Exhibit 99.1
Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp EPS Increases to $0.24 for First Fiscal Quarter of 2015
Increases Dividend to Common Shareholders by 20%
HOQUIAM, WA – January 26, 2015 - Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”) today reported net income of $1.73 million, or $0.24 per diluted common share, for the first fiscal quarter ended December 31, 2014. This compares to net income to common shareholders of $1.65 million, or $0.23 per diluted common share, for the quarter ended September 30, 2014, and net income to common shareholders of $1.41 million, or $0.20 per diluted common share, for the quarter ended December 31, 2013.
Timberland’s Board of Directors also announced an increase in the quarterly cash dividend to common shareholders to $0.06 per common share, payable on February 27, 2015 to shareholders of record on February 13, 2015.
First Fiscal Quarter 2015 Highlights (at or for the period ended December 31, 2014, compared to December 31, 2013, or September 30, 2014):
| · | Earnings per diluted common share for the current quarter increased 20% to $0.24 from $0.20 for the comparable quarter one year ago and 4% from $0.23 for the preceding quarter; |
| · | Quarterly cash dividend to common shareholders increased 20% from $0.05 per common share to $0.06 per common share and will be paid on February 27, 2015 to shareholders of record on February 13, 2015; |
| · | Net interest margin for the current quarter increased to 3.88% from 3.78% for the comparable quarter one year ago and 3.86% for the preceding quarter; |
| · | Total delinquent and non-accrual loans decreased 7% during the current quarter and 28% year-over-year; |
| · | Other real estate owned (“OREO”) and other repossessed assets decreased 10% during the current quarter and 34% year-over-year; |
| · | Troubled debt restructured loans (“TDRs”) on accrual status decreased 27% during the current quarter and 32% year-over-year; |
| · | Net loans receivable increased by $7.8 million during the quarter; and |
| · | Book value and tangible book value per common share increased to $11.95 and $11.15, respectively, at quarter end. |
“We are pleased with the continuing improvements in the Company’s financial results in what continues to be a challenging interest rate environment,” stated Michael R. Sand, President and CEO. “We are also pleased to announce an increase in the quarterly dividend based on the Company’s ongoing profitability and strong capital position.”
Capital Ratios and Asset Quality
Timberland Bancorp remains well capitalized with a total risk-based capital ratio of 15.12%, a Tier 1 leverage capital ratio of 10.72% and a tangible capital to tangible assets ratio of 10.56% at December 31, 2014.
Reflecting continued improvement in asset quality, no provision for loan losses was required for the quarters ended December 31, 2014, September 30, 2014 and December 31, 2013. Net charge-offs for the current quarter decreased to $105,000, from
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$136,000 for the preceding quarter and $391,000 for the comparable quarter one year ago. The non-performing assets to total assets ratio improved to 2.68% at December 31, 2014 from 2.94% three months earlier and 3.97% one year ago.
Non-accrual loans decreased to $10.8 million at December 31, 2014, from $10.9 million at September 30, 2014 and $14.1 million at December 31, 2013. The non-accrual loans at December 31, 2014 were comprised of 37 loans and 26 credit relationships. By dollar amount per category: 45% are secured by residential properties; 40% are secured by land; 13% are secured by commercial properties; and 2% are secured by residential construction projects. Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 7% to $12.8 million at December 31, 2014, from $13.7 million at September 30, 2014 and decreased 28% from $17.8 million one year ago.
OREO and other repossessed assets decreased 10% to $8.2 million at December 31, 2014, from $9.1 million at September 30, 2014 and decreased 34% from $12.5 million at December 31, 2013. At December 31, 2014 the OREO portfolio consisted of 37 individual properties. The properties consisted of 23 land parcels totaling $3.9 million, four commercial real estate properties totaling $2.2 million, nine one- to- four family homes totaling $2.0 million and one multi-family property with a book value of $142,000. During the quarter ended December 31, 2014, five OREO properties totaling $900,000 were sold for a net gain of $33,000.
Balance Sheet Management
Total assets increased by $4.3 million to $749.9 million at December 31, 2014 from $745.6 million at September 30, 2014. The increase was primarily due to a $7.8 million increase in net loans receivable and a $2.2 million increase in CDs held for investment. These increases to total assets were partially offset by decreases in total cash and cash equivalents, investment securities and OREO and other repossessed assets.
Liquidity as measured by cash and cash equivalents, CDs held for investment and available for sale investments securities was 16.5% of total liabilities at December 31, 2014, compared to 16.8% at September 30, 2014, and 15.8% one year ago.
Net loans receivable increased $7.8 million to $573.6 million at December 31, 2014, from $565.8 million at September 30, 2014. The increase was primarily due to a $4.5 million increase in one- to four-family loans, a $2.4 million increase in commercial business loans, a $759,000 increase in commercial real estate loans, a $756,000 increase in construction loans, a $587,000 increase in consumer loans and a $584,000 decrease in the undisbursed portion of construction loans in process. These increases to net loans receivable were partially offset by a $956,000 decrease in land loans and a $783,000 decrease in multi-family loans.
Timberland Fiscal Q1 Quarter
January 26, 2015
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LOAN PORTFOLIO
| December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
| ($ in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||
| Mortgage Loans: | ||||||||||||||||||||||||
| One-to four-family | $ | 103,021 | 17 | % | $ | 98,534 | 16 | % | $ | 100,870 | 17 | % | ||||||||||||
| Multi-family | 45,423 | 7 | 46,206 | 8 | 48,212 | 8 | ||||||||||||||||||
| Commercial | 295,113 | 48 | 294,354 | 48 | 299,644 | 51 | ||||||||||||||||||
| Construction and land | ||||||||||||||||||||||||
| development | 69,235 | 11 | 68,479 | 11 | 53,693 | 9 | ||||||||||||||||||
| Land | 28,633 | 5 | 29,589 | 5 | 31,464 | 5 | ||||||||||||||||||
| Total mortgage loans | 541,425 | 88 | 537,162 | 88 | 533,883 | 90 | ||||||||||||||||||
| Consumer Loans: | ||||||||||||||||||||||||
| Home equity and second | ||||||||||||||||||||||||
| mortgage | 35,754 | 6 | 34,921 | 6 | 32,201 | 6 | ||||||||||||||||||
| Other | 4,453 | 1 | 4,699 | 1 | 5,962 | 1 | ||||||||||||||||||
| Total consumer loans | 40,207 | 7 | 39,620 | 7 | 38,163 | 7 | ||||||||||||||||||
| Commercial business loans | 32,957 | 5 | 30,559 | 5 | 17,733 | 3 | ||||||||||||||||||
| Total loans | 614,589 | 100 | % | 607,341 | 100 | % | 589,779 | 100 | % | |||||||||||||||
| Less: | ||||||||||||||||||||||||
| Undisbursed portion of | ||||||||||||||||||||||||
| construction loans in | ||||||||||||||||||||||||
| process | (28,832 | ) | (29,416 | ) | (21,362 | ) | ||||||||||||||||||
| Deferred loan origination | ||||||||||||||||||||||||
| fees | (1,840 | ) | (1,746 | ) | (1,768 | ) | ||||||||||||||||||
| Allowance for loan losses | (10,322 | ) | (10,427 | ) | (10,745 | ) | ||||||||||||||||||
| Total loans receivable, net | $ | 573,595 | $ | 565,752 | $ | 555,904 | ||||||||||||||||||
CONSTRUCTION LOAN COMPOSITION
| December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
| ($ in thousands) | Amount | Percent of Loan Portfolio | Amount | Percent of Loan Portfolio | Amount | Percent of Loan Portfolio | ||||||||||||||||||
| Custom and owner / builder | $ | 62,548 | 10 | % | $ | 59,752 | 10 | % | $ | 46,789 | 8 | % | ||||||||||||
| Speculative one- to four- | ||||||||||||||||||||||||
| family | 2,287 | -- | 2,577 | -- | 2,104 | -- | ||||||||||||||||||
| Commercial real estate | 1,560 | -- | 3,310 | 1 | 4,467 | 1 | ||||||||||||||||||
| Multi-family (including | ||||||||||||||||||||||||
| condominium) | 2,840 | 1 | 2,840 | -- | 143 | -- | ||||||||||||||||||
| Land development | -- | -- | -- | -- | 190 | -- | ||||||||||||||||||
| Total construction loans | $ | 69,235 | 11 | % | $ | 68,479 | 11 | % | $ | 53,693 | 9 | % | ||||||||||||
Timberland originated $50.1 million in loans during the quarter ended December 31, 2014, compared to $60.4 million for the preceding quarter and $52.9 million for the quarter one year ago. Timberland continues to sell fixed rate one- to four-family mortgage loans into the secondary market for asset–liability management purposes and to generate non-interest income. During the quarter ended December 31, 2014, $8.2 million fixed-rate one-to four-family mortgage loans were sold compared to $10.0 million for the preceding quarter and $10.3 million for the comparable quarter one year ago.
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Timberland’s investment securities decreased by $1.5 million during the quarter to $6.7 million at December 31, 2014, from $8.2 million at September 30, 2014, primarily due to the sale of $1.2 million in agency securities and scheduled amortization. The sale of the securities resulted in a $45,000 gain.
DEPOSIT BREAKDOWN ($ in thousands) | ||||||||||||||||||||||||
| December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
| Non-interest bearing | $ | 105,941 | 17 | % | $ | 106,417 | 17 | % | $ | 98,585 | 17 | % | ||||||||||||
| N.O.W. checking | 161,762 | 26 | 160,748 | 26 | 155,472 | 26 | ||||||||||||||||||
| Savings | 98,260 | 16 | 95,665 | 16 | 91,468 | 15 | ||||||||||||||||||
| Money market | 88,727 | 14 | 88,999 | 14 | 90,181 | 15 | ||||||||||||||||||
| Money market - brokered | 401 | -- | -- | -- | -- | -- | ||||||||||||||||||
| Certificates of deposit under $100 | 94,222 | 15 | 95,333 | 16 | 104,400 | 17 | ||||||||||||||||||
| Certificates of deposit $100 and over | 65,480 | 11 | 64,762 | 10 | 60,186 | 10 | ||||||||||||||||||
| Certificates of deposit – brokered | 3,193 | 1 | 3,192 | 1 | 1,191 | -- | ||||||||||||||||||
| Total deposits | $ | 617,986 | 100 | % | $ | 615,116 | 100 | % | $ | 601,483 | 100 | % | ||||||||||||
Total deposits increased $2.9 million to $618.0 million at December 31, 2014, from $615.1 million at September 30, 2014 primarily as a result of a $2.6 million increase in savings account balances, a $1.0 million increase in N.O.W. checking account balances and a $129,000 increase in money market account balances. These increases were partially offset by a $476,000 decrease in non-interest bearing account balances and a $392,000 decrease in certificates of deposit account balances.
Shareholders’ Equity
Total shareholders’ equity increased $1.49 million to $84.27 million at December 31, 2014, from $82.78 million at September 30, 2014. The increase in shareholders’ equity was primarily due to net income of $1.73 million for the quarter, which was partially offset by dividend payments of $352,000 to common shareholders. Book value per common share increased to $11.95 and tangible book value per common share increased to $11.15 at December 31, 2014.
Operating Results
First fiscal quarter operating revenue (net interest income before provision for loan losses, plus non-interest income excluding OTTI charges and gains or losses on sale of investments) decreased slightly to $8.78 million from $8.81 million for the preceding quarter and increased 1% from $8.66 million for the comparable quarter one year ago.
Net interest income increased 2% to $6.70 million for the quarter ended December 31, 2014, from $6.59 million for the preceding quarter and increased 4% from $6.46 million for the comparable quarter one year ago. Net interest income increased during the current quarter primarily due to the collection of $125,000 of non-accrual interest on two loans. The net interest margin for the current quarter increased to 3.88% from 3.86% for the preceding quarter and from 3.78% for the comparable quarter one year ago. The non-accrual interest recognized during the current quarter increased the net interest margin by approximately seven basis points.
Non-interest income decreased 4% to $2.12 million for the quarter ended December 31, 2014, from $2.21 million in the preceding quarter and 3% from $2.20 million for the comparable quarter one year ago. The decrease in non-interest income compared to the preceding quarter was primarily due to a $62,000 decrease in gain on sale of loans and a $58,000 decrease in service charges on deposits, which was partially offset by a $45,000 increase in gain on sale of investment securities. The decrease in gains on sale of loans was primarily due to a decrease in the dollar volume of fixed-rate one-to four-family loans sold during the current quarter and the decrease in service charges on deposits was primarily due to a decreased number of checking account overdrafts.
Total operating (non-interest) expenses decreased 2% to $6.27 million for the first fiscal quarter from $6.37 million for the preceding quarter and increased 1% 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 $139,000 decrease in OREO and other
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repossessed assets expense, a $52,000 decrease in premises and equipment expense, a $36,000 decrease in loan administration and foreclosure expense and smaller decreases in several other categories. These decreases were partially offset by a $240,000 increase in salaries and employee benefits.
The provision for income taxes increased $49,000 to $825,000 for the quarter ended December 31, 2014, from $776,000 for the preceding quarter, primarily due to higher income before income taxes. The effective tax rate was 32.33% for the current quarter and 32.0% for the quarter ended September 30, 2014.
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 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 2015 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.
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TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||
| ($ in thousands, except per share amounts) | Dec. 31, | Sept. 30, | Dec. 31, | ||||
| (unaudited) | 2014 | 2014 | 2013 | ||||
| Interest and dividend income | |||||||
| Loans receivable | $7,509 | $7,394 | $7,318 | ||||
| Investment securities | 65 | 69 | 61 | ||||
Dividends from mutual funds and Federal Home Loan Bank (“FHLB”) stock | 7 | 6 | 8 | ||||
| Interest bearing deposits in banks | 105 | 98 | 94 | ||||
| Total interest and dividend income | 7,686 | 7,567 | 7,481 | ||||
| Interest expense | |||||||
| Deposits | 509 | 504 | 551 | ||||
FHLB advances | 474 | 474 | 471 | ||||
| Total interest expense | 983 | 978 | 1,022 | ||||
| Net interest income | 6,703 | 6,589 | 6,459 | ||||
| Provision for loan losses | -- | -- | -- | ||||
| Net interest income after provision for loan losses | 6,703 | 6,589 | 6,459 | ||||
| Non-interest income | |||||||
| OTTI and realized losses on investment securities, net | -- | (19) | (2) | ||||
| Gain on sale of investment securities, net | 45 | -- | -- | ||||
| Service charges on deposits | 885 | 943 | 992 | ||||
| Gain on sale of loans, net | 236 | 298 | 302 | ||||
| Bank owned life insurance (“BOLI”) net earnings | 136 | 138 | 115 | ||||
| ATM and debit card interchange transaction fees | 630 | 658 | 585 | ||||
| Other | 191 | 188 | 203 | ||||
| Total non-interest income, net | 2,123 | 2,206 | 2,195 | ||||
| Non-interest expense | |||||||
| Salaries and employee benefits | 3,396 | 3,156 | 3,380 | ||||
| Premises and equipment | 725 | 777 | 693 | ||||
| Advertising | 188 | 206 | 178 | ||||
| OREO and other repossessed assets expense, net | 76 | 215 | 159 | ||||
| ATM and debit card processing | 338 | 304 | 226 | ||||
| Postage and courier | 104 | 117 | 96 | ||||
| Amortization of core deposit intangible (“CDI”) | 3 | 29 | 29 | ||||
| State and local taxes | 118 | 118 | 117 | ||||
| Professional fees | 176 | 202 | 183 | ||||
| FDIC insurance | 160 | 157 | 162 | ||||
| Other insurance | 37 | 37 | 39 | ||||
| Loan administration and foreclosure | 43 | 79 | 109 | ||||
| Data processing and telecommunications | 379 | 392 | 330 | ||||
| Deposit operations | 175 | 190 | 179 | ||||
| Other | 356 | 394 | 361 | ||||
| Total non-interest expense | 6,274 | 6,373 | 6,241 | ||||
| (Table continued on following page) | |||||||
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January 26, 2015
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| Three Months Ended | |||||||
| Dec. 31, | Sept. 30, | Dec. 31, | |||||
| 2014 | 2014 | 2013 | |||||
| Income before income taxes | $2,552 | $2,422 | $2,413 | ||||
| Provision for income taxes | 825 | 776 | 802 | ||||
| Net income | 1,727 | 1,646 | 1,611 | ||||
| Preferred stock dividends | -- | -- | (136) | ||||
| Preferred stock discount accretion | -- | -- | (70) | ||||
| Net income to common shareholders | $ 1,727 | $ 1,646 | $1,405 | ||||
| Net income per common share: | |||||||
Basic | $0.25 | $0.24 | $0.20 | ||||
Diluted | 0.24 | 0.23 | 0.20 | ||||
| Weighted average common shares outstanding: | |||||||
Basic | 6,891,952 | 6,859,457 | 6,853,683 | ||||
Diluted | 7,063,540 | 7,033,090 | 6,978,385 | ||||
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TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS | ||||||||||||
| ($ in thousands, except per share amounts) (unaudited) | Dec. 31, | Sept. 30, | Dec. 31, | |||||||||
| 2014 | 2014 | 2013 | ||||||||||
| Assets | ||||||||||||
| Cash and due from financial institutions | $ | 12,583 | $ | 11,818 | $ | 11,508 | ||||||
| Interest-bearing deposits in banks | 57,772 | 60,536 | 54,730 | |||||||||
| Total cash and cash equivalents | 70,355 | 72,354 | 66,238 | |||||||||
| Certificates of deposit (“CDs”) held for investment, at cost | 37,997 | 35,845 | 32,428 | |||||||||
| Investment securities: | ||||||||||||
| Held to maturity, at amortized cost | 5,201 | 5,298 | 2,617 | |||||||||
| Available for sale, at fair value | 1,494 | 2,857 | 3,930 | |||||||||
| FHLB stock | 5,191 | 5,246 | 5,401 | |||||||||
| Loans receivable | 582,722 | 575,280 | 565,655 | |||||||||
| Loans held for sale | 1,195 | 899 | 994 | |||||||||
| Less: Allowance for loan losses | (10,322 | ) | (10,427 | ) | (10,745 | ) | ||||||
| Net loans receivable | 573,595 | 565,752 | 555,904 | |||||||||
| Premises and equipment, net | 17,574 | 17,679 | 17,914 | |||||||||
| OREO and other repossessed assets, net | 8,220 | 9,092 | 12,483 | |||||||||
| BOLI | 17,769 | 17,632 | 17,217 | |||||||||
| Accrued interest receivable | 1,967 | 1,910 | 2,092 | |||||||||
| Goodwill | 5,650 | 5,650 | 5,650 | |||||||||
| Core deposit intangible | -- | 3 | 90 | |||||||||
| Mortgage servicing rights, net | 1,549 | 1,684 | 2,144 | |||||||||
| Other assets | 3,355 | 4,563 | 3,825 | |||||||||
| Total assets | $ | 749,917 | $ | 745,565 | $ | 727,933 | ||||||
| Liabilities and shareholders’ equity | ||||||||||||
| Deposits: Non-interest-bearing demand | $ | 105,941 | $ | 106,417 | $ | 98,585 | ||||||
| Deposits: Interest-bearing | 512,045 | 508,699 | 502,898 | |||||||||
| Total deposits | 617,986 | 615,116 | 601,483 | |||||||||
| FHLB advances | 45,000 | 45,000 | 45,000 | |||||||||
| Other liabilities and accrued expenses | 2,664 | 2,671 | 2,362 | |||||||||
| Total liabilities | 665,650 | 662,787 | 648,845 | |||||||||
| Shareholders’ equity | ||||||||||||
Common stock, $.01 par value; 50,000,000 shares authorized; 7,047,636 shares issued and outstanding – December 31, 2013 7,047,336 shares issued and outstanding – September 30, 2014 7,052,636 shares issued and outstanding – December 31, 2014 | 10,846 | 10,773 | 10,614 | |||||||||
| Unearned shares- Employee Stock Ownership Plan | (1,124 | ) | (1,190 | ) | (1,388 | ) | ||||||
| Retained earnings | 74,909 | 73,534 | 70,211 | |||||||||
| Accumulated other comprehensive loss | (364 | ) | (339 | ) | (349 | ) | ||||||
| Total shareholders’ equity | 84,267 | 82,778 | 79,088 | |||||||||
| Total liabilities and shareholders’ equity | $ | 749,917 | $ | 745,565 | $ | 727,933 | ||||||
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| KEY FINANCIAL RATIOS AND DATA | Three Months Ended | |||||||||||
| ($ in thousands, except per share amounts) (unaudited) | Dec. 31, | Sept. 30, | Dec. 31, | |||||||||
| 2014 | 2014 | 2013 | ||||||||||
| PERFORMANCE RATIOS: | ||||||||||||
| Return on average assets (a) | 0.92 | % | 0.88 | % | 0.87 | % | ||||||
| Return on average equity (a) | 8.29 | % | 8.04 | % | 7.28 | % | ||||||
| Net interest margin (a) | 3.88 | % | 3.86 | % | 3.78 | % | ||||||
| Efficiency ratio | 71.09 | % | 72.46 | % | 72.12 | % | ||||||
| Dec. 31, | Sept. 30, | Dec. 31, | ||||||||||
| 2014 | 2014 | 2013 | ||||||||||
| ASSET QUALITY RATIOS AND DATA: | ||||||||||||
| Non-accrual loans | $ | 10,812 | $ | 10,909 | $ | 14,141 | ||||||
| Loans past due 90 days and still accruing | -- | 812 | 153 | |||||||||
| Non-performing investment securities | 1,057 | 1,101 | 2,092 | |||||||||
| OREO and other repossessed assets | 8,220 | 9,092 | 12,483 | |||||||||
| Total non-performing assets (b) | $ | 20,089 | $ | 21,914 | $ | 28,869 | ||||||
| Non-performing assets to total assets (b) | 2.68 | % | 2.94 | % | 3.97 | % | ||||||
| Net charge-offs during quarter | $ | 105 | $ | 136 | $ | 391 | ||||||
| Allowance for loan losses to non-accrual loans | 95 | % | 96 | % | 76 | % | ||||||
| Allowance for loan losses to loans receivable (c) | 1.77 | % | 1.81 | % | 1.90 | % | ||||||
| Troubled debt restructured loans on accrual status (d) | $ | 12,337 | $ | 16,804 | $ | 18,260 | ||||||
| CAPITAL RATIOS: | ||||||||||||
| Tier 1 leverage capital | 10.72 | % | 10.59 | % | 10.10 | % | ||||||
| Tier 1 risk-based capital | 13.86 | % | 13.68 | % | 13.13 | % | ||||||
| Total risk-based capital | 15.12 | % | 14.94 | % | 14.39 | % | ||||||
| Tangible capital to tangible assets (e) | 10.56 | % | 10.42 | % | 10.16 | % | ||||||
| BOOK VALUES: | ||||||||||||
| Book value per common share | $ | 11.95 | $ | 11.75 | $ | 11.22 | ||||||
| Tangible book value per common share (e) | 11.15 | 10.94 | 10.41 | |||||||||
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(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 $2,034, $2,284 and $3,176 reported as non-accrual loans at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.
(e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets.
Timberland Fiscal Q1 Quarter
January 26, 2015
Page 10
| AVERAGE CONSOLIDATED BALANCE SHEETS: | Three Months Ended | |||||||||||
| ($ in thousands) (unaudited) | Dec. 31, | Sept. 30, | Dec. 31, | |||||||||
| 2014 | 2014 | 2013 | ||||||||||
| Average total loans | $ | 581,820 | $ | 570,995 | $ | 562,697 | ||||||
| Average total interest-bearing assets (a) | 691,412 | 682,327 | 684,055 | |||||||||
| Average total assets | 751,334 | 745,717 | 743,549 | |||||||||
| Average total interest-bearing deposits | 509,430 | 510,176 | 513,997 | |||||||||
| Average FHLB advances and other borrowings | 45,000 | 45,000 | 45,000 | |||||||||
| Average shareholders’ equity | 83,299 | 81,883 | 88,528 | |||||||||
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(a) Includes loans and MBS on non-accrual status