Results for the current quarter included:
-- Net income decreased by $303,000 or 29.7% compared with the first
quarter of 2009. Diluted earnings per share were $0.28, a $0.13 or 31.7%
decrease from the first quarter of 2009. Dividends paid per share were
$0.20 during both the first quarter of 2010 and 2009.
-- Pre-tax income was $895,000 during the quarter, down $470,000 from the
first quarter of 2009, mainly the result of the $296,000 increase in the
provision for loan losses during 2010 and non-recurring gain on sale of
investments of $190,000 which occurred during the first quarter of 2009.
-- Net interest income was $5,832,000 which was a $53,000 or 0.9% increase
over the fourth quarter of 2009, and a $313,000 or 5.7% increase over
the first quarter of 2009. Similarly, the Company's net interest margin
expanded to 3.60% compared with 3.45% during the fourth quarter of 2009,
and 3.28% during the first quarter of 2009. While the yields on the
Company's interest-earning assets fell modestly since the first quarter
of 2009, the cost of its interest bearing liabilities, mainly deposits,
fell at a faster pace.
-- The provision for loan losses was $961,000 during the quarter compared
with $1,025,000 during the fourth quarter of 2009 and $665,000 during
the first quarter of 2009. Because economic conditions in the
Philadelphia region as they affect commercial real estate have remained
soft, and certain of the Company's borrowers with delayed, unleased or
unsold commercial real estate development projects have experienced
financial difficulties, the Company has steadily increased its allowance
for loan losses to $6,165,000 or 1.16% of loans at quarter end, a 39.3%
increase over the $4,425,000 balance at March 31, 2009.
-- Non-performing loans were $14,174,000 at quarter end compared with
$8,285,000 at December 31, 2009. This increase was mainly caused by the
delinquency of two loans with a combined balance of $5.9 million to a
single borrower, secured by undeveloped commercial real estate.
Foreclosed property at March 31, 2010 comprised three parcels of real
estate with a combined carrying value of $1,150,000. Total
non-performing assets were 2.14% of total assets compared with 1.34% at
year end 2009.
-- Loans outstanding were $531.1 million, a $4.8 million or 0.9% decrease
during the quarter, reflecting repayments in the Company's construction
loan portfolio and reduced consumer mortgage and home equity loan
demand. Similarly, mortgage loans originated for sale were $6.1 million
compared with $12.3 million during the first quarter of 2009.
-- Deposit growth continued during the quarter. At quarter end, total
deposits were $553.4 million, compared with $552.7 million at December
31, 2009, and $504.5 million at March 31, 2009.
Commenting on the performance of the Company, President Kent C. Lufkin stated that, "We continue to see evidence that we are in a severe recessionary period. Many business and consumer customers are experiencing difficulty in this economy. As a result, we have seen an increase in our non-performing assets and criticized loans. We still have strong core earnings and have made substantial contributions to our loan loss reserve. We are working diligently to manage the problem loans within our portfolio. Those inevitable problems are counterbalanced by the overall excellent performance of our consumer loan portfolio, the continued growth and strength of our Retail Banking deposit gathering operation, the absence of problems in our investment portfolio, and the dedication and hard work of our seasoned, professional staff." 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.
T F FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands
except per share
data) QUARTER ENDED
----------------------------------------------------------
3/31/2010 12/31/2009 9/30/2009 6/30/2009 3/31/2009
---------- ---------- ---------- ---------- ----------
EARNINGS SUMMARY
Interest income $ 8,675 $ 8,932 $ 9,120 $ 9,228 $ 9,317
Interest expense 2,843 3,153 3,381 3,649 3,798
Net interest income 5,832 5,779 5,739 5,579 5,519
Loan loss provision 961 1,025 650 590 665
Non-interest income 761 1,240 796 1,439 935
Non-interest expense 4,737 4,465 4,420 4,776 4,424
Income taxes 178 369 353 430 345
Net income $ 717 $ 1,160 $ 1,112 $ 1,222 $ 1,020
PER SHARE INFORMATION
Earnings per share,
basic $ 0.28 $ 0.46 $ 0.44 $ 0.48 $ 0.41
Earnings per share,
diluted $ 0.28 $ 0.46 $ 0.44 $ 0.48 $ 0.41
Dividends paid $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20
FINANCIAL RATIOS
Annualized return on
average assets 0.41% 0.64% 0.62% 0.68% 0.57%
Annualized return on
average equity 4.01% 6.61% 6.28% 7.07% 6.08%
Efficiency ratio 84.11% 74.49% 75.11% 74.30% 76.42%
AVERAGE BALANCES
Loans $ 529,817 $ 532,190 $ 535,358 $ 542,569 $ 545,097
Mortgage-backed
securities 81,839 90,434 100,482 104,491 109,377
Investment securities 53,282 45,996 41,849 38,060 39,458
Other interest-earning
assets 6,728 10,358 2,027 2,011 501
Total earning assets 671,666 678,978 679,716 687,131 694,433
Non-earning assets 41,204 37,440 37,463 38,517 34,984
Total assets 712,870 716,418 717,179 725,648 729,417
Deposits 549,257 548,436 530,064 518,374 494,969
FHLB advances and other
borrowed money 82,536 89,126 107,746 128,620 157,928
Total interest bearing
liabilities 631,793 637,562 637,810 646,994 652,897
Non-interest bearing
liabilities 8,611 9,213 9,065 9,302 8,471
Stockholders' equity 72,466 69,643 70,304 69,352 68,049
Total liabilities &
stockholders' equity $ 712,870 $ 716,418 $ 717,179 $ 725,648 $ 729,417
SPREAD AND MARGIN ANALYSIS
Average yield on:
Loans 5.59% 5.57% 5.66% 5.66% 5.70%
Mortgage-backed
securities 4.79% 4.90% 4.62% 4.97% 5.14%
Investment securities 4.12% 4.00% 4.09% 3.99% 3.90%
Other interest-earning
assets 0.06% 0.08% 0.00% 0.00% 0.00%
Total interest-earning
assets 5.32% 5.29% 5.39% 5.45% 5.50%
Average cost of:
Deposits 1.47% 1.61% 1.79% 1.89% 2.06%
FHLB advances and other
borrowed money 4.17% 4.16% 3.64% 3.77% 3.30%
Total interest-bearing
liabilities 1.82% 1.96% 2.10% 2.26% 2.36%
Interest rate spread 3.50% 3.33% 3.29% 3.19% 3.14%
Net interest margin 3.60% 3.45% 3.42% 3.32% 3.28%
NON-INTEREST INCOME DETAIL
Service fees, charges
and other $ 529 $ 480 $ 464 $ 597 $ 437
Bank-owned life
insurance 172 175 171 170 160
Gain/loss on sale
investments -- 456 -- 116 190
Gain on sale of loans 60 129 127 253 148
Gain on sale of real
estate -- -- 34 303 --
NON-INTEREST EXPENSE
DETAIL
Salaries and benefits $ 2,700 $ 2,725 $ 2,601 $ 2,645 $ 2,671
Occupancy 759 696 756 708 710
Professional fees 228 205 195 183 273
Advertising 120 87 118 116 148
Deposit insurance 194 206 182 511 21
Other 736 546 568 613 601
T F FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands
except per share
data) PERIOD ENDED
----------------------------------------------------------
3/31/2010 12/31/2009 9/30/2009 6/30/2009 3/31/2009
---------- ---------- ---------- ---------- ----------
DEPOSIT INFORMATION
Non-interest checking $ 41,757 $ 37,288 $ 38,100 $ 41,078 $ 36,123
Interest checking 51,991 52,988 47,377 49,593 47,365
Money market 142,791 141,286 131,197 120,163 100,481
Savings 98,948 96,061 97,795 104,385 108,518
CD's 217,938 225,093 217,480 215,871 212,028
OTHER INFORMATION
Per Share
Book value (a) $ 28.43 $ 28.31 $ 28.33 $ 27.63 $ 27.35
Tangible book value (a) $ 26.74 $ 26.60 $ 26.61 $ 25.91 $ 25.64
Closing market price $ 18.76 $ 18.97 $ 18.75 $ 17.71 $ 18.19
Balance Sheet
Total loans $ 531,137 $ 535,949 $ 535,645 $ 545,712 $ 545,980
Cash and cash
equivalents 16,339 12,801 4,401 6,262 3,896
Mortgage-backed
securities 78,412 81,931 98,188 101,171 105,678
Investment securities 57,837 50,749 44,348 41,947 38,451
Total assets 715,948 714,090 711,849 724,497 723,925
Total deposits 553,425 552,716 531,949 531,090 504,515
FHLB advances and other
borrowed money 81,738 80,241 99,744 111,132 141,576
Stockholders' equity 72,422 71,874 71,550 69,672 68,901
Asset Quality
Non-performing loans $ 14,174 $ 8,285 $ 3,098 $ 3,039 $ 3,486
Allowance for loan
losses $ 6,165 $ 5,215 $ 4,292 $ 4,970 $ 4,425
Net charge-offs $ 11 $ 102 $ 1,328 $ 45 $ 95
Reserves to gross loans 1.16% 0.97% 0.80% 0.91% 0.81%
Non-performing loans to
gross loans 2.67% 1.55% 0.58% 0.56% 0.64%
Non-performing loans to
total assets 1.98% 1.16% 0.44% 0.42% 0.48%
Foreclosed property $ 1,150 $ 1,279 $ 999 $ 1,130 $ 2,164
Foreclosed property to
total assets 0.16% 0.18% 0.14% 0.16% 0.30%
Non-performing assets to
total assets 2.14% 1.34% 0.58% 0.58% 0.78%
Statistical
Shares outstanding
(000's) (a) 2,547 2,539 2,526 2,522 2,519
Number of branch offices 14 14 14 14 14
Full time equivalent
employees 177 177 172 173 177
(a) Excludes 130,000,
133,000, 138,000,
141,000 and 144,000
unallocated employee
stock ownership plan
shares at March 31,
2010, December 31,
2009, September 30,
2009, June 30, 2009 and
March 31, 2009,
respectively.
This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: TF Financial Corporation
CONTACT: TF Financial Corporation Dennis R. Stewart, EVP/CFO (215) 579-4000
http://liveconcerns-waleed.blogspot.com/
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