Attached files
Exhibit 99.1
Timberland Bancorp, Inc.
Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
----------------------
Timberland Bancorp Earns $1.28 Million in Fiscal First Quarter 2012
Strong Capital Ratios Increased, Net Interest Margin Stable, Other Real
Estate Owned Decreased by 29%
HOQUIAM, WA January 24, 2012- Timberland Bancorp, Inc. (NASDAQ: TSBK)
("Timberland" or "the Company") today reported fiscal 2012 first quarter net
income of $1.28 million. Net income available to common shareholders, after
adjusting for the preferred stock dividend and the preferred stock discount
accretion was $1.02 million, or $0.15 per diluted common share. This compares
to a net loss to common shareholders of $(339,000), or $(0.05) per diluted
common share, for the quarter ended September 30, 2011 and net income to
common shareholders of $1.10 million, or $0.16 per diluted common share, for
the quarter ended December 31, 2010.
"We are pleased to announce a profitable first fiscal quarter that included a
29% reduction in other real estate owned. Net interest margin was stable,
capital ratios remained strong and loan originations increased 39% over the
prior quarter," said Michael R. Sand, President and Chief Executive Officer.
"We continue to benefit from historically low interest rates and a
strengthening regional economy which have contributed to an increased demand
for home mortgage and business loans."
"Our emphasis on cash management services has contributed to an improvement in
our deposit mix and has supported this quarter's growth in the C&I loan
portfolio," stated Sand. "Non CD deposits now represent 63% of total deposits
compared to 58% one year ago."
Fiscal First Quarter 2012 Highlights (at or for the period ended December 31,
2011, compared to December 31, 2010, or September 30, 2011):
* Recorded net income of $1.28 million;
* Earned $0.15 per diluted common share;
* Capital levels remain very strong: Total Risk Based Capital of 16.65%;
Tier 1 Leverage Capital Ratio of 11.26%; Tangible Capital to Tangible
Assets Ratio of 11.14%;
* Loan originations increased 39% over the prior quarter;
* Non-interest income increased 31% to $2.44 million from $1.86 million
for the quarter immediately prior;
* Net interest margin remained strong at 3.73%;
* OREO and other repossessed assets decreased 29% during quarter;
* The provision for loan losses decreased to $650,000 compared to $1.76
million for preceding quarter and $900,000 for comparable quarter one
year ago;
* Net charge-offs were $624,000 compared to $1.60 million for preceding
quarter and $415,000 for comparable quarter one year ago; and
* Book value per common share increased to $10.12, and tangible book
value per common share was $9.26 at quarter end.
Capital Ratios and Asset Quality
Timberland Bancorp remains very well capitalized with a total risk-based
capital ratio of 16.65%, a Tier 1 leverage capital ratio of 11.26% and a
tangible capital to tangible assets ratio of 11.14% at December 31, 2011.
Timberland provisioned $650,000 to its loan loss allowance during the quarter
ended December 31, 2011 compared to $1.76 million in the preceding quarter and
$900,000 in the comparable quarter one year ago.
Timberland Q1 Earnings
January 24, 2012
Page 2
Non-accrual loans totaled $27.8 million at December 31, 2011 and were
comprised of 71 loans and 60 credit relationships. By category: 39% of
non-accrual loans are secured by land and land development properties; 38% are
secured by commercial properties; 17% are secured by residential properties;
3% are secured by residential construction projects; 2% are secured by
commercial real estate construction projects; and 1% are commercial business
loans.
Total delinquent loans (past due 30 days or more) and non-accrual loans were
$49.1 million at December 31, 2011 compared to $43.4 million at September 30,
2011. The majority ($4.9 million) of the increase in total delinquent loans
was related to one credit relationship secured by a one-to four-family house
and ocean front and ocean view building lots on Washington's Pacific coast.
These loans were 60 days delinquent at quarter end. While Timberland cannot
assure the actions of the guarantors, the guarantors have communicated to
Timberland that they have resolved their internal disagreement and anticipate
eliminating the delinquency by January 31, 2012. Loans past due 90 days and
still accruing, increased to $2.7 million at December 31, 2011 from $1.8
million at September 30, 2011. "The increase in loans past due 90 days and
still accruing was almost entirely due to a delay in obtaining final plat
approval for a pre-sold residential building plat in King County, Washington,"
said Dean Brydon, Chief Financial Officer. "We expect the sale to be
consummated in the next few weeks which will reduce the present loans in the
past due 90 days and still accruing category by $2.3 million." The
non-performing assets to total assets ratio was 5.55% at December 31, 2011
compared to 5.01% three months earlier and 5.87% one year ago.
Other real estate owned ("OREO") and other repossessed assets decreased by
$3.1 million, or 29%, to $7.7 million at December 31, 2011 from $10.8 million
at September 30, 2011 and by 39% from $12.6 million at December 31, 2010. The
OREO portfolio consisted of 52 individual properties and three other
repossessed assets at December 31, 2011. The properties consisted of 37 land
parcels totaling $3.5 million, ten single family homes totaling $1.6 million,
three commercial real estate properties totaling $1.2 million, a condominium
project of $842,000 and a land development project of $469,000. The three
other repossessed assets totaled $73,000. During the quarter ended December
31, 2011, 12 OREO properties and other repossessed assets totaling $3.7
million were sold for a net loss of $271,000.
Balance Sheet Management
Total assets decreased slightly to $735.8 million at December 31, 2011 from
$738.2 million at September 30, 2011. The decrease in total assets was
primarily the result of a $3.1 million decrease in OREO and other repossessed
assets.
Liquidity as measured by cash and cash equivalents, CDs held for investment
and available for sale investments was 21.2% of total liabilities at December
31, 2011 compared to 21.1% at September 30, 2011 and 19.5% one year ago. "We
continue to stay on the short end of the yield curve to manage interest rate
risk," said Brydon.
"We have an extensive and profitable history of lending to owner builders and
funding custom construction projects in our local communities. We are
continuing to focus on the origination of non-speculative construction loans
to qualified borrowers in our market areas," said Sand. Net loans receivable
increased $1.0 million to $529.0 million at December 31, 2011 from $528.0
million at September 30, 2011. The increase was primarily due to a $4.9
million increase in commercial business loan balances, a $3.8 million increase
in commercial real estate construction loan balances, and a $2.6 million
increase in custom and owner/builder construction loan balances. These
increases were partially offset by a $4.2 million decrease in one-to four-
family loan balances, a $3.0 million decrease in land loan balances and a $2.9
million decrease in consumer loan balances.
Timberland continued reducing its exposure to land development loans and land
loans. Land development loan balances decreased to $1.8 million at December
31, 2011, a 17% decrease from the preceding quarter and a 66% decrease
year-over-year. The Bank's land loan portfolio decreased to $46.2 million at
December 31, 2011, a 6% decrease from the preceding quarter and a 21% decrease
year-over-year. The well diversified land portfolio consists of 372 loans on
a variety of land types including individual building lots, acreage, raw land
and commercially zoned properties. The average loan balance for the entire
land portfolio was approximately $124,000 at December 31, 2011.
Timberland Q1 Earnings
January 24, 2012
Page 3
LOAN PORTFOLIO
($ in thousands) Dec. 31, 2011 Sept. 30, 2011 Dec 31, 2010
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
Mortgage Loans:
One-to four-family $110,502 20% $114,680 20% $116,631 21%
Multi-family 30,866 6 30,982 6 29,419 5
Commercial 245,874 44 246,037 44 217,845 39
Construction and land
development 57,803 10 52,484 9 68,081 12
Land 46,198 8 49,236 9 58,334 11
-------- --- -------- --- -------- ---
Total mortgage loans 491,243 88 493,419 88 490,310 88
Consumer Loans:
Home equity and second
mortgage 34,607 6 36,008 7 37,239 7
Other 6,695 1 8,240 1 8,939 2
-------- --- -------- --- -------- ---
Total consumer loans 41,302 7 44,248 8 46,178 9
Commercial business loans 27,426 5 22,510 4 17,452 3
-------- --- -------- --- -------- ---
Total loans 559,971 100% 560,177 100% 553,940 100%
=== === ===
Less:
Undisbursed portion of
construction loans in
process (17,073) (18,265) (16,288)
Deferred loan origination
fees (1,884) (1,942) (2,153)
Allowance for loan
losses (11,972) (11,946) (11,749)
-------- -------- --------
Total loans receivable,
net $529,042 $528,024 $523,750
======== ======== ========
CONSTRUCTION LOAN COMPOSITION
($ in thousands) Dec. 31, 2011 Sept. 30, 2011 Dec 31, 2010
Percent Percent Percent
of Loan of Loan of Loan
Amount Portfolio Amount Portfolio Amount Portfolio
------ --------- ------ --------- ------ ---------
Custom and
owner / builder $28,797 5% $26,205 4% $32,483 5%
Speculative one- to
four-family 2,186 1 1,919 1 3,469 1
Commercial real
estate 16,693 3 12,863 2 23,869 4
Multi-family
(including
condominium) 8,320 1 9,322 1 2,938 1
Land development 1,807 -- 2,175 1 5,322 1
------- --- ------- --- ------- ---
Total construction
loans $57,803 10% $52,484 9% $68,081 12%
======= === ======= === ======= ===
Timberland's loan originations increased 39% to $51.6 million during the
quarter ended December 31, 2011 compared to $37.1 million for the preceding
quarter and increased 5% from the $49.1 million originated during the quarter
one year ago. Timberland continues to sell fixed rate one-to-four family
mortgage loans into the secondary market for asset liability management
purposes and to generate non-interest income. During the quarter ended
December 31, 2011, $22.9 million fixed-rate one-to four-family mortgage loans
were sold compared to $16.1 million for the preceding quarter and $26.9
million for the quarter ended one year ago.
Timberland's mortgage-backed securities ("MBS") and other investments
decreased by $637,000 during the quarter to $10.2 million at December 31, 2011
from $10.9 million at September 30, 2011, primarily as a result of prepayments
and scheduled amortization. During the quarter ended December 31, 2011,
other-than-temporary-impairment ("OTTI") credit related write-downs and
realized losses of $60,000 were recorded on the private label mortgage-backed
securities that were acquired in the in-kind redemption from the AMF family of
mutual funds in June 2008. At December 31, 2011 the Bank's remaining private
label mortgage-backed securities portfolio had been reduced to $3.2 million
from an original acquired balance of $15.3 million.
Timberland Q1 Earnings
January 24, 2012
Page 4
DEPOSIT BREAKDOWN
($ in thousands)
Dec. 31, 2011 Sept. 30, 2011 Dec 31, 2010
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
Non-interest bearing $ 61,178 10% $ 64,494 11% $ 51,519 9%
N.O.W. checking 156,799 27 155,299 26 157,411 27
Savings 85,335 15 83,636 14 69,168 12
Money market 66,266 11 61,028 10 58,756 10
Certificates of deposit
under $100 136,859 23 141,899 24 148,296 26
Certificates of deposit
$100 and over 82,738 14 86,322 15 92,244 16
Certificates of
deposit - brokered - - - - - - - - - - - -
-------- --- -------- --- -------- ---
Total deposits $589,175 100% $592,678 100% $577,394 100%
======== === ======== === ======== ===
Total deposits decreased less than 1% to $589.2 million at December 31, 2011,
from $592.7 million at September 30, 2011 primarily as a result of an $8.6
million decrease in certificates of deposit account balances and a $3.3
million decrease in non-interest bearing account balances. These decreases
were partially offset by a $5.2 million increase in money market account
balances, a $1.7 million increase in savings account balances and a $1.5
million increase in N.O.W. checking account balances.
Total shareholders' equity increased $1.13 million to $87.33 million at
December 31, 2011, from $86.21 million at September 30, 2011. The increase in
shareholders' equity was primarily a result of net income for the quarter.
Book value per common share was $10.12 and tangible book value per common
share was $9.26 at December 31, 2011.
Operating Results
Fiscal first quarter operating revenue (net interest income before provision
for loan losses, plus non-interest income excluding OTTI charges and valuation
allowances or recoveries on mortgage servicing rights ("MSRs")), increased to
$8.72 million from $8.61 million for the preceding quarter and decreased from
$8.78 million for the comparable quarter one year ago. Operating revenue
increased in the current quarter compared to the preceding quarter primarily
due to an increase in gain on sale of loans as Timberland's loan originations
increased from the preceding quarter.
Net interest income decreased to $6.30 million for the quarter ended December
31, 2011, from $6.34 million for the preceding quarter and from $6.33 million
for the comparable quarter one year ago. The net interest margin for the
current quarter of 3.73% decreased slightly from the 3.75% margin reported for
the preceding quarter and the 3.82% margin reported for the comparable quarter
one year ago. The decrease in the net interest margin for the quarter ended
December 31, 2011 relative to the preceding quarter was primarily due to the
reversal of interest income on loans placed on non-accrual status during the
current quarter.
Timberland provisioned $650,000 to its loan loss allowance for the quarter
ended December 31, 2011, compared to $1.76 million in the preceding quarter
and $900,000 in the comparable quarter one year prior. Net charge-offs for
the quarter ended December 31, 2011 decreased to $624,000, which included a
$450,000 recovery of a loan charged off in the prior quarter, compared to
$1.60 million for the quarter ended September 30, 2011 and $415,000 for the
quarter one year ago.
Non-interest income increased 31% to $2.44 million in the first quarter of
fiscal 2012, from $1.86 million in the preceding quarter and decreased 17%
from $2.95 million for the comparable quarter one year ago. The increase in
non-interest income compared to the preceding quarter was primarily due to a
$382,000 net change in the valuation adjustment of the Bank's mortgage
servicing rights ("MSRs") and a $224,000 increase in gain on sale of loans.
Non-interest income was increased by an $84,000 non-cash MSR valuation
recovery in the current quarter and was decreased by a $298,000 MSR valuation
allowance in the preceding quarter. The increase in gain on sale of loans was
primarily due to an increase in the dollar volume of fixed-rate one-to
four-family loans sold during the current quarter.
Total operating (non-interest) expenses decreased 6% to $6.22 million for the
first fiscal quarter from $6.63 million for the preceding quarter and 2% from
$6.38 million for the comparable quarter one year ago. The decreased expenses
for the current
Timberland Q1 Earnings
January 24, 2012
Page 5
quarter compared to the preceding quarter were primarily the result of a
decrease in salaries and employee benefits expense. "Salaries and employee
benefit expenses were lower in the most recent quarter, primarily because of
increased loan origination fees that offset salary expense and a one-time
benefit of $99,000 from changing our employee medical insurance provider,"
Brydon explained.
About Timberland Bancorp, Inc.
Timberland Bancorp, Inc., a Washington corporation, is the holding company for
Timberland Bank ("Bank"). The Bank opened for business in 1915 and serves
consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap
and Lewis counties, Washington with a full range of lending and deposit
services through its 22 branches (including its main office in Hoquiam).
Disclaimer
Certain matters discussed in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not statements of historical fact and
often include the words "believes," "expects," "anticipates," "estimates,"
"forecasts," "intends," "plans," "targets," "potentially," "probably,"
"projects," "outlook" or similar expressions or future or conditional verbs
such as "may," "will," "should," "would" and "could." Forward-looking
statements include statements with respect to our beliefs, plans, objectives,
goals, expectations, assumptions and statements about future performance.
These forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that could cause our actual results to differ
materially from the results anticipated, including, but not limited to: the
credit risks of lending activities, including changes in the level and trend
of loan delinquencies and write-offs and changes in our allowance for loan
losses and provision for loan losses that may be impacted by deterioration in
the housing and commercial real estate markets and may lead to increased
losses and non-performing assets in our loan portfolio, and may result in our
allowance for loan losses not being adequate to cover actual losses, and
require us to materially increase our reserves; changes in general economic
conditions, either nationally or in our market areas; changes in the levels of
general interest rates, and the relative differences between short and long
term interest rates, deposit interest rates, our net interest margin and
funding sources; fluctuations in the demand for loans, the number of unsold
homes, land and other properties and fluctuations in real estate values in our
market areas; secondary market conditions for loans and our ability to sell
loans in the secondary market; results of examinations of us by the Federal
Reserve and our bank subsidiary by the Federal Deposit Insurance Corporation,
the Washington State Department of Financial Institutions, Division of Banks
or other regulatory authorities, including the possibility that any such
regulatory authority may, among other things, require us to increase our
allowance for loan losses, write-down assets, change our regulatory capital
position or affect our ability to borrow funds or maintain or increase
deposits, which could adversely affect our liquidity and earnings; our
compliance with regulatory enforcement actions, including regulatory memoranda
of understandings ("MOUs") to which we are subject; legislative or regulatory
changes that adversely affect our business including changes in regulatory
policies and principles, or the interpretation of regulatory capital or other
rules; our ability to attract and retain deposits; further increases in
premiums for deposit insurance; our ability to control operating costs and
expenses; the use of estimates in determining fair value of certain of our
assets, which estimates may prove to be incorrect and result in significant
declines in valuation; difficulties in reducing risk associated with the loans
on our balance sheet; staffing fluctuations in response to product demand or
the implementation of corporate strategies that affect our workforce and
potential associated charges; computer systems on which we depend could fail
or experience a security breach; our ability to retain key members of our
senior management team; costs and effects of litigation, including settlements
and judgments; our ability to successfully integrate any assets, liabilities,
customers, systems, and management personnel we may in the future acquire into
our operations and our ability to realize related revenue synergies and cost
savings within expected time frames and any goodwill charges related thereto;
our ability to manage loan delinquency rates; increased competitive pressures
among financial services companies; changes in consumer spending, borrowing
and savings habits; legislative or regulatory changes that adversely affect
our business including changes in regulatory policies and principles, the
interpretation of regulatory capital or other rules and any changes in the
rules applicable to institutions participating in the TARP Capital Purchase
Program; the availability ofdresources to address changes in laws, rules, or
regulations or to respond to regulatory actions; adverse changes in the
securities markets; inability of key third-party providers to perform their
obligations to us; changes in accounting policies and practices, as may be
adopted by the financial institution regulatory agencies or the Financial
Accounting Standards Board, including additional guidance and interpretation
on accounting issues and details of the implementation of new accounting
methods; the economic impact of war or any terrorist activities; other
economic, competitive, governmental, regulatory, and technological factors
affecting our operations; pricing, products and services; and other risks
detailed in our reports filed with the Securities and Exchange Commission.
Any of the forward-looking statements that we make in this press release and
in the other public statements we make are based upon management's beliefs and
assumptions at the time they are made. We undertake no obligation to publicly
update or revise any forward-looking statements included in this report or to
update the reasons why actual results could differ from those contained in
such statements, whether as a result of new information, future events or
otherwise. We caution readers not to place undue reliance on any
forward-looking statements. We do not undertake and specifically disclaim any
obligation to revise any forward-looking statements to reflect the occurrence
of anticipated or unanticipated events or circumstances after the date of such
statements. These risks could cause our actual results for fiscal 2012 and
beyond to differ materially from those expressed in any forward-looking
statements by, or on behalf of us, and could negatively affect the Company's
operations and stock price performance.
Timberland Q1 Earnings
January 24, 2012
Page 6
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended
($ in thousands, except per share amounts) Dec. 31, Sept. 30, Dec. 31,
(unaudited) 2011 2011 2010
------- -------- -------
Interest and dividend income
Loans receivable $7,805 $8,010 $8,534
MBS and other investments 125 127 182
Dividends from mutual funds 13 7 8
Interest bearing deposits in banks 89 87 87
------ ------ ------
Total interest and dividend income 8,032 8,231 8,811
------ ------ ------
Interest expense
Deposits 1,169 1,331 1,751
Federal Home Loan Bank ("FHLB")
advances and other borrowings 562 562 729
------ ------ ------
Total interest expense 1,731 1,893 2,480
------ ------ ------
Net interest income 6,301 6,338 6,331
Provision for loan losses 650 1,758 900
------ ------ ------
Net interest income after provision
for loan losses 5,651 4,580 5,431
------ ------ ------
Non-interest income
OTTI and realized losses on MBS
and other investments, net (60) (111) (136)
Gain on sale of securities - - - - 79
Service charges on deposits 970 1,032 984
Gain on sale of loans, net 560 336 701
Bank owned life insurance ("BOLI") net
earnings 157 155 122
Valuation recovery (allowance) on MSRs 84 (298) 634
ATM transaction fees 517 526 411
Other 216 221 156
------ ------ ------
Total non-interest income, net 2,444 1,861 2,951
------ ------ ------
Non-interest expense
Salaries and employee benefits 2,929 3,186 3,127
Premises and equipment 673 707 694
Advertising 208 196 167
OREO and other repossessed assets
expense, net 502 443 428
ATM 194 219 175
Postage and courier 118 140 115
Amortization of core deposit intangible
("CDI") 37 42 42
State and local taxes 149 147 166
Professional fees 178 186 182
FDIC insurance 225 242 340
Other insurance 56 60 154
Loan administration and foreclosure 161 248 98
Data processing and telecommunication 257 279 234
Deposit operations 223 227 106
Other 311 305 348
------ ------ ------
Total non-interest expense 6,221 6,627 6,376
------ ------ ------
Income (loss) before income taxes 1,874 (186) 2,006
Provision (benefit) for income taxes 591 (113) 647
------ ------ ------
Net income (loss) $1,283 $ (73) $1,359
====== ====== ======
Timberland Q1 Earnings
January 24, 2012
Page 7
Preferred stock dividends $ (208) $ (208) $ (208)
Preferred stock discount accretion (59) (58) (54)
------ ------ ------
Net income (loss) to common shareholders $1,016 $ (339) $1,097
====== ====== ======
Net income (loss) per common share:
Basic $ 0.15 $(0.05) $ 0.16
Diluted 0.15 (0.05) 0.16
Weighted average common shares outstanding:
Basic 6,780,516 6,745,633 6,745,250
Diluted 6,780,516 6,745,633 6,745,250
Timberland Q1 Earnings
January 24, 2012
Page 8
TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts)
(unaudited) Dec. 31, Sept. 30, Dec. 31,
2011 2011 2010
-------- -------- --------
Assets
Cash and due from financial institutions $ 12,671 $ 11,455 $ 8,955
Interest-bearing deposits in banks 98,876 100,610 88,516
-------- -------- --------
Total cash and cash equivalents 111,547 112,065 97,471
-------- -------- --------
Certificates of deposit ("CDs") held for
investment, at cost 19,810 18,659 18,501
MBS and other investments:
Held to maturity, at amortized cost 3,941 4,145 4,715
Available for sale, at fair value 6,284 6,717 8,191
FHLB stock 5,705 5,705 5,705
Loans receivable 537,904 535,926 533,646
Loans held for sale 3,110 4,044 1,853
Less: Allowance for loan losses (11,972) (11,946) (11,749)
-------- -------- --------
Net loans receivable 529,042 528,024 523,750
-------- -------- --------
Premises and equipment, net 17,353 17,389 17,237
OREO and other repossessed assets, net 7,714 10,811 12,612
BOLI 16,074 15,917 13,522
Accrued interest receivable 2,388 2,411 2,706
Goodwill 5,650 5,650 5,650
Core deposit intangible 360 397 522
Mortgage servicing rights, net 2,169 2,108 2,587
Prepaid FDIC insurance assessment 1,873 2,103 2,959
Other assets 5,939 6,123 6,357
-------- -------- --------
Total assets $735,849 $738,224 $722,485
======== ======== ========
Liabilities and shareholders' equity
Deposits: Non-interest-bearing demand $ 61,178 $ 64,494 $ 51,519
Deposits: Interest-bearing 527,997 528,184 525,875
-------- -------- --------
Total deposits 589,175 592,678 577,394
-------- -------- --------
FHLB advances 55,000 55,000 55,000
Repurchase agreements 538 729 642
Other liabilities and accrued expenses 3,806 3,612 2,887
-------- -------- --------
Total liabilities 648,519 652,019 635,923
-------- -------- --------
Shareholders' equity
Preferred stock, $.01 par value; 1,000,000
shares authorized; 16,641 shares, Series
A, issued and outstanding $1,000 per
share liquidation value 16,048 15,989 15,818
Common stock, $.01 par value; 50,000,000
shares authorized; 7,045,036 shares issued
and outstanding 10,464 10,457 10,389
Unearned shares- Employee Stock Ownership
Plan (1,917) (1,983) (2,181)
Retained earnings 63,286 62,270 63,335
Accumulated other comprehensive loss (551) (528) (799)
-------- -------- --------
Total shareholders' equity 87,330 86,205 86,562
-------- -------- --------
Total liabilities and shareholders'
equity $735,849 $738,224 $722,485
======== ======== ========
Timberland Q1 Earnings
January 24, 2012
Page 9
KEY FINANCIAL RATIOS AND DATA
($ in thousands, except per share amounts) (unaudited)
Three Months Ended
--------------------------------
Dec. 31, Sept. 30, Dec. 31,
2011 2011 2010
------- -------- -------
PERFORMANCE RATIOS:
Return (loss) on average assets (a) 0.70% (0.04)% 0.75%
Return (loss) on average equity (a) 5.93% (0.34)% 6.35%
Net interest margin (a) 3.73% 3.75% 3.82%
Efficiency ratio 71.14% 80.83% 68.69%
Dec. 31, Sept. 30, Dec. 31,
2011 2011 2010
------- -------- -------
ASSET QUALITY RATIOS:
Non-accrual loans $27,803 $21,589 $26,166
Loans past due 90 days and still accruing 2,677 1,754 305
Non-performing investment securities 2,650 2,796 3,325
OREO and other repossessed assets 7,714 10,811 12,612
------- ------- -------
Total non-performing assets (b) $40,844 $36,950 $42,408
======= ======= =======
Non-performing assets to total assets (b) 5.55% 5.01% 5.87%
Net charge-offs during quarter $ 624 $ 1,603 $ 415
Allowance for loan losses to non-accrual
loans 43% 55% 45%
Allowance for loan losses to loans
receivable, net (c) 2.21% 2.21% 2.19%
Troubled debt restructured loans on
accrual status (d) $18,297 $18,166 $ 8,841
CAPITAL RATIOS:
Tier 1 leverage capital 11.26% 11.09% 11.37%
Tier 1 risk based capital 15.39% 15.19% 15.28%
Total risk based capital 16.65% 16.46% 16.54%
Tangible capital to tangible assets (e) 11.14% 10.95% 11.22%
BOOK VALUES:
Book value per common share $ 10.12 $ 9.97 $ 10.04
Tangible book value per common share (e) 9.26 9.11 9.17
------------------------------------------------------------
(a) Annualized
(b) Non-performing assets include non-accrual loans, loans past due 90 days
and still accruing, non-performing investment securities and OREO and
other repossessed assets. Troubled debt restructured loans on accrual
status are not included.
(c) Includes loans held for sale and is before the allowance for loan losses.
(d) Does not include troubled debt restructured loans totaling $7,334, $7,376
and $6,756 reported as non-accrual loans at December 31, 2011, September
30, 2011 and December 31, 2010, respectively.
(e) Calculation subtracts goodwill and core deposit intangible from the equity
component and from assets.
Timberland Q1 Earnings
January 24, 2012
Page 10
AVERAGE CONSOLIDATED BALANCE SHEETS: Three Months Ended
($ in thousands) (unaudited) ---------------------------------
Dec. 31, Sept. 30, Dec. 31,
2011 2011 2010
------- -------- --------
Average total loans $537,876 $537,612 $539,007
Average total interest-bearing assets
(a) 675,432 675,800 663,761
Average total assets 736,265 737,152 722,007
Average total interest-bearing deposits 526,100 526,659 523,221
Average FHLB advances and other
borrowings 55,559 55,502 55,546
Average shareholders' equity 86,534 86,465 85,596
-------------------------------------------
(a) Includes loans and investment securities on non-accrual status
