Attached files
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| 8-K - TIMBERLAND BANCORP, INC. FOR THE FORM 8-K FOR THE EVENT ON 11-6-13 - TIMBERLAND BANCORP INC | timb8k11613.htm |
Exhibit 99.1
Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp EPS Increases 12% for Fiscal 2013
Declares $0.03 per Share Cash Dividend; Non-Performing Assets Decrease; Net Interest Margin Remains Strong
HOQUIAM, WA – November 6, 2013 - Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”) today reported net income of $894,000 for the current quarter, bringing net income for the fiscal year ended September 30, 2013 to $4.76 million. Net income to common shareholders, after adjusting for the preferred stock dividend and the preferred stock discount accretion was $696,000, or $0.10 per diluted common share for the fourth fiscal quarter of 2013. Net income to common shareholders increased 14% to $4.02 million, or $0.58 per diluted common share, for the 2013 fiscal year compared to $3.52 million, or $0.52 per diluted common share for the 2012 fiscal year.
For the prior quarter, ended June 30, 2013, Timberland reported net income to common shareholders of $678,000, or $0.10 per diluted common share, and for the quarter ended September 30, 2012 reported net income to common shareholders of $883,000, or $0.13 per diluted common share.
Timberland’s Board of Directors also declared a quarterly cash dividend of $0.03 per common share payable on November 29, 2013 to shareholders of record on November 18, 2013.
“Our Western Washington franchise continues to generate solid core earnings from operations,” stated Michael R. Sand, President and CEO. “Total fiscal 2013 revenues were nearly identical to 2012 revenues, earnings per diluted common share increased 12% and net interest margin held steady in spite of a challenging interest rate environment. Although residential refinance activity has declined as compared to prior periods we have continued to observe strong loan demand in our markets and have continued to grow our loan portfolio with shorter duration assets in consideration of the interest rate risk currently existing in our industry. During the quarter ended September 30, 2013 we absorbed a larger than typical expense for other real estate owned (“OREO”) as we ordered and received updated valuations on a number of the properties owned and re-priced them to facilitate their sale in subsequent periods. During the quarter, OREO decreased by 23% and year-over-year non-performing assets declined by 27%. During the current quarter we will be evaluating the opportunity to purchase the preferred shares that remain outstanding from Timberland’s preferred share issuance in December 2008.”
Fiscal 2013 Highlights (at or for the period ended September 30, 2013, compared to September 30, 2012, or June 30, 2013):
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·
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Earnings per diluted common share for fiscal 2013 increased 12% to $0.58 from $0.52 for fiscal 2012;
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·
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Net income to common shareholders for fiscal 2013 increased 14% to $4.02 million from $3.52 million for fiscal 2012;
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·
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Non-performing assets decreased 6% during the quarter and 27% year-over-year;
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·
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Total delinquent (including non-accrual) loans decreased 40% year-over-year;
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·
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Net interest margin remained strong at 3.82% for both the current quarter and the fiscal year; an increase from 3.81% for fiscal 2012;
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·
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Average total loans for fiscal 2013 increased to $556.8 million from $544.5 million for the prior year;
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·
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OREO decreased $3.6 million, or 23% compared to June 30, 2013;
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·
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Capital levels remain very strong: Total Risk Based Capital Ratio of 16.56%; Tier 1 Leverage Capital Ratio of 11.47%; Tangible Capital to Tangible Assets Ratio of 11.34%; and
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·
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Book value per common share increased to $11.04, and tangible book value per common share increased to $10.22 at year end.
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Timberland Q4 Earnings
November 6, 2013
Page 2
Capital Ratios and Asset Quality
The Company remains very well capitalized with a total risk-based capital ratio of 16.56%, a Tier 1 leverage capital ratio of 11.47% and a tangible capital to tangible assets ratio of 11.34% at September 30, 2013.
Timberland provisioned $165,000 to its loan loss allowance during the quarter ended September 30, 2013 compared to $1.39 million in the preceding quarter and $900,000 in the comparable quarter one year ago. Net charge-offs for the fourth fiscal quarter of 2013 were $155,000 compared to $1.57 million for the preceding quarter and $679,000 for the comparable quarter one year ago. For fiscal 2013, the provision for loan losses was $2.93 million compared to $3.50 million one year ago. Timberland’s allowance for loan losses to total loans was 1.99% at September 30, 2013 compared to 2.00% at June 30, 2013 and 2.15% at September 30, 2012.
Total delinquent loans (including non-accrual loans) decreased $12.3 million, or 40% , to $18.1 million at September 30, 2013 from $30.4 million one year ago and increased $4.5 million from $13.6 million at June 30, 2013.
Non-accrual loans decreased $7.7 million, or 36%, to $13.6 million at September 30, 2013 from $21.3 million at September 30, 2012 and increased $1.8 million from $11.8 million reported at June 30, 2013. Non-accrual loans at September 30, 2013 were comprised of 59 loans and 48 credit relationships. By dollar amount per category: 54% are secured by residential properties; 25% are secured by commercial properties; 20% are secured by land and land development properties; and 1% are secured by residential construction projects.
OREO and other repossessed assets decreased $3.6 million, or 24%, to $11.7 million at September 30, 2013 from $15.3 million at June 30, 2013 and decreased $1.6 million, or 12%, from $13.3 million at September 30, 2012. At September 30, 2013 the OREO portfolio consisted of 47 individual properties. The properties consisted of land parcels totaling $4.6 million, commercial real estate properties totaling $3.2 million, multi-family properties totaling $2.1 million and single family homes totaling $1.8 million. During the quarter ended September 30, 2013, OREO properties totaling $2.9 million were sold for a net gain of $3,000. The OREO portfolio was written down by $1.3 million during the quarter due to updated valuations received which should facilitate the disposition of the affected properties in subsequent quarters.
The non-performing assets to total assets ratio decreased to 3.75% at September 30, 2013 from 4.04% three months earlier and from 5.19% one year ago
Balance Sheet Management
Total assets increased by $12.9 million, or 2%, to $745.6 million at September 30, 2013 from $732.8 million at June 30, 2013. The increase in total assets was primarily due to a $12.0 million increase in cash and cash equivalents, a $3.3 million increase in CDs held for investment and a $2.8 million increase in net loans receivable. These increases were partially offset by a $3.6 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 19.6% of total liabilities at September 30, 2013 compared to 17.7% at June 30, 2013 and 19.3% one year ago.
Net loans receivable increased $2.8 million to $548.1 million at September 30, 2013 from $545.3 million at June 30, 2013. The increase was primarily due to increases of $6.2 million in construction and land development loan balances, $2.3 million in multi-family loan balances, $1.1 million in commercial real estate loan balances and $1.0 million in consumer loan balances. These increases to net loans receivable were partially offset by a $2.1 million decrease in commercial business loan balances, a $529,000 decrease in land loan balances, a $486,000 decrease in one-to four-family loan balances and a $4.7 million increase in the undisbursed portion of construction loans in process.
Timberland continued to reduce its exposure to land development and land loans during the year. At September 30, 2013, land development loan balances decreased to $515,000, a 13% decrease year-over-year. The Bank’s land loan portfolio decreased to $31.1 million at September 30, 2013, a 21% decrease year-over-year. The well diversified land loan portfolio consists of 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 $115,000 at September 30, 2013.
Timberland Q4 Earnings
November 6, 2013
Page 3
LOAN PORTFOLIO
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September 30, 2013
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June 30, 2013
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September 30, 2012
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||||||||||||||||||||||
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($ in thousands)
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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||||||||||||||||||
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Mortgage Loans:
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||||||||||||||||||||||||
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One-to four-family
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$ | 104,298 | 18 | % | $ | 104,784 | 18 | % | $ | 106,979 | 19 | % | ||||||||||||
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Multi-family
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51,108 | 9 | 48,781 | 8 | 47,521 | 8 | ||||||||||||||||||
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Commercial
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291,297 | 50 | 290,240 | 51 | 256,254 | 45 | ||||||||||||||||||
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Construction and land
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development
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45,136 | 8 | 38,916 | 7 | 56,406 | 10 | ||||||||||||||||||
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Land
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31,144 | 5 | 31,673 | 6 | 39,655 | 7 | ||||||||||||||||||
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Total mortgage loans
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522,983 | 90 | 514,394 | 90 | 506,815 | 89 | ||||||||||||||||||
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Consumer Loans:
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Home equity and second
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||||||||||||||||||||||||
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mortgage
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33,014 | 6 | 31,936 | 6 | 32,814 | 6 | ||||||||||||||||||
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Other
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5,981 | 1 | 6,013 | 1 | 6,183 | 1 | ||||||||||||||||||
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Total consumer loans
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38,995 | 7 | 37,949 | 7 | 38,997 | 7 | ||||||||||||||||||
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Commercial business loans
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17,499 | 3 | 19,557 | 3 | 22,588 | 4 | ||||||||||||||||||
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Total loans
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579,477 | 100 | % | 571,900 | 100 | % | 568,400 | 100 | % | |||||||||||||||
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Less:
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||||||||||||||||||||||||
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Undisbursed portion of
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||||||||||||||||||||||||
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construction loans in
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process
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(18,527 | ) | (13,816 | ) | (16,325 | ) | ||||||||||||||||||
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Deferred loan origination
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||||||||||||||||||||||||
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fees
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(1,710 | ) | (1,670 | ) | (1,770 | ) | ||||||||||||||||||
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Allowance for loan losses
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(11,136 | ) | (11,126 | ) | (11,825 | ) | ||||||||||||||||||
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Total loans receivable, net
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$ | 548,104 | $ | 545,288 | $ | 538,480 | ||||||||||||||||||
CONSTRUCTION AND LAND DEVELOPMENT LOAN COMPOSITION
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September 30, 2013
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June 30, 2013
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September 30, 2012
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($ in thousands)
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Amount
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Percent
of Loan
Portfolio
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Amount
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Percent
of Loan
Portfolio
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Amount
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Percent
of Loan
Portfolio
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||||||||||||||||||
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Custom and owner / builder
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$ | 40,811 | 7 | % | $ | 33,502 | 6 | % | $ | 33,345 | 6 | % | ||||||||||||
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Speculative one- to four-
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||||||||||||||||||||||||
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family
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1,428 | -- | 1,020 | -- | 1,880 | -- | ||||||||||||||||||
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Commercial real estate
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2,239 | 1 | 3,589 | 1 | 20,247 | 4 | ||||||||||||||||||
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Multi-family (including
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condominium)
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143 | -- | 289 | -- | 345 | -- | ||||||||||||||||||
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Land development
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515 | -- | 516 | -- | 589 | -- | ||||||||||||||||||
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Total construction loans
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$ | 45,136 | 8 | % | $ | 38,916 | 7 | % | $ | 56,406 | 10 | % | ||||||||||||
Timberland Q4 Earnings
November 6, 2013
Page 4
Timberland originated $53.2 million in loans during the quarter ended September 30, 2013 compared to $54.7 million for the preceding quarter and $69.0 million for the comparable 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 September 30, 2013, $14.6 million fixed-rate one-to four-family mortgage loans were sold compared to $21.5 million for the preceding quarter and $28.5 million for the comparable quarter ended one year ago.
Timberland’s mortgage-backed securities (“MBS”) and other investments decreased $424,000 to $6.8 million at September 30, 2013 from $7.3 million at June 30, 2013, primarily due to prepayments and scheduled amortization.
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DEPOSIT BREAKDOWN
($ in thousands)
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||||||||||||||||||||||||
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September 30, 2013
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June 30, 2013
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September 30, 2012
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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|||||||||||||||||||
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Non-interest bearing
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$ | 87,657 | 14 | % | $ | 83,043 | 14 | % | $ | 75,296 | 13 | % | ||||||||||||
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N.O.W. checking
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156,100 | 26 | 152,675 | 26 | 150,139 | 25 | ||||||||||||||||||
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Savings
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91,349 | 15 | 93,161 | 16 | 87,493 | 15 | ||||||||||||||||||
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Money market
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99,006 | 16 | 85,703 | 14 | 79,549 | 13 | ||||||||||||||||||
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Certificates of deposit under $100
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109,001 | 18 | 114,113 | 19 | 127,909 | 21 | ||||||||||||||||||
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Certificates of deposit $100 and over
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63,958 | 11 | 66,179 | 11 | 77,540 | 13 | ||||||||||||||||||
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Certificates of deposit – brokered
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1,191 | -- | 1,190 | -- | -- | -- | ||||||||||||||||||
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Total deposits
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$ | 608,262 | 100 | % | $ | 596,064 | 100 | % | $ | 597,926 | 100 | % | ||||||||||||
Total deposits increased $12.2 million, or 2%, to $608.3 million at September 30, 2013, from $596.1 million at June 30, 2013 primarily as a result of increases of $13.3 million in money market account balances, $4.6 million in non-interest bearing account balances and a $3.4 million in N.O.W. checking account balances. These increases were partially offset by decreases of $7.3 million in certificates of deposit account balances and $1.8 million in savings account balances.
Total shareholders’ equity increased $454,000 to $89.7 million at September 30, 2013, from $89.2 million at June 30, 2013. Tangible book value per common share increased to $10.22 at September 30, 2013 from $10.16 at June 30, 2013.
Operating Results
Fiscal fourth 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”)), was $8.87 million, which was level with the $8.87 million for the preceding quarter and a 3% decrease from $9.12 million for the comparable quarter one year ago. For fiscal 2013, operating revenue was $35.63 million, which was nearly identical with the $35.64 million in operating revenue for fiscal 2012.
Net interest income decreased slightly to $6.47 million for the quarter ended September 30, 2013 from $6.50 million for the preceding quarter and increased slightly from $6.46 million for the comparable quarter one year ago. The net interest margin for the current quarter decreased to 3.82 % from 3.88% for the preceding quarter and from 3.83% for the comparable quarter one year ago. For fiscal 2013, net interest income increased 1% to $25.80 million from $25.66 million for fiscal 2012. Timberland’s net interest margin for the year ended September 30, 2013 increased to 3.82% from 3.81% for the year ended September 30, 2012.
Non-interest income increased 1% to $2.40 million for the quarter ended September 30, 2013 from $2.37 million in the preceding quarter and decreased 4% from $2.50 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to an increase in service charges on deposits and an increase in ATM and debit card interchange transaction fees, which were partially offset by a decrease in gain on sale of loans. For fiscal 2013, non-interest income increased $481,000, or 5%, to $10.26 million from $9.78 million for fiscal 2012, primarily due to an increased valuation recovery on MSRs and a decrease in the level of OTTI and realized losses on MBS and other investments. These increases to non-interest income were partially offset by a decrease in service charges on deposits.
Total operating (non-interest) expenses increased $830,000, or 13%, to $7.07 million for the fourth fiscal quarter from $6.24 million for the preceding quarter and 6% from $6.68 million for the comparable quarter one year ago. The increased expenses
Timberland Q4 Earnings
November 6, 2013
Page 5
for the current quarter compared to the preceding quarter were primarily the result of a $1.12 million increase in OREO and other repossessed assets expense, which was partially offset by a $425,000 gain on the disposition of premises and equipment, which reduced non-interest expenses for the quarter. The increase in OREO expenses was primarily due to $1.32 million in fair value write-downs on properties that received updated appraisals with lower valuations. The $425,000 gain on the disposition of premises was a result of the sale of a land parcel adjacent to one of the Bank’s branches. For fiscal 2013, operating expenses increased $296,000, or 1%, to $25.86 million from $25.57 million for fiscal 2012, primarily due to increases in OREO related expenses and salaries and employee benefits expenses, which were partially offset by a decrease in loan administration and foreclosure expenses and an increase in the gain on sale of premises and equipment.
The provision for income taxes increased $366,000 to $739,000 for the quarter ended September 30, 2013 from $373,000 for the preceding quarter and increased $509,000 from $230,000 for the comparable quarter one year ago. The increased provision in the current quarter was primarily due to increased income before income taxes and a $236,000 deferred tax valuation allowance adjustment related to the expiration of a capital loss carryforward.
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 loan loss 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 Board of Governors of the Federal Reserve System 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, institute a formal or informal enforcement action or 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 or impose additional requirements or restrictions, which could adversely affect our liquidity and earnings; 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 including as a result of Basel III; the impact of the Dodd Frank Wall Street Reform and Consumer Protection Act and the implementation of related rules and regulations; our ability to attract and retain deposits; 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 consolidated 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; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common and preferred stock; 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 2014 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 Q4 Earnings
November 6, 2013
Page 6
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TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
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Three Months Ended
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|||||||||||
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($ in thousands, except per share amounts)
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Sept. 30,
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June 30,
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Sept. 30,
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(unaudited)
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2013
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2013
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2012
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Interest and dividend income
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Loans receivable
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$ | 7,360 | $ | 7,422 | $ | 7,577 | ||||||
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MBS and other investments
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66 | 69 | 81 | |||||||||
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Dividends from mutual funds and FHLB stock
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7 | 5 | 6 | |||||||||
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Interest bearing deposits in banks
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89 | 79 | 86 | |||||||||
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Total interest and dividend income
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7,522 | 7,575 | 7,750 | |||||||||
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Interest expense
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||||||||||||
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Deposits
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582 | 609 | 822 | |||||||||
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FHLB advances
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471 | 467 | 472 | |||||||||
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Total interest expense
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1,053 | 1,076 | 1,294 | |||||||||
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Net interest income
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6,469 | 6,499 | 6,456 | |||||||||
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Provision for loan losses
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165 | 1,385 | 900 | |||||||||
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Net interest income after provision for loan losses
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6,304 | 5,114 | 5,556 | |||||||||
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Non-interest income
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||||||||||||
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OTTI and realized losses on MBS
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||||||||||||
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and other investments, net
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(8 | ) | (3 | ) | (25 | ) | ||||||
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Service charges on deposits
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1,006 | 882 | 980 | |||||||||
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Gain on sale of loans, net
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453 | 579 | 749 | |||||||||
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Bank owned life insurance (“BOLI”) net earnings
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146 | 144 | 150 | |||||||||
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Valuation allowance on MSRs
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-- | -- | (134 | ) | ||||||||
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ATM and debit card interchange transaction fees
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580 | 526 | 551 | |||||||||
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Other
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219 | 244 | 232 | |||||||||
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Total non-interest income, net
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2,396 | 2,372 | 2,503 | |||||||||
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Non-interest expense
|
||||||||||||
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Salaries and employee benefits
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3,229 | 3,176 | 3,061 | |||||||||
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Premises and equipment
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674 | 739 | 696 | |||||||||
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Gain on disposition of premises and equipment, net
|
(425 | ) | -- | -- | ||||||||
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Advertising
|
209 | 184 | 173 | |||||||||
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OREO and other repossessed assets expense, net
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1,480 | 313 | 684 | |||||||||
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ATM
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221 | 219 | 196 | |||||||||
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Postage and courier
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102 | 107 | 120 | |||||||||
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Amortization of core deposit intangible (“CDI”)
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33 | 33 | 37 | |||||||||
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State and local taxes
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110 | 170 | 148 | |||||||||
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Professional fees
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220 | 202 | 195 | |||||||||
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FDIC insurance
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158 | 157 | 239 | |||||||||
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Other insurance
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41 | 39 | 51 | |||||||||
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Loan administration and foreclosure
|
152 | 91 | 201 | |||||||||
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Data processing and telecommunications
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321 | 319 | 346 | |||||||||
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Deposit operations
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157 | 157 | 183 | |||||||||
|
Other
|
385 | 331 | 347 | |||||||||
|
Total non-interest expense
|
7,067 | 6,237 | 6,677 | |||||||||
|
(Statement continued on following page)
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||||||||||||
Timberland Q4 Earnings
November 6, 2013
Page 7
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Three Months Ended
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||||||||||||
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Sept. 30,
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June 30,
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Sept. 30,
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||||||||||
| 2013 | 2013 | 2012 | ||||||||||
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Income before income taxes
|
$ | 1,633 | $ | 1,249 | $ | 1,382 | ||||||
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Provision for income taxes
|
739 | 373 | 230 | |||||||||
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Net income
|
894 | 876 | 1,152 | |||||||||
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Preferred stock dividends
|
(151 | ) | (151 | ) | (208 | ) | ||||||
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Preferred stock discount accretion
|
(47 | ) | (47 | ) | (61 | ) | ||||||
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Net income to common shareholders
|
$ | 696 | $ | 678 | $ | 883 | ||||||
|
Net income per common share:
|
||||||||||||
|
Basic
|
$ | 0.10 | $ | 0.10 | $ | 0.13 | ||||||
|
Diluted
|
0.10 | 0.10 | 0.13 | |||||||||
|
Weighted average common shares outstanding:
|
||||||||||||
|
Basic
|
6,821,320 | 6,818,752 | 6,780,899 | |||||||||
|
Diluted
|
6,935,197 | 6,902,497 | 6,780,899 | |||||||||
Timberland Q4 Earnings
November 6, 2013
Page 8
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
|
Year Ended | |||||||
|
($ in thousands, except per share amounts)
|
Sept. 30,
|
Sept. 30,
|
||||||
|
(unaudited)
|
2013
|
2012
|
||||||
|
Interest and dividend income
|
||||||||
|
Loans receivable
|
$ | 29,591 | $ | 30,831 | ||||
|
MBS and other investments
|
281 | 404 | ||||||
|
Dividends from mutual funds and FHLB stock
|
29 | 32 | ||||||
|
Interest bearing deposits in banks
|
336 | 338 | ||||||
|
Total interest and dividend income
|
30,237 | 31,605 | ||||||
|
Interest expense
|
||||||||
|
Deposits
|
2,568 | 3,951 | ||||||
|
FHLB advances and other borrowings
|
1,871 | 1,996 | ||||||
|
Total interest expense
|
4,439 | 5,947 | ||||||
|
Net interest income
|
25,798 | 25,658 | ||||||
|
Provision for loan losses
|
2,925 | 3,500 | ||||||
|
Net interest income after provision for loan losses
|
22,873 | 22,158 | ||||||
|
Non-interest income
|
||||||||
|
OTTI and realized losses on MBS
|
||||||||
|
and other investments, net
|
(47 | ) | (214 | ) | ||||
|
Gain on sale of MBS and other investments
|
-- | 22 | ||||||
|
Service charges on deposits
|
3,663 | 3,795 | ||||||
|
Gain on sale of loans, net
|
2,507 | 2,472 | ||||||
|
BOLI net earnings
|
577 | 607 | ||||||
|
Valuation recovery on MSRs
|
475 | 10 | ||||||
|
ATM and debit card interchange transaction fees
|
2,142 | 2,172 | ||||||
|
Other
|
945 | 917 | ||||||
|
Total non-interest income, net
|
10,262 | 9,781 | ||||||
|
Non-interest expense
|
||||||||
|
Salaries and employee benefits
|
12,605 | 12,050 | ||||||
|
Premises and equipment
|
2,835 | 2,676 | ||||||
|
Gain on disposition of premises and equipment, net
|
(431 | ) | -- | |||||
|
Advertising
|
742 | 726 | ||||||
|
OREO and other repossessed assets expense, net
|
2,587 | 1,982 | ||||||
|
ATM
|
857 | 794 | ||||||
|
Postage and courier
|
443 | 501 | ||||||
|
Amortization of CDI
|
130 | 148 | ||||||
|
State and local taxes
|
576 | 608 | ||||||
|
Professional fees
|
856 | 822 | ||||||
|
FDIC insurance
|
685 | 942 | ||||||
|
Other insurance
|
174 | 212 | ||||||
|
Loan administration and foreclosure
|
430 | 816 | ||||||
|
Data processing and telecommunications
|
1,232 | 1,265 | ||||||
|
Deposit operations
|
607 | 776 | ||||||
|
Other
|
1,536 | 1,250 | ||||||
|
Total non-interest expense
|
25,864 | 25,568 | ||||||
(Statement continued on following page)
Timberland Q4 Earnings
November 6, 2013
Page 9
|
Year Ended
|
||||||||
|
Sept. 30,
|
Sept. 30,
|
|||||||
|
2013
|
2012
|
|||||||
|
Income before income taxes
|
$ | 7,271 | $ | 6,371 | ||||
|
Provision for income taxes
|
2,514 | 1,781 | ||||||
|
Net income
|
4,757 | 4,590 | ||||||
|
Preferred stock dividends
|
(710 | ) | (832 | ) | ||||
|
Preferred stock discount accretion
|
(283 | ) | (240 | ) | ||||
|
Repurchase of preferred stock at a discount
|
255 | -- | ||||||
|
Net income to common shareholders
|
$ | 4,019 | $ | 3,518 | ||||
|
Net income per common share:
|
||||||||
|
Basic
|
$ | 0.59 | $ | 0.52 | ||||
|
Diluted
|
0.58 | 0.52 | ||||||
|
Weighted average common shares outstanding:
|
||||||||
|
Basic
|
6,817,918 | 6,780,612 | ||||||
|
Diluted
|
6,886,995 | 6,780,612 | ||||||
Timberland Q4 Earnings
November 6, 2013
Page 10
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
|
($ in thousands, except per share amounts) (unaudited)
|
Sept. 30,
|
June 30,
|
Sept. 30,
|
|||||||||
|
2013
|
2013
|
2012
|
||||||||||
|
Assets
|
||||||||||||
|
Cash and due from financial institutions
|
$ | 12,879 | $ | 10,757 | $ | 11,008 | ||||||
|
Interest-bearing deposits in banks
|
81,617 | 71,788 | 85,660 | |||||||||
|
Total cash and cash equivalents
|
94,496 | 82,545 | 96,668 | |||||||||
|
Certificates of deposit (“CDs”) held for investment, at cost
|
30,042 | 26,749 | 23,490 | |||||||||
|
MBS and other investments:
|
||||||||||||
|
Held to maturity, at amortized cost
|
2,737 | 2,892 | 3,339 | |||||||||
|
Available for sale, at estimated fair value
|
4,101 | 4,370 | 4,945 | |||||||||
|
FHLB stock
|
5,452 | 5,502 | 5,655 | |||||||||
|
Loans receivable
|
557,329 | 553,981 | 548,878 | |||||||||
|
Loans held for sale
|
1,911 | 2,433 | 1,427 | |||||||||
|
Less: Allowance for loan losses
|
(11,136 | ) | (11,126 | ) | (11,825 | ) | ||||||
|
Net loans receivable
|
548,104 | 545,288 | 538,480 | |||||||||
|
Premises and equipment, net
|
17,764 | 18,043 | 17,886 | |||||||||
|
OREO and other repossessed assets, net
|
11,720 | 15,314 | 13,302 | |||||||||
|
BOLI
|
17,102 | 16,956 | 16,524 | |||||||||
|
Accrued interest receivable
|
1,972 | 2,015 | 2,183 | |||||||||
|
Goodwill
|
5,650 | 5,650 | 5,650 | |||||||||
|
Core deposit intangible
|
119 | 151 | 249 | |||||||||
|
Mortgage servicing rights, net
|
2,266 | 2,333 | 2,011 | |||||||||
|
Prepaid FDIC insurance assessment
|
-- | -- | 1,186 | |||||||||
|
Other assets
|
4,123 | 4,967 | 5,386 | |||||||||
|
Total assets
|
$ | 745,648 | $ | 732,775 | $ | 736,954 | ||||||
|
Liabilities and shareholders’ equity
|
||||||||||||
|
Deposits: Non-interest-bearing demand
|
$ | 87,657 | $ | 83,043 | $ | 75,296 | ||||||
|
Deposits: Interest-bearing
|
520,605 | 513,021 | 522,630 | |||||||||
|
Total deposits
|
608,262 | 596,064 | 597,926 | |||||||||
|
FHLB advances
|
45,000 | 45,000 | 45,000 | |||||||||
|
Repurchase agreements
|
-- | -- | 855 | |||||||||
|
Other liabilities and accrued expenses
|
2,698 | 2,477 | 2,854 | |||||||||
|
Total liabilities
|
655,960 | 643,541 | 646,635 | |||||||||
|
Shareholders’ equity
|
||||||||||||
|
Preferred stock, $.01 par value; 1,000,000 shares authorized;
12,065 shares, Series A, issued and outstanding – Sept. 30, 2013
and June 30, 2013; redeemable at $1,000 per share
16,641 shares, Series A, issued and outstanding – Sept. 30, 2012
|
11,936 | 11,889 | 16,229 | |||||||||
|
Common stock, $.01 par value; 50,000,000 shares authorized;
7,045,036 shares issued and outstanding
|
10,570 | 10,551 | 10,484 | |||||||||
|
Unearned shares- Employee Stock Ownership Plan
|
(1,454 | ) | (1,521 | ) | (1,719 | ) | ||||||
|
Retained earnings
|
68,998 | 68,665 | 65,788 | |||||||||
|
Accumulated other comprehensive loss
|
(362 | ) | (350 | ) | (463 | ) | ||||||
|
Total shareholders’ equity
|
89,688 | 89,234 | 90,319 | |||||||||
|
Total liabilities and shareholders’ equity
|
$ | 745,648 | $ | 732,775 | $ | 736,954 | ||||||
Timberland Q4 Earnings
November 6, 2013
Page 11
|
KEY FINANCIAL RATIOS AND DATA
|
Three Months Ended
|
|||||||||||
|
($ in thousands, except per share amounts) (unaudited)
|
Sept. 30,
|
June 30,
|
Sept. 30,
|
|||||||||
|
2013
|
2013
|
2012
|
||||||||||
|
PERFORMANCE RATIOS:
|
||||||||||||
|
Return on average assets (a)
|
0.48 | % | 0.47 | % | 0.62 | % | ||||||
|
Return on average equity (a)
|
4.00 | % | 3.94 | % | 5.14 | % | ||||||
|
Net interest margin (a)
|
3.82 | % | 3.88 | % | 3.83 | % | ||||||
|
Efficiency ratio
|
79.72 | % | 70.31 | % | 74.53 | % | ||||||
|
Year Ended
|
||||||||||||
|
Sept. 30,
|
Sept. 30,
|
|||||||||||
| 2013 | 2012 | |||||||||||
|
PERFORMANCE RATIOS:
|
||||||||||||
|
Return on average assets (a)
|
0.64 | % | 0.62 | % | ||||||||
|
Return on average equity (a)
|
5.27 | % | 5.21 | % | ||||||||
|
Net interest margin (a)
|
3.82 | % | 3.81 | % | ||||||||
|
Efficiency ratio
|
71.72 | % | 72.15 | % | ||||||||
|
Sept. 30,
|
June 30,
|
Sept. 30,
|
||||||||||
| 2013 | 2013 | 2012 | ||||||||||
|
ASSET QUALITY RATIOS AND DATA:
|
||||||||||||
|
Non-accrual loans
|
$ | 13,610 | $ | 11,828 | $ | 21,331 | ||||||
|
Loans past due 90 days and still accruing
|
436 | 157 | 1,198 | |||||||||
|
Non-performing investment securities
|
2,187 | 2,327 | 2,442 | |||||||||
|
OREO and other repossessed assets
|
11,720 | 15,314 | 13,302 | |||||||||
|
Total non-performing assets (b)
|
$ | 27,953 | $ | 29,626 | $ | 38,273 | ||||||
|
Non-performing assets to total assets (b)
|
3.75 | % | 4.04 | % | 5.19 | % | ||||||
|
Net charge-offs during quarter
|
$ | 155 | $ | 1,572 | $ | 679 | ||||||
|
Allowance for loan losses to non-accrual loans
|
82 | % | 94 | % | 55 | % | ||||||
|
Allowance for loan losses to loans receivable, net (c)
|
1.99 | % | 2.00 | % | 2.15 | % | ||||||
|
Troubled debt restructured loans on accrual status (d)
|
$ | 18,573 | $ | 18,958 | $ | 13,410 | ||||||
|
CAPITAL RATIOS:
|
||||||||||||
|
Tier 1 leverage capital
|
11.47 | % | 11.55 | % | 11.66 | % | ||||||
|
Tier 1 risk based capital
|
15.30 | % | 15.16 | % | 15.51 | % | ||||||
|
Total risk based capital
|
16.56 | % | 16.42 | % | 16.77 | % | ||||||
|
Tangible capital to tangible assets (e)
|
11.34 | % | 11.48 | % | 11.55 | % | ||||||
|
BOOK VALUES:
|
||||||||||||
|
Book value per common share
|
$ | 11.04 | $ | 10.98 | $ | 10.52 | ||||||
|
Tangible book value per common share (e)
|
10.22 | 10.16 | 9.68 | |||||||||
__________________________________________________
(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 $4,031, $2,491 and $10,093 reported as non-accrual loans at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.
(e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets.
Timberland Q4 Earnings
November 6, 2013
Page 12
|
AVERAGE CONSOLIDATED BALANCE SHEETS:
|
Three Months Ended
|
|||||||||||
|
($ in thousands) (unaudited)
|
Sept. 30,
|
June 30,
|
Sept. 30,
|
|||||||||
|
2013
|
2013
|
2012
|
||||||||||
|
Average total loans
|
$ | 559,187 | $ | 557,233 | $ | 547,028 | ||||||
|
Average total interest-bearing assets (a)
|
680,566 | 670,242 | 673,827 | |||||||||
|
Average total assets
|
746,797 | 737,787 | 738,161 | |||||||||
|
Average total interest-bearing deposits
|
515,229 | 516,559 | 523,461 | |||||||||
|
Average FHLB advances and other borrowings
|
45,000 | 45,162 | 45,784 | |||||||||
|
Average shareholders’ equity
|
89,487 | 88,935 | 89,695 | |||||||||
|
Year Ended
|
||||||||||||
|
Sept. 30,
|
Sept. 30,
|
|||||||||||
| 2013 | 2012 | |||||||||||
|
Average total loans
|
$ | 556,815 | $ | 544,525 | ||||||||
|
Average total interest-bearing assets (a)
|
675,026 | 674,224 | ||||||||||
|
Average total assets
|
740,829 | 735,151 | ||||||||||
|
Average total interest-bearing deposits
|
517,478 | 525,873 | ||||||||||
|
Average FHLB advances and other borrowings
|
45,352 | 48,302 | ||||||||||
|
Average shareholders’ equity
|
90,301 | 88,088 | ||||||||||
_________________________________
(a) Includes loans and MBS on non-accrual status