Exhibit 99.1
Contact: Michael R. Sand
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp Declares Dividend and
Announces Fiscal Second Quarter Results
Revenues Increased 13%, Non-interest Income Increased 111%, and Deposits
Increased 6% from Prior Quarter; Total Risk Based Capital at 16.26%; Loan Loss
Reserve Strengthened to 2.13% of Loans; Net Interest Margin Remains Strong at
4.06%; Dividend of $0.11 Per Share Maintained; Total Loan Originations of
$98.3 million for the Quarter
HOQUIAM, WA April 30, 2009 -- Timberland Bancorp, Inc. (NASDAQ: TSBK)
("Timberland" or "The Company")), today announced that the Board of Directors
declared a quarterly cash dividend of $0.11 per common share. The Board of
Directors sets dividend payments on common shares each quarter based on the
regional economic outlook, capital requirements and other factors. The
Directors will continue in future periods to discuss and evaluate the dividend
amount based on these factors.
Timberland also today reported its financial results for the second fiscal
quarter ended March 31, 2009 which showed a strong 13% increase in operating
revenues while net earnings were reduced by increased loan loss reserves and
lower securities valuations. Timberland reported a net loss of $1.4 million or
($0.21) per diluted common share primarily as a result of increasing its
provision for loan losses to $5.2 million during the quarter and recognizing a
$1.0 million other than temporary impairment ("OTTI") charge on certain
securities the Bank is holding to maturity. Second quarter income available
for common shareholders, adjusted for the dividend of $208,000 payable to the
U.S. Treasury on preferred stock, was a net loss of $1.6 million or ($0.24)
per diluted common share compared to earnings of $1.6 million, or $0.24 per
diluted common share for the fiscal second quarter one year ago. For the first
six months of fiscal 2009, the net loss was $1.0 million and the income
available to common shareholders adjusted for the dividend payable to U.S.
Treasury was a net loss of $1.3 million or ($0.19) per diluted common share
compared to net income of $3.2 million, or $0.48 per diluted common share for
the first six months of fiscal 2008.
Record mortgage originations generated a 107% increase in gains from loan
sales during the second quarter and increased operating revenue 13%. Operating
revenues (excluding the OTTI expense) increased to $9.3 million for the
quarter ended March 31, 2009, compared to $8.2 million for the like quarter in
the prior fiscal year. Second quarter fixed rate mortgage loan originations
which were sold in the secondary market reached a record $60.7 million.
"Originating mortgage loans for sale into the secondary market continues to be
a strong source of revenues for the Bank," said Michael R. Sand, President and
CEO. "We expect to deliver just over $20 million of such loans in April and
have $32 million currently scheduled for May delivery to Freddie Mac." The
$5.2 million provision for loan losses significantly exceeded net loan charge-
offs of $1.2 million during the 2009 fiscal second quarter and increased the
ratio of loan loss reserves to loans to 2.13% at March 31, 2009, up 69 basis
points from the preceding quarter and 92 basis points from one year ago. "As
the regional economy continues to decline, we are seeing values in local real
estate fall, particularly for building lots and land held for development in
Pierce and King Counties," said Sand. "The present economic environment is as
challenging as any that most contemporary bankers have experienced. Even so,
we have begun to see movement in the purchase of fairly priced homes in our
markets. Three offers have been accepted this month for Bank owned
properties."
Fiscal Second Quarter 2009 Highlights: (quarter ended March 31, 2009 compared
to the quarter ended March 31, 2008)
-- Total assets increased 6% to $693 million from $655 million
-- Deposits increased 8% to $506 million
-- Capital levels remain exceptionally strong: Tier 1 Capital Ratio at
12.5%; Total Risk Based Capital at 16.3%
-- Revenues (excluding OTTI charge) increased 13% to $9.3 million from
$8.2 million.
-- Non-interest income (excluding OTTI charges) increased 87% to $2.9
million
-- Construction loans and land development loans declined 18% year over
year and 7% from the prior fiscal quarter.
Timberland Q2 Earnings
April 30, 2009
Page 2
-- Maintained the dividend to common shareholders at $0.11 per share
-- Tangible book value per common share was $9.26 and book value per
common share was $10.19 at quarter end
Capital Ratios and Asset Quality
Timberland Bancorp remains very well capitalized with a total risk-based
capital ratio of 16.3%. "Our participation in the Treasury's Capital Purchase
Program enhanced Timberland's already strong capital position and has
supported the Bank's lending initiatives this past quarter," stated Sand.
"Total loan originations increased to $98.3 million for the quarter from $43.9
million the prior quarter. Historically low interest rates continue to present
homeowners with a significant opportunity to reduce their monthly payments by
refinancing."
The non-performing assets ("NPAs") to total assets ratio was 3.32% at March
31, 2009 compared to 2.20% at December 31, 2008. During the quarter ended
March 31, 2009 net charge-offs were $1.17 million compared to $1.20 million
during the quarter ended December 31, 2008. The allowance for loan losses
totaled $12.05 million at March 31, 2009, or 2.13% of total loans compared to
$8.2 million, or 1.44% of loans receivable at December 31, 2008 and $6.7
million, or 1.21% of loans receivable one year ago.
Non-performing loans ("NPLs") increased to $19.9 million at March 31, 2009 and
were comprised of 49 loans and 34 credit relationships. Included in the NPLs
are:
-- 4 - Land development loans totaling $5.88 million (of which the
largest has a balance of $2.60 million)
-- 18 - Individual lot / land loans totaling $3.90 million (of which the
largest has a balance of $1.00 million)
-- 13 - Single family speculative loans totaling $3.78 million (of which
the largest has a balance of $451,000)
-- 6 - Commercial real estate loans totaling $3.61 million (of which the
largest has a balance of $1.39 million)
-- 1 - Multi-family loan for $1.39 million
-- 3 - Single family home loans totaling $595,000 (of which the largest
has a balance of $334,000)
-- 3 - Commercial business loans totaling $592,000
-- 1 - Single family construction loan for $123,000
Charge-offs for the quarter were associated with 12 relationships which
primarily involved construction and land development loans. In recognition of
a real estate market that reflected lower valuations during the past quarter
net charge-offs included the following:
-- $325,000 to reduce exposure to the speculative construction inventory
and land holdings of four contractors
-- $561,000 on two land development loans
-- $145,000 on loans secured by land
-- $100,000 on two home equity loans
-- $40,000 on a single family home
Other real estate owned ("OREO") and other repossessed assets increased to
$2.83 million at March 31, 2009 and consisted of nine single family residences
in Pierce County totaling $2.61 million, one single family residence in Kitsap
County with an $87,000 balance, three land loans in Grays Harbor County
totaling $126,000 and two vehicles totaling $6,000.
The dividend to common shareholders of $0.11 per share will be payable on May
29, 2009 to shareholders of record at May 15, 2009. This payment will be the
45th consecutive quarterly cash dividend that Timberland has paid on its
common stock.
Balance Sheet Management
Total assets increased 3% during the quarter to $693.0 million at March 31,
2009 from $671.6 million at December 31, 2008 reflecting the enhanced
liquidity from higher cash equivalents being maintained. Liquidity as measured
by cash equivalents and available for sale investments securities to
liabilities increased to 11.8% at March 31, 2009, from 8.5% at December 31,
2008. "We continue to work to improve the mix of loans in our portfolio,
specifically by reducing our exposure to construction and land development
loans, which have decreased more than $36 million year over year," said Dean
Brydon, Chief Financial Officer. Net loans receivable increased 1% year-over-
year to $554.4 million at March 31, 2009, from $547.8 million a year ago. The
net loan portfolio remained consistent with the preceding quarter as increases
in commercial real estate loans, one-to-
Timberland Q2 Earnings
April 30, 2009
Page 3
four family mortgage loans and land loans were offset by decreases in
construction and land development loans, multi-family loans, commercial
business loans and consumer loans. During the current quarter the one-to-four
family speculative construction portfolio decreased by 10% and the land
development portfolio decreased by 11%. "Combined, we have reduced our
exposure to construction and loan development loans by more than 18% from a
year ago," Brydon added.
LOAN PORTFOLIO
($ in thousands) March 31, 2009 Dec. 31, 2008 March 31, 2008
Amount Percent Amount Percent Amount Percent
-------- ------- -------- ------- -------- -------
Mortgage Loans:
One-to-four
family (1) $120,519 20% $114,169 19% $108,117 18%
Multi-family 22,472 4 26,449 4 37,932 6
Commercial 164,778 27 151,630 25 136,112 22
Construction and
land development 160,980 26 172,828 29 197,384 32
Land 67,388 11 63,241 10 55,158 9
-------- ------- -------- ------- -------- -------
Total mortgage
loans 536,137 88 528,317 87 534,703 87
Consumer Loans:
Home equity and
second mortgage 43,948 7 49,895 8 47,003 8
Other 10,767 2 9,838 2 10,888 2
-------- ------- -------- ------- -------- -------
Total consumer
loans 54,715 9 59,733 10 57,891 10
Commercial business
loans 15,624 3 18,700 3 20,177 3
-------- ------- -------- ------- -------- -------
Total loans $606,476 100% $606,750 100% $612,771 100%
Less:
Undisbursed
portion of
construction
loans in process (37,543) (38,350) (55,447)
Unearned income (2,511) (2,678) (2,782)
Allowance for
loan losses (12,049) (8,166) (6,697)
-------- -------- --------
Total loans
receivable, net $554,373 $557,556 $547,845
======== ======== ========
(1) Includes loans held for sale
CONSTRUCTION LOAN COMPOSITION
($ in
thousands) March 31, 2009 Dec. 31, 2008 March 31, 2008
Percent Percent Percent
of Loan of Loan of Loan
Amount Portfolio Amount Portfolio Amount Portfolio
-------- --------- -------- --------- -------- ---------
Custom and
owner /
builder $ 35,061 6% $ 43,832 7% $ 46,311 8%
Speculative 24,393 4 27,117 5 42,582 7
Commercial
real estate 47,642 8 43,043 7 56,964 8
Multi-family
(including
condominium) 29,979 5 32,117 5 21,941 7
Land
development 23,905 4 26,719 4 29,586 4
-------- -------- --------
Total
construction
loans $160,980 $172,828 $197,384
Loan originations increased to $98.3 million for the quarter ended March 31,
2009 from $43.9 million for preceding quarter and from $59.0 million for the
quarter ended one year ago. Increased loan originations in the current quarter
were primarily a result of increased demand to refinance one-to-four family
mortgage loans at historically low interest rates. Timberland Bank 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 March 31, 2009, fixed-rate one-to-four family
mortgage loan sales totaled $60.7 million.
Timberland's investment securities decreased by $3.1 million during the
quarter to $25.3 million at March 31, 2009 from $28.4 million at December 31,
2008, primarily as a result of a $1.7 million decline in the market value of
25 private label mortgage-backed securities, and regular amortization and
prepayments on mortgage-backed securities. Of the $1.7 million market value
adjustment on the held-to-maturity securities, $993,000 was expensed through
the income statement as OTTI charges and
Timberland Q2 Earnings
April 30, 2009
Page 3
$741,000 was adjusted through the other comprehensive loss equity account on
the balance sheet. The securities on which impairments are being recognized
were acquired with the in-kind redemption of the investment in the AMF family
of mutual funds in June 2008.
DEPOSIT BREAKDOWN
($ in thousands)
March 31, 2009 Dec. 31, 2008 March 31, 2008
Amount Percent Amount Percent Amount Percent
-------- ------- -------- ------- -------- -------
Non-interest
bearing $ 53,783 11% $ 51,775 11% $ 50,068 11%
N.O.W. checking 95,093 19 89,151 19 88,350 19
Savings 54,525 11 55,082 12 57,212 12
Money market 62,940 12 61,210 13 47,244 10
Certificates of
deposit under $100 139,863 28 129,867 27 137,529 29
Certificates of
deposit $100 and
over 73,703 14 64,281 13 74,376 16
Certificates of
deposit - brokered 25,991 5 25,975 5 15,058 3
-------- ------- -------- ------- -------- -------
Total deposits $505,898 100% $477,341 100% $469,837 100%
======== ======= ======== ======= ======== =======
Total deposits increased 6% to $505.9 million at March 31, 2009, from $477.3
million at December 31, 2008 primarily as a result of a $19.4 million increase
in certificate of deposit accounts, a $5.9 million increase in N.O.W. checking
accounts, a $2.0 million increase in non-interest bearing accounts and a $1.7
million increase in money market accounts.
Total shareholders' equity decreased $2.6 million to $88.3 million at March
31, 2009, from $90.9 million at December 31, 2008. The decrease in
shareholders' equity was primarily due to the net loss of $1.4 million,
dividends to common shareholders of $769,000, a $528,000 change in accumulated
other comprehensive loss and a $208,000 preferred stock dividend payable to
the U.S. Treasury.
Operating Results
Fiscal second quarter operating revenue (net interest income before provision
for loan losses, plus non-interest income excluding OTTI charges), increased
13% to $9.3 million compared to $8.2 million in the like quarter a year ago.
The increase was primarily a result of increased non-interest income from loan
sales (gain on sale of loans and servicing income recorded), increased non-
interest income from service charges on deposits and a $134,000 non-recurring
gain on the Bank's investment in bank owned life insurance (BOLI). For the
first six months of fiscal 2009, operating revenues (excluding OTTI charges)
increased 8% to $17.9 million from $16.6 million in the first half of fiscal
2008, with higher contributions from fee income and gain on sale of loans.
Net interest income before the provision for loan losses decreased 4% to $6.4
million for the quarter ended March 31, 2009, from $6.7 million for the like
quarter a year ago with interest and dividend income decreasing 10% and
interest expense decreasing 20%. The decrease in net interest income was
primarily due to an increase in non-accrual interest and margin compression
due to the lower interest rate environment. In spite of the challenging
interest rate environment, Timberland's net interest margin remained strong at
4.06% for the current quarter, a decrease of 13 basis points from 4.19% for
the quarter ended December 31, 2008 and a decrease of 38 basis points from
4.44% for the quarter a year ago.
For the first six months of fiscal 2009, net interest income before the
provision for loan losses decreased 5% to $12.9 million from $13.6 million in
the like period a year ago. Net interest margin year to date was 4.12%, down
40 basis points from a year ago.
In the second fiscal quarter Timberland recorded a provision of $5.2 million
to its allowance for loan losses, compared to $1.3 million in the preceding
quarter and $700,000 in the like quarter in the prior fiscal year. For the
first six months of fiscal 2009, the provision for loan losses totaled $6.5
million, compared to $1.9 million in the first six months of fiscal 2008. Net
charge-offs for the quarter ended March 31, 2009 totaled $1.17 million
compared to $1.20 million for the quarter ended December 31, 2008 and no
charge-offs for the quarter ended March 31, 2008. Year to date, net charge-
offs were $2.4 million compared to no charge-offs in the first six months one
year ago.
Timberland Q2 Earnings
April 30, 2009
Page 5
Timberland's total operating (non-interest) expenses increased 5% to $5.4
million for the second fiscal quarter from $5.2 million from the like quarter
one year ago and decreased 2% from $5.5 million from the immediately prior
quarter. Year to date, total operating expenses increased 9% to $11.0 million
from $10.1 million in the first half of fiscal 2008.
About Timberland Bancorp, Inc.
Timberland Bancorp operates 21 branches in the state of Washington in Hoquiam,
Aberdeen, Ocean Shores, Montesano, Elma, Olympia, Lacey, Tumwater, Yelm,
Puyallup, Edgewood, Tacoma, Spanaway (Bethel Station), Gig Harbor, Poulsbo,
Silverdale, Auburn, Winlock, and Toledo. Timberland Bank received a four-star
rating from Bauer Financial, a widely recognized independent bank rating
agency.
Timberland Q2 Earnings
April 30, 2009
Page 6
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
($ in thousands, except per share Three Months Ended
amounts) March 31, Dec. 31, March 31,
(unaudited) 2009 2008 2008
----------- ----------- -----------
Interest and dividend income
Loans receivable $ 9,419 $ 9,570 $ 10,358
Investments and mortgage-backed
securities 347 412 142
Dividends from mutual funds and
FHLB stock 9 10 395
Federal funds sold 5 24 27
Interest bearing deposits in banks 21 9 4
----------- ----------- -----------
Total interest and dividend income 9,801 10,025 10,926
Interest expense
Deposits 2,385 2,496 3,117
FHLB advances 999 1,065 1,132
Other borrowings -- -- 6
----------- ----------- -----------
Total interest expense 3,384 3,561 4,255
----------- ----------- -----------
Net interest income 6,417 6,464 6,671
Provision for loan losses 5,176 1,315 700
----------- ----------- -----------
Net interest income after provision
for loan losses 1,241 5,149 5,971
Non-interest income
Service charges on deposits 1,009 1,150 648
Gain on sale of loans, net 340 164 144
Other than temporary impairment on
securities (993) (1,170) --
Bank owned life insurance ("BOLI") net
earnings 256 121 119
Servicing income on loans sold 703 150 179
ATM transaction fees 306 288 302
Other 291 203 162
----------- ----------- -----------
Total non-interest income 1,912 906 1,554
Non-interest expense
Salaries and employee benefits 2,826 3,073 2,986
Premises and equipment 696 663 650
Advertising 229 191 268
Loss from other real estate operations 99 62 --
ATM expenses 161 125 142
Postage and courier 126 119 130
Amortization of core deposit intangible 54 54 62
State and local taxes 154 143 147
Professional fees 213 135 145
Other 884 972 676
----------- ----------- -----------
Total non-interest expense 5,442 5,537 5,206
Income (loss) before federal and
state income taxes (2,289) 518 2,319
Federal and state income taxes
(credit) (896) 157 734
----------- ----------- -----------
Net income (loss) $ (1,393) $ 361 $ 1,585
=========== =========== ===========
Preferred stock dividend payable $ 208 $ 18 $ --
----------- ----------- -----------
Net income (loss) avail. to common
shareholders: $ (1,601) $ 343 $ 1,585
Earnings (loss) per common share:
Basic $ (0.24) $ 0.05 $ 0.25
Diluted $ (0.24) $ 0.05 $ 0.24
Weighted average common shares
outstanding:
Basic 6,614,216 6,570,776 6,441,367
Diluted 6,614,216 6,578,080 6,560,806
Timberland Q2 Earnings
April 30, 2009
Page 7
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Six Months Ended
($ in thousands, except per share) March 31, March 31,
(unaudited) 2009 2008
----------- -----------
Interest and dividend income
Loans receivable $ 18,989 $ 21,121
Investments and mortgage-backed securities 760 391
Dividends from mutual funds and FHLB stock 19 818
Federal funds sold 28 58
Interest bearing deposits in banks 30 14
----------- -----------
Total interest and dividend income 19,826 22,402
Interest expense
Deposits 4,882 6,450
FHLB advances 2,063 2,348
Other borrowings 1 14
----------- -----------
Total interest expense 6,946 8,812
----------- -----------
Net interest income 12,880 13,590
Provision for loan losses 6,491 1,900
----------- -----------
Net interest income after provision for loan
losses 6,389 11,690
Non-interest income
Service charges on deposits 2,159 1,344
Gain on sale of loans, net 504 237
Other than temporary impairment on securities (2,163) --
BOLI net earnings 378 239
Servicing income on loans sold 853 297
ATM transaction fees 594 601
Other 493 334
----------- -----------
Total non-interest income 2,818 3,052
----------- -----------
Non-interest expense
Salaries and employee benefits 5,899 5,906
Premises and equipment 1,359 1,114
Advertising 420 450
Loss from real estate operations 160 --
ATM expenses 286 291
Postage and courier 244 247
Amortization of core deposit intangible 109 124
State and local taxes 297 298
Professional fees 348 292
Other 1,855 1,335
----------- -----------
Total non-interest expense 10,977 10,057
Income (loss) before federal and state income
taxes (1,770) 4,685
Federal income taxes (credit) (739) 1,484
----------- -----------
Net income (loss) $ (1,031) $ 3,201
=========== ===========
Preferred stock dividends payable $ 227 $ --
----------- -----------
Net income (loss) avail. to common shareholders $ (1,258) $ 3,201
Earnings (loss) per common share:
Basic $ (0.19) $ 0.49
Diluted $ (0.19) $ 0.48
Weighted average common shares outstanding:
Basic 6,592,257 6,478,600
Diluted 6,595,949 6,618,101
Timberland Q2 Earnings
April 30, 2009
Page 8
TIMBERLAND BANCORP, INC.
CONSOLIDATED BALANCE SHEET
($ in thousands, except per share amounts) (unaudited)
March 31, Dec. 31, March 31,
2009 2008 2008
---------- ---------- ----------
Assets
Cash equivalents:
Cash and due from financial
institutions $ 10,001 $ 12,049 $ 12,165
Interest-bearing deposits in other
banks 46,892 12,138 883
Federal funds sold -- 9,725 1,220
---------- ---------- ----------
56,893 33,912 14,268
Investments and mortgage-backed
securities:
Held to maturity 10,726 12,891 60
Available for sale 14,563 15,492 42,868
FHLB stock 5,705 5,705 5,705
---------- ---------- ----------
30,994 34,088 48,633
Loans receivable 558,644 563,312 549,593
Loans held for sale 7,778 2,410 4,949
Less: Allowance for loan losses (12,049) (8,166) (6,697)
---------- ---------- ----------
Net loans receivable 554,373 557,556 547,845
Accrued interest receivable 2,913 3,087 3,055
Premises and equipment 17,698 17,369 16,470
Other real estate owned ("OREO") and
other repossessed items 2,827 1,266 --
BOLI 13,280 13,023 12,654
Goodwill 5,650 5,650 5,650
Core deposit intangible 863 917 1,096
Mortgage servicing rights 1,912 1,336 1,145
Other assets 5,601 3,388 3,697
---------- ---------- ----------
Total Assets $ 693,004 $ 671,592 $ 654,513
========== ========== ==========
Liabilities and Shareholders' Equity
Non-interest-bearing deposits $ 53,783 $ 51,775 $ 50,068
Interest-bearing deposits 452,115 425,566 419,769
---------- ---------- ----------
Total deposits 505,898 477,341 469,837
FHLB advances 95,000 99,609 105,663
Other borrowings: repurchase agreements 689 714 815
Other liabilities and accrued expenses 3,074 2,985 3,356
---------- ---------- ----------
Total Liabilities 604,661 580,649 579,671
---------- ---------- ----------
Shareholders' Equity
Preferred stock - $.01 par value;
1,000,000 shares authorized; -- -- --
March 31, 2009 - 16,641 shares
issued and outstanding
Dec. 31, 2008 - 16,641 shares
issued and outstanding
Common stock - $.01 par value;
50,000,000 shares authorized; 71 70 69
March 31, 2009 - 7,045,036 shares
issued and outstanding
Dec. 31, 2008 - 7,028,015 shares
issued and outstanding
March 31, 2008 - 6,876,653 shares
issued and outstanding
Additional paid in capital 24,509 24,332 8,527
Unearned shares- Employee Stock Ownership
Plan (2,644) (2,710) (2,908)
Stock warrants 1,158 1,158 --
Retained earnings 66,684 69,000 70,125
Accumulated other comprehensive loss (1,435) (907) (971)
---------- ---------- ----------
Total Shareholders' Equity 88,343 90,943 74,842
---------- ---------- ----------
Total Liabilities and Shareholders'
Equity $ 693,004 $ 671,592 $ 654,513
========== ========== ==========
Timberland Q2 Earnings
April 30, 2009
Page 9
KEY FINANCIAL RATIOS AND DATA
($ in thousands, except per share amounts) (unaudited)
Three Months Ended
-------------------------------
March 31, Dec. 31, March 31,
2009 2008 2008
--------- --------- ---------
PERFORMANCE RATIOS:
Return (loss) on average assets (a) (0.82%) 0.22% 0.98%
Return (loss) on average equity (a) (6.10%) 1.88% 8.48%
Net interest margin (a) 4.06% 4.19% 4.44%
Efficiency ratio (b) 65.34% 75.13% 63.29%
Six Months Ended
-------------------------------
March 31, March 31,
2009 2008
--------- ---------
Return (loss) on average assets (a) (0.31%) 0.99%
Return (loss) on average equity (a) (2.46%) 8.55%
Net interest margin (a) 4.12% 4.52%
Efficiency ratio (b) 69.93% 60.43%
March 31, Dec. 31, March 31,
2009 2008 2008
--------- --------- ---------
ASSET QUALITY RATIOS:
Non-performing loans $ 19,867 $ 13,520 $ 6,388
Non-performing investment securities 310 -- --
OREO and other repossessed assets 2,827 1,266 --
--------- --------- ---------
Total non-performing assets $ 23,004 $ 14,786 $ 6,388
Non-performing assets to total
assets (c) 3.32% 2.20% 0.98%
Allowance for loan losses to
non-performing loans 61% 60% 105%
Troubled debt restructured loans $ 9,889 $ -- $ 2,491
CAPITAL RATIOS:
Tier 1 leverage capital 12.45% 13.07% 10.53%
Tier 1 risk based capital 15.00% 15.47% 12.08%
Total risk based capital 16.26% 16.73% 13.28%
BOOK VALUES:
Book value per common share (d) $ 10.18 $ 10.58 $ 10.88
Book value per common share (e) $ 10.72 $ 11.16 $ 11.53
Tangible book value per common
share (d) (f) $ 9.26 $ 9.65 $ 9.90
Tangible book value per common
share (e) (f) $ 9.75 $ 10.17 $ 10.49
(a) Annualized
(b) Calculation includes the OTTI charge incurred during the periods ended
December 31, 2008 and March 31, 2009.
Excluding OTTI charges the efficiency ratio was 58.38% for three
months ended March 31, 2009; 64.84% for the three months ended
December 31, 2008; and 61.46% for the six months ended March 31, 2009.
(c) Non-performing assets include non-accrual loans, non-accrual
investment securities, and other real estate owned and other
repossessed assets
(d) Calculation includes ESOP shares not committed to be released
(e) Calculation excludes ESOP shares not committed to be released
(f) Calculation subtracts goodwill and core deposit intangible from the
equity component
Timberland Q2 Earnings
April 30, 2009
Page 10
AVERAGE BALANCE SHEET: Three Months Ended
----------------------------------
March 31, Dec. 31, March 31,
2009 2008 2008
-------- -------- --------
Average total loans $568,981 $564,782 $546,349
Average total interest earning assets 632,479 617,284 600,872
Average total assets 678,750 663,339 647,851
Average total interest bearing deposits 434,896 430,259 411,465
Average FHLB advances and other
borrowings 97,786 100,436 107,572
Average shareholders' equity 91,368 76,702 74,741
Six Months Ended
----------------------------------
March 31, March 31,
2009 2008
--------- ---------
Average total loans $ 566,858 $ 542,295
Average total interest earning assets 624,898 601,754
Average total assets 671,001 649,225
Average total interest bearing deposits 432,657 410,542
Average FHLB advances and other
borrowings 99,124 107,253
Average shareholders' equity 83,951 74,873
Disclaimer
This report contains certain "forward-looking statements." The Company desires
to take advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and is including this statement for the express
purpose of availing itself of the protection of such safe harbor with forward
looking statements. These forward-looking statements may describe future plans
or strategies and include the Company's expectations of future financial
results. Forward-looking statements are subject to a number of risks and
uncertainties that might cause actual results to differ materially from stated
objectives. These risk factors include but are not limited to the effect of
interest rate changes, competition in the financial services market for both
deposits and loans as well as regional and general economic conditions. The
words "believe," "expect," "anticipate," "estimate," "project," and similar
expressions identify forward-looking statements. The Company's ability to
predict results or the effect of future plans or strategies is inherently
uncertain and undue reliance should not be placed on such statements.