NEWTOWN, Pa., July 24, 2008 (PRIME NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,184,000 ($0.44 per diluted share) for the second quarter of 2008, compared with $1,037,000 ($0.38 per diluted share) for the second quarter of 2007. Net income for the six month period ended June 30, 2008 was $2,465,000 ($0.92 per diluted share) compared with $2,435,000 ($0.89 per diluted share) for the first six months of 2007. The Company also announced that its Board of Directors declared a quarterly dividend of $0.20 per share, payable August 15, 2008 to shareholders of record on August 8, 2008.
Highlights for the current quarter included:
* Net income and diluted earnings per share increased by 14.2% and
15.8%, respectively, compared to the second quarter of 2007.
* Net interest income before the loan loss provision increased by
4.4% compared to the second quarter of 2007, and by 5.0%
compared to the first quarter of 2008.
* The Company's net interest margin was 3.09% during the quarter
ended June 30, 2008, down 16 basis points from the second
quarter of 2007, but up 9 basis points from the first quarter of
2008.
* The increases in the Company's net interest income and margin
were in large part due to the corresponding increases in average
loans and average deposits which increased by 9.6% and 1.1%,
respectively, compared to the second quarter of 2007 and by 3.2%
and 2.8%, respectively, compared to the first quarter of 2008.
At June 30, 2008 loans outstanding were $549.5 million, a record
for the Company. Total deposits were $487.0 million, also a
record for the Company.
* Non-performing loans decreased by $3.0 million or 55.8% during
the first six months of 2008. In addition, total non-performing
assets as a percentage of total assets decreased to 0.37% at
June 30, 2008 compared to 0.76% at December 31, 2007. During the
second quarter of 2008 the Company recorded a provision for loan
losses of $340,000 compared to no provision during the year
earlier quarter, bringing the total loan loss reserve to $2.8
million or 0.52% of total loans at June 30, 2008.
* Non-interest income during the quarter included a $342,000 gain
on the foreclosure and simultaneous sale of a single parcel of
real estate.
* During the quarter the Company closed its branch office on
Quakerbridge Road in Mercer County, New Jersey, and reassigned
the approximately $9 million in deposits to its nearby offices
in Ewing and Hamilton, New Jersey.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "Despite the substantial challenges posed by the economy and real estate market, it was a good quarter for the Bank. Not many institutions can report an improvement in core earnings and other key factors over the same period a year ago. We continue to work hard to out-perform our industry peers and prudently manage all aspects of the business in these very difficult times. Finally, it bears repeating that Third Federal Bank did not originate, purchase, or portfolio any sub-prime loans or securities."
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 the Company.
TF FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION THREE MONTHS
(dollars in thousands ------------ INC
except per share data) 6/30/2008 6/30/2007 (DEC)
--------- --------- -----
EARNINGS SUMMARY
Interest income $ 9,656 $ 9,415 2.6%
Interest expense 4,497 4,472 0.6%
Net interest income 5,159 4,943 4.4%
Loan loss provision 340 -- n.m.
Non-interest income 1,138 730 55.9%
Non-interest expense 4,332 4,268 1.5%
Income taxes 441 368 19.8%
Net income $ 1,184 $ 1,037 14.2%
PER SHARE INFORMATION
Earnings per share, basic $ 0.45 $ 0.38 18.4%
Earnings per share, diluted $ 0.44 $ 0.38 15.8%
Dividends paid $ 0.20 $ 0.20 0.0%
FINANCIAL RATIOS
Annualized return on
average assets 0.66% 0.63% 4.8%
Annualized return on
average equity 6.78% 6.39% 6.1%
Efficiency ratio 72.72% 75.23% -3.3%
AVERAGE BALANCES
Loans $ 545,958 $ 498,321 9.6%
Mortgage-backed securities 97,397 86,619 12.4%
Investment securities 41,915 37,474 11.9%
Other interest-earning assets 665 1,195 -44.4%
Total earning assets 685,935 623,609 10.0%
Non-earning assets 36,265 34,032 6.6%
Total assets 722,200 657,641 9.8%
Deposits 486,394 481,084 1.1%
FHLB advances 155,675 103,182 50.9%
Total interest bearing
liabilities 642,069 584,266 9.9%
Non-interest bearing
liabilities 9,934 8,260 20.3%
Stockholders' equity 70,197 65,115 7.8%
Total liabilities &
stockholders' equity $ 722,200 $ 657,641 9.8%
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 6.01% 6.43%
Mortgage-backed securities 4.67% 4.66%
Investment securities 4.63% 5.48%
Other interest-earning assets 2.42% 6.38%
Average cost of:
Deposits 2.42% 2.85%
FHLB advances 4.06% 4.10%
Interest rate spread 2.91% 3.06%
Net interest margin 3.09% 3.25%
NON-INTEREST INCOME DETAIL
Service fees, charges
and other $ 543 $ 514 5.6%
Bank-owned life insurance 156 153 2.0%
Gain on sale of loans 97 63 54.0%
Gain on sale of real estate 342 -- n.m.
NON-INTEREST EXPENSE DETAIL
Salaries and benefits 2,677 2,680 -0.1%
Occupancy 740 712 3.9%
Professional fees 167 133 25.6%
Advertising 145 163 -11.0%
Other 603 580 4.0%
TF FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION SIX MONTHS
(dollars in thousands ------------ INC
except per share data) 6/30/2008 6/30/2007 (DEC)
--------- --------- -----
EARNINGS SUMMARY
Interest income $ 19,489 $ 18,628 4.6%
Interest expense 9,415 8,681 8.5%
Net interest income 10,074 9,947 1.3%
Loan loss provision 340 -- n.m.
Non-interest income 2,249 2,256 -0.3%
Non-interest expense 8,594 8,858 -3.0%
Income taxes 924 910 1.5%
Net income $ 2,465 $ 2,435 1.2%
PER SHARE INFORMATION
Earnings per share, basic $ 0.92 $ 0.89 3.4%
Earnings per share, diluted $ 0.92 $ 0.89 3.4%
Dividends paid $ 0.40 $ 0.40 0.0%
FINANCIAL RATIOS
Annualized return on
average assets 0.69% 0.75% -8.0%
Annualized return on
average equity 7.18% 7.48% -4.0%
Efficiency ratio 71.72% 72.59% -1.2%
AVERAGE BALANCES
Loans $ 537,411 $ 493,038 9.0%
Mortgage-backed securities 99,810 83,644 19.3%
Investment securities 41,850 39,368 6.3%
Other interest-earning assets 818 3,571 -77.1%
Total earning assets 679,889 619,621 9.7%
Non-earning assets 35,344 34,091 3.7%
Total assets 715,233 653,712 9.4%
Deposits 479,497 478,742 0.2%
FHLB advances 157,363 101,237 55.4%
Total interest bearing
liabilities 636,860 579,979 9.8%
Non-interest bearing
liabilities 9,285 8,103 14.6%
Stockholders' equity 69,088 65,630 5.3%
Total liabilities &
stockholders' equity $ 715,233 $ 653,712 9.4%
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 6.11% 6.45%
Mortgage-backed securities 4.76% 4.67%
Investment securities 4.86% 5.41%
Other interest-earning assets 2.46% 4.86%
Average cost of:
Deposits 2.61% 2.80%
FHLB advances 4.09% 4.05%
Interest rate spread 2.86% 3.12%
Net interest margin 3.05% 3.31%
NON-INTEREST INCOME DETAIL
Service fees, charges
and other $ 1,433 $ 1,838 -22.0%
Bank-owned life insurance 315 301 4.7%
Gain on sale of loans 159 117 35.9%
Gain on sale of real estate 342 -- n.m.
NON-INTEREST EXPENSE DETAIL
Salaries and benefits 5,215 5,348 -2.5%
Occupancy 1,468 1,404 4.6%
Professional fees 421 357 17.9%
Advertising 289 326 -11.3%
Other 1,201 1,423 -15.6%
TF FINANCIAL CORPORATION
FINANCIAL INFORMATION PERIOD ENDING
(dollars in thousands ------------- INC
except per share data) 6/30/2008 12/31/2007 (DEC)
--------- ---------- -----
DEPOSIT INFORMATION
Non-interest checking $ 37,370 $ 35,904 4.1%
Interest checking 48,273 46,543 3.7%
Money market 83,500 79,267 5.3%
Savings 125,346 130,423 -3.9%
CD's,retail 192,505 180,257 6.8%
OTHER INFORMATION
Per Share
Book value (a) $ 26.07 $ 25.40
Tangible book value (a) $ 24.44 $ 23.78
Closing market price $ 21.51 $ 24.64
Balance sheet
Loans,net $ 549,519 $ 518,067 6.1%
Cash and cash equivalents 4,327 5,680 -23.8%
Mortgage-backed securities 92,607 104,338 -11.2%
Investment securities 40,547 41,389 -2.0%
Total assets 719,587 701,673 2.6%
Total deposits 486,994 472,394 3.1%
FHLB advances and other 154,703 153,221 1.0%
Stockholders' equity 69,061 67,843 1.8%
Asset Quality
Non-performing loans 2,368 5,358 -55.8%
Loan loss reserves 2,845 2,842 0.1%
Reserves to gross loans 0.52% 0.55% -5.5%
Non-performing loans to
gross loans 0.43% 1.03% -58.3%
Non-performing loans to
total assets 0.33% 0.76% -56.6%
Foreclosed property 306 -- n.m.
Foreclosed property to
total assets 0.04% 0.00% n.m.
Non-performing assets to
total assets 0.37% 0.76% -51.3%
Statistical
Shares outstanding (000's) (a) 2,649 2,671
Number of branch offices 14 15
Full time equivalent employees 179 181
(a) Excludes 153,000 and 159,000 unallocated employee stock ownership
plan shares at June 30, 2008 and December 31, 2007, respectively.
n.m. not meaningful