 53,303 | 56,114 | 66,223 | 66,740 | 54,922 | 53,685 |
| Total interest bearing liabilities | 747,004 | 623,574 | 616,864 | 605,876 | 605,377 | 664,453 | 601,385 |
| Non-interest bearing liabilities | 5,528 | 7,508 | 7,216 | 7,629 | 7,179 | 6,745 | 6,732 |
| Stockholders' equity | 91,261 | 84,429 | 83,763 | 83,144 | 81,324 | 85,011 | 79,699 |
| Total liabilities & stockholders' equity | $ 843,793 | $ 715,511 | $ 707,843 | $ 696,649 | $ 693,880 | $ 756,209 | $ 687,816 |
| SPREAD AND MARGIN ANALYSIS (TAX EQUIVALENT) | |||||||
| Average yield on: | |||||||
| Loans | 4.43% | 4.56% | 4.68% | 4.76% | 4.86% | 4.55% | 4.96% |
| Mortgage-backed securities | 2.52% | 2.63% | 2.64% | 3.04% | 3.23% | 2.59% | 3.48% |
| Investment securities | 3.71% | 4.19% | 4.43% | 4.37% | 4.32% | 4.05% | 4.33% |
| Other interest-earning assets | 0.06% | 0.14% | 0.06% | 0.37% | 0.00% | 0.09% | 0.05% |
| Total interest-earning assets | 4.03% | 4.15% | 4.33% | 4.55% | 4.66% | 4.16% | 4.72% |
| Average cost of: | |||||||
| Deposits | 0.46% | 0.50% | 0.53% | 0.54% | 0.59% | 0.49% | 0.68% |
| FHLB advances and other borrowed money | 1.57% | 1.70% | 1.79% | 1.87% | 2.01% | 1.69% | 2.72% |
| Total interest-bearing liabilities | 0.54% | 0.60% | 0.64% | 0.69% | 0.75% | 0.59% | 0.86% |
| Interest rate spread | 3.49% | 3.55% | 3.68% | 3.86% | 3.91% | 3.57% | 3.85% |
| Net interest margin | 3.53% | 3.59% | 3.73% | 3.90% | 3.96% | 3.61% | 3.90% |
| T F FINANCIAL CORPORATION | |||||||
| UNAUDITED FINANCIAL INFORMATION | |||||||
| (dollars in thousands except per share data) | QUARTER ENDED | NINE MONTHS ENDED | |||||
| 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 9/30/2013 | 9/30/2012 | |
| INTEREST INCOME AND EXPENSE DETAIL | |||||||
| Interest income on: | |||||||
| Loans | $ 6,947 | $ 5,963 | $ 6,066 | $ 6,341 | $ 6,436 | $ 18,976 | $ 18,864 |
| Mortgage-backed securities | 322 | 246 | 273 | 377 | 453 | 841 | 1,556 |
| Investment securities | 814 | 713 | 711 | 701 | 699 | 2,229 | 2,154 |
| Other interest-earning assets | 5 | 14 | 4 | 6 | -- | 23 | 2 |
| Total interest-earning assets | $ 8,088 | $ 6,936 | $ 7,054 | $ 7,425 | $ 7,588 | $ 22,069 | $ 22,576 |
| Interest expense on: | |||||||
| Deposits | $ 799 | $ 712 | $ 731 | $ 737 | $ 803 | $ 2,242 | $ 2,795 |
| FHLB advances and other borrowed money | 219 | 226 | 248 | 311 | 338 | 693 | 1,094 |
| Total interest-bearing liabilities | $ 1,018 | $ 938 | $ 979 | $ 1,048 | $ 1,141 | $ 2,935 | $ 3,889 |
| Net interest income: tax equivalent basis | $ 7,070 | $ 5,998 | $ 6,075 | $ 6,377 | $ 6,447 | $ 19,134 | $ 18,687 |
| Tax equivalent adjustment on investment securities | 185 | 192 | 197 | 191 | 193 | 565 | 590 |
| Net interest income | $ 6,885 | $ 5,806 | $ 5,878 | $ 6,186 | $ 6,254 | $ 18,569 | $ 18,097 |
| NON-INTEREST INCOME DETAIL | |||||||
| Service fees, charges and other | $ 560 | $ 454 | $ 497 | $ 484 | $ 433 | $ 1,512 | $ 1,339 |
| Impairment adjustment to mortgage servicing rights | 32 | 196 | 33 | 50 | (53) | 260 | (89) |
| Bank-owned life insurance | 136 | 137 | 143 | 147 | 152 | 416 | 456 |
| Proceeds from bank-owned life insurance | -- | 934 | -- | -- | -- | 934 | -- |
| Gain on sale of investment securities | -- | -- | -- | 85 | -- | -- | -- |
| Gain on sale of loans | 104 | 226 | 305 | 430 | 382 | 635 | 920 |
| Gain on disposition of real estate | -- | -- | 417 | -- | -- | 417 | 264 |
| Purchase gain associated with Roebling acquisition | 1,214 | -- | -- | -- | -- | 1,214 | -- |
| NON-INTEREST EXPENSE DETAIL | |||||||
| Compensation and benefits | $ 3,125 | $ 2,842 | $ 2,817 | $ 2,760 | $ 2,651 | $ 8,784 | $ 8,222 |
| Occupancy and equipment | 867 | 709 | 697 | 727 | 686 | 2,273 | 2,068 |
| Professional fees | 311 | 230 | 288 | 302 | 349 | 829 | 874 |
| Merger-related costs | 2 | 295 | 320 | 108 | -- | 617 | -- |
| Marketing and advertising | 132 | 132 | 39 | 79 | 76 | 303 | 267 |
| FDIC insurance premiums | 188 | 132 | 110 | 149 | 146 | 430 | 447 |
| Loss on REO (2) | 71 | 198 | 178 | 46 | -- | 447 | 425 |
| Operating expenses of REO (2) | 43 | 37 | 46 | 60 | 78 | 126 | 280 |
| Other operating | 640 | 557 | 535 | 459 | 480 | 1,732 | 1,588 |
| Conversion costs (3) | 1,403 | -- | -- | -- | -- | 1,403 | -- |
| T F FINANCIAL CORPORATION | |||||||
| UNAUDITED FINANCIAL INFORMATION | |||||||
| (dollars in thousands except per share data) | PERIOD ENDED | ||||||
| 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | |||
| DEPOSIT INFORMATION | |||||||
| Non-interest checking | $ 69,157 | $ 58,697 | $ 57,422 | $ 52,433 | $ 50,421 | ||
| Interest checking | 108,341 | 78,923 | 78,263 | 76,370 | 70,797 | ||
| Money market | 179,612 | 159,015 | 156,736 | 153,827 | 153,351 | ||
| Savings | 131,432 | 109,446 | 108,554 | 106,268 | 106,693 | ||
| CD's | 193,283 | 165,331 | 170,355 | 171,417 | 152,011 | ||
| OTHER INFORMATION | |||||||
| Per Share | |||||||
| Book value | $ 29.48 | $ 29.36 | $ 29.37 | $ 29.23 | $ 28.89 | ||
| Tangible book value | $ 27.94 | $ 27.84 | $ 27.85 | $ 27.70 | $ 27.37 | ||
| Closing market price | $ 27.88 | $ 25.40 | $ 25.15 | $ 23.83 | $ 23.79 | ||
| Balance Sheet | |||||||
| Loans | $ 623,021 | $ 531,464 | $ 528,229 | $ 534,348 | $ 541,610 | ||
| Cash and cash equivalents | 31,004 | 44,958 | 48,690 | 31,137 | 3,712 | ||
| Mortgage-backed securities | 48,709 | 34,206 | 38,320 | 44,639 | 51,463 | ||
| Investment securities | 85,330 | 68,459 | 63,987 | 65,041 | 63,822 | ||
| Total assets | 833,334 | 714,781 | 716,002 | 711,836 | 697,056 | ||
| Total deposits | 681,825 | 571,412 | 571,330 | 560,315 | 533,273 | ||
| FHLB advances and other borrowed money | 50,990 | 52,534 | 54,151 | 60,656 | 75,156 | ||
| Stockholders' equity | 92,811 | 83,453 | 83,408 | 82,945 | 81,965 | ||
| Asset Quality | |||||||
| Non-performing loans | $ 6,881 | $ 5,973 | $ 7,647 | $ 8,359 | $ 10,400 | ||
| Allowance for loan losses | $ 6,691 | $ 6,916 | $ 6,662 | $ 6,922 | $ 6,772 | ||
| Net charge-offs | $ 225 | $ 146 | $ 699 | $ 500 | $ 141 | ||
| Allowance for loan losses to non-performing loans | 97.24% | 115.79% | 87.12% | 82.81% | 65.12% | ||
| Allowance for loan losses to gross loans | 1.07% | 1.30% | 1.26% | 1.30% | 1.25% | ||
| Non-performing loans to gross loans | 1.10% | 1.12% | 1.45% | 1.56% | 1.92% | ||
| Non-performing loans to total assets | 0.83% | 0.84% | 1.07% | 1.17% | 1.49% | ||
| REO (2) | $ 5,786 | $ 6,177 | $ 7,170 | $ 7,282 | $ 7,619 | ||
| REO to total assets (2) | 0.69% | 0.86% | 1.00% | 1.02% | 1.09% | ||
| Non-performing assets to total assets | 1.52% | 1.70% | 2.07% | 2.20% | 2.59% | ||
| Statistical | |||||||
| Shares outstanding (000's) | 3,148 | 2,842 | 2,840 | 2,838 | 2,837 | ||
| Number of branch offices | 18 | 13 | 13 | 13 | 14 | ||
| Full time equivalent employees | 206 | 166 | 165 | 167 | 167 | ||
| (1) The efficiency ratio is non-interest expense excluding merger-related and conversion costs and loss on REO divided by net interest income on a tax equivalent basis plus non-interest income excluding impairment adjustment to mortgage servicing rights, gain on sale of investment securities, proceeds from bank owned life insurance and gain on disposition of real estate and purchase gain associated with Roebling Bank acquisition. | |||||||
| (2) REO is real estate acquired through foreclosure. | |||||||
| (3) Conversion costs are mainly retention and severance payments paid to transition employees, and amounts paid to terminate various data processing contracts. | |||||||