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): January 26, 2012
TF Financial Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania |
0-24168 |
74-2705050 |
||
(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: |
||
[ ] | 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 January 26, 2012 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 January 26, 2012
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 |
||
Date: January 26, 2012 | By: | /s/ KENT C. LUFKIN Kent C. Lufkin President and Chief Executive Officer (Duly Authorized Representative) |
EXHIBIT 99.1
NEWTOWN, Pa., Jan. 26, 2012 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $3,929,000 ($1.45 per diluted share) for 2011, a 17.2% increase over $3,352,000 ($1.25 per diluted share) reported for 2010. Net income for the three month period ended December 31, 2011 advanced to $1,532,000 ($0.57 per diluted share) compared with $659,000 ($0.24 per diluted share) during the comparable period of 2010. The Company also announced that its Board of Directors declared a quarterly dividend of $0.05 per share, payable February 15, 2012 to shareholders of record on February 8, 2012.
"We made good progress with both our financial performance and improved asset quality during a tough year for community banks in our region and nationally. Our consistent underlying operating earnings throughout the year is reflected in four sequential quarter-over-quarter increases in net income during 2011. This exceeded our internal plan for both the full year and the final quarter. We were able to further strengthen our solid capital base, maintain an uninterrupted dividend payout, and improve the net interest margin to compare very favorably with our peers, while reducing both non-performing assets and non-performing loans, especially towards the end of the year," said Kent C. Lufkin, President and Chief Executive Officer.
"We are seeing more favorable trends beginning to develop on the workouts of troubled loans, as well as in the sales and ultimate disposal of bank-owned real estate. We made good progress on both fronts during the fourth quarter as we continued to aggressively contribute to loan-loss reserves to help provide the flexibility necessary to produce tangible results, and we expect continuing momentum as we move into early 2012," Lufkin said.
Highlights for 2011 included:
TF Financial Corporation is a holding company whose principal subsidiary is 3rd 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 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 | YEAR ENDED | ||||||||||||
12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 12/31/2011 | 12/31/2010 | ||||||||
EARNINGS SUMMARY | ||||||||||||||
Interest income | $ 7,613 | $ 7,908 | $ 7,932 | $ 7,835 | $ 8,021 | $ 31,288 | $ 33,568 | |||||||
Interest expense | 1,550 | 1,903 | 1,943 | 2,019 | 2,243 | 7,415 | 10,208 | |||||||
Net interest income | 6,063 | 6,005 | 5,989 | 5,816 | 5,778 | 23,873 | 23,360 | |||||||
Loan loss provision | 850 | 528 | 1,450 | 900 | 1,500 | 3,728 | 4,241 | |||||||
Non-interest income | 1,395 | 583 | 903 | 739 | 1,250 | 3,620 | 3,527 | |||||||
Non-interest expense | 4,565 | 4,666 | 4,621 | 4,965 | 4,698 | 18,817 | 18,245 | |||||||
Income taxes | 511 | 314 | 122 | 72 | 171 | 1,019 | 1,049 | |||||||
Net income | $ 1,532 | $ 1,080 | $ 699 | $ 618 | $ 659 | $ 3,929 | $ 3,352 | |||||||
PER SHARE INFORMATION | ||||||||||||||
Earnings per share, basic (2) | $ 0.57 | $ 0.40 | $ 0.26 | $ 0.23 | $ 0.24 | $ 1.45 | $ 1.25 | |||||||
Earnings per share, diluted (2) | $ 0.57 | $ 0.40 | $ 0.26 | $ 0.23 | $ 0.24 | $ 1.45 | $ 1.25 | |||||||
Weighted average basic shares (000's) (2) | 2,711 | 2,703 | 2,699 | 2,696 | 2,692 | 2,702 | 2,679 | |||||||
Weighted average diluted shares (000's) (2) | 2,711 | 2,704 | 2,700 | 2,696 | 2,692 | 2,703 | 2,679 | |||||||
Dividends paid (2) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.19 | $ 0.20 | $ 0.76 | |||||||
FINANCIAL RATIOS | ||||||||||||||
Annualized return on average assets | 0.89% | 0.62% | 0.41% | 0.36% | 0.37% | 0.57% | 0.47% | |||||||
Annualized return on average equity | 7.75% | 5.63% | 3.74% | 3.38% | 3.48% | 5.17% | 4.55% | |||||||
Efficiency ratio (1) | 61.21% | 70.83% | 67.05% | 75.74% | 66.85% | 68.44% | 67.86% | |||||||
REGULATORY CAPITAL RATIOS | ||||||||||||||
Tier 1 (Core) Capital Ratio | 10.21% | 9.87% | 9.78% | 9.79% | 9.56% | |||||||||
Total Risk-Based Capital Ratio | 18.56% | 17.76% | 17.61% | 17.45% | 17.47% | |||||||||
Tier 1 Risk-Based Capital Ratio | 17.31% | 16.51% | 16.36% | 16.20% | 16.22% | |||||||||
Tangible Equity Ratio | 10.21% | 9.87% | 9.78% | 9.79% | 9.56% | |||||||||
T F FINANCIAL CORPORATION | ||||||||||||||
UNAUDITED FINANCIAL INFORMATION | ||||||||||||||
(dollars in thousands except per share data) | QUARTER ENDED | YEAR ENDED | ||||||||||||
12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 12/31/2011 | 12/31/2010 | ||||||||
AVERAGE BALANCES | ||||||||||||||
Loans | $ 497,258 | $ 502,574 | $ 499,024 | $ 501,543 | $ 510,997 | $ 500,095 | $ 521,272 | |||||||
Mortgage-backed securities | 61,079 | 66,283 | 63,940 | 66,401 | 72,059 | 64,416 | 78,401 | |||||||
Investment securities | 67,843 | 67,662 | 68,439 | 67,035 | 61,902 | 67,747 | 58,204 | |||||||
Other interest-earning assets | 6,699 | 3,237 | 4,420 | 3,237 | 7,816 | 5,406 | 9,534 | |||||||
Total earning assets | 632,879 | 639,756 | 635,823 | 638,216 | 652,774 | 637,664 | 667,411 | |||||||
Non-earning assets | 52,263 | 53,907 | 50,346 | 48,984 | 45,242 | 50,390 | 42,850 | |||||||
Total assets | 685,142 | 693,663 | 686,169 | 687,200 | 698,016 | 688,054 | 710,261 | |||||||
Deposits | 551,964 | 555,713 | 546,215 | 546,055 | 550,484 | 550,019 | 553,307 | |||||||
FHLB advances and other borrowed money | 48,109 | 54,709 | 57,972 | 60,446 | 65,678 | 55,274 | 75,406 | |||||||
Total interest bearing liabilities | 600,073 | 610,422 | 604,187 | 606,501 | 616,162 | 605,293 | 628,713 | |||||||
Non-interest bearing liabilities | 6,600 | 7,075 | 7,039 | 6,482 | 6,681 | 6,802 | 7,847 | |||||||
Stockholders' equity | 78,469 | 76,166 | 74,943 | 74,217 | 75,173 | 75,959 | 73,701 | |||||||
Total liabilities & stockholders' equity | $ 685,142 | $ 693,663 | $ 686,169 | $ 687,200 | $ 698,016 | $ 688,054 | $ 710,261 | |||||||
SPREAD AND MARGIN ANALYSIS | ||||||||||||||
Average yield on: | ||||||||||||||
Loans | 5.13% | 5.26% | 5.38% | 5.32% | 5.23% | 5.27% | 5.41% | |||||||
Mortgage-backed securities | 4.22% | 4.20% | 4.21% | 4.24% | 4.48% | 4.22% | 4.59% | |||||||
Investment securities | 4.15% | 4.13% | 4.28% | 4.35% | 3.96% | 4.26% | 4.00% | |||||||
Other interest-earning assets | 0.11% | 0.00% | 0.09% | 0.00% | 0.05% | 0.06% | 0.06% | |||||||
Total interest-earning assets | 4.88% | 5.01% | 5.11% | 5.08% | 4.96% | 5.02% | 5.11% | |||||||
Average cost of: | ||||||||||||||
Deposits | 0.82% | 1.02% | 1.06% | 1.08% | 1.17% | 0.99% | 1.30% | |||||||
FHLB advances and other borrowed money | 3.39% | 3.43% | 3.49% | 3.75% | 3.78% | 3.52% | 3.98% | |||||||
Total interest-bearing liabilities | 1.02% | 1.24% | 1.29% | 1.35% | 1.44% | 1.23% | 1.62% | |||||||
Interest rate spread | 3.86% | 3.77% | 3.82% | 3.73% | 3.52% | 3.79% | 3.49% | |||||||
Net interest margin | 3.91% | 3.83% | 3.88% | 3.80% | 3.60% | 3.85% | 3.58% | |||||||
NON-INTEREST INCOME DETAIL | ||||||||||||||
Service fees, charges and other | $ 456 | $ 298 | $ 479 | $ 465 | $ 662 | $ 1,698 | $ 1,958 | |||||||
Bank-owned life insurance | 157 | 160 | 164 | 157 | 169 | 638 | 678 | |||||||
Gain/loss on sale investments | 550 | -- | 210 | -- | 13 | 760 | 20 | |||||||
Gain on sale of loans | 232 | 125 | 50 | 117 | 406 | 524 | 871 | |||||||
NON-INTEREST EXPENSE DETAIL | ||||||||||||||
Compensation and benefits | $ 2,573 | $ 2,584 | $ 2,622 | $ 2,746 | $ 2,569 | $ 10,525 | $ 10,205 | |||||||
Occupancy and equipment | 719 | 699 | 736 | 818 | 747 | 2,972 | 3,003 | |||||||
Professional fees | 266 | 263 | 324 | 478 | 383 | 1,331 | 1,063 | |||||||
Marketing and advertising | 55 | 88 | 102 | 67 | 91 | 312 | 483 | |||||||
FDIC insurance premiums | 149 | 142 | 151 | 233 | 229 | 675 | 915 | |||||||
Foreclosed real estate | 308 | 317 | 119 | 61 | 160 | 805 | 374 | |||||||
Other operating | 495 | 573 | 567 | 562 | 519 | 2,197 | 2,202 |
T F FINANCIAL CORPORATION | ||||||||||
UNAUDITED FINANCIAL INFORMATION | ||||||||||
(dollars in thousands except per share data) | PERIOD ENDED | |||||||||
12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | ||||||
DEPOSIT INFORMATION | ||||||||||
Non-interest checking | $ 43,910 | $ 46,591 | $ 44,817 | $ 41,920 | $ 40,389 | |||||
Interest checking | 65,677 | 65,614 | 58,632 | 58,428 | 56,157 | |||||
Money market | 155,010 | 150,142 | 149,852 | 148,713 | 149,744 | |||||
Savings | 105,617 | 103,871 | 104,423 | 101,445 | 99,686 | |||||
CD's | 181,074 | 185,460 | 194,380 | 197,247 | 204,159 | |||||
Per Share | ||||||||||
Book value (2) | $ 27.33 | $ 27.44 | $ 26.69 | $ 26.32 | $ 26.02 | |||||
Tangible book value (2) | $ 25.81 | $ 25.91 | $ 25.16 | $ 24.79 | $ 24.48 | |||||
Closing market price (2) | $ 22.72 | $ 19.25 | $ 21.42 | $ 20.83 | $ 21.23 | |||||
Balance Sheet | ||||||||||
Loans | $ 502,713 | $ 515,318 | $ 508,371 | $ 507,785 | $ 509,986 | |||||
Cash and cash equivalents | 14,928 | 14,475 | 8,786 | 10,668 | 7,437 | |||||
Mortgage-backed securities | 58,970 | 63,029 | 67,520 | 61,476 | 69,660 | |||||
Investment securities | 65,778 | 65,514 | 68,551 | 67,364 | 67,231 | |||||
Total assets | 681,929 | 695,168 | 691,561 | 684,221 | 691,757 | |||||
Total deposits | 551,288 | 551,678 | 552,104 | 547,753 | 550,135 | |||||
FHLB advances and other borrowed money | 46,908 | 59,500 | 55,345 | 55,387 | 61,987 | |||||
Stockholders' equity | 77,408 | 77,499 | 75,332 | 74,270 | 73,416 | |||||
Asset Quality | ||||||||||
Non-performing loans | $ 12,541 | $ 17,103 | $ 18,308 | $ 21,064 | $ 18,978 | |||||
Allowance for loan losses | $ 8,100 | $ 9,586 | $ 9,108 | $ 8,906 | $ 8,328 | |||||
Net charge-offs | $ 2,337 | $ 49 | $ 1,248 | $ 322 | $ 778 | |||||
Allowance to gross loans | 1.61% | 1.86% | 1.79% | 1.75% | 1.63% | |||||
Non-performing loans to gross loans | 2.49% | 3.32% | 3.60% | 4.15% | 3.72% | |||||
Non-performing loans to total assets | 1.84% | 2.46% | 2.65% | 3.08% | 2.74% | |||||
Foreclosed property | $ 11,731 | $ 8,909 | $ 9,245 | $ 8,002 | $ 7,482 | |||||
Foreclosed property to total assets | 1.72% | 1.28% | 1.34% | 1.17% | 1.08% | |||||
Non-performing assets to total assets | 3.56% | 3.74% | 3.98% | 4.25% | 3.83% | |||||
Statistical | ||||||||||
Shares outstanding (000's) (2) | 2,832 | 2,824 | 2,822 | 2,822 | 2,822 | |||||
Number of branch offices | 14 | 14 | 14 | 14 | 14 | |||||
Full time equivalent employees | 168 | 172 | 179 | 177 | 176 | |||||
(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