updated 4/28/2011 8:46:48 AM ET 2011-04-28T12:46:48

NEWTOWN, Pa., April 28, 2011 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $618,000 ($0.23 per diluted share) for the first quarter of 2011, compared with $717,000 ($0.27 per diluted share) for the first quarter of 2010. The Company also announced that its Board of Directors had declared a quarterly dividend of $0.05 per share, payable May 16, 2011 to shareholders of record on May 9, 2011.

"We produced a profitable quarter under continuing tough economic circumstances," said Kent C. Lufkin, president and chief executive officer. "For an institution of our size, in this very challenging operating environment, we believe our ongoing performance remains respectable and consistent. We intend to continue to conservatively manage the Company with the fundamentals of good community banking in mind, and we are confident that the strength of our Company and management team will see us through this unprecedented cycle."

"Our capital position is solid, we continued to improve the net interest margin to 3.80% at quarter-end, we set aside a substantial provision for possible credit losses (down from the fourth quarter and about even with a year ago), reserve coverage of problem credits should compare favorably to peers, and we remain focused on prudent expense control --- all elements of our plan and goal to execute effectively on fundamentals to drive us successfully through the forthcoming year."

Results for the current quarter included:

  • Pre-tax income was $690,000 during the quarter, down $205,000 from the first quarter of 2010, mainly the result of the $384,000 increase in non-interest expense, described in more detail below. The other broad components of pre-tax earnings were similar to, or an improvement from, 2010: net interest income was roughly the same, there was a slight decrease in the provision for loan losses, and there was a modest improvement in non-interest income.
  • Net interest income was $5,816,000 which was a $38,000 or 0.7% increase over the fourth quarter of 2010, and a $16,000 or 0.3% decrease over the first quarter of 2010. Similarly, the Company's net interest margin expanded to 3.80% compared with 3.60% during the fourth quarter of 2010, and 3.60% during the first quarter of 2010. The yields on the Company's interest-earning assets fell by 24 basis points during the first quarter of 2011 compared with the first quarter of 2010, with about one half of the decrease due to the increase in non-performing loans, and the remainder due to the effect of mortgage loan refinancing and repayments that have occurred since the first quarter of 2010, the result of low market interest rates, causing borrowers to refinance at lower rates. The cost of the Company's interest-bearing liabilities decreased by 47 basis points since the first quarter of 2010, mainly the result of a 39 basis point reduction in the cost of deposits, due in large part to the maturity of time deposits, which had been originated during periods of higher market interest rates, into lower current market interest rates.
  • The provision for loan losses was $900,000 during the quarter compared with $1,500,000 during the fourth quarter of 2010 and $961,000 during the first quarter of 2010. The Company has steadily increased its allowance for loan losses to $8,906,000 or 1.75% of loans at quarter end, a 44.5% increase over the $6,165,000 balance at March 31, 2010.
  • Non-performing loans were $21,064,000 at quarter end compared with $18,978,000 at December 31, 2010. This increase was mainly caused by loans put on non-accrual status while the borrowers attempt to market the property. Foreclosed property at March 31, 2011 was $8.0 million compared with $7.5 million at December 31, 2010 mainly due to the addition of one single-family residence. Total non-performing assets were 4.25% of total assets compared with 3.83% at year end 2010.
  • Loans outstanding were $507.8 million, a $2.2 million or 0.4% decrease during the quarter. Mortgage loans originated for sale were $5.7 million compared with $6.1 million during the first quarter of 2010.
  • At quarter end, total deposits were $547.8 million, compared with $550.1 million at December 31, 2010, and $553.4 million at March 31, 2010.
  • Non-interest expenses were $384,000 higher in the first quarter of 2011 compared to the first quarter of 2010. The majority of this increase is due to increased professional fees resulting from, among other things, legal and other costs incurred in connection with the Company's reincorporation in Pennsylvania, the cost of distributing a 5% stock dividend in the first quarter, and a $169,000 increase in legal and professional fees incurred in connection with loan workout and foreclosure matters.

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. Deposits at Third Federal Bank are insured up to the maximum amount by the Federal Deposit Insurance Corporation (FDIC). 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
  3/31/2011 12/31/2010 9/30/2010 6/30/2010 3/31/2010
           
           
EARNINGS SUMMARY          
           
Interest income  $ 7,835  $ 8,021  $ 8,350  $ 8,522  $ 8,675
Interest expense 2,019 2,243 2,488 2,634 2,843
Net interest income 5,816 5,778 5,862 5,888 5,832
Loan loss provision 900 1,500 1,180 600 961
Non-interest income 750 1,143 927 597 616
Non-interest expense 4,976 4,591 4,227 4,591 4,592
Income taxes 72 171 373 327 178
Net income  $ 618  $ 659  $ 1,009  $ 967  $ 717
           
           
PER SHARE INFORMATION          
           
Earnings per share, basic (2)  $ 0.23  $ 0.24  $ 0.38  $ 0.36  $ 0.27
Earnings per share, diluted (2)  $ 0.23  $ 0.24  $ 0.38  $ 0.36  $ 0.27
           
Weighted average basic shares (000's) (2)  2,703  2,692  2,687  2,680  2,669
Weighted average diluted shares (000's) (2)  2,703  2,692  2,687  2,680  2,669
           
Dividends paid (2)  $ 0.05  $ 0.19  $ 0.19  $ 0.19  $ 0.19
           
           
FINANCIAL RATIOS          
           
Annualized return on average assets 0.36% 0.37% 0.56% 0.54% 0.41%
Annualized return on average equity 3.38% 3.48% 5.41% 5.30% 4.01%
Efficiency ratio (1) 75.78% 66.33% 62.26% 70.79% 71.22%
           
CAPITAL RATIOS          
           
Tier 1 (Core) Capital Ratio 9.79% 9.56% 9.32% 8.97% 8.92%
Total Risk-Based Capital Ratio 18.00% 17.47% 16.83% 16.55% 16.24%
Tier 1 Risk-Based Capital Ratio 16.75% 16.22% 15.58% 15.30% 15.10%
Tangible Equity Ratio 9.79% 9.56% 9.32% 8.97% 8.92%
           
           
           
           
T F FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands except per share data) QUARTER ENDED
  3/31/2011 12/31/2010 9/30/2010 6/30/2010 3/31/2010
AVERAGE BALANCES          
           
Loans  $ 501,543  $ 510,997  $ 522,181  $ 522,289  $ 529,817
Mortgage-backed securities 66,401 72,059 79,070 80,735 81,839
Investment securities 67,035 61,902 59,077 58,446 53,282
Other interest-earning assets 3,237 7,816 10,122 13,451 6,728
Total earning assets 638,216 652,774 670,450 674,921 671,666
Non-earning assets 48,984 45,242 42,716 42,210 41,204
Total assets 687,200 698,016 713,166 717,131 712,870
           
Deposits 546,055 550,484 556,314 557,128 549,257
FHLB advances and other borrowed money 60,446 65,678 75,130 78,469 82,536
Total interest-bearing liabilities 606,501 616,162 631,444 635,597 631,793
Non interest-bearing liabilities 6,482 6,681 7,744 8,373 8,611
Stockholders' equity 74,217 75,173 73,978 73,161 72,466
Total liabilities & stockholders' equity  $ 687,200  $ 698,016  $ 713,166  $ 717,131  $ 712,870
           
           
SPREAD AND MARGIN ANALYSIS          
           
Average yield on:          
Loans 5.32% 5.23% 5.33% 5.49% 5.59%
Mortgage-backed securities 4.24% 4.48% 4.45% 4.62% 4.79%
Investment securities 4.35% 3.96% 3.94% 3.99% 4.12%
Other interest-earning assets 0.00% 0.05% 0.02% 0.03% 0.06%
Total interest-earning assets 5.08% 4.96% 5.03% 5.15% 5.32%
           
Average cost of:          
Deposits 1.08% 1.17% 1.25% 1.33% 1.47%
FHLB advances and other borrowed money 3.75% 3.78% 3.86% 4.05% 4.17%
Total interest-bearing liabilities 1.35% 1.44% 1.56% 1.66% 1.82%
           
Interest rate spread 3.73% 3.52% 3.47% 3.49% 3.50%
Net interest margin 3.80% 3.60% 3.55% 3.58% 3.60%
           
NON-INTEREST INCOME DETAIL          
           
Service fees, charges and other  $ 465  $ 662  $ 404  $ 363  $ 529
Bank-owned life insurance  157  169  170  167  172
Gain/loss on sale investments  --   13  --   7  -- 
Gain on sale of loans  117  406  353  52  60
Gain/(loss) on sale of foreclosed real estate   11  (107)  --   8  (145)
           
NON-INTEREST EXPENSE DETAIL          
           
Compensation and benefits  $ 2,746  $ 2,569  $ 2,269  $ 2,667  $ 2,700
Occupancy and equipment  818  747  774  723  759
Professional fees  478  383  196  256  228
Marketing and advertising  67  91  152  120  120
FDIC insurance premiums  233  229  233  259  194
Other operating  634  572  603  566  591
           
           
T F FINANCIAL CORPORATION
UNAUDITED FINANCIAL INFORMATION
(dollars in thousands except per share data) PERIOD ENDED
  3/31/2011 12/31/2010 9/30/2010 6/30/2010 3/31/2010
DEPOSIT INFORMATION          
           
           
Non-interest checking  $ 41,920  $ 40,389  $ 41,012  $ 45,022  $ 41,757
Interest checking 58,428 56,157 52,892 55,166 51,991
Money market 148,713 149,744 149,355 145,735 142,791
Savings 101,445 99,686 97,216 100,321 98,948
CD's 197,247 204,159 212,087 213,146 217,938
           
OTHER INFORMATION          
           
Per Share          
           
Book value (2)  $ 26.32  $ 26.02  $ 26.49  $ 26.01  $ 25.76
Tangible book value (2)  $ 24.79  $ 24.48  $ 24.95  $ 24.47  $ 24.22
Closing market price (2)  $ 20.83  $ 21.23  $ 19.67  $ 20.76  $ 18.18
           
Balance Sheet          
           
Loans  $ 507,785  $ 509,986  $ 528,058  $ 526,947  $ 531,137
Cash and cash equivalents 10,668 7,437 6,916 19,965 16,339
Mortgage-backed securities 61,476 69,660 74,768 82,169 78,412
Investment securities 67,364 67,231 60,424 59,659 57,837
Total assets 684,221 691,757 702,583 720,768 715,948
Total deposits 547,753 550,135 552,562 559,390 553,425
FHLB advances and other borrowed money 55,387 61,987 68,671 79,929 81,738
Stockholders' equity 74,270 73,416 74,673 73,321 72,422
           
Asset Quality          
           
Non-performing loans  $ 21,064  $ 18,978  $ 21,545  $ 15,828  $ 14,174
Allowance for loan losses   $ 8,906  $ 8,328  $ 7,606  $ 6,749  $ 6,165
Net charge-offs   $ 322  $ 778  $ 323  $ 16  $ 11
Allowance to gross loans 1.75% 1.63% 1.44% 1.28% 1.16%
Non-performing loans to gross loans 4.15% 3.72% 4.08% 3.00% 2.67%
Non-performing loans to total assets 3.08% 2.74% 3.07% 2.20% 1.98%
Foreclosed property  $ 8,002  $ 7,482  $ 2,153  $ 1,448  $ 1,150
Foreclosed property to total assets 1.17% 1.08% 0.31% 0.20% 0.16%
Non-performing assets to total assets 4.25% 3.83% 3.37% 2.40% 2.14%
           
Statistical          
           
Shares outstanding (000's) (2)  2,822  2,822  2,685  2,685  2,678
Number of branch offices  14  14  14  14  14
Full time equivalent employees  177  176  170  177  177
(1) The efficiency ratio is non-interest expense divided by net interest income plus non-interest income.
(2) Shares outstanding at 12/31/2010 and per share amounts at and prior to 12/31/2010 have been

adjusted for a 5% stock dividend declared January 26, 2011, distributed on February 28, 2011 to

shareholders of record February 15, 2011.
CONTACT: Dennis R. Stewart, EVP/CFO
         (215) 579-4000

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 5.03%
$30K home equity loan FICO 5.68%
$75K home equity loan FICO 5.00%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com