News Release
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April 28, 2005 Contact: Dennis R. Stewart, EVP/CFO
FOR IMMEDIATE RELEASE (215) 579-4000
TF Financial Corporation Reports First Quarter 2005
Results and Quarterly Dividend
Newtown, Pennsylvania: TF Financial Corporation (Nasdaq National Market - THRD)
today reported net income of $1,476,000 ($0.52 per diluted share) for the first
quarter of 2005, compared with $1,609,000 ($0.57 per diluted share) for the
first quarter of 2004. The Company also announced that its Board of Directors
had declared a quarterly dividend of $0.18 per share, payable May 16, 2005 to
shareholders of record on May 9, 2005.
Highlights for the current quarter included:
o Interest income increased by 5% compared to the first quarter of 2004, and
is up 3% compared with the fourth quarter of 2004.
o The net interest margin remains strong at 3.85%, up from 3.73% during the
fourth quarter of 2004. Net interest income similarly grew by 2.4% from the
fourth quarter of 2004.
o Loans receivable grew by 9% during the quarter.
o Asset quality remains high with non-performing loans at record low levels
for the Company.
o Return on assets and return on equity were a strong 0.95% and 9.93%,
respectively.
o Dividends paid in the quarter were $0.18 per share, up 20% from the $0.15
per share paid during the first quarter of 2004.
Commenting on the performance of the Company, President Kent C. Lufkin noted
that "the first quarter of 2005 was both rewarding and challenging for the
Company: rewarding because of the tremendous loan growth achieved during the
quarter, and challenging because of the intense competition occurring in the
Company's deposit markets. Although market interest rates are rising, we believe
that we have positioned the Company well and look forward to continued good
performance while we invest in the franchise. In fact, we look forward to
opening our fifteenth office, in Northeast Philadelphia, during the second
quarter of 2005."
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, 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)
THREE MONTHS
------------ INC
3/31/05 3/31/04 (DEC)
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EARNINGS SUMMARY
Interest Income $ 8,097 $ 7,730 4.7%
Interest expense 2,467 2,152 14.6%
Net interest income 5,630 5,578 0.9%
Loan loss provision 150 150 0.0%
Non-interest income 662 709 -6.6%
Non-interest expense 4,131 3,917 5.5%
Income taxes 535 611 -12.4%
Net income $ 1,476 $ 1,609 -8.3%
PER SHARE INFORMATION
Earnings per share, basic $ 0.54 $ 0.61 -11.5%
Earnings per share, diluted $ 0.52 $ 0.57 -8.8%
Dividends paid $ 0.18 $ 0.15 20.0%
FINANCIAL RATIOS
Annualized return on average assets 0.95% 1.06% -10.4%
Annualized return on average equity 9.93% 11.58% -14.2%
Efficiency ratio 67.26% 63.83% 5.4%
AVERAGE BALANCES
Loans $446,618 $410,976 8.7%
Mortgage-backed securities 118,816 130,658 -9.1%
Investment securities 32,861 30,453 7.9%
Other interest-earning assets 1,135 1,570 -27.7%
Total earning assets 599,430 573,657 4.5%
Non-earning assets 33,211 35,513 -6.5%
Total assets 632,641 609,170 3.9%
Deposits 455,316 464,744 -2.0%
FHLB advances 111,888 83,314 34.3%
Total interest bearing liabilities 567,204 548,058 3.5%
Non-interest bearing liabilities 5,155 5,233 -1.5%
Stockholders' equity 60,282 55,879 7.9%
Total liabilities & stockholders' equity $632,641 $609,170 3.9%
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 5.88% 5.86%
Mortgage-backed securities 4.45% 4.49%
Investment securities 4.68% 4.33%
Other interest-earning assets 3.57% 0.77%
Average cost of:
Deposits 1.37% 1.30%
FHLB advances 3.37% 3.12%
Interest rate spread 3.76% 3.87%
Net interest margin 3.85% 3.94%
T F FINANCIAL CORPORATION
FINANCIAL INFORMATION
(dollars in thousands except per share data)
THREE MONTHS
------------ INC
3/31/05 3/31/04 (DEC)
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NON-INTEREST INCOME
Retail banking fees $ 640 $ 709 -9.7%
Gain on sale of loans $ 22 $ - 0.0%
Gain (loss) on sales of securities - - 0.0%
Gain on sale of real estate - - 0.0%
NON-INTEREST EXPENSE
Salaries and benefits 2,391 2,274 5.1%
Occupancy 661 595 11.1%
Deposit insurance 17 18 -5.6%
Professional fees 226 206 9.7%
Deposit intangible amortization 34 40 -15.0%
Advertising 176 163 8.0%
Other 626 621 0.8%
3/31/05 12/31/04
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DEPOSIT INFORMATION
Non-interest checking $34,289 $ 32,636
Interest checking 54,913 54,887
Money market 40,415 42,496
Savings 176,279 182,945
CD's 148,975 146,939
OTHER PERIOD ENDING INFORMATION
Per Share
Book value (a) $ 22.11 $ 22.30
Tangible book value (a) $ 20.47 $ 20.65
Closing market price $ 28.71 $ 32.00
Balance sheet
Loans,net $454,412 $ 442,195
Cash and cash equivalents 4,674 7,900
Mortgage-backed securities 117,525 118,510
Investment securities 34,961 32,150
Total assets 640,511 628,966
FHLB advances and other 119,361 102,747
Stockholders' equity 60,867 61,155
ASSET QUALITY
Non-performing loans 727 960
Loan loss reserves 2,221 2,307
Reserves to gross loans 0.49% 0.52%
Non-performing loans to gross loans 0.16% 0.22%
Non-performing loans to total assets 0.11% 0.15%
Foreclosed property 700 700
Foreclosed property to total assets 0.11% 0.11%
Non-performing assets to total assets 0.22% 0.26%
OTHER STATISTICAL INFORMATION
Shares outstanding (000's) (a) 2,753 2,742
Number of branch offices 14 14
Full time equivalent employees 186 175
(a) Excludes 197,000 and 202,000 employee stock ownership plan shares at March
31, 2005 and December 31, 2004, respectively.