EX-99 2 ex-99.txt PRESS RELEASE News Release ------------ April 28, 2005 Contact: Dennis R. Stewart, EVP/CFO FOR IMMEDIATE RELEASE (215) 579-4000 TF Financial Corporation Reports First Quarter 2005 Results and Quarterly Dividend Newtown, Pennsylvania: TF Financial Corporation (Nasdaq National Market - THRD) today reported net income of $1,476,000 ($0.52 per diluted share) for the first quarter of 2005, compared with $1,609,000 ($0.57 per diluted share) for the first quarter of 2004. The Company also announced that its Board of Directors had declared a quarterly dividend of $0.18 per share, payable May 16, 2005 to shareholders of record on May 9, 2005. Highlights for the current quarter included: o Interest income increased by 5% compared to the first quarter of 2004, and is up 3% compared with the fourth quarter of 2004. o The net interest margin remains strong at 3.85%, up from 3.73% during the fourth quarter of 2004. Net interest income similarly grew by 2.4% from the fourth quarter of 2004. o Loans receivable grew by 9% during the quarter. o Asset quality remains high with non-performing loans at record low levels for the Company. o Return on assets and return on equity were a strong 0.95% and 9.93%, respectively. o Dividends paid in the quarter were $0.18 per share, up 20% from the $0.15 per share paid during the first quarter of 2004. Commenting on the performance of the Company, President Kent C. Lufkin noted that "the first quarter of 2005 was both rewarding and challenging for the Company: rewarding because of the tremendous loan growth achieved during the quarter, and challenging because of the intense competition occurring in the Company's deposit markets. Although market interest rates are rising, we believe that we have positioned the Company well and look forward to continued good performance while we invest in the franchise. In fact, we look forward to opening our fifteenth office, in Northeast Philadelphia, during the second quarter of 2005." 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, 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 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 FINANCIAL INFORMATION (dollars in thousands except per share data)
THREE MONTHS ------------ INC 3/31/05 3/31/04 (DEC) ------- ------- ----- EARNINGS SUMMARY Interest Income $ 8,097 $ 7,730 4.7% Interest expense 2,467 2,152 14.6% Net interest income 5,630 5,578 0.9% Loan loss provision 150 150 0.0% Non-interest income 662 709 -6.6% Non-interest expense 4,131 3,917 5.5% Income taxes 535 611 -12.4% Net income $ 1,476 $ 1,609 -8.3% PER SHARE INFORMATION Earnings per share, basic $ 0.54 $ 0.61 -11.5% Earnings per share, diluted $ 0.52 $ 0.57 -8.8% Dividends paid $ 0.18 $ 0.15 20.0% FINANCIAL RATIOS Annualized return on average assets 0.95% 1.06% -10.4% Annualized return on average equity 9.93% 11.58% -14.2% Efficiency ratio 67.26% 63.83% 5.4% AVERAGE BALANCES Loans $446,618 $410,976 8.7% Mortgage-backed securities 118,816 130,658 -9.1% Investment securities 32,861 30,453 7.9% Other interest-earning assets 1,135 1,570 -27.7% Total earning assets 599,430 573,657 4.5% Non-earning assets 33,211 35,513 -6.5% Total assets 632,641 609,170 3.9% Deposits 455,316 464,744 -2.0% FHLB advances 111,888 83,314 34.3% Total interest bearing liabilities 567,204 548,058 3.5% Non-interest bearing liabilities 5,155 5,233 -1.5% Stockholders' equity 60,282 55,879 7.9% Total liabilities & stockholders' equity $632,641 $609,170 3.9% SPREAD AND MARGIN ANALYSIS Average yield on: Loans 5.88% 5.86% Mortgage-backed securities 4.45% 4.49% Investment securities 4.68% 4.33% Other interest-earning assets 3.57% 0.77% Average cost of: Deposits 1.37% 1.30% FHLB advances 3.37% 3.12% Interest rate spread 3.76% 3.87% Net interest margin 3.85% 3.94%
T F FINANCIAL CORPORATION FINANCIAL INFORMATION (dollars in thousands except per share data) THREE MONTHS ------------ INC 3/31/05 3/31/04 (DEC) ------- ------- ----- NON-INTEREST INCOME Retail banking fees $ 640 $ 709 -9.7% Gain on sale of loans $ 22 $ - 0.0% Gain (loss) on sales of securities - - 0.0% Gain on sale of real estate - - 0.0% NON-INTEREST EXPENSE Salaries and benefits 2,391 2,274 5.1% Occupancy 661 595 11.1% Deposit insurance 17 18 -5.6% Professional fees 226 206 9.7% Deposit intangible amortization 34 40 -15.0% Advertising 176 163 8.0% Other 626 621 0.8% 3/31/05 12/31/04 ------- -------- DEPOSIT INFORMATION Non-interest checking $34,289 $ 32,636 Interest checking 54,913 54,887 Money market 40,415 42,496 Savings 176,279 182,945 CD's 148,975 146,939 OTHER PERIOD ENDING INFORMATION Per Share Book value (a) $ 22.11 $ 22.30 Tangible book value (a) $ 20.47 $ 20.65 Closing market price $ 28.71 $ 32.00 Balance sheet Loans,net $454,412 $ 442,195 Cash and cash equivalents 4,674 7,900 Mortgage-backed securities 117,525 118,510 Investment securities 34,961 32,150 Total assets 640,511 628,966 FHLB advances and other 119,361 102,747 Stockholders' equity 60,867 61,155 ASSET QUALITY Non-performing loans 727 960 Loan loss reserves 2,221 2,307 Reserves to gross loans 0.49% 0.52% Non-performing loans to gross loans 0.16% 0.22% Non-performing loans to total assets 0.11% 0.15% Foreclosed property 700 700 Foreclosed property to total assets 0.11% 0.11% Non-performing assets to total assets 0.22% 0.26% OTHER STATISTICAL INFORMATION Shares outstanding (000's) (a) 2,753 2,742 Number of branch offices 14 14 Full time equivalent employees 186 175 (a) Excludes 197,000 and 202,000 employee stock ownership plan shares at March 31, 2005 and December 31, 2004, respectively.