EX-99 3 ex-99.txt PRESS RELEASE News Release ------------ April 24, 2003 Contact: Dennis R. Stewart, SVP/CFO FOR IMMEDIATE RELEASE (215) 579-4000 TF Financial Corporation Announces First Quarter Results And Quarterly Dividend Newtown, Pennsylvania: TF Financial Corporation (Nasdaq National Market - THRD) today reported net income of $779,000 ($0.29 per diluted share) for the first quarter of 2003, compared with $1,285,000 ($0.49 per diluted share) for the first quarter of 2002. The Corporation also announced that its Board of Directors had declared a quarterly dividend of $0.15 per share, payable May 15, 2003 to shareholders of record on May 5, 2003. The Corporation's net interest income continued to be adversely affected by record low levels of market interest rates and decreased by $885,000 or 18.8% during the 2003 quarter compared to the year earlier period. High prepayments of mortgages and mortgage-backed securities have caused the Corporation to reinvest these funds into longer-term fixed or variable rate interest bearing assets at relatively low yields, and allow cash and cash equivalents to remain at high levels in order to be better positioned to benefit should market interest rates rise. The Corporation was able to take advantage of higher security prices and recognized $506,000 in gains on sales of securities during the quarter ended March 31, 2003. Operating expenses were $320,000 higher during the first quarter of 2003 compared with 2002 in part because of high utilities and maintenance associated with the inclement weather during 2003 and the opening of a new branch location in Philadelphia early in the year. In addition, the Corporation's loan origination expenses were higher during the first quarter of 2003, corresponding to an increase in loans originated to $24.4 million compared with $10.0 million during the first quarter of 2002. Finally, the first quarter of 2002 had benefited from a $93,000 non-recurring reduction of pension expense related to employee retirements. The Corporation continues to experience good deposit growth, increasing by $4.2 million since the beginning of 2003, and increasing by $14.5 million since March 31, 2002. During the first quarter of 2003 the Corporation opened its fourteenth branch location in the Northern Liberties section of Philadelphia. TF Financial Corporation is a holding company whose principal subsidiary is Third Federal Savings 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, which 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 Corporation 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 Corporation. T F FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per share data) -------------------------------------------------------------------------------- THREE MONTHS ------------ INC 3/31/03 3/31/02 (DEC) ------- ------- EARNINGS SUMMARY Interest Income $ 8,657 $ 10,587 -18.2% Interest expense 4,822 5,867 -17.8% Net interest income 3,835 4,720 -18.8% Loan loss provision 90 150 -40.0% Non-interest income 1,084 540 100.7% Non-interest expense 3,740 3,420 9.4% Income taxes 310 405 -23.5% Net income $ 779 $ 1,285 -39.4% PER SHARE INFORMATION Earnings per share, basic $ 0.31 $ 0.52 -40.4% Earnings per share, diluted $ 0.29 $ 0.49 -40.8% Dividends paid $ 0.15 $ 0.15 0.0% FINANCIAL RATIOS Annualized return on average assets 0.44% 0.73% Annualized return on average equity 5.01% 8.98% Efficiency ratio 77.45% 66.93% AVERAGE BALANCES Loans $366,561 $372,490 -1.6% Mortgage-backed securities 163,663 201,866 -18.9% Investment securities 56,620 47,792 18.5% Other interest-earning assets 94,384 53,966 74.9% Total earning assets 681,228 676,114 0.8% Non-earning assets 34,960 35,298 -1.0% Total assets 716,188 711,412 0.7% Deposits 442,687 423,239 4.6% FHLB advances 204,026 222,359 -8.2% Total interest bearing liabilities 646,713 645,598 0.2% Non-interest bearing liabilities 6,422 7,806 -17.7% Stockholders' equity 63,053 58,008 8.7% Total liabilities & stockholders' $716,188 $711,412 0.7% equity SPREAD AND MARGIN ANALYSIS Average yield on: Loans 6.69% 7.33% Mortgage-backed securities 4.59% 6.15% Investment securities 3.64% 4.98% Other interest-earning assets 1.06% 1.57% Average cost of: Deposits 1.87% 2.71% FHLB advances 5.52% 5.54% Interest rate spread 2.13% 2.66% Net interest margin 2.28% 2.83% T F FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per share data)
-------------------------------------------------------------------------------------------- THREE MONTHS ------------ INC 3/31/03 3/31/02 (DEC) ------- ------- NON-INTEREST INCOME Retail banking fees $ 578 $ 540 7.0% Securities gains 506 - 0.0% NON-INTEREST EXPENSE Salaries and benefits 2,023 1,928 4.9% Occupancy 628 578 8.7% Deposit insurance 19 18 5.6% Professional fees 160 79 102.5% Deposit intangible amortization 48 58 -17.2% Advertising 138 111 24.3% Other 724 648 11.7%
-------------------------------------------------------------------------------------------- INC AT AT --- 3/31/03 12/31/02 (DEC) ------- -------- ----- DEPOSIT INFORMATION Non-interest checking $22,695 $ 20,810 9.1% Interest checking 48,681 48,496 0.4% Money market 45,590 43,677 4.4% Savings 184,633 182,813 1.0% CD's 145,167 146,762 -1.1% OTHER PERIOD ENDING INFORMATION Per Share Book value (1) $ 25.19 $ 25.31 Tangible book value (1) $ 23.25 $ 23.34 Closing market price $ 24.75 $ 24.71 Balance sheet Loans receivable,net $374,279 $ 370,092 1.1% Cash and cash equivalents 96,680 100,580 -3.9% Mortgage-backed securities 160,323 169,835 -5.6% Investment securities 60,160 53,230 13.0% Total assets 720,218 721,032 -0.1% FHLB advances 202,359 207,359 -2.4% Stockholders' equity 62,988 62,840 0.2% ASSET QUALITY Non-performing loans 2,395 3,822 -37.3% Loan loss reserves 2,058 2,047 0.5% Reserves to gross loans 0.55% 0.55% 0.0% Non-performing loans to gross loans 0.64% 1.03% -37.9% Non-performing loans to total assets 0.33% 0.53% -37.7% Foreclosed property 1,805 84 2048.8% Foreclosed property to total assets 0.25% 0.01% 2400.0% Non-performing assets to total assets 0.58% 0.54% 7.4% OTHER STATISTICAL INFORMATION Shares outstanding (1) (000's) 2,501 2,483 Number of branch offices 14 13 Full time equivalent employees 168 169 (1) Employee stock ownership plan shares 237 240 not included in shares outstanding (000's)