EXHIBIT 99.1
TF Financial Corporation Reports Third Quarter 2009 Results and Quarterly Dividend
NEWTOWN, Pa., Oct. 29, 2009 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,112,000 ($0.44 per diluted share) for the third quarter of 2009, compared with $1,250,000 ($0.47 per diluted share) for the third quarter of 2008. Net income for the nine month period ended September 30, 2009 was $3,354,000 ($1.33 per diluted share) compared with $3,715,000 ($1.39 per diluted share) for the first nine months of 2008. The Company also announced that its Board of Directors declared a quarterly dividend of $0.20 per share, payable November 16, 2009 to shareholders of record on November 9, 2009.
Highlights for the current quarter included:
-- Net income and diluted earnings per share decreased by 11.0% and 6.4%, respectively, compared to the third quarter of 2008, primarily due to a $500,000 increase in the provision for loan losses, partially offset by a $362,000 increase in net interest income. -- The Company's net interest margin was 3.42% during the quarter, up 23 basis points from the third quarter of 2008, and up 10 basis points from the second quarter of 2009. -- Total deposits were $531.9 million at quarter end, a record for the Company. -- Non-performing loans were relatively unchanged during the quarter, and stood at $3.1 million or 0.44% of total assets, down from 0.72% of total assets at December 31, 2008. -- Total non-performing assets were 0.58% of total assets, down from 0.72% of total assets at December 31, 2008. -- During the third quarter of 2009, the Company recorded a provision for loan losses of $650,000, and there were $1,328,000 of charges to the reserve, approximately $1.0 million of which was attributable to one loan which was foreclosed upon and carried as real estate owned at quarter end. The total allowance for loan losses at quarter end was approximately $4.3 million, up from $3.9 million and $3.0 million at December 31, 2008 and September 30, 2008, respectively. At quarter end the allowance stood at 0.80% of loans, up from 0.70% of loans at December 31, 2008 and 0.54% of loans at September 30, 2008.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "I am pleased with our performance for the third quarter, especially within these challenging times. TF Financial Corporation and its principal subsidiary, 3rd Federal Bank, are well-positioned to weather these difficult times due in part to continued core earnings, the careful management of our loan loss reserve to ensure that it is adequate and by maintaining capital levels that exceed regulatory guidelines for well capitalized institutions.
"We are monitoring our loan portfolio very closely and are managing all aspects of our operation with a heightened intensity. Deposit growth for the year continues to be very strong, reflecting the confidence that the public has in this community bank.
"We also recognize that we need to continue to look forward and are taking positive steps to enhance our franchise. We recently underwent a successful, major computer upgrade, which will improve our product and service offerings. In addition, we have broken ground on a new LEED Certified office to replace our current Woodhaven Road Branch.
"TF Financial Corporation and 3rd Federal Bank are strong institutions that are anxious to serve the needs of the community. We offer a safe and secure alternative for depositors and are a willing lender to qualified borrowers."
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 ------------- 9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008 --------- --------- --------- ---------- --------- EARNINGS SUMMARY Interest income $ 9,120 $ 9,228 $ 9,317 $ 9,618 $ 9,725 Interest expense 3,381 3,649 3,798 4,308 4,348 Net interest income 5,739 5,579 5,519 5,310 5,377 Loan loss provision 650 590 665 1,010 150 Non-interest income 796 1,439 935 927 699 Non-interest expense 4,420 4,776 4,424 4,623 4,214 Income taxes 353 430 345 83 462 Net income $ 1,112 $ 1,222 $ 1,020 $ 521 $ 1,250 PER SHARE INFORMATION Earnings per share, basic $ 0.44 $ 0.48 $ 0.41 $ 0.20 $ 0.47 Earnings per share, diluted $ 0.44 $ 0.48 $ 0.41 $ 0.20 $ 0.47 Dividends paid $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 FINANCIAL RATIOS Annualized return on average assets 0.62% 0.68% 0.57% 0.28% 0.69% Annualized return on average equity 6.28% 7.07% 6.08% 3.00% 7.14% Efficiency ratio 75.11% 74.30% 76.42% 88.44% 71.11% AVERAGE BALANCES Loans $ 535,358 $ 542,569 $ 545,097 $ 547,128 $ 547,748 Mortgage-backed securities 100,482 104,491 109,377 109,284 93,100 Investment securities 41,849 38,060 39,458 39,996 40,862 Other interest- earning assets 2,027 2,011 501 629 1,102 Total earning assets 679,716 687,131 694,433 697,037 682,812 Non-earning assets 37,463 38,517 34,984 36,611 36,301 Total assets 717,179 725,648 729,417 733,648 719,113 Deposits 530,064 518,374 494,969 491,283 482,521 FHLB advances and other borrowed money 107,746 128,620 157,928 165,101 158,385 Total interest bearing liabilities 637,810 646,994 652,897 656,384 640,906 Non-interest bearing liabilities 9,065 9,302 8,471 8,271 8,552 Stockholders' equity 70,304 69,352 68,049 68,993 69,655 Total liabilities & stockholders' equity $ 717,179 $ 725,648 $ 729,417 $ 733,648 $ 719,113 SPREAD AND MARGIN ANALYSIS Average yield on: Loans 5.66% 5.66% 5.70% 5.83% 6.00% Mortgage-backed securities 4.62% 4.97% 5.14% 4.79% 4.61% Investment securities 4.09% 3.99% 3.90% 3.84% 4.76% Other interest- earning assets 0.00% 0.00% 0.00% 0.63% 2.17% Total interest- earning assets 5.39% 5.45% 5.50% 5.55% 5.73% Average cost of: Deposits 1.79% 1.89% 2.06% 2.32% 2.29% FHLB advances and other borrowed money 3.64% 3.77% 3.30% 3.48% 3.96% Total interest- bearing liabilities 2.10% 2.26% 2.36% 2.61% 2.70% Interest rate spread 3.29% 3.19% 3.14% 2.94% 3.03% Net interest margin 3.42% 3.32% 3.28% 3.09% 3.19% NON-INTEREST INCOME DETAIL Service fees, charges and other $ 464 $ 597 $ 437 $ 595 $ 504 Bank-owned life insurance 171 170 160 164 155 Gain on sale investments -- 116 190 -- -- Gain on sale of loans 127 253 148 72 40 Gain on sale of real estate 34 303 -- 96 -- NON-INTEREST EXPENSE DETAIL Salaries and benefits $ 2,601 $ 2,645 $ 2,671 $ 2,775 $ 2,648 Occupancy 756 708 710 722 691 Professional fees 195 183 273 232 142 Advertising 118 116 148 181 144 Deposit insurance 182 511 21 20 21 Other 568 613 601 693 568 NINE MONTHS ENDED ----------------- 9/30/2009 9/30/2008 --------- --------- EARNINGS SUMMARY Interest income $ 27,665 $ 29,214 Interest expense 10,828 13,763 Net interest income 16,837 15,451 Loan loss provision 1,905 490 Non-interest income 3,170 2,948 Non-interest expense 13,620 12,808 Income taxes 1,128 1,386 Net income $ 3,354 $ 3,715 PER SHARE INFORMATION Earnings per share, basic $ 1.33 $ 1.40 Earnings per share, diluted $ 1.33 $ 1.39 Dividends paid $ 0.60 $ 0.60 FINANCIAL RATIOS Annualized return on average assets 0.62% 0.69% Annualized return on average equity 6.48% 7.16% Efficiency ratio 75.24% 71.52% AVERAGE BALANCES Loans $ 540,972 $ 540,882 Mortgage-backed securities 104,752 97,558 Investment securities 39,798 41,518 Other interest-earning assets 1,519 913 Total earning assets 687,041 680,871 Non-earning assets 37,092 35,584 Total assets 724,133 716,455 Deposits 514,614 480,512 FHLB advances and other borrowed money 131,248 157,706 Total interest bearing liabilities 645,862 638,218 Non-interest bearing liabilities 9,033 8,958 Stockholders' equity 69,238 69,279 Total liabilities & stockholders' equity $ 724,133 $ 716,455 SPREAD AND MARGIN ANALYSIS Average yield on: Loans 5.69% 6.07% Mortgage-backed securities 4.93% 4.71% Investment securities 4.01% 4.76% Other interest-earning assets 0.09% 2.34% Total interest-earning assets 5.46% 5.79% Average cost of: Deposits 1.91% 2.50% FHLB advances and other borrowed money 3.56% 4.05% Total interest-bearing liabilities 2.25% 2.88% Interest rate spread 3.21% 2.91% Net interest margin 3.35% 3.09% NON-INTEREST INCOME DETAIL Service fees, charges and other $ 1,498 $ 1,937 Bank-owned life insurance 501 470 Gain on sale investments 306 -- Gain on sale of loans 528 199 Gain on sale of real estate 337 342 NON-INTEREST EXPENSE DETAIL Salaries and benefits $ 7,917 $ 7,863 Occupancy 2,174 2,159 Professional fees 651 563 Advertising 382 433 Deposit insurance 714 48 Other 1,782 1,742 TF FINANCIAL CORPORATION UNAUDITED FINANCIAL INFORMATION (dollars in thousands except per share data) PERIOD ENDED ------------ 9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008 --------- --------- --------- ---------- --------- DEPOSIT INFORMATION Non-interest checking $ 38,100 $ 41,078 $ 36,123 $ 36,871 $ 40,204 Interest checking 47,377 49,593 47,365 46,907 46,013 Money market 131,197 120,163 100,481 88,609 80,328 Savings 97,795 104,385 108,518 111,591 116,485 CD's 217,480 215,871 212,028 205,872 209,505 OTHER INFORMATION Per Share Book value (a) $ 28.33 $ 27.63 $ 27.35 $ 26.92 $ 26.28 Tangible book value (a) $ 26.61 $ 25.91 $ 25.64 $ 25.20 $ 24.65 Closing market price $ 18.75 $ 17.71 $ 18.19 $ 19.30 $ 21.50 Balance Sheet Loans,net $ 532,547 $ 542,673 $ 542,494 $ 545,989 $ 548,263 Cash and cash equivalents 4,401 6,262 3,896 2,719 4,562 Mortgage-backed securities 98,188 101,171 105,678 111,991 92,979 Investment securities 44,348 41,947 38,451 41,515 39,818 Total assets 711,849 724,497 723,925 733,708 718,113 Total deposits 531,949 531,090 504,515 489,850 492,535 FHLB advances and other borrowed money 99,744 111,132 141,576 168,148 148,341 Stockholders' equity 71,550 69,672 68,901 67,692 69,412 Asset Quality Non-performing loans $ 3,098 $ 3,039 $ 3,486 $ 5,279 $ 2,615 Allowance for loan losses $ 4,292 $ 4,970 $ 4,425 $ 3,855 $ 2,996 Net charge-offs $ 1,328 $ 45 $ 95 $ 151 $ (1) Allowance for loan losses to total loans 0.80% 0.91% 0.81% 0.70% 0.54% Non-performing loans to total loans 0.58% 0.55% 0.64% 0.96% 0.47% Non-performing loans to total assets 0.44% 0.42% 0.48% 0.72% 0.36% Foreclosed property $ 999 $ 1,130 $ 2,164 $ -- $ 306 Foreclosed property to total assets 0.14% 0.16% 0.30% 0.00% 0.04% Non-performing assets to total assets 0.58% 0.58% 0.78% 0.72% 0.41% Statistical Shares outstanding (000's) (a) 2,526 2,522 2,519 2,515 2,641 Number of branch offices 14 14 14 14 14 Full time equivalent employees 172 173 177 181 173 (a) Excludes 138,000, 141,000, 144,000, 147,000 and 150,000 unallocated employee stock ownership plan shares at September 30, 2009, June 30, 2009, March 31, 2009,December 31, 2008 and September 30, 2008, respectively.
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000