EXHIBIT 99.1
TF Financial Corporation Reports 2009 Results and Quarterly Dividend
NEWTOWN, Pa., Jan. 28, 2010 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $4,514,000 ($1.79 per diluted share) for 2009, compared with $4,236,000 ($1.61 per diluted share) for 2008. Net income for the three month period ended December 31, 2009 was $1,160,000 ($0.46 per diluted share) compared with $521,000 ($0.20 per diluted share) during the comparable period of 2008. The Company also announced that its Board of Directors declared a quarterly dividend of $0.20 per share, payable February 16, 2010 to shareholders of record on February 9, 2010.
Highlights for 2009 included:
- Net income increased by $278,000 or 6.6% compared with 2008. Diluted earnings per share increased by $0.18 or 11.2%. Return on average assets was 63 basis points and return on average equity was 6.63%.
- Net interest income increased by $1,855,000 or 8.9% compared with 2008. The Company's net interest margin was 3.38% for the year, an increase of 29 basis points compared with 2008.
- There was a 35 basis point decrease in the average yield on loans largely due to the full year effect during 2009 of a 400 basis point decrease in the prime rate that occurred throughout 2008, which resulted in lower interest yields on the Company's prime rate-based construction, commercial, and home equity loans during 2009 compared to 2008. During 2009, net loans outstanding decreased by $15.3 million or 2.8% to $530.7 million.
- Deposits increased by $62.9 million or 12.8% to $552.7 million, and there was a 62 basis point decrease in the average cost of deposits for 2009 compared to 2008. The largest growth in deposits occurred in money market accounts, mostly in consumer accounts, but also a large percentage increase in business money market accounts as the Company's efforts to increase its business deposits proved to be a success. Federal Home Loan Bank advances and other borrowings decreased by $87.9 million or 52.3% to $80.2 million. The average cost of these borrowings decreased by 23 basis points, mainly due to the substantial decrease in short-term interest rates throughout 2008, and thus the interest cost of short-term borrowings decreased during 2009 compared to 2008.
- Non-performing assets were 1.34% of total assets at year end, up from 0.72% at year end 2008. Non-performing loans, all real estate secured, increased by $3.0 million to $8.3 million or 1.16% of total assets during the year. In addition, the Company holds $1.3 million or 0.18% of total assets in foreclosed property at year end. Each of the Company's non-performing assets had a balance of less than $1.0 million, with the exception of two loans totaling $3.9 million on completed and partially tenant-occupied commercial office buildings.
- The allowance for loan losses was $5.2 million or 0.97% of gross loans at year end, an increase of $1.4 million during the year. The loan loss provision was $2.9 million for 2009, and net charge-offs were approximately $1.6 million. The increased provision was due in part to continuing weakness in commercial real estate values in the Company's lending markets throughout the Philadelphia region.
- Non-interest income increased by $535,000 to $4.4 million during 2009 when compared with 2008, the result of a $762,000 and $386,000 increase, respectively, in net gains from sales of securities and originated loans. These gains more than offset a $555,000 decrease in retail banking fees from other sources. Non-interest expense increased by $654,000 to $18.1 million, mainly the result of an $852,000 increase in FDIC insurance premiums. Of this increase, $330,000 was due to the FDIC's special assessment during the second quarter of 2009; the remainder is due to the combined effect of an increase in the Company's deposits, an increase in the FDIC's premium rates, and the exhaustion of a credit against insurance premiums which the Company had been entitled to take.
- Dividends for the year were $0.80 per share, as they were during 2008.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "Our challenges continue to grow as a result of this weak economy. We are focusing significant energy on monitoring and managing our loan portfolios. We are working with both commercial and consumer loan customers to help those most severely affected by these difficult times. As you would expect, new loan originations are impacted by the economy, as are investment product sales and certain fee income categories. We are working harder to sustain earnings, while ensuring that we maintain what we believe are adequate reserves for potential loan losses.
"Positive progress is occurring in numerous areas including substantial deposit growth, which we attribute to confidence in the strength of 3rd Federal Bank, the ongoing enhancement of our technology systems and the refinement of existing, as well as the introduction of new services and products. We continue to benefit from a loyal, stable and experienced team, hands-on expense control, and an improving interest margin which is the result of the prudent pricing of our deposit and loan products.
"Overall, we are very pleased with our performance over the last quarter and year."
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 t he Company.
T F FINANCIAL CORPORATION | ||||||
UNAUDITED FINANCIAL INFORMATION | ||||||
(dollars in thousands except per share data) | QUARTER ENDED | |||||
12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | ||
EARNINGS SUMMARY | ||||||
Interest income | $8,932 | $9,120 | $9,228 | $9,317 | $9,618 | |
Interest expense | 3,153 | 3,381 | 3,649 | 3,798 | 4,308 | |
Net interest income | 5,779 | 5,739 | 5,579 | 5,519 | 5,310 | |
Loan loss provision | 1,025 | 650 | 590 | 665 | 1,010 | |
Non-interest income | 1,240 | 796 | 1,439 | 935 | 927 | |
Non-interest expense | 4,465 | 4,420 | 4,776 | 4,424 | 4,623 | |
Income taxes | 369 | 353 | 430 | 345 | 83 | |
Net income | $1,160 | $1,112 | $1,222 | $1,020 | $521 | |
PER SHARE INFORMATION | ||||||
Earnings per share, basic | $0.46 | $0.44 | $0.48 | $0.41 | $0.20 | |
Earnings per share, diluted | $0.46 | $0.44 | $0.48 | $0.41 | $0.20 | |
Dividends paid | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | |
FINANCIAL RATIOS | ||||||
Annualized return on average assets | 0.64% | 0.62% | 0.68% | 0.57% | 0.28% | |
Annualized return on average equity | 6.61% | 6.28% | 7.07% | 6.08% | 3.00% | |
Efficiency ratio | 74.49% | 75.11% | 74.30% | 76.42% | 88.44% | |
AVERAGE BALANCES | ||||||
Loans | $532,190 | $535,358 | $542,569 | $545,097 | $547,128 | |
Mortgage-backed securities | 90,434 | 100,482 | 104,491 | 109,377 | 109,284 | |
Investment securities | 45,996 | 41,849 | 38,060 | 39,458 | 39,996 | |
Other interest-earning assets | 10,358 | 2,027 | 2,011 | 501 | 629 | |
Total earning assets | 678,978 | 679,716 | 687,131 | 694,433 | 697,037 | |
Non-earning assets | 37,440 | 37,463 | 38,517 | 34,984 | 36,611 | |
Total assets | 716,418 | 717,179 | 725,648 | 729,417 | 733,648 | |
Deposits | 548,436 | 530,064 | 518,374 | 494,969 | 491,283 | |
FHLB advances and other borrowed money | 89,126 | 107,746 | 128,620 | 157,928 | 165,101 | |
Total interest bearing liabilities | 637,562 | 637,810 | 646,994 | 652,897 | 656,384 | |
Non-interest bearing liabilities | 9,213 | 9,065 | 9,302 | 8,471 | 8,271 | |
Stockholders' equity | 69,643 | 70,304 | 69,352 | 68,049 | 68,993 | |
Total liabilities & stockholders' equity | $716,418 | $717,179 | $725,648 | $729,417 | $733,648 | |
SPREAD AND MARGIN ANALYSIS | ||||||
Average yield on: | ||||||
Loans | 5.57% | 5.66% | 5.66% | 5.70% | 5.83% | |
Mortgage-backed securities | 4.90% | 4.62% | 4.97% | 5.14% | 4.79% | |
Investment securities | 4.00% | 4.09% | 3.99% | 3.90% | 3.84% | |
Other interest-earning assets | 0.08% | 0.00% | 0.00% | 0.00% | 0.63% | |
Total interest-earning assets | 5.29% | 5.39% | 5.45% | 5.50% | 5.55% | |
Average cost of: | ||||||
Deposits | 1.61% | 1.79% | 1.89% | 2.06% | 2.32% | |
FHLB advances and other borrowed money | 4.16% | 3.64% | 3.77% | 3.30% | 3.48% | |
Total interest-bearing liabilities | 1.96% | 2.10% | 2.26% | 2.36% | 2.61% | |
Interest rate spread | 3.33% | 3.29% | 3.19% | 3.14% | 2.94% | |
Net interest margin | 3.45% | 3.42% | 3.32% | 3.28% | 3.09% | |
NON-INTEREST INCOME DETAIL | ||||||
Service fees, charges and other | $480 | $464 | $597 | $437 | $595 | |
Bank-owned life insurance | 175 | 171 | 170 | 160 | 164 | |
Gain/loss on sale investments | 456 | -- | 116 | 190 | -- | |
Gain on sale of loans | 129 | 127 | 253 | 148 | 72 | |
Gain on sale of real estate | -- | 34 | 303 | -- | 96 | |
NON-INTEREST EXPENSE DETAIL | ||||||
Salaries and benefits | $2,725 | $2,601 | $2,645 | $2,671 | $2,775 | |
Occupancy | 696 | 756 | 708 | 710 | 722 | |
Professional fees | 205 | 195 | 183 | 273 | 232 | |
Advertising | 87 | 118 | 116 | 148 | 181 | |
Deposit insurance | 206 | 182 | 511 | 21 | 20 | |
Other | 546 | 568 | 613 | 601 | 693 |
T F FINANCIAL CORPORATION | |||
UNAUDITED FINANCIAL INFORMATION | |||
(dollars in thousands except per share data) | YEAR ENDED | ||
12/31/2009 | 12/31/2008 | ||
EARNINGS SUMMARY | |||
Interest income | $36,597 | $38,832 | |
Interest expense | 13,981 | 18,071 | |
Net interest income | 22,616 | 20,761 | |
Loan loss provision | 2,930 | 1,500 | |
Non-interest income | 4,410 | 3,875 | |
Non-interest expense | 18,085 | 17,431 | |
Income taxes | 1,497 | 1,469 | |
Net income | $4,514 | $4,236 | |
PER SHARE INFORMATION | |||
Earnings per share, basic | $1.79 | $1.61 | |
Earnings per share, diluted | $1.79 | $1.61 | |
Dividends paid | $0.80 | $0.80 | |
FINANCIAL RATIOS | |||
Annualized return on average assets | 0.63% | 0.59% | |
Annualized return on average equity | 6.63% | 6.12% | |
Efficiency ratio | 75.05% | 75.34% | |
AVERAGE BALANCES | |||
Loans | $538,759 | $542,452 | |
Mortgage-backed securities | 101,142 | 100,505 | |
Investment securities | 41,360 | 41,137 | |
Other interest-earning assets | 3,747 | 842 | |
Total earning assets | 685,008 | 684,936 | |
Non-earning assets | 37,170 | 35,841 | |
Total assets | 722,178 | 720,777 | |
Deposits | 524,431 | 483,220 | |
FHLB advances and other borrowed money | 120,631 | 159,565 | |
Total interest bearing liabilities | 645,062 | 642,785 | |
Non-interest bearing liabilities | 9,081 | 8,785 | |
Stockholders' equity | 68,035 | 69,207 | |
Total liabilities & stockholders' equity | $722,178 | $720,777 | |
SPREAD AND MARGIN ANALYSIS | |||
Average yield on: | |||
Loans | 5.66% | 6.01% | |
Mortgage-backed securities | 4.92% | 4.73% | |
Investment securities | 4.01% | 4.53% | |
Other interest-earning assets | 0.08% | 2.02% | |
Total interest-earning assets | 5.42% | 5.73% | |
Average cost of: | |||
Deposits | 1.83% | 2.45% | |
FHLB advances and other borrowed money | 3.67% | 3.90% | |
Total interest-bearing liabilities | 2.17% | 2.81% | |
Interest rate spread | 3.25% | 2.92% | |
Net interest margin | 3.38% | 3.09% | |
NON-INTEREST INCOME DETAIL | |||
Service fees, charges and other | $1,978 | $2,533 | |
Bank-owned life insurance | 676 | 633 | |
Gain/loss on sale investments | 762 | -- | |
Gain on sale of loans | 657 | 271 | |
Gain on sale of real estate | 337 | 438 | |
NON-INTEREST EXPENSE DETAIL | |||
Salaries and benefits | $10,642 | $10,638 | |
Occupancy | 2,870 | 2,881 | |
Professional fees | 856 | 795 | |
Advertising | 469 | 614 | |
Deposit insurance | 920 | 68 | |
Other | 2,328 | 2,435 |
T F FINANCIAL CORPORATION | |||||
UNAUDITED FINANCIAL INFORMATION | |||||
(dollars in thousands except per share data) | PERIOD ENDED | ||||
12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | |
DEPOSIT INFORMATION | |||||
Non-interest checking | $37,288 | $38,100 | $41,078 | $36,123 | $36,871 |
Interest checking | 52,988 | 47,377 | 49,593 | 47,365 | 46,907 |
Money market | 141,286 | 131,197 | 120,163 | 100,481 | 88,609 |
Savings | 96,061 | 97,795 | 104,385 | 108,518 | 111,591 |
CDs | 225,093 | 217,480 | 215,871 | 212,028 | 205,872 |
OTHER INFORMATION | |||||
Per Share | |||||
Book value (a) | $28.21 | $28.33 | $27.63 | $27.35 | $26.92 |
Tangible book value (a) | $26.51 | $26.61 | $25.91 | $25.64 | $25.20 |
Closing market price | $18.97 | $18.75 | $17.71 | $18.19 | $19.30 |
Balance Sheet | |||||
Loans, net | $530,734 | $532,547 | $542,673 | $542,494 | $545,989 |
Cash and cash equivalents | 12,801 | 4,401 | 6,262 | 3,896 | 2,719 |
Mortgage-backed securities | 81,931 | 98,188 | 101,171 | 105,678 | 111,991 |
Investment securities | 50,749 | 44,348 | 41,947 | 38,451 | 41,515 |
Total assets | 713,721 | 711,849 | 724,497 | 723,925 | 733,708 |
Total deposits | 552,716 | 531,949 | 531,090 | 504,515 | 489,850 |
FHLB advances and other borrowed money | 80,241 | 99,744 | 111,132 | 141,576 | 168,148 |
Stockholders' equity | 71,630 | 71,550 | 69,672 | 68,901 | 67,692 |
Asset Quality | |||||
Non-performing loans | $8,285 | $3,098 | $3,039 | $3,486 | $5,279 |
Allowance for loan losses | $5,215 | $4,292 | $4,970 | $4,425 | $3,855 |
Net charge-offs | $102 | $1,328 | $45 | $95 | $151 |
Reserves to gross loans | 0.97% | 0.80% | 0.91% | 0.81% | 0.70% |
Non-performing loans to gross loans | 1.55% | 0.58% | 0.55% | 0.64% | 0.96% |
Non-performing loans to total assets | 1.16% | 0.44% | 0.42% | 0.48% | 0.72% |
Foreclosed property | $1,279 | $999 | $1,130 | $2,164 | $-- |
Foreclosed property to total assets | 0.18% | 0.14% | 0.16% | 0.30% | 0.00% |
Non-performing assets to total assets | 1.34% | 0.58% | 0.58% | 0.78% | 0.72% |
Statistical | |||||
Shares outstanding (000's) (a) | 2,539 | 2,526 | 2,522 | 2,519 | 2,515 |
Number of branch offices | 14 | 14 | 14 | 14 | 14 |
Full time equivalent employees | 177 | 172 | 173 | 177 | 181 |
(a) Excludes 133,000, 138,000, 141,000, 144,000, and 147,000 unallocated employee stock ownership plan shares at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009,and December 31, 2008 , respectively. |
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000