UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2011
TF Financial Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania |
0-24168 |
74-2705050 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
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[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On October 27, 2011 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated October 27, 2011
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TF Financial Corporation |
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Date: October 27, 2011 | By: | /s/ KENT C. LUFKIN Kent C. Lufkin President and Chief Executive Officer (Duly Authorized Representative) |
EXHIBIT 99.1
NEWTOWN, Pa., Oct. 27, 2011 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,080,000 ($0.40 per diluted share) for the third quarter of 2011, compared with $699,000 ($0.26 per diluted share) for the second quarter of 2011 and $1,009,000 ($0.38 per diluted share) for the third quarter of 2010. Net income for the nine month period ended September 30, 2011 was $2,397,000 ($0.89 per diluted share) compared with $2,693,000 ($1.01 per diluted share) for the first nine months of 2010. The Company also announced that its Board of Directors declared a quarterly dividend of $0.05 per share, payable November 15, 2011 to shareholders of record on November 8, 2011.
"In a persistent difficult operating environment, we are pleased to report earnings for the third quarter that were 55% ahead of the linked second quarter of this year, and also slightly better than the third quarter a year ago. Our core earnings were consistent and the net interest margin remained solid over the first nine months of 2011, while non-performing loans declined to $17 million at September 30, 2011 compared to $19 million at the end of 2010," said Kent C. Lufkin, President and Chief Executive Officer. "We are maintaining our reserves for possible loan losses at a level that should enable us to continue to aggressively dispose of problem loans as we move through the balance of this year and into 2012. Concurrently, capital levels remain healthy and our dividend stream is uninterrupted."
Results for the current quarter included:
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 | NINE MONTHS ENDED | |||||
9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | 9/30/2011 | 9/30/2010 | |
EARNINGS SUMMARY | |||||||
Interest income | $ 7,908 | $ 7,932 | $ 7,835 | $ 8,021 | $ 8,350 | $ 23,675 | $ 25,547 |
Interest expense | 1,903 | 1,943 | 2,019 | 2,243 | 2,488 | 5,865 | 7,965 |
Net interest income | 6,005 | 5,989 | 5,816 | 5,778 | 5,862 | 17,810 | 17,582 |
Loan loss provision | 528 | 1,450 | 900 | 1,500 | 1,180 | 2,878 | 2,741 |
Non-interest income | 329 | 892 | 750 | 1,143 | 927 | 1,971 | 2,140 |
Non-interest expense | 4,412 | 4,610 | 4,976 | 4,591 | 4,227 | 13,998 | 13,410 |
Income taxes | 314 | 122 | 72 | 171 | 373 | 508 | 878 |
Net income | $ 1,080 | $ 699 | $ 618 | $ 659 | $ 1,009 | $ 2,397 | $ 2,693 |
PER SHARE INFORMATION | |||||||
Earnings per share, basic (2) | $ 0.40 | $ 0.26 | $ 0.23 | $ 0.24 | $ 0.38 | $ 0.89 | $ 1.01 |
Earnings per share, diluted (2) | $ 0.40 | $ 0.26 | $ 0.23 | $ 0.24 | $ 0.38 | $ 0.89 | $ 1.01 |
Weighted average basic shares (000's) (2) | 2,704 | 2,699 | 2,696 | 2,692 | 2,687 | 2,701 | 2,679 |
Weighted average diluted shares (000's) (2) | 2,705 | 2,700 | 2,696 | 2,692 | 2,687 | 2,702 | 2,679 |
Dividends paid (2) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.58 |
FINANCIAL RATIOS | |||||||
Annualized return on average assets | 0.62% | 0.41% | 0.36% | 0.37% | 0.56% | ||
Annualized return on average equity | 5.63% | 3.74% | 3.38% | 3.48% | 5.41% | ||
Efficiency ratio (1) | 69.66% | 67.00% | 75.78% | 66.33% | 62.26% | ||
REGULATORY CAPITAL RATIOS | |||||||
Tier 1 (Core) Capital Ratio | 9.87% | 9.78% | 9.79% | 9.56% | 9.32% | ||
Total Risk-Based Capital Ratio | 17.76% | 17.61% | 17.45% | 17.47% | 16.83% | ||
Tier 1 Risk-Based Capital Ratio | 16.51% | 16.36% | 16.20% | 16.22% | 15.58% | ||
Tangible Equity Ratio | 9.87% | 9.78% | 9.79% | 9.56% | 9.32% | ||
T F FINANCIAL CORPORATION | |||||||
UNAUDITED FINANCIAL INFORMATION | |||||||
(dollars in thousands except per share data) | QUARTER ENDED | NINE MONTHS ENDED | |||||
9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | 9/30/2011 | 9/30/2010 | |
AVERAGE BALANCES | |||||||
Loans | $ 502,574 | $ 499,024 | $ 501,543 | $ 510,997 | $ 522,181 | $ 501,052 | $ 524,734 |
Mortgage-backed securities | 66,283 | 63,940 | 66,401 | 72,059 | 79,070 | 65,541 | 80,538 |
Investment securities | 67,662 | 68,439 | 67,035 | 61,902 | 59,077 | 67,714 | 56,956 |
Other interest-earning assets | 3,237 | 4,420 | 3,237 | 7,816 | 10,122 | 4,970 | 10,112 |
Total earning assets | 639,756 | 635,823 | 638,216 | 652,774 | 670,450 | 639,277 | 672,340 |
Non-earning assets | 53,907 | 50,346 | 48,984 | 45,242 | 42,716 | 49,759 | 42,050 |
Total assets | 693,663 | 686,169 | 687,200 | 698,016 | 713,166 | 689,036 | 714,390 |
Deposits | 555,713 | 546,215 | 546,055 | 550,484 | 556,314 | 549,364 | 554,259 |
FHLB advances and other borrowed money | 54,709 | 57,972 | 60,446 | 65,678 | 75,130 | 57,688 | 78,684 |
Total interest bearing liabilities | 610,422 | 604,187 | 606,501 | 616,162 | 631,444 | 607,052 | 632,943 |
Non-interest bearing liabilities | 7,075 | 7,039 | 6,482 | 6,681 | 7,744 | 6,867 | 8,240 |
Stockholders' equity | 76,166 | 74,943 | 74,217 | 75,173 | 73,978 | 75,117 | 73,207 |
Total liabilities & stockholders' equity | $ 693,663 | $ 686,169 | $ 687,200 | $ 698,016 | $ 713,166 | $ 689,036 | $ 714,390 |
SPREAD AND MARGIN ANALYSIS | |||||||
Average yield on: | |||||||
Loans | 5.26% | 5.38% | 5.32% | 5.23% | 5.33% | 5.32% | 5.47% |
Mortgage-backed securities | 4.20% | 4.21% | 4.24% | 4.48% | 4.45% | 4.22% | 4.62% |
Investment securities | 4.13% | 4.28% | 4.35% | 3.96% | 3.94% | 4.25% | 4.01% |
Other interest-earning assets | 0.00% | 0.09% | 0.00% | 0.05% | 0.00% | 0.03% | 0.03% |
Total interest-earning assets | 5.01% | 5.11% | 5.08% | 4.96% | 5.03% | 5.05% | 5.16% |
Average cost of: | |||||||
Deposits | 1.02% | 1.06% | 1.08% | 1.17% | 1.25% | 1.05% | 1.35% |
FHLB advances and other borrowed money | 3.43% | 3.49% | 3.75% | 3.78% | 3.86% | 3.56% | 4.03% |
Total interest-bearing liabilities | 1.24% | 1.29% | 1.35% | 1.44% | 1.56% | 1.29% | 1.68% |
Interest rate spread | 3.77% | 3.82% | 3.73% | 3.52% | 3.47% | 3.76% | 3.48% |
Net interest margin | 3.83% | 3.88% | 3.80% | 3.60% | 3.55% | 3.83% | 3.58% |
NON-INTEREST INCOME DETAIL | |||||||
Service fees, charges and other | $ 298 | $ 479 | $ 465 | $ 662 | $ 404 | $ 1,242 | $ 1,296 |
Bank-owned life insurance | 160 | 164 | 157 | 169 | 170 | 481 | 509 |
Gain/loss on sale investments | -- | 210 | -- | 13 | -- | 210 | 7 |
Gain on sale of loans | 125 | 50 | 117 | 406 | 353 | 292 | 465 |
Gain/(loss) on sale of foreclosed real estate | (254) | (11) | 11 | (107) | -- | (254) | (137) |
NON-INTEREST EXPENSE DETAIL | |||||||
Compensation and benefits | $ 2,584 | $ 2,622 | $ 2,746 | $ 2,569 | $ 2,269 | $ 7,952 | $ 7,636 |
Occupancy and equipment | 699 | 736 | 818 | 747 | 774 | 2,253 | 2,256 |
Professional fees | 263 | 324 | 478 | 383 | 196 | 1,065 | 680 |
Marketing and advertising | 88 | 102 | 67 | 91 | 152 | 257 | 392 |
FDIC insurance premiums | 142 | 151 | 233 | 229 | 233 | 526 | 686 |
Other operating | 636 | 675 | 634 | 572 | 603 | 1,945 | 1,760 |
T F FINANCIAL CORPORATION | ||||||||||
UNAUDITED FINANCIAL INFORMATION | ||||||||||
(dollars in thousands except per share data) | PERIOD ENDED | |||||||||
9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | ||||||
DEPOSIT INFORMATION | ||||||||||
Non-interest checking | $ 46,591 | $ 44,817 | $ 41,920 | $ 40,389 | $ 41,012 | |||||
Interest checking | 65,614 | 58,632 | 58,428 | 56,157 | 52,892 | |||||
Money market | 150,142 | 149,852 | 148,713 | 149,744 | 149,355 | |||||
Savings | 103,871 | 104,423 | 101,445 | 99,686 | 97,216 | |||||
CD's | 185,460 | 194,380 | 197,247 | 204,159 | 212,087 | |||||
OTHER INFORMATION | ||||||||||
Per Share | ||||||||||
Book value (2) | $ 27.44 | $ 26.69 | $ 26.32 | $ 26.02 | $ 26.49 | |||||
Tangible book value (2) | 25.91 | 25.16 | 24.79 | 24.48 | 24.95 | |||||
Closing market price (2) | 19.25 | 21.42 | 20.83 | 21.23 | 19.67 | |||||
Balance Sheet | ||||||||||
Loans | $ 515,318 | $ 508,371 | $ 507,785 | $ 509,986 | $ 528,058 | |||||
Cash and cash equivalents | 14,475 | 8,786 | 10,668 | 7,437 | 6,916 | |||||
Mortgage-backed securities | 63,029 | 67,520 | 61,476 | 69,660 | 74,768 | |||||
Investment securities | 65,514 | 68,551 | 67,364 | 67,231 | 60,424 | |||||
Total assets | 695,168 | 691,561 | 684,221 | 691,757 | 702,583 | |||||
Total deposits | 551,678 | 552,104 | 547,753 | 550,135 | 552,562 | |||||
FHLB advances and other borrowed money | 59,500 | 55,345 | 55,387 | 61,987 | 68,671 | |||||
Stockholders' equity | 77,499 | 75,332 | 74,270 | 73,416 | 74,673 | |||||
Asset Quality | ||||||||||
Non-performing loans | $ 17,103 | $ 18,308 | $ 21,064 | $ 18,978 | $ 21,545 | |||||
Allowance for loan losses | $ 9,586 | $ 9,108 | $ 8,906 | $ 8,328 | $ 7,606 | |||||
Net charge-offs | $ 49 | $ 1,248 | $ 322 | $ 778 | $ 323 | |||||
Allowance to gross loans | 1.86% | 1.79% | 1.75% | 1.63% | 1.44% | |||||
Non-performing loans to gross loans | 3.32% | 3.60% | 4.15% | 3.72% | 4.08% | |||||
Non-performing loans to total assets | 2.46% | 2.65% | 3.08% | 2.74% | 3.07% | |||||
Foreclosed property | $ 8,909 | $ 9,245 | $ 8,002 | $ 7,482 | $ 2,153 | |||||
Foreclosed property to total assets | 1.28% | 1.34% | 1.17% | 1.08% | 0.31% | |||||
Non-performing assets to total assets | 3.74% | 3.98% | 4.25% | 3.83% | 3.37% | |||||
Statistical | ||||||||||
Shares outstanding (000's) (2) | 2,824 | 2,822 | 2,822 | 2,822 | 2,685 | |||||
Number of branch offices | 14 | 14 | 14 | 14 | 14 | |||||
Full time equivalent employees | 172 | 179 | 177 | 176 | 170 | |||||
(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