NEWS Thistle Group Holdings, Co.
RELEASE
Contacts: Jef McGill, CEO
Pam Cyr, Chief Financial Officer
6060 Ridge Avenue
Philadelphia, PA 19128
Phone: 215-483-3777
Fax: 215-483-1038
Web: RMBgo.com
THISTLE GROUP HOLDINGS, CO. ANNOUNCES THIRD QUARTER 2003 EARNINGS
Philadelphia, PA, October 20, 2003 - (NASDAQ:THTL) Thistle Group Holdings, Co.,
the holding company for Roxborough Manayunk Bank ("RMB"), (collectively, the
"Company") today announced 2003 third quarter net income of $766,000, or $.15
diluted earnings per share as compared to net income of $1.4 million or $.27
diluted earnings per share for the quarter ended September 30, 2002. Net income
for the nine months ended September 30, 2003 was $3.2 million or $.63 diluted
earnings per share as compared to net income of $3.8 million or $.67 diluted
earnings per share for the nine months ended September 30, 2002.
Net income for the quarter decreased by $265,000 or $.06 diluted earnings per
share from the quarter ended June 30, 2003. Set forth below is the Company's
earnings information for the quarter ended September 30, 2003 as compared to the
quarter ended June 30, 2003. (the "Linked Quarter Highlights")
LINKED QUARTER HIGHLIGHTS
(Dollars in Thousands)
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QTR QTR INCREASE % INCREASE
9/30/03 6/30/03 (DECREASE) (DECREASE)
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Interest Income $ 9,481 $ 10,262 $ (781) (7.6%)
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Interest Expense 5,482 5,581 (99) (1.8%)
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Net Interest Income 3,999 4,681 (682) (14.6%)
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Provision for loan losses 134 320 (186) (58.1%)
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Non-interest Income 1,836 1,442 394 27.3%
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Non-interest Expense 4,854 4,545 309 6.8%
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Net Income 766 1,031 (265) (25.7%)
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Cash and cash equivalents 41,290 66,262 (24,972) (37.7%)
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Loans 322,847 320,255 2,592 .8%
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Deposits 553,596 549,975 3,621 .7%
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Stockholders' Equity 74,900 76,320 (1,420) (1.9%)
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o Net income decreased $265,000 due to a decrease in net interest income of
$682,000 and an increase in non-interest expense of $309,000, partially
offset by an increase in non-interest income of $394,000 and a decrease in
the provision for loan losses and income taxes of $186,000 and $146,000,
respectively.
o Net interest income decreased $682,000 primarily as a result of a decrease
in interest income on mortgage-backed securities. The mortgage-backed
securities portfolio continued to experience rapid repayments during the
third quarter. As a result, the average yield on the portfolio decreased 29
basis points as funds were reinvested at lower rates.
o The provision for loan losses decreased $186,000. In the quarter ended June
30, 2003 the Company recognized a higher provision for loan losses due to
the classification of a $2.0 million commercial real estate loan as
substandard.
o Non-interest income for the quarter increased $394,000 due mainly to gains
on the sale of securities.
o Non-interest expense increased $309,000 quarter over quarter. The increase
was primarily the result of an increase in professional fees incurred in
connection with the pending acquisition of the Company by Citizens Bank.
o Cash and cash equivalents decreased $25.0 million as funds were reinvested
into mortgage-backed securities.
SUMMARY OF 2003 CONSOLIDATED RESULTS
Net income for the quarter ended September 30, 2003 decreased $595,000 or 43.7%
over the quarter ended September 30, 2002. Net income for the nine months ended
September 30, 2003 decreased $640,000 or 16.8% over the nine months ended
September 30, 2002.
Net interest income for the quarter ended September 30, 2003 decreased $1.2
million or 23.8% over the quarter ended September 30, 2002. Net interest income
for the nine months ended September 30, 2003 decreased $1.1 million or 7.2% over
the nine months ended September 30, 2002.
Interest income for the quarter ended September 30, 2003 decreased $1.6 million
or 14.8% over the quarter ended September 30, 2002, primarily due to a decrease
in the average yield on interest-earning assets of 137 basis points, partially
offset by an increase in the average balance of $68.4 million. Interest expense
for the quarter ended September 30, 2003 decreased $394,000 or 6.7% over the
quarter ended September 30, 2002 due to a decrease in the average cost of funds
on interest-bearing liabilities of 61 basis points, partially offset by an
increase in the average balance of $83.1 million.
Interest income for the nine months ended September 30, 2003 decreased $2.1
million or 6.4% over the nine months ended September 30, 2002, primarily due to
a decrease in the average yield on interest-earning assets of 99 basis points,
partially offset by an increase in the average balance of $80.6 million.
Interest expense for the nine months ended September 30, 2003 decreased $1.0
million or 5.7% over the nine months ended September 30, 2002 due to a decrease
in the average cost of funds on interest-bearing liabilities of 63 basis points,
partially offset by an increase in the average balance of $90.3 million.
The provision for loan losses for the quarter ended September 30, 2003 decreased
$16,000 over the quarter ended September 30, 2002. The provision for loan losses
for the nine months ended September 30, 2003 increased $351,000 over the nine
months ended September 30, 2002. The Company's allowance for loan losses as a
percentage of total average loans was .95% at September 30, 2003 versus .72% at
September 30, 2002. Loans classified substandard were $2.9 million at September
30, 2003 versus $102,000 at September 30, 2002.
Non-interest income for the quarter ended September 30, 2003 increased $795,000
over the quarter ended September 30, 2002 primarily due to gains on the sale of
securities and the absence of a writedown on real estate owned. During the
quarter ended September 30, 2002 there was a writedown on real estate owned of
$585,000.
Non-interest income for the nine months ended September 30, 2003 increased $1.8
million over the nine months ended September 30, 2002 primarily due to gains on
the sale of securities.
Non-interest expense for the quarter ended September 30, 2003 increased $362,000
or 8.1% over the quarter ended September 30, 2002 due mainly to an increase in
professional fees of $509,000 incurred in connection with the pending
acquisition of the Company by Citizens Bank.
Non-interest expense for the nine months ended September 30, 2003 increased $1.2
million or 9.7% over the nine months ended September 30, 2002 due mainly to
increases in professional fees, occupancy and equipment costs, and other
operating expenses of $443,000, $235,000 and $339,000, respectively. The
increase in professional fees is due mainly to the pending acquisition as
discussed above. The increase in occupancy and equipment costs is due to
increases in maintenance and depreciation expense. The increase in other
operating expense is due to increases in operating expenses including telephone,
security, postage, supplies and information technology-related expenses.
Total assets decreased $7.2 million to $850.3 million at September 30, 2003,
from $857.4 million at December 31, 2002. Trading securities decreased $27.4
million , which also resulted in a corresponding decrease in payable to brokers
and dealers. Loans increased $22.9 million. Deposits increased $60.7 million due
to the opening of a new banking office as well as the continued focus on
collecting low cost core deposits. FHLB advances decreased $39.0 million due
mainly to the repayment of overnight advances. Stockholders' equity decreased
$1.5 million primarily due to a decrease in accumulated other comprehensive
income of $3.0 million and dividends paid of $1.4 million offset by net income
of $3.2 million.
Statements contained in this news release which 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 the Company with the
Securities and Exchange Commission from time to time.
THISTLE GROUP HOLDINGS, CO.
SELECTED UNAUDITED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except per share data and ratios)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 (2) 2003 2002 (2)
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Operating Data:
Interest Income $ 9,481 $ 11,125 $ 30,365 $ 32,431
Interest Expense 5,482 5,876 16,625 17,625
Net Interest Income 3,999 5,249 13,740 14,806
Provision for loan losses 134 150 851 500
Non-interest income 1,836 1,041 4,417 2,592
Non-interest expense 4,854 4,492 13,477 12,287
Income before income taxes 847 1,648 3,829 4,611
Income tax expense 81 287 661 803
Net income 766 1,361 3,168 3,808
Earnings per share - basic $ 0.16 $ 0.28 $ 0.66 $ 0.68
Earnings per share - diluted $ 0.15 $ 0.27 $ 0.63 $ 0.67
Total shares outstanding 5,208,744 5,341,597 5,208,744 5,341,597
Weighted average diluted shares outstanding 5,009,738 4,959,883 4,990,454 5,731,275
9/30/03 12/31/02
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Balance Sheet Data:
Total assets $850,253 $857,422
Cash 41,290 24,660
Total securities 430,775 479,524
Loans, net 322,847 299,963
Total Liabilities 765,353 771,023
Deposits 553,596 492,880
FHLB advances 181,884 220,884
Redeemable preferred securities 10,000 10,000
Total equity 74,900 76,399
Tangible book value per share (3) 12.91 13.07
Book value per share 14.38 14.53
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 (2) 2003 2002 (2)
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Selected Ratios:
Return on average assets (1) .36% .71% .51% .68%
Return on average equity (1) 4.04 7.18 5.52 6.13
Yield on average interest-earning assets (1) 4.89 6.26 5.28 6.27
Cost of average interest-bearing liabilities (1) 2.94 3.55 3.02 3.65
Net interest rate spread (1) 1.95 2.71 2.26 2.63
Net interest margin (1) 2.17 3.07 2.50 2.99
Allowance for loan losses to total average loans .93 .68 .95 .72
Allowance for loan losses as a
percent of non-performing loans (4) 311% 440% 311% 440%
Nonperforming loans to total loans (4) .30 .16 .30 .16
Nonperforming assets to total assets (4) .29 .32 .29 .32
(1) Ratios for the three and nine month periods ended are annualized and yields
were adjusted for the effects of tax-free investments using the statutory
tax rate.
(2) As required by SFAS No. 147, the Company retroactively ceased amortization
of goodwill beginning January 1, 2002 and restated earnings for three and
nine months ended September 30, 2002. The Company previously reported net
income for the three and nine months ended September 30, 2002 of $1,210 and
$3,338, respectively, which included amortization net of tax of $151 and
$470, respectively.
(3) Tangible book value per share represents stockholders' equity less goodwill
divided by the number of shares issued and outstanding.
(4) Nonperforming loans exclude loans restructured and performing under their
modified terms.
Thistle Group Holdings, Co. is a unitary thrift holding company headquartered in
Philadelphia, Pennsylvania. Its principal subsidiary, Roxborough Manayunk Bank
is a federally chartered stock savings bank serving customers through a growing
network of Banking Offices in the counties of Philadelphia, Montgomery, Chester
and Delaware in Pennsylvania and in Wilmington, Delaware and through its
transactional Web site at www.RMBgo.com.
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