EXHIBIT 99.1
TF Financial Corporation Reports Second Quarter 2010 Results and Quarterly Dividend
NEWTOWN, Pa., July 29, 2010 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $967,000 ($0.38 per diluted share) for the second quarter of 2010, compared with $717,000 ($0.28 per diluted share) for the first quarter of 2010 and $1,222,000 ($0.48 per diluted share) for the second quarter of 2009. Net income for the six month period ended June 30, 2010 was $1,684,000 ($0.66 per diluted share) compared with $2,242,000 ($0.89 per diluted share) for the first six months of 2009. The Company also announced that its Board of Directors declared a quarterly dividend of $0.20 per share, payable August 16, 2010 to shareholders of record on August 9, 2010.
Highlights for the current quarter included:
- Net income increased by 34.9% compared to the first quarter of 2010.
- The Company's net interest income was $5,888,000 during the second quarter of 2010, a $56,000 increase over the first quarter of 2010, and a $309,000 increase over the second quarter of 2009.
- The Company's net interest margin was 3.58% during the second quarter of 2010, down 2 basis points from the first quarter of 2010, but up 26 basis points from the second quarter of 2009.
- Loans outstanding were $526.9 million, a $4.2 million or 0.8% 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 $5.2 million compared with $16.8 million during the second quarter of 2009, and gain on the sale of originated loans was $52,000 compared with $253,000 during the second quarter of 2009.
- Total deposits were $559.4 million at quarter end, a record for the Company, an increase of 1.1% over the first quarter of 2010, and an increase of 5.3% from the end of the second quarter of 2009.
- Non-performing assets were 2.40% of total assets compared with 2.14% and 1.34% at March 31, 2010 and December 31, 2009, respectively.
- During the second quarter of 2010, the Company recorded a provision for loan losses of $600,000 compared with $961,000 during the first quarter of 2010, and $590,000 during the second quarter of 2009. The total allowance for loan losses at quarter end was $6.7 million, up from $5.2 million and $5.0 million at December 31, 2009 and June 30, 2009, respectively. At quarter end the allowance stood at 1.28% of loans, up from 0.97% and 0.91% at December 31, 2009 and June 30, 2009, respectively.
- Non-interest income during the second quarter of 2010 included a $165,000 reduction in loan servicing fees in order to recognize impairment of loan servicing rights. The second quarter of 2009 included a $303,000 gain on the sale of foreclosed real estate and a $116,000 gain on the sale of securities.
- Deposit insurance expense during the quarter 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.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "Our challenges continue to include dealing with the issues that arise as a result of an extremely weak economy, a decrease in real estate values, very slow real estate sales and high unemployment. Third Federal Bank is not immune from feeling the effects of these difficult market conditions. As a result, we monitor all of our loan portfolios very closely. We are working with our customers in an effort to help them through these difficult times. In addition, we are acting aggressively, where necessary, to ensure that we have an up-to-date understanding and knowledge of each borrower's financial condition. Like many other banks, we did recognize that the Bank will experience some degree of loan losses as a result of these adverse market conditions. However, we have made, and will continue to make, contributions to our loan loss reserves for this eventuality. We are well capitalized by regulatory standards and have a dedicated, capable team addressing these loan related issues. In spite of all the attention we have been giving to our loan portfolio, the Bank has a number of positive operational aspects to report. In June 2010 we opened our Woodhaven branch, which will receive a noteworthy LEED certification for the building. It is a green, environmentally-friendly project that has yielded a beautiful, functional and growing facility. Our consumer loan portfolio continues to experience a very low level of delinquency, which is a tribute to our strong underwriting and decision making skills. Our net interest income continues to grow as we carefully manage our deposit product pricing, which contributes to the core earnings of the Bank. Finally, new deposit growth continues to be strong through 2010. We believe this growth is reflective of consumer confidence in our Bank. In conclusion, we are very aware of the realities of this economic down-turn and are devoting significant time, energy and resources to these issues. However, we are also cognizant of our strengths and opportunities, choosing to continue to work to build a stronger, better community bank."
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 | SIX MONTHS ENDED | |||||
6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 6/30/2010 | 6/30/2009 | |
EARNINGS SUMMARY | |||||||
Interest income | $ 8,522 | $ 8,675 | $ 8,932 | $ 9,120 | $ 9,228 | $ 17,197 | $ 18,545 |
Interest expense | 2,634 | 2,843 | 3,153 | 3,381 | 3,649 | 5,477 | 7,447 |
Net interest income | 5,888 | 5,832 | 5,779 | 5,739 | 5,579 | 11,720 | 11,098 |
Loan loss provision | 600 | 961 | 1,025 | 650 | 590 | 1,561 | 1,255 |
Non-interest income | 597 | 616 | 1,240 | 796 | 1,439 | 1,213 | 2,374 |
Non-interest expense | 4,591 | 4,592 | 4,465 | 4,420 | 4,776 | 9,183 | 9,200 |
Income taxes | 327 | 178 | 369 | 353 | 430 | 505 | 775 |
Net income | $ 967 | $ 717 | $ 1,160 | $ 1,112 | $ 1,222 | $ 1,684 | $ 2,242 |
PER SHARE INFORMATION | |||||||
Earnings per share, basic | $ 0.38 | $ 0.28 | $ 0.46 | $ 0.44 | $ 0.48 | $ 0.66 | $ 0.89 |
Earnings per share, diluted | $ 0.38 | $ 0.28 | $ 0.46 | $ 0.44 | $ 0.48 | $ 0.66 | $ 0.89 |
Dividends paid | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
FINANCIAL RATIOS | |||||||
Annualized return on average assets | 0.54% | 0.41% | 0.64% | 0.62% | 0.68% | 0.47% | 0.62% |
Annualized return on average equity | 5.30% | 4.01% | 6.61% | 6.28% | 7.07% | 4.66% | 6.57% |
Efficiency ratio | 78.01% | 83.69% | 74.49% | 75.11% | 74.30% | 80.75% | 75.30% |
AVERAGE BALANCES | |||||||
Loans | $ 522,289 | $ 529,817 | $ 532,190 | $ 535,358 | $ 542,569 | $ 526,032 | $ 543,826 |
Mortgage-backed securities | 80,735 | 81,839 | 90,434 | 100,482 | 104,491 | 81,284 | 106,921 |
Investment securities | 58,446 | 53,282 | 45,996 | 41,849 | 38,060 | 55,878 | 38,755 |
Other interest-earning assets | 13,451 | 6,728 | 10,358 | 2,027 | 2,011 | 10,108 | 1,260 |
Total earning assets | 674,921 | 671,666 | 678,978 | 679,716 | 687,131 | 673,302 | 690,762 |
Non-earning assets | 42,210 | 41,204 | 37,440 | 37,463 | 38,517 | 41,711 | 36,754 |
Total assets | 717,131 | 712,870 | 716,418 | 717,179 | 725,648 | 715,013 | 727,516 |
Deposits | 557,128 | 549,257 | 548,436 | 530,064 | 518,374 | 553,214 | 506,677 |
FHLB advances and other borrowed money | 78,469 | 82,536 | 89,126 | 107,746 | 128,620 | 80,491 | 143,193 |
Total interest bearing liabilities | 635,597 | 631,793 | 637,562 | 637,810 | 646,994 | 633,705 | 649,870 |
Non-interest bearing liabilities | 8,373 | 8,611 | 9,213 | 9,065 | 9,302 | 8,493 | 8,882 |
Stockholders' equity | 73,161 | 72,466 | 69,643 | 70,304 | 69,352 | 72,815 | 68,764 |
Total liabilities & stockholders' equity | $ 717,131 | $ 712,870 | $ 716,418 | $ 717,179 | $ 725,648 | $ 715,013 | $ 727,516 |
SPREAD AND MARGIN ANALYSIS | |||||||
Average yield on: | |||||||
Loans | 5.49% | 5.59% | 5.57% | 5.66% | 5.66% | 5.56% | 5.69% |
Mortgage-backed securities | 4.62% | 4.79% | 4.90% | 4.62% | 4.97% | 4.72% | 5.07% |
Investment securities | 3.99% | 4.12% | 4.00% | 4.08% | 3.99% | 4.06% | 3.96% |
Other interest-earning assets | 0.03% | 0.06% | 0.08% | 0.20% | 0.00% | 0.04% | 0.00% |
Total interest-earning assets | 5.15% | 5.32% | 5.29% | 5.39% | 5.45% | 5.25% | 5.49% |
Average cost of: | |||||||
Deposits | 1.33% | 1.47% | 1.61% | 1.79% | 1.89% | 1.40% | 1.98% |
FHLB advances and other borrowed money | 4.05% | 4.17% | 4.16% | 3.64% | 3.77% | 4.12% | 3.52% |
Total interest-bearing liabilities | 1.66% | 1.82% | 1.96% | 2.10% | 2.26% | 1.75% | 2.32% |
Interest rate spread | 3.49% | 3.50% | 3.33% | 3.29% | 3.19% | 3.50% | 3.17% |
Net interest margin | 3.58% | 3.60% | 3.45% | 3.42% | 3.32% | 3.60% | 3.31% |
NON-INTEREST INCOME DETAIL | |||||||
Service fees, charges and other | $ 363 | $ 529 | $ 480 | $ 464 | $ 597 | $ 892 | $ 1,034 |
Bank-owned life insurance | 167 | 172 | 175 | 171 | 170 | 339 | 330 |
Gain/loss on sale investments | 7 | -- | 456 | -- | 116 | 7 | 306 |
Gain on sale of loans | 52 | 60 | 129 | 127 | 253 | 112 | 401 |
Gain/(loss) on sale of real estate | 8 | (145) | -- | 34 | 303 | (137) | 303 |
NON-INTEREST EXPENSE DETAIL | |||||||
Salaries and benefits | $ 2,667 | $ 2,700 | $ 2,725 | $ 2,601 | $ 2,645 | $ 5,367 | $ 5,316 |
Occupancy | 723 | 759 | 696 | 756 | 708 | 1,482 | 1,418 |
Professional fees | 256 | 228 | 205 | 195 | 183 | 484 | 456 |
Advertising | 120 | 120 | 87 | 118 | 116 | 240 | 264 |
Deposit insurance | 259 | 194 | 206 | 182 | 511 | 453 | 532 |
Other | 566 | 591 | 546 | 568 | 613 | 1,157 | 1,214 |
T F FINANCIAL CORPORATION | |||||||
UNAUDITED FINANCIAL INFORMATION | |||||||
(dollars in thousands except per share data) | PERIOD ENDED | ||||||
6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | |||
DEPOSIT INFORMATION | |||||||
Non-interest checking | $ 45,022 | $ 41,757 | $ 37,288 | $ 38,100 | $ 41,078 | ||
Interest checking | 55,166 | 51,991 | 52,988 | 47,377 | 49,593 | ||
Money market | 145,735 | 142,791 | 141,286 | 131,197 | 120,163 | ||
Savings | 100,321 | 98,948 | 96,061 | 97,795 | 104,385 | ||
CD's | 213,146 | 217,938 | 225,093 | 217,480 | 215,871 | ||
OTHER INFORMATION | |||||||
Per Share | |||||||
Book value (a) | $ 28.66 | $ 28.43 | $ 28.31 | $ 28.33 | $ 27.63 | ||
Tangible book value (a) | $ 26.97 | $ 26.74 | $ 26.60 | $ 26.61 | $ 25.91 | ||
Closing market price | $ 21.80 | $ 19.09 | $ 18.97 | $ 18.75 | $ 17.71 | ||
Balance Sheet | |||||||
Loans | $ 526,947 | $ 531,137 | $ 535,949 | $ 535,645 | $ 545,712 | ||
Cash and cash equivalents | 19,965 | 16,339 | 12,801 | 4,401 | 6,262 | ||
Mortgage-backed securities | 82,169 | 78,412 | 81,931 | 98,188 | 101,171 | ||
Investment securities | 59,659 | 57,837 | 50,749 | 44,348 | 41,947 | ||
Total assets | 720,768 | 715,948 | 714,090 | 711,849 | 724,497 | ||
Total deposits | 559,390 | 553,425 | 552,716 | 531,949 | 531,090 | ||
FHLB advances and other borrowed money | 79,929 | 81,738 | 80,241 | 99,744 | 111,132 | ||
Stockholders' equity | 73,321 | 72,422 | 71,874 | 71,550 | 69,672 | ||
Asset Quality | |||||||
Non-performing loans | $ 15,828 | $ 14,174 | $ 8,285 | $ 3,098 | $ 3,039 | ||
Allowance for loan losses | $ 6,749 | $ 6,165 | $ 5,215 | $ 4,292 | $ 4,970 | ||
Net charge-offs | $ 16 | $ 11 | $ 102 | $ 1,328 | $ 45 | ||
Reserves to gross loans | 1.28% | 1.16% | 0.97% | 0.80% | 0.91% | ||
Non-performing loans to gross loans | 3.00% | 2.67% | 1.55% | 0.58% | 0.56% | ||
Non-performing loans to total assets | 2.20% | 1.98% | 1.16% | 0.44% | 0.42% | ||
Foreclosed property | $ 1,448 | $ 1,150 | $ 1,279 | $ 999 | $ 1,130 | ||
Foreclosed property to total assets | 0.20% | 0.16% | 0.18% | 0.14% | 0.16% | ||
Non-performing assets to total assets | 2.40% | 2.14% | 1.34% | 0.58% | 0.58% | ||
Statistical | |||||||
Shares outstanding (000's) (a) | 2,558 | 2,547 | 2,539 | 2,526 | 2,522 | ||
Number of branch offices | 14 | 14 | 14 | 14 | 14 | ||
Full time equivalent employees | 177 | 177 | 177 | 172 | 173 | ||
(a) Excludes 127,000, 130,000, 133,000, 138,000,and 141,000 unallocated employee stock ownership plan shares at June 30, 2010, March 31, 2010, December 31,2009, September 30, 2009, and June 30, 2009, respectively. |
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000