EXHIBIT 99.1
TF Financial Corporation Reports Second Quarter 2009 Results and Quarterly Dividend
NEWTOWN, Pa., July 23, 2009 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,222,000 ($0.48 per diluted share) for the second quarter of 2009, compared with $1,184,000 ($0.44 per diluted share) for the second quarter of 2008. Net income for the six month period ended June 30, 2009 was $2,242,000 ($0.89 per diluted share) compared with $2,465,000 ($0.92 per diluted share) for the first six months of 2008. The Company also announced that its Board of Directors declared a quarterly dividend of $0.20 per share, payable August 14, 2009 to shareholders of record on August 7, 2009.
Highlights for the current quarter included:
* Net income increased by 19.8% and 3.2%, respectively, compared to the first quarter of 2009 and the second quarter of 2008. * Deposit insurance expense for the three and six month periods ended June 30, 2009 included an additional $330,000 of FDIC deposit insurance, the Company's share of a 5 basis point special assessment imposed by the FDIC on each insured depository institution's assets minus Tier 1 capital as of June 30, 2009. * The Company's net interest margin was 3.32% during the second quarter of 2009, up 4 basis points from the first quarter of 2009, and up 23 basis points from the second quarter of 2008. * Total deposits were $531.1 million at quarter end, a record for the Company. * Non-performing assets were reduced to 0.58% of total assets compared with 0.78% and 0.72% at March 31, 2009 and December 31, 2008, respectively. * During the second quarter of 2009, the Company recorded a provision for loan losses of $590,000 compared with $665,000 during the first quarter of 2009, and $340,000 during the second quarter of 2008. The total allowance for loan losses at quarter end was approximately $5.0 million, up from $3.9 million and $2.8 million at December 31, 2008 and June 30, 2008, respectively. At quarter end the allowance stood at 0.91% of loans, up from 0.52% of loans at June 30, 2008. * Non-interest income during the quarter included a $303,000 gain on the sale of foreclosed real estate, a $116,000 gain on the sale of securities, and $253,000 of gains on the sale of originated residential mortgage loans. Non-interest expenses included regular FDIC insurance premium expense of $181,000 in addition to the special assessment, compared with regular premium of $13,000 in the second quarter of 2008. The regular FDIC insurance premium increase is due to the increase in deposits, an increase in the assessment rate, and the exhaustion of a credit the Company had been entitled to take against premiums due.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "We are pleased with the Company's 2nd quarter performance considering the volatile state of the economy, and the punitive FDIC special assessment on the banking community. We clearly recognize the dangers that these current economic conditions present and we closely monitor our loan and investment portfolios.
"Deposits continue to grow at a significant pace as the public looks for a safe, reliable haven for their savings. We also continue our proactive efforts to improve our services by introducing new and innovative banking products, such as eStatements and the Platinum 50+ account."
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 thousands except per share data) QUARTER ENDED ------------- 6/30/ 3/31/ 12/31/ 9/30/ 6/30/ 2009 2009 2008 2008 2008 -------- -------- -------- -------- -------- EARNINGS SUMMARY Interest income $ 9,228 $ 9,317 $ 9,618 $ 9,725 $ 9,656 Interest expense 3,649 3,798 4,308 4,348 4,497 Net interest income 5,579 5,519 5,310 5,377 5,159 Loan loss provision 590 665 1,010 150 340 Non-interest income 1,439 935 927 699 1,138 Non-interest expense 4,776 4,424 4,623 4,214 4,332 Income taxes 430 345 83 462 441 Net income $ 1,222 $ 1,020 $ 521 $ 1,250 $ 1,184 PER SHARE INFORMATION Earnings per share, basic $ 0.48 $ 0.41 $ 0.20 $ 0.47 $ 0.45 Earnings per share, diluted $ 0.48 $ 0.41 $ 0.20 $ 0.47 $ 0.44 Dividends paid $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 FINANCIAL RATIOS Annualized return on average assets 0.68% 0.57% 0.28% 0.69% 0.66% Annualized return on average equity 7.07% 6.08% 3.00% 7.14% 6.78% Efficiency ratio 74.30% 76.42% 88.44% 71.11% 72.72% AVERAGE BALANCES Loans $542,569 $545,097 $547,128 $547,748 $545,958 Mortgage-backed securities 104,491 109,377 109,284 93,100 97,397 Investment securities 38,060 39,458 39,996 40,862 41,915 Other interest- earning assets 2,011 501 629 1,102 665 Total earning assets 687,131 694,433 697,037 682,812 685,935 Non-earning assets 38,517 34,984 36,611 36,301 36,265 Total assets 725,648 729,417 733,648 719,113 722,200 Deposits 518,374 494,969 491,283 482,521 486,394 FHLB advances and other borrowed money 128,620 157,928 165,101 158,385 155,675 Total interest bearing liabilities 646,994 652,897 656,384 640,906 642,069 Non-interest bearing liabilities 9,302 8,471 8,271 8,552 9,934 Stockholders' equity 69,352 68,049 68,993 69,655 70,197 Total liabilities & stockholders' equity $725,648 $729,417 $733,648 $719,113 $722,200 SPREAD AND MARGIN ANALYSIS Average yield on: Loans 5.66% 5.70% 5.83% 6.00% 6.01% Mortgage-backed securities 4.97% 5.14% 4.79% 4.61% 4.67% Investment securities 3.99% 3.90% 3.84% 4.76% 4.52% Other interest- earning assets 0.00% 0.00% 0.63% 2.17% 2.42% Total interest- earning assets 5.45% 5.50% 5.55% 5.73% 5.72% Average cost of: Deposits 1.89% 2.06% 2.32% 2.29% 2.42% FHLB advances and other borrowed money 3.77% 3.30% 3.48% 3.96% 4.06% Total interest- bearing liabilities 2.26% 2.36% 2.61% 2.70% 2.82% Interest rate spread 3.18% 3.14% 2.94% 3.03% 2.91% Net interest margin 3.32% 3.28% 3.09% 3.19% 3.09% NON-INTEREST INCOME DETAIL Service fees, charges and other $ 597 $ 437 $ 595 $ 504 $ 543 Bank-owned life insurance 170 160 164 155 156 Gain on sale investments 116 190 -- -- -- Gain on sale of loans 253 148 72 40 97 Gain on sale of real estate 303 -- 96 -- 342 NON-INTEREST EXPENSE DETAIL Salaries and benefits 2,645 $ 2,671 $ 2,775 $ 2,648 $ 2,677 Occupancy 708 710 722 691 740 Professional fees 183 273 232 142 167 Advertising 116 148 181 144 145 Deposit insurance 511 21 20 21 13 Other 613 601 693 568 590 (dollars in thousands except per share data) SIX MONTHS ENDED ---------------- 6/30/2009 6/30/2008 --------- --------- EARNINGS SUMMARY Interest income $ 18,545 $ 19,489 Interest expense 7,447 9,415 Net interest income 11,098 10,074 Loan loss provision 1,255 340 Non-interest income 2,374 2,249 Non-interest expense 9,200 8,594 Income taxes 775 924 Net income $ 2,242 $ 2,465 PER SHARE INFORMATION Earnings per share, basic $ 0.89 $ 0.92 Earnings per share, diluted $ 0.89 $ 0.92 Dividends paid $ 0.40 $ 0.40 FINANCIAL RATIOS Annualized return on average assets 0.62% 0.69% Annualized return on average equity 6.57% 7.18% Efficiency ratio 75.30% 71.72% AVERAGE BALANCES Loans $ 543,826 $ 537,411 Mortgage-backed securities 106,921 99,810 Investment securities 38,755 41,850 Other interest-earning assets 1,260 818 Total earning assets 690,762 679,889 Non-earning assets 36,754 35,344 Total assets 727,516 715,233 Deposits 506,677 479,497 FHLB advances and other borrowed money 143,193 157,363 Total interest bearing liabilities 649,870 636,860 Non-interest bearing liabilities 8,882 9,285 Stockholders' equity 68,764 69,088 Total liabilities & stockholders' equity $ 727,516 $ 715,233 SPREAD AND MARGIN ANALYSIS Average yield on: Loans 5.69% 6.11% Mortgage-backed securities 5.07% 4.76% Investment securities 3.96% 4.76% Other interest-earning assets 0.00% 2.46% Total interest-earning assets 5.49% 5.83% Average cost of: Deposits 1.98% 2.61% FHLB advances and other borrowed money 3.52% 4.09% Total interest-bearing liabilities 2.32% 2.97% Interest rate spread 3.17% 2.85% Net interest margin 3.31% 3.04% NON-INTEREST INCOME DETAIL Service fees, charges and other $ 1,034 $ 1,433 Bank-owned life insurance 330 315 Gain on sale investments 306 -- Gain on sale of loans 401 159 Gain on sale of real estate 303 342 NON-INTEREST EXPENSE DETAIL Salaries and benefits $ 5,316 $ 5,215 Occupancy 1,418 1,468 Professional fees 456 421 Advertising 264 289 Deposit insurance 532 27 Other 1,214 1,174 TF FINANCIAL CORPORATION UNAUDITED FINANCIAL INFORMATION (dollars in thousands except per share data) PERIOD ENDED ------------ 6/30/ 3/31/ 12/31/ 9/30/ 6/30/ 2009 2009 2008 2008 2008 -------- -------- -------- -------- -------- DEPOSIT INFORMATION Non-interest checking $ 41,078 $ 36,123 $ 36,871 $ 40,204 $ 37,370 Interest checking 49,593 47,365 46,907 46,013 48,273 Money market 120,163 100,481 88,609 80,328 83,500 Savings 104,385 108,518 111,591 116,485 125,346 CD's 215,871 212,028 205,872 209,505 192,505 OTHER INFORMATION Per Share Book value(a) $ 27.63 $ 27.35 $ 26.92 $ 26.28 $ 26.07 Tangible book value(a) $ 25.91 $ 25.64 $ 25.20 $ 24.65 $ 24.44 Closing market price $ 17.71 $ 18.19 $ 19.30 $ 21.50 $ 21.51 Balance Sheet Loans,net $542,673 $542,494 $545,989 $548,263 $549,519 Cash and cash equivalents 6,262 3,896 2,719 4,562 4,327 Mortgage-backed securities 101,171 105,678 111,991 92,979 92,607 Investment securities 41,947 38,451 41,515 39,818 40,547 Total assets 724,497 723,925 733,708 718,113 719,587 Total deposits 531,090 504,515 489,850 492,535 486,994 FHLB advances and other borrowed money 111,132 141,576 168,148 148,341 154,703 Stockholders' equity 69,672 68,901 67,692 69,412 69,061 Asset Quality Non-performing loans 3,039 3,486 5,279 2,615 2,368 Allowance for loan losses 4,970 4,425 3,855 2,996 2,845 Net charge-offs 45 95 151 (1) (2) Reserves to gross loans 0.91% 0.81% 0.70% 0.54% 0.52% Non-performing loans to gross loans 0.55% 0.64% 0.96% 0.47% 0.43% Non-performing loans to total assets 0.42% 0.48% 0.72% 0.36% 0.33% Foreclosed property 1,130 2,164 -- 306 306 Foreclosed property to total assets 0.16% 0.30% 0.00% 0.04% 0.04% Non-performing assets to total assets 0.58% 0.78% 0.72% 0.41% 0.37% Statistical Shares outstanding (000's)(a) 2,522 2,519 2,515 2,641 2,649 Number of branch offices 14 14 14 14 14 Full time equivalent employees 173 177 181 173 179 (a) Excludes 141,000, 144,000, 147,000 150,000 and 153,000 unallocated employee stock ownership plan shares at June 30, 2009, March 31, 2009, December 31, 2008, September 30,2008 and June 30, 2008, respectively.
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000