NEWTOWN, Pa., April 24, 2014 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported that net income for the three-month period ended March 31, 2014 was $1,381,000 ($0.45 per diluted share), which was a 12.9% increase when compared with $1,223,000 ($0.45 per diluted share) reported for the comparable period of 2013. The Company also announced that its Board of Directors declared a quarterly dividend of $0.12 per share, payable May 15, 2014 to shareholders of record on May 8, 2014.
"We produced a solid consistent quarter, continuing a trend of improved results," said Kent C. Lufkin, President and Chief Executive Officer. "Importantly, we again drove nonperforming loans down significantly on the commercial side, having sold our largest nonperforming loan during the quarter. In addition, our largest REO is now under contract for disposal from the balance sheet. Thus, we are very pleased with our ongoing progress to restore loan quality to pre-recession levels."
"On the growth side of our business, we are completing the final components of the consolidation of our Roebling Financial acquisition and are very encouraged about the value and accretion that has been added from the transaction. Across the Company, there has been steady pipeline growth with respect to commercial loan originations that should fuel revenue production in 2014. We have expanded our commercial lending staff accordingly with the addition of three new seasoned lenders. Augmenting this personnel growth initiative is a very aggressive, complementary, integrated print-TV-direct mail- telemarketing outreach campaign underway to help raise our general visibility and better position us in specific sub-markets to capture share and grow loans. We enter 2014 with optimism about our markets and the strength of this Company," said Lufkin.
Highlights for the first quarter of 2014:
- Net interest income was $6.6 million, a 13% increase compared with $5.9 million during the first quarter of 2013. This result is largely due to an 18.8% increase in average earning assets between the two periods, the result of the acquisition of Roebling Financial Corp, Inc. ("Roebling") and its wholly-owned subsidiary, Roebling Bank. As a result of this merger which closed July 2, 2013, the Company acquired approximately $144.6 million in total assets, $102.0 million in loans receivable, and $127.8 million in total deposits contained in Roebling's five branches. Since the Roebling acquisition at the beginning of the third quarter of 2013, the Company's quarterly net interest margin has been approximately 3.53%, as it was during the first quarter of 2014.
- Asset quality showed significant improvement during the first quarter of 2014, with total non-performing loans at 0.38% of total assets at March 31, 2014, which is down from 1.00% at December 31, 2013. Non-performing loans totaled $3.2 million at March 31, 2014, down from $8.3 million at December 31, 2013.
- There was no loan loss provision during the first quarter of 2014 compared with $0.4 million during the first quarter of 2013. The Company's allowance for loan losses was $4.1 million or 126.3% of non-performing loans at quarter-end, compared with 78.9% of non-performing loans at year end 2013. Largely influencing the reduction in non-performing loans was the resolution of two, large problem loans totaling $4.2 million, which were resolved by repayment in full of one loan, and partial repayment plus a $2.2 million charge-off of the remainder of the other loan.
- Total loans were $609.0 million at March 31, 2014 compared with $621.1 million at December 31, 2013. Part of the decrease was due to the resolution of the two non-performing loans mentioned above. In addition, portfolio loan closings were weak during the first quarter of 2014, due in part to the poor weather in the Company's markets. Loans originated for sale were similarly weak, with loans sold during the first quarter of 2014 totaling $3.5 million, producing gains on sale of $74,000, compared with loans sales of $11.9 million, producing gains of $305,000 during the first quarter of 2013. However, by quarter-end the Company's pipeline of loan applications and closed but unfunded loans had improved.
- Total deposits were $692.2 million at March 31, 2014, compared with $683.9 million at December 31, 2013. Checking, savings, and money market accounts totaled $505.1 million or 73.0% of total deposits at March 31, 2014, compared with $493.4 million or 72.1% of total deposits at year end 2013.
- Capital measures continue to be strong. Book value per share and tangible book value per share increased to $30.78 and $29.26, respectively, at March 31, 2014, compared with $30.13 and $28.60, respectively, at December 31, 2013. Regulatory capital comprised Tier 1 Leverage and Total Risk-Based ratios of 10.39% and 17.03%, respectively, at March 31, 2014, compared with 10.35% and 17.46%, respectively, at December 31, 2013. Capital levels are well above the regulatory minimums required to be considered well-capitalized.
About TF Financial Corporation
TF Financial Corporation is a bank holding company whose principal subsidiary is 3rd Fed Bank, which operates 13 full service retail and commercial banking offices in Philadelphia and Bucks County, Pennsylvania and in Mercer County, New Jersey, and with the acquisition of Roebling Bank on July 2, 2013, also operates five additional full service branches in Burlington and Ocean Counties in New Jersey. Deposits at 3rd Fed Bank are insured up to the maximum amount by the Federal Deposit Insurance Corporation (FDIC). In addition, 3rd Fed Bank's website can be found at www.3rdfedbank.com.
Forward Looking Statements
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, the challenges of retaining key employees, our ability to generate increasing, yet balanced, loan growth in 2014 or to reduce total nonperforming loans and real estate owned, as well as 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 | |||||
| (dollars in thousands except per share data) | QUARTER ENDED | ||||
| 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | |
| EARNINGS SUMMARY | |||||
| Interest income | $ 7,599 | $ 7,809 | $ 7,903 | $ 6,744 | $ 6,857 |
| Interest expense | 959 | 988 | 1,018 | 938 | 979 |
| Net interest income | 6,640 | 6,821 | 6,885 | 5,806 | 5,878 |
| Loan loss provision | -- | -- | -- | 400 | 439 |
| Non-interest income | 722 | 694 | 2,046 | 1,947 | 1,395 |
| Non-interest expense | 5,490 | 5,157 | 6,782 | 5,132 | 5,030 |
| Income before taxes | 1,872 | 2,358 | 2,149 | 2,221 | 1,804 |
| Income taxes | 491 | 772 | 183 | 421 | 581 |
| Net income | $ 1,381 | $ 1,586 | $ 1,966 | $ 1,800 | $ 1,223 |
| PER SHARE INFORMATION | |||||
| Earnings per share, basic | $ 0.45 | $ 0.52 | $ 0.64 | $ 0.66 | $ 0.45 |
| Earnings per share, diluted | $ 0.45 | $ 0.52 | $ 0.64 | $ 0.66 | $ 0.45 |
| Weighted average basic shares (000's) | 3,062 | 3,056 | 3,053 | 2,743 | 2,738 |
| Weighted average diluted shares (000's) | 3,081 | 3,068 | 3,053 | 2,743 | 2,742 |
| Dividends paid | $ 0.12 | $ 0.10 | $ 0.10 | $ 0.05 | $ 0.05 |
| FINANCIAL RATIOS | |||||
| Annualized return on average assets | 0.67% | 0.75% | 0.92% | 1.01% | 0.70% |
| Annualized return on average equity | 5.84% | 6.71% | 8.55% | 8.55% | 5.92% |
| Efficiency ratio (1) | 72.74% | 65.81% | 66.15% | 68.07% | 64.56% |
| REGULATORY CAPITAL RATIOS | |||||
| Tier 1 leverage ratio | 10.39% | 10.35% | 10.21% | 10.74% | 10.50% |
| Total risk-based capital ratio | 17.03% | 17.46% | 17.50% | 18.77% | 17.90% |
| Tier 1 risk-based capital ratio | 16.27% | 16.23% | 16.25% | 17.51% | 16.65% |
| TF FINANCIAL CORPORATION | |||||
| UNAUDITED FINANCIAL INFORMATION | |||||
| (dollars in thousands except per share data) | QUARTER ENDED | ||||
| 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | |
| AVERAGE BALANCES | |||||
| Loans | $ 610,590 | $ 619,498 | $ 622,416 | $ 524,728 | $ 525,275 |
| Mortgage-backed securities | 48,185 | 47,568 | 50,737 | 37,523 | 41,988 |
| Investment securities | 80,063 | 82,213 | 86,942 | 68,211 | 65,131 |
| Other interest-earning assets | 46,666 | 36,694 | 35,294 | 39,111 | 28,877 |
| Total earning assets | 785,504 | 785,973 | 795,389 | 669,573 | 661,271 |
| Non-earning assets | 50,462 | 49,164 | 48,404 | 45,938 | 46,572 |
| Total assets | 835,966 | 835,137 | 843,793 | 715,511 | 707,843 |
| Deposits | 684,900 | 684,085 | 691,646 | 570,271 | 560,750 |
| FHLB advances and other borrowed money | 48,872 | 50,259 | 55,358 | 53,303 | 56,114 |
| Total interest bearing liabilities | 733,772 | 734,344 | 747,004 | 623,574 | 616,864 |
| Non-interest bearing liabilities | 6,316 | 6,951 | 5,528 | 7,508 | 7,216 |
| Stockholders' equity | 95,878 | 93,842 | 91,261 | 84,429 | 83,763 |
| Total liabilities & stockholders' equity | $ 835,966 | $ 835,137 | $ 843,793 | $ 715,511 | $ 707,843 |
| SPREAD AND MARGIN ANALYSIS (TAX EQUIVALENT) | |||||
| Average yield on: | |||||
| Loans | 4.43% | 4.41% | 4.43% | 4.56% | 4.68% |
| Mortgage-backed securities | 2.60% | 2.38% | 2.52% | 2.63% | 2.64% |
| Investment securities | 4.06% | 4.04% | 3.71% | 4.19% | 4.43% |
| Other interest-earning assets | 0.03% | 0.04% | 0.06% | 0.14% | 0.06% |
| Total interest-earning assets | 4.02% | 4.04% | 4.03% | 4.15% | 4.33% |
| Average cost of: | |||||
| Deposits | 0.45% | 0.45% | 0.46% | 0.50% | 0.53% |
| FHLB advances and other borrowed money | 1.60% | 1.62% | 1.57% | 1.70% | 1.79% |
| Total interest-bearing liabilities | 0.53% | 0.53% | 0.54% | 0.60% | 0.64% |
| Interest rate spread | 3.49% | 3.51% | 3.49% | 3.55% | 3.68% |
| Net interest margin | 3.53% | 3.54% | 3.53% | 3.59% | 3.73% |
| TF FINANCIAL CORPORATION | |||||
| UNAUDITED FINANCIAL INFORMATION | |||||
| (dollars in thousands except per share data) | QUARTER ENDED | ||||
| 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | |
| INTEREST INCOME AND EXPENSE DETAIL | |||||
| Interest income on: | |||||
| Loans | $ 6,677 | $ 6,882 | $ 6,947 | $ 5,963 | $ 6,066 |
| Mortgage-backed securities | 309 | 285 | 322 | 246 | 273 |
| Investment securities | 801 | 837 | 814 | 713 | 711 |
| Other interest-earning assets | 3 | 4 | 5 | 14 | 4 |
| Total interest-earning assets | $ 7,790 | $ 8,008 | $ 8,088 | $ 6,936 | $ 7,054 |
| Interest expense on: | |||||
| Deposits | $ 766 | $ 783 | $ 799 | $ 712 | $ 731 |
| FHLB advances and other borrowed money | 193 | 205 | 219 | 226 | 248 |
| Total interest-bearing liabilities | $ 959 | $ 988 | $ 1,018 | $ 938 | $ 979 |
| Net interest income: tax equivalent basis | $ 6,831 | $ 7,020 | $ 7,070 | $ 5,998 | $ 6,075 |
| Tax equivalent adjustment on investment securities | 191 | 199 | 185 | 192 | 197 |
| Net interest income | $ 6,640 | $ 6,821 | $ 6,885 | $ 5,806 | $ 5,878 |
| NON-INTEREST INCOME DETAIL | |||||
| Service fees, charges and other | $ 511 | $ 560 | $ 560 | $ 454 | $ 497 |
| Impairment adjustment to mortgage servicing rights | 5 | 19 | 32 | 196 | 33 |
| Bank-owned life insurance | 131 | 135 | 136 | 137 | 143 |
| Proceeds from bank-owned life insurance | -- | -- | -- | 934 | -- |
| Gain on sale of investment securities | 1 | 4 | -- | -- | -- |
| Gain on sale of loans | 74 | 70 | 104 | 226 | 305 |
| Gain on disposition of real estate | -- | -- | -- | -- | 417 |
| Purchase gain associated with Roebling acquisition | -- | (94) | 1,214 | -- | -- |
| NON-INTEREST EXPENSE DETAIL | |||||
| Compensation and benefits | $ 3,383 | $ 3,269 | $ 3,125 | $ 2,842 | $ 2,817 |
| Occupancy and equipment | 907 | 833 | 867 | 709 | 697 |
| Professional fees | 305 | 174 | 211 | 230 | 288 |
| Merger-related costs | -- | 21 | 102 | 295 | 320 |
| Marketing and advertising | 144 | 53 | 132 | 132 | 39 |
| FDIC insurance premiums | 134 | 91 | 188 | 132 | 110 |
| Loss (gain) on REO, net (2) | -- | (1) | 71 | 198 | 178 |
| Operating expenses of REO (2) | 13 | 37 | 43 | 37 | 46 |
| Other operating | 604 | 666 | 640 | 557 | 535 |
| Conversion costs (3) | -- | 14 | 1,403 | -- | -- |
| TF FINANCIAL CORPORATION | |||||
| UNAUDITED FINANCIAL INFORMATION | |||||
| (dollars in thousands except per share data) | PERIOD ENDED | ||||
| 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | |
| DEPOSIT INFORMATION | |||||
| Non-interest checking | $ 70,197 | $ 68,133 | $ 69,157 | $ 58,697 | $ 57,422 |
| Interest checking | 116,507 | 114,184 | 108,341 | 78,923 | 78,263 |
| Money market | 186,028 | 180,215 | 179,612 | 159,015 | 156,736 |
| Savings | 132,335 | 130,878 | 131,432 | 109,446 | 108,554 |
| CD's | 187,143 | 190,492 | 193,283 | 165,331 | 170,355 |
| OTHER INFORMATION | |||||
| Per Share | |||||
| Book value | $ 30.78 | $ 30.13 | $ 29.48 | $ 29.36 | $ 29.37 |
| Tangible book value | $ 29.26 | $ 28.60 | $ 27.94 | $ 27.84 | $ 27.85 |
| Closing market price | $ 29.85 | $ 28.16 | $ 27.88 | $ 25.40 | $ 25.15 |
| Balance Sheet | |||||
| Loans, net of acquired loans | $ 517,114 | $ 527,207 | $ 532,045 | $ 531,464 | $ 528,229 |
| Acquired loans | 91,923 | 93,885 | 97,667 | -- | -- |
| Cash and cash equivalents | 60,175 | 45,310 | 31,004 | 44,958 | 48,690 |
| Mortgage-backed securities | 53,495 | 46,769 | 48,709 | 34,206 | 38,320 |
| Investment securities | 80,111 | 82,103 | 85,330 | 68,459 | 63,987 |
| Total assets | 846,016 | 835,689 | 833,334 | 714,781 | 716,002 |
| Total deposits | 692,210 | 683,902 | 681,825 | 571,412 | 571,330 |
| FHLB advances and other borrowed money | 48,311 | 49,605 | 50,990 | 52,534 | 54,151 |
| Stockholders' equity | 96,958 | 94,875 | 92,811 | 83,453 | 83,408 |
| Asset Quality | |||||
| Non-performing loans | $ 3,217 | $ 8,332 | $ 6,881 | $ 5,973 | $ 7,647 |
| Allowance for loan losses | $ 4,062 | $ 6,575 | $ 6,691 | $ 6,916 | $ 6,662 |
| Net charge-offs | $ 2,514 | $ 116 | $ 225 | $ 146 | $ 699 |
| Allowance for loan losses to non-performing loans | 126.27% | 78.91% | 97.24% | 115.79% | 87.12% |
| Allowance for loan losses to gross loans excluding acquired loans | 0.79% | 1.25% | 1.26% | 1.30% | 1.26% |
| Non-performing loans to gross loans | 0.53% | 1.34% | 1.09% | 1.12% | 1.45% |
| Non-performing loans to total assets | 0.38% | 1.00% | 0.83% | 0.84% | 1.07% |
| REO (2) | $ 6,108 | $ 5,601 | $ 5,786 | $ 6,177 | $ 7,170 |
| REO to total assets (2) | 0.72% | 0.67% | 0.69% | 0.86% | 1.00% |
| Non-performing assets to total assets | 1.10% | 1.67% | 1.52% | 1.70% | 2.07% |
| Statistical | |||||
| Shares outstanding (000's) | 3,150 | 3,149 | 3,148 | 2,842 | 2,840 |
| Number of branch offices | 18 | 18 | 18 | 13 | 13 |
| Full time equivalent employees | 204 | 203 | 206 | 166 | 165 |
| (1) The efficiency ratio is non-interest expense excluding merger-related and conversion costs and loss on REO divided by net interest income on a tax equivalent basis plus non-interest income excluding impairment adjustment to mortgage servicing rights, gain on sale of investment securities, proceeds from bank owned life insurance and gain on disposition of real estate and purchase gain associated with Roebling Bank acquisition. | |||||
| (2) REO is real estate acquired through foreclosure. | |||||
| (3) Conversion costs are mainly retention and severance payments paid to transition employees, and amounts paid to terminate various data processing contracts. | |||||