Tf Financial Corp (THRD) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2012

EXHIBIT 99.1

TF Financial Corporation Reports 2012 Results and Quarterly Cash Dividend

NEWTOWN, Pa., Jan. 24, 2013 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $5,383,000 ($1.97 per diluted share) for 2012, a 37% increase over $3,929,000 ($1.45 per diluted share) reported for 2011. Net income for the three month period ended December 31, 2012 was $1,506,000 ($0.55 per diluted share) compared with $1,532,000 ($0.57 per diluted share) during the comparable period of 2011. The Company also announced that its Board of Directors declared a quarterly dividend of $0.05 per share, payable February 15, 2013 to shareholders of record on February 8, 2013.

"We had a very satisfactory final quarter and full year, by the key measures of performance," said Kent C. Lufkin, President and Chief Executive Officer. "In the ongoing low interest rate environment and considering the numerous other tough challenges facing community banks of our size, we continue to deliver improving financial performance for the benefit of our shareholders. A 37% year over year increase in net income, combined with above-average capital levels via retained earnings have positioned our Company to move into 2013 with good momentum. Our net interest margin was a very respectable 3.90% for the year and overall asset quality reflected healthy improvement as both non-performing assets and nonperforming loans were significantly lower than the prior year."

Highlights for 2012 included:

• Net income increased by $1,454,000 or 37% compared with 2011.
• Net interest income increased by $410,000 or 1.7% compared with 2011. The Company's net interest margin was 3.90% for the year, an increase of 5 basis points compared with 2011. As was the case during 2011, low market interest rates resulted in an increase in mortgage prepayments with a resulting downward drift in loan yields. However, this negative effect was more than offset by the positive effect of lower deposit costs, the outcome of an improving deposit mix and the maturity of older high-rate CDs.
• The Bank's regulatory capital ratios remain strong, with Tier 1 Leverage and Total Risk-Based ratios of 10.45% and 17.89% at year end.
• During 2012, loans outstanding increased by $31.6 million or 6.3% to $534.3 million. Loan demand was strong during the year: loans originated for portfolio and loans originated for sale during 2012 were $132.3 million and $52.9 million, respectively, compared with $94.6 million and $26.5 million during 2011.
• Deposits increased by $9.0 million or 1.6% to $560.3 million, and the deposit mix improved, driven by an $18.7 million or 5.0% increase in core checking, savings and money market balances. The migration of maturing high-rate CDs into lower cost core accounts was in large part responsible for the 34 basis point decrease in the average cost of deposits for 2012 compared to 2011.
• Asset quality showed dramatic improvement during 2012. Non-performing assets were 2.20% of total assets at year end, down from 3.56% at year end 2011. Non-performing loans decreased by $4.2 million or 33.4% during the year. Also, foreclosed property decreased by $4.4 million or 37.9% during 2012.
• The allowance for loan losses was $6.9 million and equaled 1.30% of gross loans and 82.8% of non-performing loans at year end. The loan loss provision was $2.4 million for 2012, and net charge-offs were $3.6 million.
• Non-interest income increased by $466,000 or 12.9% to $4.1 million during 2012 when compared with 2011, driven by an $826,000 or 158% increase in gains on loans sold. Total non-interest expense was relatively unchanged for the year, and stood at $18.9 million.

TF Financial Corporation is a holding company whose principal subsidiary is 3rd Fed Bank, which operates 13 full service retail and commercial banking offices in Philadelphia and Bucks County, Pennsylvania and in Mercer County, New Jersey. Deposits at 3^rd Fed 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.3rdfedbank.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.

CONTACT: Dennis R. Stewart, EVP/CFO
         (215) 579-4000