-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D5jVhSxwYLEe1OrropdWf07YuaCMOSUP/hlt3cNLwiiFQwop17s+jrXzg4OUNXAq g/dlprzx50UYpw0vOyM8dQ== 0000946275-03-000471.txt : 20030724 0000946275-03-000471.hdr.sgml : 20030724 20030724165258 ACCESSION NUMBER: 0000946275-03-000471 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030724 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TF FINANCIAL CORP CENTRAL INDEX KEY: 0000921051 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 742705050 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24168 FILM NUMBER: 03801421 BUSINESS ADDRESS: STREET 1: 3 PENNS TRAIL CITY: NEWTOWN STATE: PA ZIP: 18940 BUSINESS PHONE: 2155794000 MAIL ADDRESS: STREET 1: 3 PENNS TRAIL CITY: NEWTOWN STATE: PA ZIP: 18940 8-K 1 f8k_072403-0084.txt FORM SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20552 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 July 24, 2003 ------------------------------------------------------ Date of Report (Date of earliest event reported) TF Financial Corporation ------------------------------------------------------ (Exact name of Registrant as specified in its Charter) Delaware 0- 24168 74-2705050 - ---------------------------- ---------- ------------- (State or other jurisdiction (File No.) (IRS Employer of incorporation) Identification Number) 3 Penns Trail, Newtown, Pennsylvania 18940 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (215) 579-4000 -------------- Not Applicable ------------------------------------------------------------- (Former name or former address, if changed since last Report) TF FINANCIAL CORPORATION INFORMATION TO BE INCLUDED IN REPORT ------------------------------------ Item 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------ Exhibit Number Description ------ ----------- 99 Press Release dated July 24, 2003 Item 9. Regulation FD Disclosure ------------------------ Information under this Item 9 is being provided pursuant to Item 12 - Results of Operations and Financial Condition in accordance with Release No. 34-47583. On July 24, 2003, the Registrant issued a press release to report earnings for the quarter ended June 30, 2003. A copy of the press release is furnished with this Form 8-K as exhibit 99. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. TF FINANCIAL CORPORATION Date: July 24, 2003 By: /s/Dennis R. Stewart -------------------------------- Dennis R. Stewart Executive Vice President and Chief Financial Officer EX-99 3 ex-99.txt PRESS RELEASE News Release ------------ July 24, 2003 Contact: Dennis R. Stewart, EVP/CFO FOR IMMEDIATE RELEASE (215) 579-4000 TF Financial Corporation Announces Second Quarter Results And Quarterly Dividend Newtown, Pennsylvania: TF Financial Corporation (Nasdaq National Market - THRD) today reported net income of $436,000 ($0.16 per diluted share) for the second quarter of 2003, compared with $995,000 ($0.37 per diluted share) during the second quarter of 2002. Year-to-date earnings for 2003 are $1,215,000 ($0.45 per diluted share) compared with $2,280,000 ($0.86 per diluted share) during the first six months of 2002. The Corporation also announced that its Board of Directors declared a quarterly dividend of $0.15 per share, payable August 15, 2003 to shareholders of record on August 4. The Corporation's net interest income continued to be adversely affected by record low levels of market interest rates and decreased by $1,044,000 or 22.3% 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 loans and investments bearing significantly lower yields. Although the Corporation is able to control its funding costs by reducing the rates paid on deposits, the already low level of deposit rates has made these reductions more difficult in light of the intense competition for core deposits. In addition, high prepayment of mortgage-backed securities causes an acceleration of the amortization of the premiums paid to purchase these securities. While the Corporation has reduced its cash and cash equivalents to $27.6 million at quarter end, the interest rate earned on these funds decreased further when the Federal Reserve lowered the fed funds rate by 25 basis points on June 25. The Corporation did take advantage of higher security prices and recognized $79,000 in gains on sales of securities during the quarter ended June 30, 2003. In addition, retail banking fees were $103,000 higher due in large part to a $70,000 increase in commercial loan prepayment fees, and a $33,000 increase in overdraft fees. Operating expenses were $293,000 higher during the second quarter of 2003 compared with 2002 in part because of the compensation costs associated with the opening of a new branch location in Philadelphia early in 2003. Benefits expenses also were higher by $78,000 due to the cost of the Corporation's employee stock ownership plan where the cost of shares released is impacted by the higher share price during 2003 compared with 2002. In addition, the Corporation's loan origination expenses were $33,000 higher during the second quarter of 2003, corresponding to an increase in loans originated to $31.3 million compared with $7.8 million during the second quarter of 2002. 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. TF FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per share data)
THREE MONTHS SIX MONTHS ------------ INC ---------- INC 6/30/03 6/30/02 (DEC) 6/30/03 6/30/02 (DEC) ------- ------- ------- ------- EARNINGS SUMMARY Interest Income $ 8,156 $ 10,453 -22.0% $ 16,813 $ 21,040 -20.1% Interest expense 4,525 5,778 -21.7% 9,348 11,645 -19.7% Net interest income 3,631 4,675 -22.3% 7,465 9,395 -20.5% Loan loss provision 90 538 -83.3% 180 688 -73.8% Non-interest income 648 466 39.1% 1,732 1,006 72.2% Non-interest expense 3,599 3,306 8.9% 7,338 6,726 9.1% Income taxes 154 302 -49.0% 464 707 -34.4% Net income $ 436 $ 995 -56.2% $ 1,215 $ 2,280 -46.7% PER SHARE INFORMATION Earnings per share, basic $ 0.17 $ 0.40 -57.5% $ 0.49 $ 0.92 -46.7% Earnings per share, diluted $ 0.16 $ 0.37 -56.8% $ 0.45 $ 0.86 -47.7% Dividends paid $ 0.15 $ 0.15 0.0% $ 0.30 $ 0.30 0.0% FINANCIAL RATIOS Annualized return on average assets 0.25% 0.55% -54.5% 0.34% 0.64% -46.9% Annualized return on average equity 2.77% 6.82% -59.4% 3.88% 7.88% -50.8% Efficiency ratio 85.92% 71.82% 19.6% 81.38% 69.25% 17.5% AVERAGE BALANCES Loans $363,906 $360,448 1.0% $ 365,226 $366,435 -0.3% Mortgage-backed securities 172,259 212,146 -18.8% 167,985 206,999 -18.8% Investment securities 76,608 49,845 53.7% 66,670 48,921 36.3% Other interest-earning assets 64,376 64,617 -0.4% 79,297 59,225 33.9% Total earning assets 677,149 687,056 -1.4% 679,178 681,580 -0.4% Non-earning assets 35,748 34,628 3.2% 35,356 35,084 0.8% Total assets 712,897 721,684 -1.2% 714,534 716,664 -0.3% Deposits 446,212 432,918 3.1% 444,459 428,105 3.8% FHLB advances 197,249 222,359 -11.3% 200,619 222,359 -9.8% Total interest bearing liabilities 643,461 655,277 -1.8% 645,078 650,464 -0.8% Non-interest bearing liabilities 6,266 7,879 -20.5% 6,344 7,844 -19.1% Stockholders' equity 63,170 58,528 7.9% 63,112 58,356 8.1% Total liabilities & stockholders' $712,897 $721,684 -1.2% $ 714,534 $716,664 -0.3% equity SPREAD AND MARGIN ANALYSIS Average yield on: Loans 6.20% 7.15% 6.45% 7.24% Mortgage-backed securities 4.30% 6.03% 4.44% 6.09% Investment securities 2.71% 4.55% 3.10% 4.75% Other interest-earning assets 1.05% 1.68% 1.05% 1.63% Average cost of: Deposits 1.64% 2.51% 1.75% 2.61% FHLB advances 5.49% 5.54% 5.51% 5.54% Interest rate spread 2.01% 2.57% 2.07% 2.61% Net interest margin 2.15% 2.73% 2.22% 2.78%
TF FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per share data)
THREE MONTHS SIX MONTHS ------------ INC ---------- INC 6/30/03 6/30/02 (DEC) 6/30/03 6/30/02 (DEC) ------- ------- ------- ------- NON-INTEREST INCOME Retail banking fees $ 569 $ 466 22.1% $ 1,147 $ 1,006 14.0% Gain on sale securities 79 - 0.0% 585 - 0.0% NON-INTEREST EXPENSE Salaries and benefits 2,036 1,916 6.3% 4,060 3,845 5.6% Occupancy 602 576 4.5% 1,230 1,154 6.6% Deposit insurance 18 19 -5.3% 37 38 -2.6% Professional fees 158 105 50.5% 318 185 71.9% Deposit intangible amortization 48 58 -17.2% 96 116 -17.2% Advertising 138 110 25.5% 275 220 25.0% Other 599 522 14.8% 1,322 1,168 13.2%
INC 6/30/03 12/31/02 (DEC) ------- -------- ----- DEPOSIT INFORMATION Non-interest checking $ 23,125 $ 20,810 11.1% Interest checking 50,852 48,496 4.9% Money market 44,239 43,677 1.3% Savings 187,491 182,813 2.6% CD's 142,432 146,762 -3.0% OTHER PERIOD ENDING INFORMATION Per Share Book value (1) $ 24.90 $ 25.31 Tangible book value (1) $ 23.03 $ 23.34 Closing market price $ 23.12 $ 24.71 Balance sheet Loans,net $359,208 $ 370,092 -2.9% Interest bearing cash and cash equivalents 27,588 93,923 -70.6% Mortgage-backed securities 172,968 169,835 1.8% Investment securities 112,620 53,450 110.7% Total assets 712,636 721,032 -1.2% FHLB advances and other 192,359 207,359 -7.2% Stockholders' equity 63,881 62,840 1.7% ASSET QUALITY Non-performing loans 2,231 3,822 -41.6% Loan loss reserves 1,923 2,047 -6.1% Reserves to gross loans 0.53% 0.55% -3.6% Non-performing loans to gross loans 0.62% 1.03% -39.8% Non-performing loans to total assets 0.31% 0.53% -41.5% Foreclosed property 1,857 84 2110.7% Foreclosed property to total assets 0.26% 0.01% 2500.0% Non-performing assets to total assets 0.57% 0.54% 5.6% OTHER STATISTICAL INFORMATION Shares outstanding (000's) 2,566 2,483 Number of branch offices 14 13 Full time equivalent employees 171 169 (1) Employee stock ownership plan shares 230 240 not included in shares outstanding (000's)
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