EXHIBIT 99.1
TF Financial Corporation Reports First Quarter 2010 Results and Quarterly Dividend
NEWTOWN, Pa., April 29, 2010 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $717,000 ($0.28 per diluted share) for the first quarter of 2010, compared with $1,020,000 ($0.41 per diluted share) for the first quarter of 2009. The Company also announced that its Board of Directors had declared a quarterly dividend of $0.20 per share, payable May 14, 2010 to shareholders of record on May 10, 2010.
Results for the current quarter included:
- Net income decreased by $303,000 or 29.7% compared with the first quarter of 2009. Diluted earnings per share were $0.28, a $0.13 or 31.7% decrease from the first quarter of 2009. Dividends paid per share were $0.20 during both the first quarter of 2010 and 2009.
- Pre-tax income was $895,000 during the quarter, down $470,000 from the first quarter of 2009, mainly the result of the $296,000 increase in the provision for loan losses during 2010 and non-recurring gain on sale of investments of $190,000 which occurred during the first quarter of 2009.
- Net interest income was $5,832,000 which was a $53,000 or 0.9% increase over the fourth quarter of 2009, and a $313,000 or 5.7% increase over the first quarter of 2009. Similarly, the Company's net interest margin expanded to 3.60% compared with 3.45% during the fourth quarter of 2009, and 3.28% during the first quarter of 2009. While the yields on the Company's interest-earning assets fell modestly since the first quarter of 2009, the cost of its interest bearing liabilities, mainly deposits, fell at a faster pace.
- The provision for loan losses was $961,000 during the quarter compared with $1,025,000 during the fourth quarter of 2009 and $665,000 during the first quarter of 2009. Because economic conditions in the Philadelphia region as they affect commercial real estate have remained soft, and certain of the Company's borrowers with delayed, unleased or unsold commercial real estate development projects have experienced financial difficulties, the Company has steadily increased its allowance for loan losses to $6,165,000 or 1.16% of loans at quarter end, a 39.3% increase over the $4,425,000 balance at March 31, 2009.
- Non-performing loans were $14,174,000 at quarter end compared with $8,285,000 at December 31, 2009. This increase was mainly caused by the delinquency of two loans with a combined balance of $5.9 million to a single borrower, secured by undeveloped commercial real estate. Foreclosed property at March 31, 2010 comprised three parcels of real estate with a combined carrying value of $1,150,000. Total non-performing assets were 2.14% of total assets compared with 1.34% at year end 2009.
- Loans outstanding were $531.1 million, a $4.8 million or 0.9% decrease during the quarter, reflecting repayments in the Company's construction loan portfolio and reduced consumer mortgage and home equity loan demand. Similarly, mortgage loans originated for sale were $6.1 million compared with $12.3 million during the first quarter of 2009.
- Deposit growth continued during the quarter. At quarter end, total deposits were $553.4 million, compared with $552.7 million at December 31, 2009, and $504.5 million at March 31, 2009.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "We continue to see evidence that we are in a severe recessionary period. Many business and consumer customers are experiencing difficulty in this economy. As a result, we have seen an increase in our non-performing assets and criticized loans. We still have strong core earnings and have made substantial contributions to our loan loss reserve. We are working diligently to manage the problem loans within our portfolio. Those inevitable problems are counterbalanced by the overall excellent performance of our consumer loan portfolio, the continued growth and strength of our Retail Banking deposit gathering operation, the absence of problems in our investment portfolio, and the dedication and hard work of our seasoned, professional staff."
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 | ||||
3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | |
EARNINGS SUMMARY | |||||
Interest income | $ 8,675 | $ 8,932 | $ 9,120 | $ 9,228 | $ 9,317 |
Interest expense | 2,843 | 3,153 | 3,381 | 3,649 | 3,798 |
Net interest income | 5,832 | 5,779 | 5,739 | 5,579 | 5,519 |
Loan loss provision | 961 | 1,025 | 650 | 590 | 665 |
Non-interest income | 761 | 1,240 | 796 | 1,439 | 935 |
Non-interest expense | 4,737 | 4,465 | 4,420 | 4,776 | 4,424 |
Income taxes | 178 | 369 | 353 | 430 | 345 |
Net income | $ 717 | $ 1,160 | $ 1,112 | $ 1,222 | $ 1,020 |
PER SHARE INFORMATION | |||||
Earnings per share, basic | $ 0.28 | $ 0.46 | $ 0.44 | $ 0.48 | $ 0.41 |
Earnings per share, diluted | $ 0.28 | $ 0.46 | $ 0.44 | $ 0.48 | $ 0.41 |
Dividends paid | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
FINANCIAL RATIOS | |||||
Annualized return on average assets | 0.41% | 0.64% | 0.62% | 0.68% | 0.57% |
Annualized return on average equity | 4.01% | 6.61% | 6.28% | 7.07% | 6.08% |
Efficiency ratio | 84.11% | 74.49% | 75.11% | 74.30% | 76.42% |
AVERAGE BALANCES | |||||
Loans | $ 529,817 | $ 532,190 | $ 535,358 | $ 542,569 | $ 545,097 |
Mortgage-backed securities | 81,839 | 90,434 | 100,482 | 104,491 | 109,377 |
Investment securities | 53,282 | 45,996 | 41,849 | 38,060 | 39,458 |
Other interest-earning assets | 6,728 | 10,358 | 2,027 | 2,011 | 501 |
Total earning assets | 671,666 | 678,978 | 679,716 | 687,131 | 694,433 |
Non-earning assets | 41,204 | 37,440 | 37,463 | 38,517 | 34,984 |
Total assets | 712,870 | 716,418 | 717,179 | 725,648 | 729,417 |
Deposits | 549,257 | 548,436 | 530,064 | 518,374 | 494,969 |
FHLB advances and other borrowed money | 82,536 | 89,126 | 107,746 | 128,620 | 157,928 |
Total interest bearing liabilities | 631,793 | 637,562 | 637,810 | 646,994 | 652,897 |
Non-interest bearing liabilities | 8,611 | 9,213 | 9,065 | 9,302 | 8,471 |
Stockholders' equity | 72,466 | 69,643 | 70,304 | 69,352 | 68,049 |
Total liabilities & stockholders' equity | $ 712,870 | $ 716,418 | $ 717,179 | $ 725,648 | $ 729,417 |
SPREAD AND MARGIN ANALYSIS | |||||
Average yield on: | |||||
Loans | 5.59% | 5.57% | 5.66% | 5.66% | 5.70% |
Mortgage-backed securities | 4.79% | 4.90% | 4.62% | 4.97% | 5.14% |
Investment securities | 4.12% | 4.00% | 4.09% | 3.99% | 3.90% |
Other interest-earning assets | 0.06% | 0.08% | 0.00% | 0.00% | 0.00% |
Total interest-earning assets | 5.32% | 5.29% | 5.39% | 5.45% | 5.50% |
Average cost of: | |||||
Deposits | 1.47% | 1.61% | 1.79% | 1.89% | 2.06% |
FHLB advances and other borrowed money | 4.17% | 4.16% | 3.64% | 3.77% | 3.30% |
Total interest-bearing liabilities | 1.82% | 1.96% | 2.10% | 2.26% | 2.36% |
Interest rate spread | 3.50% | 3.33% | 3.29% | 3.19% | 3.14% |
Net interest margin | 3.60% | 3.45% | 3.42% | 3.32% | 3.28% |
NON-INTEREST INCOME DETAIL | |||||
Service fees, charges and other | $ 529 | $ 480 | $ 464 | $ 597 | $ 437 |
Bank-owned life insurance | 172 | 175 | 171 | 170 | 160 |
Gain/loss on sale investments | -- | 456 | -- | 116 | 190 |
Gain on sale of loans | 60 | 129 | 127 | 253 | 148 |
Gain on sale of real estate | -- | -- | 34 | 303 | -- |
NON-INTEREST EXPENSE DETAIL | |||||
Salaries and benefits | $ 2,700 | $ 2,725 | $ 2,601 | $ 2,645 | $ 2,671 |
Occupancy | 759 | 696 | 756 | 708 | 710 |
Professional fees | 228 | 205 | 195 | 183 | 273 |
Advertising | 120 | 87 | 118 | 116 | 148 |
Deposit insurance | 194 | 206 | 182 | 511 | 21 |
Other | 736 | 546 | 568 | 613 | 601 |
T F FINANCIAL CORPORATION | |||||
UNAUDITED FINANCIAL INFORMATION | |||||
(dollars in thousands except per share data) | PERIOD ENDED | ||||
3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | |
DEPOSIT INFORMATION | |||||
Non-interest checking | $ 41,757 | $ 37,288 | $ 38,100 | $ 41,078 | $ 36,123 |
Interest checking | 51,991 | 52,988 | 47,377 | 49,593 | 47,365 |
Money market | 142,791 | 141,286 | 131,197 | 120,163 | 100,481 |
Savings | 98,948 | 96,061 | 97,795 | 104,385 | 108,518 |
CD's | 217,938 | 225,093 | 217,480 | 215,871 | 212,028 |
OTHER INFORMATION | |||||
Per Share | |||||
Book value (a) | $ 28.43 | $ 28.31 | $ 28.33 | $ 27.63 | $ 27.35 |
Tangible book value (a) | $ 26.74 | $ 26.60 | $ 26.61 | $ 25.91 | $ 25.64 |
Closing market price | $ 18.76 | $ 18.97 | $ 18.75 | $ 17.71 | $ 18.19 |
Balance Sheet | |||||
Total loans | $ 531,137 | $ 535,949 | $ 535,645 | $ 545,712 | $ 545,980 |
Cash and cash equivalents | 16,339 | 12,801 | 4,401 | 6,262 | 3,896 |
Mortgage-backed securities | 78,412 | 81,931 | 98,188 | 101,171 | 105,678 |
Investment securities | 57,837 | 50,749 | 44,348 | 41,947 | 38,451 |
Total assets | 715,948 | 714,090 | 711,849 | 724,497 | 723,925 |
Total deposits | 553,425 | 552,716 | 531,949 | 531,090 | 504,515 |
FHLB advances and other borrowed money | 81,738 | 80,241 | 99,744 | 111,132 | 141,576 |
Stockholders' equity | 72,422 | 71,874 | 71,550 | 69,672 | 68,901 |
Asset Quality | |||||
Non-performing loans | $ 14,174 | $ 8,285 | $ 3,098 | $ 3,039 | $ 3,486 |
Allowance for loan losses | $ 6,165 | $ 5,215 | $ 4,292 | $ 4,970 | $ 4,425 |
Net charge-offs | $ 11 | $ 102 | $ 1,328 | $ 45 | $ 95 |
Reserves to gross loans | 1.16% | 0.97% | 0.80% | 0.91% | 0.81% |
Non-performing loans to gross loans | 2.67% | 1.55% | 0.58% | 0.56% | 0.64% |
Non-performing loans to total assets | 1.98% | 1.16% | 0.44% | 0.42% | 0.48% |
Foreclosed property | $ 1,150 | $ 1,279 | $ 999 | $ 1,130 | $ 2,164 |
Foreclosed property to total assets | 0.16% | 0.18% | 0.14% | 0.16% | 0.30% |
Non-performing assets to total assets | 2.14% | 1.34% | 0.58% | 0.58% | 0.78% |
Statistical | |||||
Shares outstanding (000's) (a) | 2,547 | 2,539 | 2,526 | 2,522 | 2,519 |
Number of branch offices | 14 | 14 | 14 | 14 | 14 |
Full time equivalent employees | 177 | 177 | 172 | 173 | 177 |
(a) Excludes 130,000, 133,000, 138,000, 141,000 and 144,000 unallocated employee stock ownership plan shares at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. |
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000