Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp Earns $1.1 Million in Fiscal Third Quarter
Earnings Per Share of $0.12 for Quarter; Non-interest Income Increased 45%,
Total Risk Based Capital at 16.19%; Loan Loss Reserve Strengthened to 2.23% of
Loans; Total Loan Originations of $95 million for the Quarter
HOQUIAM, WA - July 28, 2009 -- Timberland Bancorp, Inc. (NASDAQ: TSBK)
("Timberland" or "the Company") today reported fiscal third quarter profits of
$1.06 million. Third quarter income available to common shareholders after
being adjusted for preferred stock dividends of $210,000 and preferred stock
discount accretion of $79,000 was $769,000, or $0.12 per diluted common share.
This compares to a net loss of $546,000, or ($0.08) per diluted common share,
for the quarter ended June 30, 2008 and a net loss of $1.60 million, or
($0.24) per diluted common share, for the quarter ended March 31, 2009.
For the first nine months of fiscal 2009, the Company reported net income of
$27,000. However, income available to common shareholders after adjusting for
the preferred stock dividend and the preferred stock discount accretion was a
loss of $489,000, or ($0.07) per diluted common share. This compares to net
income of $2.66 million or $0.40 per diluted common share for the first nine
months of fiscal 2008 when no preferred dividends were due.
Fiscal Third Quarter 2009 Highlights: (quarter ended June 30, 2009 compared
to the quarter ended June 30, 2008)
* Capital levels remain exceptionally strong: Tier 1 Capital Ratio at
12.30%; Total Risk Based Capital at 16.19%
* Revenues (excluding OTTI charges and the June 2008 loss on securities)
increased 7% to $9.0 million from $8.4 million
* Non-interest income (excluding OTTI charges and the June 2008 loss on
securities) increased 45% to $2.8 million
* Construction and land development loans decreased 30% year over year
and 12% from the prior fiscal quarter
* Tangible book value per common share was $9.36 at quarter end
* Full service branch in Chehalis opened in May 2009
"The economic recession has significantly impacted the Pacific Northwest,"
said Michael R. Sand, President and CEO. "There are numerous opinions
regarding the duration of this recession however, according to the July 13th
Current Economic Indicators Letter produced by the Puget Sound Economic
Forecaster, the Northwest may be seeing early signs of recovery." The
newsletter states: we may be witnessing the first signs of the regional
economic recovery. Over the three-month period ending in May, closed home
sales increased at a 28.9 percent annual rate, while residential building
permits rose at a 48.9 percent rate. Home prices fell at a 19.9 percent rate
between February and May but increased at a 15.3 percent rate between March
and May. More specifically, the average house price, after dropping from
$368,600 in February to $341,500 in March, rose to $350,200 in May. It is too
early to conclude that the housing market has found its way back, especially
considering the extremely low volume of home sales and housing permits at the
present time, but these are the kind of numbers that one would expect to see
around the turning point.'
"Possibly the authors of the above quote, the economists Conway and Pedersen,
are correct in their analysis. We remain cautiously optimistic that our
region will begin to climb out of one of the worst economic recessions this
country has experienced," Sand continued. "The upturn in home sales is
reducing the housing supply and low mortgage rates are contributing to better
affordability. With that said, we continue to see stress in our loan
portfolio, primarily in the construction and land related segments. We are
well positioned from a capital and a potential earnings perspective to succeed
during this downturn. Timberland retains excellent liquidity, substantial
capital and a diversified deposit base not dependent on brokered deposits."
Timberland Q2 Earnings
July 28, 2009
Page 2
Capital Ratios and Asset Quality
Timberland Bancorp remains very well capitalized with a total risk-based
capital ratio of 16.19% and a Tier 1 capital ratio of 12.30% at June 30, 2009.
The non-performing assets ("NPAs") to total assets ratio was 4.94% at June 30,
2009 compared to 3.32% at March 31, 2009. During the quarter ended March 31,
2009 net charge-offs were $609,000 compared to $1.17 million during the
quarter ended March 31, 2009. The allowance for loan losses totaled $12.4
million at June 30, 2009, or 2.23% of total loans compared to $12.0 million,
or 2.13% of loans receivable at March 31, 2009 and $7.1 million, or 1.26% of
loans receivable one year ago.
Non-performing loans ("NPLs") increased to $25.1 million at June 30, 2009 and
were comprised of 46 loans and 38 credit relationships. Included in the NPLs
are:
* 5 - Land development loans totaling $5.88 million of which the largest
has a balance of $2.12 million
* 2 - Condominium construction loans totaling $5.68 million of which the
largest has a balance of $4.29 million
* 8 - Commercial real estate loans totaling $5.50 million of which the
largest has a balance of $1.65 million
* 13 - Land loans totaling $3.38 million of which the largest has a
balance of $986,000
* 7 - One-to-four family home loans totaling $2.32 million of which the
largest loan has a balance of $995,000
* 7 - One-to-four family spec construction loans totaling $2.17 million
of which the largest loan has a balance of $546,000
* 2 - Second mortgage loans secured by liens on one-to-four family homes
totaling $92,000 of which the largest loan has a balance of $62,000
* 1 - Commercial business loan with a balance of $78,000 secured by a
lien on three condominium units
* 1 Equipment loan with a balance of $15,000
Since June 30, 2009 one land loan with a balance of $81,000 was brought
current and one condominium construction loan with a balance of $1.39 million
became other real estate owned ("OREO"). The OREO total at June 30, 2009 was
$7.70 million. The balance was comprised of 27 individual properties
representing 11 relationships. Eight of the properties have accepted earnest
money agreements on them which, if closed, will result in a $1.73 million
reduction in the OREO balance. The largest OREO property has a balance of
$2.26 million and consists of a 78 lot plat located in Richland Washington.
The Richland/Kennewick/Pasco market is currently one of Washington State's
better performing economic areas. Timberland continues to actively manage the
disposition of OREO properties and has seen increased buyer interest in OREO
properties.
Net charge-offs totaled $609,000 for the quarter ended June 30, 2009 and
included the following:
* $340,000 on one land development loan
* $215,000 on eight speculative construction loans
* $39,000 on two single family home loans
* $11,000 on a consumer auto loan
* $4,000 on six land loans
Balance Sheet Management
Total assets decreased 2% during the quarter to $675.7 million at June 30,
2009 from $693.0 million at March 31, 2009. The $17.3 million decrease in
total assets is primarily a result of a $12.9 million decrease in cash
equivalents and an $8.6 million decrease in net loans receivable. During the
quarter the Company used a portion of its excess liquidity to repay $26.0
million in brokered certificates of deposit. The Company continues to
maintain a high level of liquidity, both on balance sheet and through
off-balance sheet access to funds. Liquidity as measured by cash equivalents
and available for sale investments securities to liabilities increased to 9.9%
at June 30, 2009, from 7.2% one year ago. "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 $60
million year over year," said Dean Brydon, Chief Financial Officer. Although
loan originations totaled $94.8 million during the current quarter, net loans
receivable decreased 2% to $545.8 million at June 30, 2009, from $554.4
million at March 31, 2009. During the current quarter the one-to-four family
speculative construction portfolio
Timberland Q2 Earnings
July 28, 2009
Page 3
decreased by 21% and the land development portfolio decreased by 14%.
"Combined, we have reduced our exposure to construction and land development
loans by 30% from a year ago," Brydon added.
LOAN PORTFOLIO
($ in thousands) June 30, 2009 March 31, 2009 June 30, 2008
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
Mortgage Loans:
One-to-four family $110,338 19% $120,519 20% $105,791 17%
Multi-family 25,702 4 22,472 4 37,465 6
Commercial 178,941 30 164,778 27 140,785 23
Construction and land
development 142,006 24 160,980 26 202,029 32
Land 65,736 11 67,388 11 56,489 9
-------- --- -------- --- -------- ---
Total mortgage
loans 522,723 88 536,137 88 542,559 87
Consumer Loans:
Home equity and
second mortgage 41,950 7 43,948 7 46,771 7
Other 10,107 2 10,767 2 11,292 2
-------- --- -------- --- -------- ---
Total consumer
loans 52,057 9 54,715 9 58,063 9
Commercial business
loans 15,199 3 15,624 3 23,307 4
-------- --- -------- --- -------- ---
Total loans $589,979 100% $606,476 100% $623,929 100%
Less:
Undisbursed portion
of construction
loans in process (29,447) (37,543) (57,335)
Unearned income (2,326) (2,511) (2,865)
Allowance for loan
losses (12,440) (12,049) (7,076)
-------- -------- --------
Total loans receivable,
net $545,766 $554,373 $556,653
======== ======== ========
- ------------
(1) Includes loans held for sale
CONSTRUCTION LOAN COMPOSITION
($ in thousands) June 30, 2009 March 31, 2009 June 30, 2008
Percent Percent Percent
of Loan of Loan of Loan
Amount Portfolio Amount Portfolio Amount Portfolio
------ --------- ------ --------- ------ ---------
Custom and owner/
builder $ 34,373 6% $ 35,061 6% $ 48,384 8%
Speculative 19,332 3 24,393 4 36,979 6
Commercial real
estate 42,056 7 47,642 8 66,846 10
Multi-family
(including
condominium) 25,631 4 29,979 5 19,044 3
Land development 20,614 4 23,905 4 30,776 5
-------- -------- --------
Total construction
loans $142,006 $160,980 $202,029
Loan demand remained strong as loan originations totaled $94.8 million for the
quarter ended June 30, 2009 compared to $98.3 million for the preceding
quarter and $80.1 million for the quarter ended one year ago. Increased loan
originations in the past two quarters 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 June 30, 2009, fixed-rate one-to-four family mortgage loan sales totaled
$69.6 million compared to $60.7 million for the preceding quarter and $16.0
million for the quarter ended one year ago.
Timberland's investment securities decreased by $837,000 during the quarter to
$24.5 million at June 30, 2009 from $25.3 million at March 31, 2009, primarily
as a result of regular amortization and prepayments and a $125,000 credit
related other-than temporary-impairment ("OTTI") charge on 17 private label
mortgage-backed securities that were acquired in the in-kind redemption from
the AMF family of mutual funds in June 2008.
Timberland Q2 Earnings
July 28, 2009
Page 4
DEPOSIT BREAKDOWN
($ in thousands)
June 30, 2009 March 31, 2009 June 30, 2008
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
Non-interest bearing $ 50,153 10% $ 53,783 11% $ 50,701 11%
N.O.W. checking 102,186 21 95,093 19 90,476 19
Savings 56,303 11 54,525 11 58,604 12
Money market 61,992 13 62,940 12 48,082 10
Certificates of deposit
under $100 140,924 29 139,863 28 128,791 27
Certificates of deposit
$100 and over 75,861 16 73,703 14 77,343 16
Certificates of
deposit - brokered -- -- 25,991 5 25,937 5
-------- --- -------- --- ------- ---
Total deposits $487,419 100% $505,898 100% $479,934 100%
======== === ======== === ======== ===
Total deposits decreased 4% to $487.4 million at June 30, 2009, from $505.9
million at March 31, 2009 primarily as a result of a $26.0 million decrease in
brokered certificate of deposit ("CDs") accounts. Excluding brokered CDs,
deposits increased 2% to $487.4 million at June 30, 2009, from $479.9 million
at March 31, 2009. This increase was primarily due to an increase in N.O.W.
checking account balances.
Total shareholders' equity increased $644,000 to $89.0 million at June 30,
2009, from $88.3 million at March 31, 2009 primarily due to net income of
$1.06 million and a $474,000 reduction in accumulated other comprehensive
loss. These increases to shareholders' equity were partially offset by
dividends to common and preferred shareholders.
Operating Results
Fiscal third quarter operating revenue (net interest income before provision
for loan losses, plus non-interest income excluding OTTI charges and the June
2008 loss on the redemption of mutual funds), increased 7% to $9.0 million
compared to $8.4 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) and increased non-interest income
from service charges on deposits. For the first nine months of fiscal 2009,
operating revenues (excluding OTTI charges and loss on redemption of mutual
funds) increased 7% to $26.9 million from $25.1 million in the first nine
months of fiscal 2008. The increase was primarily a result of increased
non-interest income from loan sales, increased fee income on deposit accounts
and a $134,000 non-recurring gain from a change in the Bank's investment in
bank owned life insurance ("BOLI").
Net interest income before the provision for loan losses decreased 5% to $6.2
million for the quarter ended June 30, 2009, from $6.5 million for the like
quarter one year ago with interest and dividend income decreasing 7% and
interest expense decreasing 12%. 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
3.86% for the current quarter, a decrease of 20 basis points from 4.06% for
the quarter ended March 31, 2009 and a decrease of 37 basis points from 4.23%
for the quarter a year ago. The reversal of interest income on loans placed
on non-accrual status during the quarter ended June 30, 2009 reduced the net
interest margin by approximately 22 basis points.
For the first nine months of fiscal 2009, net interest income before the
provision for loan losses decreased 5% to $19.1 million from $20.1 million in
the like period a year ago. Net interest margin year to date was 4.03%, down
39 basis points from a year ago.
In the third fiscal quarter Timberland recorded a provision of $1.0 million to
its allowance for loan losses, compared to $5.2 million in the preceding
quarter and $500,000 in the like quarter in the prior fiscal year. For the
first nine months of fiscal 2009, the provision for loan losses totaled $7.5
million, compared to $2.4 million in the first nine months of fiscal 2008.
Net charge-offs for the quarter ended June 30, 2009 totaled $609,000 compared
to $1.17 million for the quarter ended March 31, 2009 and $121,000 for the
quarter ended June 30, 2008. Year to date, net charge-offs were $3.0 million
compared to $121,000 in the first nine months one year ago.
Timberland's total operating (non-interest) expenses increased 30% to $6.4
million for the third fiscal quarter from $4.9 million from the like quarter
one year ago and increased 17% from $5.4 million from the immediately prior
quarter. The increased
Timberland Q2 Earnings
July 28, 2009
Page 5
expenses during the current quarter were primarily due to increased FDIC
insurance expenses (including a special FDIC assessment of $300,000),
increased OREO related expenses and increased loan monitoring and collection
related expenses. Year to date, total operating expenses increased 16% to
$17.4 million from $15.0 million in the first nine months of fiscal 2008.
About Timberland Bancorp, Inc.
Timberland Bancorp operates 22 branches in the state of Washington in Hoquiam,
Aberdeen, Ocean Shores, Montesano, Elma, Olympia, Lacey, Tumwater, Yelm,
Puyallup, Edgewood, Tacoma, Spanaway (Bethel Station), Gig Harbor, Poulsbo,
Silverdale, Auburn, Chehalis, Winlock, and Toledo. Timberland Bank received a
four-star rating from Bauer Financial, a widely recognized independent bank
rating agency.
Timberland Q2 Earnings
July 28, 2009
Page 6
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Three Months
($ in thousands, except per Ended
share amounts) June 30, March 31, June 30,
(unaudited) 2009 2009 2008
------- -------- -------
Interest and dividend income
Loans receivable $9,240 $ 9,419 $ 9,825
Investments and mortgage-backed
securities 322 347 235
Dividends from mutual funds and FHLB stock 9 9 272
Federal funds sold 8 5 28
Interest bearing deposits in banks 32 21 8
------ ------- -------
Total interest and dividend income 9,611 9,801 10,368
Interest expense
Deposits 2,440 2,385 2,703
FHLB advances 979 999 1,161
Other borrowings - - -- 4
------ ------- -------
Total interest expense 3,419 3,384 3,868
------ ------- -------
Net interest income 6,192 6,417 6,500
Provision for loan losses 1,000 5,176 500
------ ------- -------
Net interest income after provision
for loan losses 5,192 1,241 6,000
Non-interest income
Total OTTI on securities (522) (1,742) --
Less: portion recorded as other
comprehensive loss 397 749 --
------ ------- -------
Net OTTI loss recognized (125) (993) --
Service charges on deposits 1,066 1,009 948
Gain on sale of loans, net 414 340 127
Loss on redemption of mutual funds -- -- (2,822)
Bank owned life insurance ("BOLI")
net earnings 123 256 121
Servicing income on loans sold 607 703 234
ATM transaction fees 326 306 329
Other 263 291 170
------ ------- -------
Total non-interest income 2,674 1,912 (893)
Non-interest expense
Salaries and employee benefits 2,919 2,826 2,812
Premises and equipment 719 696 519
Advertising 252 229 228
OREO and other repossessed items expense 391 99 - -
ATM expenses 162 161 136
FDIC insurance expense 400 99 25
Postage and courier 203 126 129
Amortization of core deposit intangible 54 54 62
State and local taxes 152 154 149
Professional fees 199 213 175
Other 922 785 684
------ ------- -------
Total non-interest expense 6,373 5,442 4,919
Income (loss) before federal and state
income taxes 1,493 (2,289) 188
Provision (benefit) for federal and
state income taxes 435 (896) 734
------ ------- -------
Net income (loss) $1,058 $(1,393) $ (546)
====== ======= ======
Timberland Q2 Earnings
July 28, 2009
Page 7
Preferred stock dividends $ 210 $ 208 $ --
Preferred stock discount accretion 79 -- --
------ ------- -------
Net income (loss) avail. to common
shareholders: $ 769 $(1,601) $ (546)
====== ======= =======
Earnings (loss) per common share:
Basic $ 0.12 $ (0.24) $(0.08)
Diluted $ 0.12 $ (0.24) $(0.08)
Weighted average common shares outstanding:
Basic 6,645,229 6,614,216 6,446,303
Diluted 6,645,229 6,614,216 6,524,818
Timberland Q2 Earnings
July 28, 2009
Page 8
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Nine Months Ended
($ in thousands, except per share) June 30, June 30,
(unaudited) 2009 2008
------- -------
Interest and dividend income
Loans receivable $28,229 $30,947
Investments and mortgage-backed securities 1,081 625
Dividends from mutual funds and FHLB stock 29 1,090
Federal funds sold 36 87
Interest bearing deposits in banks 62 22
------- -------
Total interest and dividend income 29,437 32,771
Interest expense
Deposits 7,321 9,153
FHLB advances 3,042 3,510
Other borrowings 1 18
------- -------
Total interest expense 10,364 12,681
------- -------
Net interest income 19,073 20,090
Provision for loan losses 7,491 2,400
------- -------
Net interest income after provision for
loan losses 11,582 17,690
Non-interest income
Total OTTI on securities (2,685) --
Less: portion recorded as other comprehensive loss 397 --
Net OTTI loss recognized (2,288) --
------- -------
Service charges on deposits 3,224 2,292
Gain on sale of loans, net 918 364
Loss on redemption of mutual funds -- (2,822)
BOLI net earnings 501 360
Servicing income on loans sold 1,460 531
ATM transaction fees 920 930
Other 756 504
------- -------
Total non-interest income 5,491 2,159
Non-interest expense
Salaries and employee benefits 8,818 8,718
Premises and equipment 2,079 1,634
Advertising 672 678
OREO and other repossessed items expense 552 --
ATM expenses 448 426
FDIC insurance expense 586 51
Postage and courier 448 376
Amortization of core deposit intangible 163 186
State and local taxes 449 447
Professional fees 547 467
Other 2,589 1,993
------- -------
Total non-interest expense 17,351 14,976
Income (loss) before federal and state income taxes (278) 4,873
Provision (benefit) for federal and state income taxes (305) 2,218
------- -------
Net income $ 27 $ 2,655
======= =======
Timberland Q2 Earnings
July 28, 2009
Page 9
Preferred stock dividends $ 437 $ --
Preferred stock discount accretion 79 --
------- -------
Net income (loss) avail. to common shareholders $ (489) $ 2,655
Earnings (loss) per common share:
Basic $ (0.07) $ 0.41
Diluted $ (0.07) $ 0.40
Weighted average common shares outstanding:
Basic 6,609,915 6,467,874
Diluted 6,609,915 6,587,120
Timberland Q2 Earnings
July 28, 2009
Page 10
TIMBERLAND BANCORP, INC.
CONSOLIDATED BALANCE SHEET
($ in thousands, except per share amounts)
(unaudited) June 30, March 31, June 30,
Assets 2009 2009 2008
-------- -------- --------
Cash equivalents:
Cash and due from financial institutions $ 12,118 $ 10,001 $ 14,776
Interest-bearing deposits in other banks 31,853 46,892 3,196
Federal funds sold - - - - 5,565
-------- -------- --------
43,971 56,893 23,537
Investments and mortgage-backed securities:
Held to maturity 10,554 10,726 14,684
Available for sale 13,898 14,563 18,828
FHLB stock 5,705 5,705 5,705
-------- -------- --------
30,157 30,994 39,217
Loans receivable 555,961 558,644 562,664
Loans held for sale 2,245 7,778 1,065
Less: Allowance for loan losses (12,440) (12,049) (7,076)
-------- -------- --------
Net loans receivable 545,766 554,373 556,653
Accrued interest receivable 2,918 2,913 2,932
Premises and equipment 18,174 17,698 16,286
OREO and other repossessed items 7,698 2,827 879
BOLI 13,403 13,280 12,775
Goodwill 5,650 5,650 5,650
Core deposit intangible 809 863 1,034
Mortgage servicing rights 2,366 1,912 1,277
Other assets 4,812 5,601 3,514
-------- -------- --------
Total Assets $675,724 $693,004 $663,754
======== ======== ========
Liabilities and Shareholders' Equity
Non-interest-bearing deposits $ 50,153 $ 53,783 $ 50,697
Interest-bearing deposits 437,266 452,115 429,237
-------- -------- --------
Total deposits 487,419 505,898 479,934
FHLB advances 95,000 95,000 104,645
Other borrowings: repurchase agreements 666 689 1,007
Other liabilities and accrued expenses 3,652 3,074 3,393
-------- -------- --------
Total Liabilities 586,737 604,661 588,979
-------- -------- --------
Shareholders' Equity
Preferred stock - $.01 par value; 1,000,000
shares authorized; 15,487 15,437 --
June 30, 2009 - 16,641 shares issued and
outstanding
March 31, 2009 - 16,641 shares issued and
outstanding
Common stock - $.01 par value; 50,000,000
shares authorized; 10,328 10,301 8,775
June 30, 2009 - 7,045,036 shares issued and
outstanding
March 31, 2009 - 7,045,036 shares issued and
outstanding
June 30, 2008 - 6,901,453 shares issued and
outstanding
Unearned shares- Employee Stock Ownership Plan (2,578) (2,644) (2,842)
Retained earnings 66,802 66,775 68,822
Accumulated other comprehensive income (loss) (1,052) (1,526) 20
-------- -------- --------
Total Shareholders' Equity 88,987 88,343 74,775
-------- -------- --------
Total Liabilities and Shareholders' Equity $675,724 $693,004 $663,754
======== ======== ========
Timberland Q2 Earnings
July 28, 2009
Page 11
KEY FINANCIAL RATIOS AND DATA
($ in thousands, except per share amounts) (unaudited)
Three Months Ended
----------------------------------
June 30, March 31, June 30,
2009 2009 2008
------- -------- -------
PERFORMANCE RATIOS:
Return (loss) on average assets (a) 0.61% (0.82%) (0.33%)
Return (loss) on average equity (a) 4.79% (6.10%) (2.91%)
Net interest margin (a) 3.86% 4.06% 4.23%
Efficiency ratio (b) 71.88% 65.34% 87.73%
Nine Months Ended
---------------------------------
June 30, June 30,
2009 2008
------- -------
Return on average assets (a) 0.01% 0.54%
Return on average equity (a) 0.04% 4.73%
Net interest margin (a) 4.03% 4.42%
Efficiency ratio (b) 70.64% 67.31%
June 30, March 31, June 30,
2009 2009 2008
------- -------- -------
ASSET QUALITY RATIOS:
Non-performing loans $25,113 $19,867 $ 9,391
Non-performing investment securities 572 310 --
OREO and other repossessed assets 7,698 2,827 879
------- ------- -------
Total non-performing assets $33,383 $23,004 $10,270
Non-performing assets to total assets (c) 4.94% 3.32% 1.55%
Allowance for loan losses to non-
performing loans 50% 61% 75%
Troubled debt restructured loans $ -- $ -- $ --
Past due 90 days and still accruing $ 830 $ -- $ --
CAPITAL RATIOS:
Tier 1 leverage capital 12.30% 12.47% 10.41%
Tier 1 risk based capital 14.93% 15.01% 12.08%
Total risk based capital 16.19% 16.27% 13.33%
BOOK VALUES:
Book value per common share (d) $ 10.42 $ 10.18 $ 10.83
Book value per common share (e) $ 10.80 $ 10.72 $ 11.46
Tangible book value per common share
(d) (f) $ 9.36 $ 9.26 $ 9.87
Tangible book value per common share
(e) (f) $ 9.84 $ 9.75 $ 10.44
- -----------------
(a) Annualized
(b) Calculation includes the OTTI charge incurred during the periods ended
March 31, 2009 and June 30, 2009. Excluding OTTI charges the efficiency
ratio was 70.88% for three months ended June 30, 2009; 58.38% for the
three months ended March 31, 2009; and 64.62% for the nine months ended
June 30, 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
July 28, 2009
Page 12
AVERAGE BALANCE SHEET: Three Months Ended
----------------------------------
June 30, March 31, June 30,
2009 2009 2008
------- -------- -------
Average total loans $562,105 $568,981 $560,515
Average total interest earning assets (a) 641,468 632,479 614,383
Average total assets 688,411 678,750 659,998
Average total interest bearing deposits 450,974 434,896 415,495
Average FHLB advances and other borrowings 95,612 97,786 110,903
Average shareholders' equity 88,433 91,368 74,956
Nine Months Ended
----------------------------------
June 30, June 30,
2009 2008
------- -------
Average total loans $565,274 $548,346
Average total interest earning assets (a) 630,421 605,949
Average total assets 676,809 652,804
Average total interest bearing deposits 438,762 412,904
Average FHLB advances and other borrowings 97,954 109,794
Average shareholders' equity 85,445 74,901
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(a) Includes loans on non-accrual status
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.