EXHIBIT 99.3
TF Financial Corporation
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
June 30, 1996
(dollars in thousands)
Branches of
Cenlar
TF Federal
Financial Savings Pro forma Combined
ASSETS Corporation Bank adjustments pro forma
------ ----------- ---- ----------- ---------
Cash and due from banks $ 24,850 $ 136,445 $ (9,476)(1) $ 151,819
Investment securities, federal funds sold and
interest bearing deposits in banks 187,065 - - 187,065
Loans and leases, net of unearned discount 307,790 159 - 307,949
Less allowance for possible loan and lease losses 1,566 - - 1,566
----------- ----------- --------- -----------
Net loans and leases 306,224 159 - 306,383
Premises and equipment, net 6,353 1,325 - 7,678
Goodwill and other intangibles - - 9,476(1) 9,476
Other assets 4,418 27 - 4,445
----------- ----------- --------- -----------
Total assets $ 528,910 $ 137,956 $ - $ 666,866
=========== =========== ========= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Non-interest bearing $ 3,368 $ 26,421 $ - $ 29,789
Interest bearing 338,504 111,315 - 449,819
----------- ----------- --------- -----------
Total deposits 341,872 137,736 - 479,608
Liabilities for borrowed money 103,359 - - 103,359
Other liabilities 8,557 220 - 8,777
----------- ----------- --------- -----------
Total liabilities 453,788 137,956 - 591,744
----------- ----------- --------- -----------
SHAREHOLDERS' EQUITY
Common stock 529 - - 529
Additional paid-in capital 51,545 - - 51,545
Net unrealized loss on investment
securities available for sale (384) - - (384)
Unearned ESOP shares (3,337) - - (3,337)
Shares acquired by MSBP (1,515) - - (1,515)
Treasury stock, at cost (11,116) - - (11,116)
Retained earnings 39,400 - - 39,400
----------- ----------- --------- -----------
Total shareholders' equity 75,122 - - 75,122
----------- ----------- --------- -----------
Total liabilities and shareholders' equity $ 528,910 $ 137,956 $ - $ 666,866
=========== =========== ========= ===========
(1) Deposit premium paid to Cenlar Federal Savings Bank, representing core
deposit intangible and goodwill to be amortized over periods ranging up to
15 years, using accelerated and straight-line methods, respectively.
TF Financial Corporation
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
Six months ended June 30, 1996
(dollars in thousands, except per share data)
Branches of
Cenlar
TF Federal
Financial Savings Pro forma Combined
Corporation Bank * adjustments pro forma
----------- ------ ----------- ---------
Interest income $ 18,073 $ - $ 3,873(1) $ 21,946
Interest expense 9,320 - 2,961(2) 12,281
------------ -------------- ------------- ------------
Net interest income 8,753 - 912 9,665
Provision for loan losses 90 - - 90
------------ -------------- ------------- ------------
Net interest income after provision for
loan losses 8,663 - 912 9,575
Other income 994 - - (3) 994
Other expense 5,403 - 689(4) 6,575
483(5)
------------ -------------- ------------- ------------
Income (loss) before income taxes (benefit) 4,254 - (260) 3,994
Income taxes (benefit) 1,758 - (104)(6) 1,654
------------ -------------- ------------- ------------
NET INCOME $ 2,496 $ - $ (156) $ 2,340
============= ============== ============== =============
Income per share of common stock and
common stock equivalent $ 0.58 $ - $ - $ 0.54
Weighted average shares outstanding 4,301,000 - - 4,301,000
*Due to the nature of the transaction, historical figures are not available nor
relevant.
See accompanying Notes to Unaudited ProForma Combined Condensed Statement of
Income
TF Financial Corporation
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
June 30, 1996
(1) Cash received of $126,969,000 invested at an annual earnings rate of 6.1%
which represents the yield on investment securities purchased in
anticipation of the transaction
(2) Deposits assumed of $137,736,000 at an average interest cost of 4.3%
representing the current historic average rate of the deposits acquired
(3) Fee income generated from demand deposits not material
(4) Annual cost of operating acquired branches, including FDIC insurance, based
on average deposit balances
(5) Amortization of core deposit intangible and goodwill of $9,476,000 over
periods ranging up to 15 years, using accelerated and straight-line
methods, respectively
(6) Federal and state income taxes at 40% incremental rate for TF Financial
Corporation
TF Financial Corporation
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
Year ended December 31, 1995
(dollars in thousands, except per share data)
Branches of
Cenlar
TF Federal
Financial Savings Pro forma Combined
Corporation Bank * adjustments pro forma
----------- ------ ----------- ---------
Interest income $ 29,630 $ - $ 7,364(1) $ 36,994
Interest expense 14,403 - 5,923(2) 20,326
------------ ------------- ------------- ------------
Net interest income 15,227 - 1,441 16,668
Provision for loan losses 72 - - 72
------------ ------------- ------------- ------------
Net interest income after provision for
loan losses 15,155 - 1,441 16,596
Other income 1,161 - - (3) 1,161
Other expense 9,975 - 1,377(4) 12,317
965(5)
------------ ------------- ------------- ------------
Income (loss) before income taxes (benefit) 6,341 - (901) 5,440
Income taxes (benefit) 2,470 - (360)(6) 2,110
------------ ------------- ------------- ------------
NET INCOME $ 3,871 $ - $ (541) $ 3,330
============= ============= ============== =============
Income per share of common stock and
common stock equivalents $ 0.83 $ - $ - $ 0.72
Weighted average shares outstanding 4,638,000 - - 4,638,000
* Due to the nature of the transaction, historical figures are not available
nor relevant.
See accompanying Notes to Unaudited Pro Forma Combined Condensed Statement of
Income
TF Financial Corporation
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
December 31, 1995
(1) Cash received of $126,969,000 invested at an annual earnings rate of 5.8%
which represents the yield on investment securities purchased in
anticipation of the transaction
(2) Deposits assumed of $137,736,000 at an average interest cost of 4.3%
representing the current historic average rate of the deposits acquired
(3) Fee income generated from demand deposits not material
(4) Annual cost of operating acquired branches, including FDIC insurance, based
on average deposit balances
(5) Amortization of core deposit intangible and goodwill of $9,476,000 over
periods ranging up to 15 years, using accelerated and straight-line
methods, respectively
(6) Federal and state income taxes at 40% incremental rate for TF Financial
Corporation