NEWTOWN, Pa., April 26, 2007 (PRIME NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,398,000 ($0.51 per diluted share) for the first quarter of 2007, compared with $1,255,000 ($0.46 per diluted share) for the first quarter of 2006. The Company also announced that its Board of Directors had declared a quarterly dividend of $0.20 per share, payable May 15, 2007 to shareholders of record on May 8, 2007.
Highlights for the current quarter included:
* Net income and diluted earnings per share increased by 11.4% and 10.9%, respectively, over the first quarter of 2006. Return on average assets and return on average equity remained a healthy 0.87% and 8.58%, respectively. * Earnings were positively impacted by a $777,000 settlement awarded to the Company, related to a lease fraud which occurred prior to 2003. Earnings were negatively impacted by a $270,000 expense related to the bankruptcy of one of the Company's loan servicing agents. * The Company's net interest margin was 3.37% during the quarter, a decrease of 20 basis points from the fourth quarter of 2006, and 22 basis points from the first quarter of 2006. The 20 basis point drop from the fourth quarter is mainly due to a 13 basis point decrease in loan yields, caused mainly by a sizeable number of high rate loans which paid off during the fourth quarter. By the end of the current quarter the Company had replaced this run-off with new production, resulting in an annualized 10.4% rate of growth in loans outstanding. * Total deposits increased to $484.7 million from $478.1 million at December 31, 2006, an annualized growth rate of 5.6%. The average cost of deposits was 2.75%, up 11 basis points from the fourth quarter of 2006, and 77 basis points from the first quarter of 2006. Competition remained intense for deposits, and the yield curve remained flat-to-inverted during the quarter, adding to pricing pressures. * Dividends paid in the quarter were $0.20 per share, up 5.3% from the $0.19 per share paid during the first quarter of 2006.
Commenting on the performance of the Company, President Kent C. Lufkin noted that "it continues to be a challenging environment for community banking. In response, we are working extremely hard to generate new loan and deposit customers, keep expenses under control, and efficiently promote the Bank's image. We also have had the opportunity during these difficult times to increase capital, add skilled bankers to our staff and forge new partnerships with local businesses, effectively building for the future."
TF Financial Corporation is a holding company whose principal subsidiary is Third Federal Bank, which operates 15 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 (dollars in thousands except per share data) THREE MONTHS --------------------- INC 3/31/2007 3/31/2006 (DEC) --------- --------- ------- EARNINGS SUMMARY Interest income $ 9,213 $ 9,103 1.2% Interest expense 4,209 3,596 17.0% Net interest income 5,004 5,507 -9.1% Loan loss provision 0 90 -100.0% Non-interest income 1,526 681 124.1% Non-interest expense 4,590 4,370 5.0% Income taxes 542 473 14.6% Net income $ 1,398 $ 1,255 11.4% PER SHARE INFORMATION Earnings per share, basic $ 0.51 $ 0.47 8.5% Earnings per share, diluted $ 0.51 $ 0.46 10.9% Dividends paid $ 0.20 $ 0.19 5.3% FINANCIAL RATIOS Annualized return on average assets 0.87% 0.76% 14.5% Annualized return on average equity 8.58% 8.15% 5.3% Efficiency ratio 70.29% 71.66% -1.9% AVERAGE BALANCES Loans $487,698 $498,329 -2.1% Mortgage-backed securities 80,637 91,476 -11.8% Investment securities 41,282 41,638 -0.9% Other interest-earning assets 5,456 781 598.6% Total earning assets 615,073 632,224 -2.7% Non-earning assets 34,603 33,424 3.5% Total assets 649,676 665,648 -2.4% Deposits 476,374 460,705 3.4% FHLB advances 99,270 135,916 -27.0% Total interest bearing liabilities 575,644 596,621 -3.5% Non-interest bearing liabilities 7,917 6,542 21.0% Stockholders' equity 66,115 62,485 5.8% Total liabilities & stockholders' equity $649,676 $665,648 -2.4% SPREAD AND MARGIN ANALYSIS Average yield on: Loans 6.47% 6.24% Mortgage-backed securities 4.69% 4.49% Investment securities 5.34% 4.93% Other interest-earning assets 4.98% 4.15% Average cost of: Deposits 2.75% 1.98% FHLB advances 4.00% 4.02% Interest rate spread 3.18% 3.46% Net interest margin 3.37% 3.59% NON-INTEREST INCOME DETAIL Service fees, charges and other $ 1,324 $ 550 140.7% Bank-owned life insurance 148 122 21.3% Gain on sale of loans 54 9 500.0% NON-INTEREST EXPENSE DETAIL Salaries and benefits 2,668 2,639 1.1% Occupancy 692 704 -1.7% Professional fees 224 212 5.7% Advertising 163 177 -7.9% Other 843 638 32.1% TF FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per share data) PERIOD ENDING -------------------- INC 3/31/2007 12/31/2006 (DEC) --------- ---------- ------- DEPOSIT INFORMATION Non-interest checking $ 36,658 $ 36,991 -0.9% Interest checking 48,646 51,272 -5.1% Money market 67,603 62,914 7.5% Savings 132,756 131,359 1.1% CD's,retail 187,344 183,847 1.9% CD's,broker 11,691 11,704 -0.1% OTHER INFORMATION Per Share Book value (a) $ 24.45 $ 24.28 Tangible book value (a) $ 22.89 $ 22.68 Closing market price $ 30.50 $ 31.00 Balance sheet Loans,net $497,144 $484,539 2.6% Cash and cash equivalents 9,891 12,364 -20.0% Mortgage-backed securities 84,125 82,035 2.5% Investment securities 38,120 42,371 -10.0% Total assets 661,596 652,603 1.4% Total deposits 484,698 478,087 1.4% FHLB advances and other 101,504 101,701 -0.2% Stockholders' equity 67,468 65,639 2.8% Asset Quality Non-performing loans 2,783 2,110 31.9% Loan loss reserves 2,870 2,865 0.2% Reserves to gross loans 0.57% 0.59% -3.4% Non-performing loans to gross loans 0.56% 0.43% 30.2% Non-performing loans to total assets 0.42% 0.32% 31.3% Foreclosed property -- - 0.0% Foreclosed property to total assets 0.00% 0.00% 0.0% Non-performing assets to total assets 0.42% 0.32% 31.3% Statistical Shares outstanding (000's) (a) 2,759 2,703 Number of branch offices 15 15 Full time equivalent employees 192 189 (a) Excludes 169,000 and 171,000 unallocated employee stock ownership plan shares at March 31, 2007 and December 31, 2006, respectively.