Attached files
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| 8-K - TIMBERLAND BANCORP, INC. FORM 8-K FOR THE EVENT ON 7.22.14 - TIMBERLAND BANCORP INC | k872214tim.htm |
Exhibit 99.1
Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp EPS Increases 100% to $0.20 for Third Fiscal Quarter of 2014
Increases Cash Dividend 25% to $0.05 Per Share
HOQUIAM, WA – July 22, 2014 - Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”) today reported net income to common shareholders of $1.43 million, or $0.20 per diluted common share for the quarter ended June 30, 2014. This compares to net income to common shareholders of $1.16 million, or $0.16 per diluted common share, for the quarter ended March 31, 2014, and net income to common shareholders of $678,000, or $0.10 per diluted common share, for the quarter ended June 30, 2013. In the first nine months of fiscal 2014, Timberland’s net income to common shareholders was $4.00 million, or $0.57 per diluted common share, compared to $3.32 million, or $0.48 per diluted common share, for the first nine months of fiscal 2013.
Timberland’s Board of Directors also declared an increased quarterly cash dividend to common shareholders of $0.05 per common share payable on August 28, 2014 to shareholders of record on August 14, 2014.
“Although we continue to operate in a difficult interest rate environment we are pleased to report a significant increase in net income year over year and to announce a 25% increase in the dividend to our shareholders,” stated Michael R. Sand, President and Chief Executive Officer. “During the quarter we continued to see positive trends in our financial metrics as we focused on the generation of variable rate assets in anticipation of a changing interest rate environment. The $9 million increase in loans originated compared to the prior quarter included $5 million in C&I credits which, along with shorter duration construction loans, we are continuing to emphasize.”
Fiscal Second Quarter 2014 Highlights (at or for the period ended June 30, 2014):
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·
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Earnings per diluted common share for the current quarter increased 100% to $0.20 from $0.10 for the comparable quarter one year ago and increased 25% from $0.16 for the preceding quarter;
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·
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Earnings per diluted common share for the first nine months of fiscal 2014 increased 19% to $0.57 from $0.48 for the first nine months of fiscal 2013;
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·
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Declared a quarterly cash dividend of $0.05 per common share;
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·
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Net interest margin for the current quarter increased to 3.86% from 3.85% for the preceding quarter;
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·
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Non-performing assets decreased 17% year-over-year and 9% from the prior quarter;
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·
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OREO and other repossessed assets decreased 27% year-over-year and 15% from the prior quarter;
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·
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Net charge-offs decreased 88% to $186,000 for the current quarter from $1.57 million for comparable quarter one year ago; and
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·
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Book value and tangible book value per common share increased to $11.54 and $10.74, respectively at quarter end.
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Capital Ratios and Asset Quality
Timberland Bancorp remains well capitalized with a total risk-based capital ratio of 14.87% and a Tier 1 leverage capital ratio of 10.62% at June 30, 2014.
Reflecting continued improvement in asset quality, no provision for loan losses was required for the quarter ended June 30, 2014, compared to $1.39 million in the comparable quarter one year ago. The Bank had net charge-offs of $186,000 during the
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 2
current quarter, compared to a net recovery of $4,000 for the preceding quarter and net charge-offs of $1.57 million for the comparable quarter one year ago.
Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 10% to $13.3 million at June 30, 2014, from $14.7 million at March 31, 2014, and decreased 3% from $13.6 million one year ago. The non-performing assets to total assets ratio improved to 3.38% at June 30, 2014, from 3.69% three months earlier and 4.04% one year ago.
Non-accrual loans decreased 4% to $12.1 million at June 30, 2014, from $12.6 million at March 31, 2014, and increased 2% from $11.8 million at June 30, 2013. The non-accrual loans at June 30, 2014, were comprised of 45 loans and 36 credit relationships. By dollar amount per category: 43% are secured by residential properties; 43% are secured by land; and 14% are secured by commercial properties.
Other real estate owned (“OREO”) and other repossessed assets decreased 15% to $11.2 million at June 30, 2014, from $13.2 million at March 31, 2013, and decreased 27% from $15.3 million at June 30, 2013. At June 30, 2014, the OREO portfolio consisted of 50 individual properties. The properties consisted of 26 land parcels totaling $4.2 million, 18 one-to four-family homes totaling $3.6 million, five commercial real estate properties totaling $3.2 million, and one multi-family property of $142,000. During the quarter ended June 30, 2014, eight OREO properties totaling $2.4 million were sold for a net gain of $43,000.
Balance Sheet Management
Total assets decreased by $4.8 million to $727.6 million at June 30, 2014, from $732.4 million at March 31, 2014. The decrease in total assets was primarily due to a $5.7 million decrease in total deposits, which reduced the amount of assets held in overnight liquidity.
Liquidity measured by cash and cash equivalents, CDs held for investment and available for sale investments as a percentage of total liabilities was 15.4% at June 30, 2014, compared to 16.0% at March 31, 2014, and 17.7% one year ago.
Net loans receivable increased $3.0 million to $557.7 million at June 30, 2014, from $554.7 million at March 31, 2014. The increase was primarily due to a $4.9 million increase in commercial business loan balances and a $1.8 million increase in construction and land development loan balances. These increases were partially offset by a $1.2 million decrease in land loan balances, a $900,000 decrease in one-to four-family loan balances, a $672,000 decrease in consumer loan balances and a $991,000 increase in the undisbursed portion of construction loans in process.
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 3
LOAN PORTFOLIO
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June 30, 2014
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March 31, 2014
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June 30, 2013
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||||||||||||||||||||||
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($ 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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$ | 100,085 | 17 | % | $ | 100,985 | 17 | % | $ | 104,784 | 18 | % | ||||||||||||
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Multi-family
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47,077 | 8 | 47,206 | 8 | 48,781 | 8 | ||||||||||||||||||
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Commercial
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299,707 | 51 | 299,791 | 51 | 290,240 | 51 | ||||||||||||||||||
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Construction and land
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||||||||||||||||||||||||
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development
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53,695 | 9 | 51,852 | 9 | 38,916 | 7 | ||||||||||||||||||
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Land
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28,442 | 5 | 29,593 | 5 | 31,673 | 6 | ||||||||||||||||||
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Total mortgage loans
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529,006 | 90 | 529,427 | 90 | 514,394 | 90 | ||||||||||||||||||
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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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31,832 | 5 | 32,120 | 5 | 31,936 | 6 | ||||||||||||||||||
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Other
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5,229 | 1 | 5,613 | 1 | 6,013 | 1 | ||||||||||||||||||
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Total consumer loans
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37,061 | 6 | 37,733 | 6 | 37,949 | 7 | ||||||||||||||||||
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Commercial business loans
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25,341 | 4 | 20,460 | 4 | 19,557 | 3 | ||||||||||||||||||
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Total loans
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591,408 | 100 | % | 587,620 | 100 | % | 571,900 | 100 | % | |||||||||||||||
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Less:
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||||||||||||||||||||||||
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Undisbursed portion of
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construction loans in
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process
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(21,463 | ) | (20,472 | ) | (13,816 | ) | ||||||||||||||||||
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Deferred loan origination
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||||||||||||||||||||||||
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fees
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(1,687 | ) | (1,707 | ) | (1,670 | ) | ||||||||||||||||||
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Allowance for loan losses
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(10,563 | ) | (10,749 | ) | (11,126 | ) | ||||||||||||||||||
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Total loans receivable, net
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$ | 557,695 | $ | 554,692 | $ | 545,288 | ||||||||||||||||||
CONSTRUCTION LOAN COMPOSITION
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June 30, 2014
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March 31, 2014
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June 30, 2013
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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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$ | 48,212 | 8 | % | $ | 47,365 | 8 | % | $ | 33,502 | 6 | % | ||||||||||||
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Speculative one- to four-
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||||||||||||||||||||||||
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family
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2,307 | -- | 2,054 | -- | 1,020 | -- | ||||||||||||||||||
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Commercial real estate
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2,736 | 1 | 1,993 | 1 | 3,589 | 1 | ||||||||||||||||||
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Multi-family (including
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||||||||||||||||||||||||
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condominium)
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440 | -- | 440 | -- | 289 | -- | ||||||||||||||||||
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Land development
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-- | -- | -- | -- | 516 | -- | ||||||||||||||||||
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Total construction loans
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$ | 53,695 | 9 | % | $ | 51,852 | 9 | % | $ | 38,916 | 7 | % | ||||||||||||
Timberland originated $40.5 million in loans during the quarter ended June 30, 2014, compared to $31.9 million for the preceding quarter and $54.7 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 June 30, 2014, $7.8 million fixed-rate one-to four-family mortgage loans were sold compared to $5.2 million for the preceding quarter and $21.5 million for the comparable quarter ended one year ago.
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 4
Timberland’s mortgage-backed securities (“MBS”) and other investments decreased by $157,000 during the quarter to $8.3 million at June 30, 2014, from $8.5 million at March 31, 2014, primarily due to prepayments and scheduled amortization.
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DEPOSIT BREAKDOWN
($ in thousands)
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||||||||||||||||||||||||
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June 30, 2014
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March 31, 2014
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June 30, 2013
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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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$ | 92,995 | 15 | % | $ | 95,607 | 16 | % | $ | 83,043 | 14 | % | ||||||||||||
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N.O.W. checking
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157,303 | 26 | 160,049 | 26 | 152,675 | 26 | ||||||||||||||||||
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Savings
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93,728 | 16 | 92,537 | 15 | 93,161 | 16 | ||||||||||||||||||
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Money market
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94,363 | 16 | 94,543 | 16 | 85,703 | 14 | ||||||||||||||||||
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Certificates of deposit under $100
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97,917 | 16 | 101,413 | 17 | 114,113 | 19 | ||||||||||||||||||
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Certificates of deposit $100 and over
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59,134 | 10 | 59,034 | 10 | 66,179 | 11 | ||||||||||||||||||
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Certificates of deposit – brokered
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3,192 | 1 | 1,191 | -- | 1,190 | -- | ||||||||||||||||||
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Total deposits
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$ | 598,632 | 100 | % | $ | 604,374 | 100 | % | $ | 596,064 | 100 | % | ||||||||||||
Total deposits decreased $5.7 million to $598.6 million at June 30, 2014, from $604.4 million at March 31, 2014, primarily as a result of a $2.7 million decrease in N.O.W. checking account balances, a $2.6 million decrease in non-interest bearing account balances and a $1.4 million decrease in certificates of deposit account balances. These decreases were partially offset by a $1.2 million increase in savings account balances.
Total shareholders’ equity increased $1.31 million to $81.33 million at June 30, 2014, from $80.02 million at March 31, 2014. The increase in shareholders’ equity was primarily due to net income of $1.43 million for the quarter, which was partially offset by dividend payments of $282,000 to common shareholders. Book value per common share increased to $11.54 and tangible book value per common share increased to $10.74 at June 30, 2014.
Operating Results
Fiscal third quarter operating revenue [net interest income before provision for loan losses, plus non-interest income excluding OTTI charges / recoveries, gains or losses on sale of investments, valuation allowances or recoveries on mortgage servicing rights (“MSRs”)], increased 2% to $8.56 million from $8.39 million for the preceding quarter and decreased 4% from $8.87 million for the comparable quarter one year ago. The increase in revenue compared to the preceding quarter was primarily a result of an increase in non-interest income. Operating revenue decreased 4% to $25.61 million for the first nine months of fiscal 2014 from $26.76 million for the comparable period one year ago, primarily due to a decrease in gain on sale of loans.
Net interest income decreased slightly to $6.43 million for the quarter ended June 30, 2014, from $6.44 million for the preceding quarter and from $6.50 million for the comparable quarter one year ago. The net interest margin for the current quarter increased to 3.86% from 3.85% for the preceding quarter and decreased from 3.88% for the comparable quarter one year ago. For the first nine months of fiscal 2014, net interest income remained level with the first nine months of fiscal 2013 at $19.33 million. Timberland’s net interest margin was 3.83% for the first nine months of fiscal 2014 and 2013.
Non-interest income increased 5% to $2.12 million for the quarter ended June 30, 2014, from $2.01 million in the preceding quarter and decreased 11% from $2.37 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to a $69,000 increase in gain on sale of loans, a $38,000 increase in service charges on deposits and a $38,000 increase in ATM and debit card interchange transaction fees. Fiscal year-to-date non-interest income decreased 4% to $6.32 million from $7.87 million for the first nine months of fiscal 2013. The decrease was primarily due to a decrease in gain on sale of loans and a decrease in the valuation recovery on MSRs.
Total operating (non-interest) expenses decreased 5% to $6.43 million for the third fiscal quarter from $6.75 million for the preceding quarter and increased 3% from $6.24 million for the comparable quarter one year ago. The decreased expenses for the current quarter compared to the preceding quarter were primarily the result of a $157,000 decrease in OREO and other repossessed assets expense and a $151,000 decrease in ATM and debit card processing expense. The decrease in OREO related expense was primarily due to a lower level of fair value write-downs of properties compared to the preceding quarter. The decrease in ATM and debit card processing expense was primarily related to conversion related expenses from the
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 5
Company’s recent technology investment to upgrade its electronic funds transfer (“EFT”) platform, which resulted in higher costs for the quarter ended March 31, 2014. Fiscal year-to-date operating expenses increased 3% to $19.43 million from $18.80 million for the first nine months of fiscal 2013.
The provision for income taxes increased $148,000 to $685,000 for the quarter ended June 30, 2014, from $537,000 for the preceding quarter, primarily due to higher income before income taxes.
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; 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 Fiscal Q3 Earnings
July 22, 2014
Page 6
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TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended
|
||||||
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($ in thousands, except per share amounts)
|
June 30,
|
March 31,
|
June 30,
|
||||
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(unaudited)
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2014
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2014
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2013
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||||
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Interest and dividend income
|
|||||||
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Loans receivable
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$7,238
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$7,255
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$7,422
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||||
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MBS and other investments
|
66
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64
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69
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||||
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Dividends from mutual funds and Federal Home Loan Bank
(“FHLB”) stock
|
6
|
6
|
5
|
||||
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Interest bearing deposits in banks
|
87
|
87
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79
|
||||
|
Total interest and dividend income
|
7,397
|
7,412
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7,575
|
||||
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Interest expense
|
|||||||
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Deposits
|
498
|
514
|
609
|
||||
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FHLB advances
|
466
|
461
|
467
|
||||
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Total interest expense
|
964
|
975
|
1,076
|
||||
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Net interest income
|
6,433
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6,437
|
6,499
|
||||
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Provision for loan losses
|
--
|
--
|
1,385
|
||||
|
Net interest income after provision for loan losses
|
6,433
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6,437
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5,114
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||||
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Non-interest income
|
|||||||
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Recovery (Other than temporary impairment “OTTI”) on MBS
|
|||||||
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and other investments, net
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(9)
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89
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(3)
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||||
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Loss on sale of MBS and other investments, net
|
--
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(32)
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--
|
||||
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Service charges on deposits
|
921
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883
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882
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||||
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Gain on sale of loans, net
|
241
|
172
|
579
|
||||
|
Bank owned life insurance (“BOLI”) net earnings
|
134
|
143
|
144
|
||||
|
ATM and debit card interchange transaction fees
|
611
|
573
|
526
|
||||
|
Other
|
218
|
185
|
244
|
||||
|
Total non-interest income, net
|
2,116
|
2,013
|
2,372
|
||||
|
Non-interest expense
|
|||||||
|
Salaries and employee benefits
|
3,325
|
3,434
|
3,176
|
||||
|
Premises and equipment
|
754
|
647
|
739
|
||||
|
Advertising
|
187
|
172
|
184
|
||||
|
OREO and other repossessed assets, net
|
240
|
397
|
313
|
||||
|
ATM and debit card processing
|
207
|
358
|
219
|
||||
|
Postage and courier
|
122
|
110
|
107
|
||||
|
Amortization of core deposit intangible (“CDI”)
|
29
|
29
|
33
|
||||
|
State and local taxes
|
123
|
121
|
170
|
||||
|
Professional fees
|
196
|
211
|
202
|
||||
|
FDIC insurance
|
158
|
160
|
157
|
||||
|
Other insurance
|
34
|
40
|
39
|
||||
|
Loan administration and foreclosure
|
129
|
138
|
91
|
||||
|
Data processing and telecommunications
|
399
|
329
|
319
|
||||
|
Deposit operations
|
146
|
225
|
157
|
||||
|
Other
|
381
|
383
|
331
|
||||
|
Total non-interest expense
|
6,430
|
6,754
|
6,237
|
||||
|
(Statement continued on following page)
|
|||||||
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 7
|
Three Months Ended
|
|||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||
|
2014
|
2014
|
2013
|
|||||
|
Income before income taxes
|
$2,119
|
$1,696
|
$1,249
|
||||
|
Provision for income taxes
|
685
|
537
|
373
|
||||
|
Net income
|
1,434
|
1,159
|
876
|
||||
|
Preferred stock dividends
|
--
|
--
|
(151)
|
||||
|
Preferred stock discount accretion
|
--
|
--
|
(47)
|
||||
|
Net income to common shareholders
|
$ 1,434
|
$ 1,159
|
$678
|
||||
|
Net income per common share:
|
|||||||
|
Basic
|
$0.21
|
$0.17
|
$0.10
|
||||
|
Diluted
|
0.20
|
0.16
|
0.10
|
||||
|
Weighted average common shares outstanding:
|
|||||||
|
Basic
|
6,857,149
|
6,856,633
|
6,818,782
|
||||
|
Diluted
|
7,033,713
|
7,033,979
|
6,902,497
|
||||
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 8
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
|
|
Nine Months Ended
|
|||||
|
($ in thousands, except per share amounts)
|
June 30,
|
June 30,
|
|||||
|
(unaudited)
|
2014
|
2013
|
|||||
|
Interest and dividend income
|
|||||||
|
Loans receivable
|
$21,811
|
$22,231
|
|||||
|
MBS and other investments
|
190
|
216
|
|||||
|
Dividends from mutual funds and FHLB stock
|
21
|
22
|
|||||
|
Interest bearing deposits in banks
|
268
|
247
|
|||||
|
Total interest and dividend income
|
22,290
|
22,716
|
|||||
|
Interest expense
|
|||||||
|
Deposits
|
1,562
|
1,987
|
|||||
|
FHLB advances and other borrowings
|
1,399
|
1,399
|
|||||
|
Total interest expense
|
2,961
|
3,386
|
|||||
|
Net interest income
|
19,329
|
19,330
|
|||||
|
Provision for loan losses
|
--
|
2,760
|
|||||
|
Net interest income after provision for loan losses
|
19,329
|
16,570
|
|||||
|
Non-interest income
|
|||||||
|
Recovery (OTTI) on MBS and other investments, net
|
78
|
(39)
|
|||||
|
Loss on sale of MBS and other investments, net
|
(32)
|
--
|
|||||
|
Service charges on deposits
|
2,795
|
2,657
|
|||||
|
Gain on sale of loans, net
|
714
|
2,054
|
|||||
|
BOLI net earnings
|
392
|
431
|
|||||
|
Valuation recovery on MSRs
|
--
|
475
|
|||||
|
ATM and debit card interchange transaction fees
|
1,769
|
1,562
|
|||||
|
Other
|
608
|
725
|
|||||
|
Total non-interest income, net
|
6,324
|
7,865
|
|||||
|
Non-interest expense
|
|||||||
|
Salaries and employee benefits
|
10,138
|
9,376
|
|||||
|
Premises and equipment
|
2,094
|
2,154
|
|||||
|
Advertising
|
537
|
533
|
|||||
|
OREO and other repossessed assets, net
|
795
|
1,107
|
|||||
|
ATM and debit card processing
|
791
|
636
|
|||||
|
Postage and courier
|
329
|
342
|
|||||
|
Amortization of CDI
|
87
|
98
|
|||||
|
State and local taxes
|
361
|
466
|
|||||
|
Professional fees
|
590
|
636
|
|||||
|
FDIC insurance
|
479
|
526
|
|||||
|
Other insurance
|
113
|
133
|
|||||
|
Loan administration and foreclosure
|
377
|
278
|
|||||
|
Data processing and telecommunications
|
1,058
|
911
|
|||||
|
Deposit operations
|
569
|
450
|
|||||
|
Other
|
1,107
|
1,152
|
|||||
|
Total non-interest expense
|
19,425
|
18,798
|
|||||
|
(Statement continued on following page)
|
|||||||
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 9
|
Nine Months Ended
|
|||||||
|
June 30,
|
June 30,
|
||||||
|
2014
|
2013
|
||||||
|
Income before income taxes
|
$6,228
|
$5,637
|
|||||
|
Provision for income taxes
|
2,024
|
1,774
|
|||||
|
Net income
|
4,204
|
3,863
|
|||||
|
Preferred stock dividends
|
(136)
|
(559)
|
|||||
|
Preferred stock discount accretion
|
(70)
|
(236)
|
|||||
|
Discount on redemption of preferred stock
|
--
|
255
|
|||||
|
Net income to common shareholders
|
$3,998
|
$3,323
|
|||||
|
Net income per common share:
|
|||||||
|
Basic
|
$0.58
|
$0.49
|
|||||
|
Diluted
|
0.57
|
0.48
|
|||||
|
Weighted average common shares outstanding:
|
|||||||
|
Basic
|
6,855,811
|
6,816,772
|
|||||
|
Diluted
|
7,015,155
|
6,870,751
|
|||||
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 10
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
|
|||||||
|
($ in thousands, except per share amounts) (unaudited)
|
June 30,
|
March 31,
|
June 30,
|
||||
|
2014
|
2014
|
2013
|
|||||
|
Assets
|
|||||||
|
Cash and due from financial institutions
|
$ 13,500
|
$ 11,437
|
$ 10,757
|
||||
|
Interest-bearing deposits in banks
|
50,467
|
58,804
|
71,788
|
||||
|
Total cash and cash equivalents
|
63,967
|
70,241
|
82,545
|
||||
|
Certificates of deposit (“CDs”) held for investment, at cost
|
32,336
|
31,385
|
26,749
|
||||
|
MBS and other investments:
|
|||||||
|
Held to maturity, at amortized cost
|
5,417
|
5,511
|
2,892
|
||||
|
Available for sale, at fair value
|
2,928
|
2,991
|
4,370
|
||||
|
FHLB stock
|
5,299
|
5,351
|
5,502
|
||||
|
Loans receivable
|
566,757
|
564,109
|
553,981
|
||||
|
Loans held for sale
|
1,501
|
1,332
|
2,433
|
||||
|
Less: Allowance for loan losses
|
(10,563)
|
(10,749)
|
(11,126)
|
||||
|
Net loans receivable
|
557,695
|
554,692
|
545,288
|
||||
|
Premises and equipment, net
|
17,867
|
17,785
|
18,043
|
||||
|
OREO and other repossessed assets, net
|
11,172
|
13,208
|
15,314
|
||||
|
BOLI
|
17,494
|
17,361
|
16,956
|
||||
|
Accrued interest receivable
|
1,922
|
2,003
|
2,015
|
||||
|
Goodwill
|
5,650
|
5,650
|
5,650
|
||||
|
Core deposit intangible
|
32
|
61
|
151
|
||||
|
Mortgage servicing rights, net
|
1,812
|
1,958
|
2,333
|
||||
|
Other assets
|
4,040
|
4,220
|
4,967
|
||||
|
Total assets
|
$727,631
|
$732,417
|
$732,775
|
||||
|
Liabilities and shareholders’ equity
|
|||||||
|
Deposits: Non-interest-bearing demand
|
$ 92,995
|
$ 95,607
|
$ 83,043
|
||||
|
Deposits: Interest-bearing
|
505,637
|
508,767
|
513,021
|
||||
|
Total deposits
|
598,632
|
604,374
|
596,064
|
||||
|
FHLB advances
|
45,000
|
45,000
|
45,000
|
||||
|
Other liabilities and accrued expenses
|
2,669
|
3,019
|
2,477
|
||||
|
Total liabilities
|
646,301
|
652,393
|
643,541
|
||||
|
Shareholders’ equity
|
|||||||
|
Fixed Rate Cumulative Preferred stock, Series A, $.01 par value; 1,000,000
shares authorized; redeemable at $1,000 per share;
12,065 shares issued and outstanding – June 30, 2013
|
--
|
--
|
11,889
|
||||
|
Common stock, $.01 par value; 50,000,000 shares authorized;
7,045,036 shares issued and outstanding – June 30, 2013
7,045,936 shares issued and outstanding – March 31, 2014
and June 30, 2014
|
10,710
|
10,663
|
10,551
|
||||
|
Unearned shares- Employee Stock Ownership Plan
|
(1,256)
|
(1,322)
|
(1,521)
|
||||
|
Retained earnings
|
72,240
|
71,088
|
68,665
|
||||
|
Accumulated other comprehensive loss
|
(364)
|
(405)
|
(350)
|
||||
|
Total shareholders’ equity
|
81,330
|
80,024
|
89,234
|
||||
|
Total liabilities and shareholders’ equity
|
$727,631
|
$732,417
|
$732,775
|
||||
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 11
|
KEY FINANCIAL RATIOS AND DATA
|
Three Months Ended
|
||||||
|
($ in thousands, except per share amounts) (unaudited)
|
June 30,
|
March 31,
|
June 30,
|
||||
|
2014
|
2014
|
2013
|
|||||
|
PERFORMANCE RATIOS:
|
|||||||
|
Return on average assets (a)
|
0.79%
|
0.63%
|
0.47%
|
||||
|
Return on average equity (a)
|
7.12%
|
5.83%
|
3.94%
|
||||
|
Net interest margin (a)
|
3.86%
|
3.85%
|
3.88%
|
||||
|
Efficiency ratio
|
75.21%
|
79.93%
|
70.31%
|
||||
|
Nine Months Ended
|
|||||||
|
June 30,
|
June 30,
|
||||||
|
2014
|
2013
|
||||||
|
PERFORMANCE RATIOS:
|
|||||||
| Return on average assets (a) | 0.76% |
0.70%
|
|||||
| Return on average equity (a) |
6.76%
|
5.69%
|
|||||
| Net interest margin (a) | 3.83% |
3.83%
|
|||||
|
Efficiency ratio
|
75.72%
|
69.12%
|
|||||
|
As of or for Three Months Ended
|
|||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||
|
2014
|
2014
|
2013
|
|||||
|
ASSET QUALITY RATIOS AND DATA:
|
|||||||
|
Non-accrual loans
|
$12,087
|
$12,649
|
$11,828
|
||||
|
Loans past due 90 days and still accruing
|
150
|
--
|
157
|
||||
|
Non-performing investment securities
|
1,162
|
1,204
|
2,327
|
||||
|
OREO and other repossessed assets
|
11,172
|
13,208
|
15,314
|
||||
|
Total non-performing assets (b)
|
$24,571
|
$27,061
|
$29,626
|
||||
|
Non-performing assets to total assets (b)
|
3.38%
|
3.69%
|
4.04%
|
||||
|
Net charge-offs (recoveries) during quarter
|
$ 186
|
$ (4)
|
$ 1,572
|
||||
|
Allowance for loan losses to non-accrual loans
|
87%
|
85%
|
94%
|
||||
|
Allowance for loan losses to loans receivable (c)
|
1.86%
|
1.90%
|
2.00%
|
||||
|
Troubled debt restructured loans on accrual status (d)
|
$16,524
|
$17,284
|
$ 18,958
|
||||
|
CAPITAL RATIOS:
|
|||||||
|
Tier 1 leverage capital
|
10.62%
|
10.40%
|
11.55%
|
||||
|
Tier 1 risk based capital
|
13.61%
|
13.38%
|
15.15%
|
||||
|
Total risk based capital
|
14.87%
|
14.64%
|
16.41%
|
||||
|
Tangible capital to tangible assets (e)
|
10.48%
|
10.23%
|
11.48%
|
||||
|
BOOK VALUES:
|
|||||||
|
Book value per common share
|
$ 11.54
|
$ 11.36
|
$ 10.98
|
||||
|
Tangible book value per common share (e)
|
10.74
|
10.55
|
10.16
|
||||
__________________________________________________
(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 $2,915, $2,812 and $2,491 reported as non-accrual loans at June 30, 2014, March 31, 2014 and June 30, 2013, respectively.
(e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets.
Timberland Fiscal Q3 Earnings
July 22, 2014
Page 12
|
AVERAGE CONSOLIDATED BALANCE SHEETS:
|
Three Months Ended
|
|||||
|
($ in thousands) (unaudited)
|
June 30,
|
March 31,
|
June 30,
|
|||
|
2014
|
2014
|
2013
|
||||
|
Average total loans
|
$566,887
|
$568,448
|
$557,234
|
|||
|
Average total interest-bearing assets (a)
|
666,646
|
668,628
|
670,242
|
|||
|
Average total assets
|
729,646
|
732,513
|
737,787
|
|||
|
Average total interest-bearing deposits
|
503,834
|
505,756
|
516,559
|
|||
|
Average FHLB advances and other borrowings
|
45,000
|
45,000
|
45,162
|
|||
|
Average shareholders’ equity
|
80,600
|
79,497
|
88,935
|
|||
|
Nine Months Ended
|
||||||
|
June 30,
|
June 30,
|
|||||
|
2014
|
2013
|
|||||
| Average total loans |
$565,990
|
$556,014
|
||||
| Average total assets |
673,163
|
673,155 | ||||
| Average total interest-bearing deposits |
735,275
|
738,817
|
||||
| Average FHLB advances and other borrowings |
507,892
|
518,235
|
||||
|
Average shareholders’ equity
|
45,000
|
45,470
|
||||
|
82,950
|
90,566
|
|||||
_________________________________
(a) Includes loans and MBS on non-accrual status