News Release
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April 22, 2004 Contact: Dennis R. Stewart, EVP/CFO
FOR IMMEDIATE RELEASE (215) 579-4000
TF Financial Corporation Reports 107% Increase in Net Income,
97% Increase in Earnings Per Share And 13% Increase
in Quarterly Dividend
Newtown, Pennsylvania: TF Financial Corporation (Nasdaq National Market - THRD)
today reported net income of $1,609,000 ($0.57 per diluted share) for the first
quarter of 2004, compared with $779,000 ($0.29 per diluted share) for the first
quarter of 2003. The Company also announced that its Board of Directors had
declared a quarterly dividend of $0.17 per share, a 13.3% increase over the
amount paid in the first quarter of 2004, payable May 17, 2004 to shareholders
of record on May 10, 2004.
Highlights for the current quarter included:
o Net income increased by 107% compared to the first quarter of 2003.
o Diluted earnings per share increased by 97% compared to the first
quarter of 2003, and sequentially increased by 5.5% compared with
$0.54 diluted earnings per share reported during the fourth quarter of
2003.
o Loans receivable grew by 3.5% during the quarter.
o Total deposits grew by 2.5% during the quarter.
o Net interest income increased by over 45% compared with the first
quarter of 2003.
o Net income consisted entirely of core earnings compared to the first
quarter of 2003 which had included $506,000 of securities gains.
o Return on assets was 1.06%; return on equity was 11.6%; and the net
interest margin for the quarter was 3.91%. These are all record levels
of core earnings for the Company.
Commenting on the performance of the Company, President Kent C. Lufkin noted
that "this is the second consecutive quarter of greatly improved operating
results since the debt refinancing transaction that occurred during the third
quarter of 2003. As a result, we are pleased to be able to raise the common
stock dividend for the first time since the third quarter of 2001, and we look
forward to continuing improvement in the Company's financial performance."
TF Financial Corporation is a holding company whose principal subsidiary is
Third Federal Savings 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, 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 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.
T F FINANCIAL CORPORATION
FINANCIAL INFORMATION
(dollars in thousands except per share data)
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THREE MONTHS INC
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3/31/04 3/31/03 (DEC)
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EARNINGS SUMMARY
Interest Income $ 7,730 $ 8,657 -10.7%
Interest expense 2,152 4,823 -55.4%
Net interest income 5,578 3,834 45.5%
Loan loss provision 150 90 66.7%
Non-interest income 709 1,084 -34.6%
Non-interest expense 3,917 3,739 4.8%
Income taxes 611 310 97.1%
Net income $ 1,609 $ 779 106.5%
PER SHARE INFORMATION
Earnings per share, basic (a) $ 0.61 $ 0.31 96.8%
Earnings per share, diluted (a) $ 0.57 $ 0.29 96.6%
Dividends paid $ 0.15 $ 0.15 0.0%
FINANCIAL RATIOS
Annualized return on average assets 1.06% 0.44%
Annualized return on average equity 11.58% 5.01%
Efficiency ratio 61.67% 75.05%
AVERAGE BALANCES
Loans $410,976 $366,561 12.1%
Mortgage-backed securities 130,658 163,663 -20.2%
Investment securities 30,453 56,620 -46.2%
Other interest-earning assets 1,570 94,384 -98.3%
Total earning assets 573,657 681,228 -15.8%
Non-earning assets 35,513 34,960 1.6%
Total assets 609,170 716,188 -14.9%
Deposits 464,744 442,687 5.0%
FHLB advances 83,314 204,026 -59.2%
Total interest bearing liabilities 548,058 646,713 -15.3%
Non-interest bearing liabilities 5,233 6,422 -18.5%
Stockholders' equity 55,879 63,053 -11.4%
Total liabilities & stockholders' $609,170 $716,188 -14.9%
equity
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 5.85% 6.69%
Mortgage-backed securities 4.47% 4.59%
Investment securities 3.69% 3.64%
Other interest-earning assets 0.77% 1.06%
Average cost of:
Deposits 1.30% 1.87%
FHLB advances 3.11% 5.52%
Interest rate spread 3.84% 2.13%
Net interest margin 3.91% 2.28%
T F FINANCIAL CORPORATION
FINANCIAL INFORMATION
(dollars in thousands except per share data)
THREE MONTHS INC
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3/31/04 3/31/03 (DEC)
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NON-INTEREST INCOME
Retail banking fees $ 709 $ 578 22.7%
Gain on sales of securities - 506 -100.0%
NON-INTEREST EXPENSE
Salaries and benefits 2,274 2,024 12.4%
Occupancy 595 628 -5.3%
Deposit insurance 18 19 -5.3%
Professional fees 206 160 28.8%
Deposit intangible amortization 40 48 -16.7%
Advertising 163 137 19.0%
Other 621 723 -14.1%
AT AT INC
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3/31/04 12/31/03 (DEC)
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DEPOSIT INFORMATION
Non-interest checking 28,110 $ 26,375 6.6%
Interest checking 54,610 52,647 3.7%
Money market 45,028 44,688 0.8%
Savings 188,635 188,673 0.0%
CD's 154,535 146,960 5.2%
OTHER PERIOD ENDING INFORMATION
Per Share
Book value $ 21.60 $ 21.37
Tangible book value $ 19.86 $ 19.56
Closing market price $ 31.50 $ 34.20
Balance sheet
Loans receivable, net $418,994 $404,649 3.5%
Cash and cash equivalents 6,717 8,241 -18.5%
Mortgage-backed securities 127,759 130,404 -2.0%
Investment securities 29,146 31,802 -8.4%
Total assets 613,212 606,752 1.1%
FHLB advances 78,909 86,853 -9.1%
Stockholders' equity 57,667 55,480 3.9%
ASSET QUALITY
Non-performing loans 2,710 2,282 18.8%
Loan loss reserves 2,222 2,111 5.3%
Reserves to gross loans 0.53% 0.52% 1.9%
Non-performing loans to gross loans 0.64% 0.56% 14.3%
Non-performing loans to total assets 0.44% 0.38% 15.8%
Foreclosed property 837 868 -3.6%
Foreclosed property to total assets 0.14% 0.14% 0.0%
Non-performing assets to total assets 0.58% 0.52% 11.5%
OTHER STATISTICAL INFORMATION
Shares outstanding (000's) (a) 2,670 2,596
Number of branch offices 14 14
Full time equivalent employees 178 171
(a)excludes employee stock ownership plan shares.