EXHIBIT 99.1
TF Financial Corporation Reports First Quarter 2008 Results and Quarterly Dividend
NEWTOWN, Pa., April 24, 2008 (PRIME NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,281,000 ($0.48 per diluted share) for the first quarter of 2008, compared with $1,398,000 ($0.51 per diluted share) for the first quarter of 2007. The Company also announced that its Board of Directors had declared a quarterly dividend of $0.20 per share, payable May 15, 2008 to shareholders of record on May 8, 2008.
Highlights for the current quarter included:
* Net income and diluted earnings per share decreased by 8.4% and 5.9%, respectively, compared with the first quarter of 2007. Return on average assets and return on average equity were 0.73% and 7.58%, respectively. * Income before income taxes decreased by $176,000 during the first quarter of 2008 compared with the first quarter of 2007. However, the first quarter of 2007 included $777,000 of non-recurring income from a fraud-related settlement. In addition, operating expenses during the 2007 period included $270,000 of expense related to the bankruptcy of one of the Company's loan servicing agents, while other income during the first quarter of 2008 included a $197,000 insurance claim recovery related to this same $270,000 expense. Thus, excluding these non-recurring items, income before income taxes for the first quarter of 2008 would have been $134,000 higher than the 2007 quarter. * The Company's net interest margin was 3.00% during the quarter, a decrease of 6 basis points from the fourth quarter of 2007 and 37 basis points from the first quarter of 2007. During the quarter, the Company reduced its prime interest rate three times by a combined 200 basis points, mirroring actions taken by the FOMC when it acted to reduce the fed funds rate. While the lowering of the prime rate reduced the yields earned on the Company's prime- rate-based commercial, construction, and home equity loans, the Company was also able to reduce the interest rates paid on its deposits and other borrowings. In addition, the Company produced excellent loan growth of over $23.6 million during the quarter. As a result, net interest income increased by $68,000 compared with the fourth quarter of 2007. * Total deposits increased to $479.0 million from $472.4 million at December 31, 2007. The average cost of deposits was 2.79%, down 16 basis points from the fourth quarter of 2007, although up 4 basis points from the first quarter of 2007. * Asset quality indicators improved during the quarter, and the Company remained unaffected by industry issues related to "subprime" loans because the Company did not originate or purchase "subprime" loans or securities. Non-performing assets, including real estate owned, decreased by $1.9 million from the end of 2007, and stood at 0.48% of total assets.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "Like most financial institutions, TF Financial Corporation has been contending with an increasingly weak economy, a volatile real estate market, and an interest rate environment that has continued to contribute to a tightening of our net interest margin. Despite these major challenges, the Bank continues to report superior performance compared to its Federal regulator peer group and experience moderate and prudent asset growth. Management also continues to exercise close oversight of its real estate based loan portfolio, carefully monitor and manage its delinquent and non-performing assets, and prudently price the Bank's loans and deposits. We recognize that these are trying times for the banking community and are working diligently to weather them and improve the performance of your company."
TF Financial Corporation is a holding company whose principal subsidiary is Third Federal Bank, which operates 15 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) THREE MONTHS INC ------------ --- 3/31/2008 3/31/2007 (DEC) --------- --------- ----- EARNINGS SUMMARY Interest income $ 9,833 $ 9,213 6.7% Interest expense 4,918 4,209 16.8% Net interest income 4,915 5,004 -1.8% Loan loss provision 0 0 0.0% Non-interest income 1,111 1,526 -27.2% Non-interest expense 4,262 4,590 -7.1% Income before income taxes 1,764 1,940 -9.1% Income taxes 483 542 -10.9% Net income $ 1,281 $ 1,398 -8.4% PER SHARE INFORMATION Earnings per share, basic $ 0.48 $ 0.51 -5.9% Earnings per share, diluted $ 0.48 $ 0.51 -5.9% Dividends paid $ 0.20 $ 0.20 0.0% FINANCIAL RATIOS Annualized return on average assets 0.73% 0.87% -16.1% Annualized return on average equity 7.58% 8.58% -11.7% Efficiency ratio 70.73% 70.29% 0.6% AVERAGE BALANCES Loans $528,865 $487,698 8.4% Mortgage-backed securities 102,223 80,637 26.8% Investment securities 41,783 41,282 1.2% Other interest-earning assets 971 5,983 -83.8% Total earning assets 673,842 615,600 9.5% Non-earning assets 34,879 34,076 2.4% Total assets 708,721 649,676 9.1% Deposits 473,160 476,374 -0.7% FHLB advances 159,051 99,270 60.2% Total interest bearing liabilities 632,211 575,644 9.8% Non-interest bearing liabilities 8,531 7,917 7.8% Stockholders' equity 67,979 66,115 2.8% Total liabilities & stockholders' equity $708,721 $649,676 9.1% SPREAD AND MARGIN ANALYSIS Average yield on: Loans 6.22% 6.47% Mortgage-backed securities 4.84% 4.69% Investment securities 5.10% 5.34% Other interest-earning assets 2.49% 4.54% Average cost of: Deposits 2.79% 2.75% FHLB advances 4.13% 4.00% Interest rate spread 2.81% 3.18% Net interest margin 3.00% 3.37% NON-INTEREST INCOME DETAIL Service fees, charges and other $ 890 $ 1,324 -32.8% Bank-owned life insurance $ 159 $ 148 7.4% Gain on sale of loans $ 62 $ 54 14.8% NON-INTEREST EXPENSE DETAIL Salaries and benefits 2,538 2,668 -4.9% Occupancy 728 692 5.2% Professional fees 254 224 13.4% Advertising 144 163 -11.7% Other 598 843 -29.1% T F FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per PERIOD ENDING share data) ------------- INC --- 3/31/2008 12/31/2007 (DEC) --------- ---------- ----- DEPOSIT INFORMATION Non-interest checking $ 36,520 $ 35,904 1.7% Interest checking 46,999 46,543 1.0% Money market 87,313 79,267 10.2% Savings 127,855 130,423 -2.0% CD's, retail 180,277 180,257 0.0% OTHER INFORMATION Per Share Book value (a) $ 26.17 $ 25.40 Tangible book value (a) $ 24.55 $ 23.78 Closing market price $ 24.29 $ 24.64 Balance sheet Loans, net $541,706 $518,067 4.6% Cash and cash equivalents 4,281 5,680 -24.6% Mortgage-backed securities 100,676 104,338 -3.5% Investment securities 42,161 41,389 1.9% Total assets 721,417 701,673 2.8% Total deposits 478,964 472,394 1.4% FHLB advances and other 163,601 153,221 6.8% Stockholders' equity 69,729 67,843 2.8% Asset Quality Non-performing loans 3,144 5,358 -41.3% Loan loss reserves 2,503 2,842 -11.9% Reserves to gross loans 0.46% 0.55% -16.4% Non-performing loans to gross loans 0.58% 1.03% -43.7% Non-performing loans to total assets 0.44% 0.76% -42.1% Foreclosed property 306 -- 0.0% Foreclosed property to total assets 0.04% 0.00% 0.0% Non-performing assets to total assets 0.48% 0.76% -36.8% Statistical Shares outstanding (000's) (a) 2,664 2,671 Number of branch offices 15 15 Full time equivalent employees 180 181 (a) Excludes 156,000 and 159,000 unallocated employee stock ownership plan shares at March 31, 2008 and December 31, 2007, respectively.
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000