Exhibit 99.1
Timberland Bancorp, Inc.
Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
----------------------
Timberland Bancorp Announces Fiscal Fourth Quarter and Year End Results
HOQUIAM, WA November 6, 2009 -- Timberland Bancorp, Inc. (NASDAQ: TSBK)
("Timberland" or "the Company") today reported fiscal fourth quarter net
income of $47,000, or $0.01 per diluted common share. Income available to
common shareholders after adjusting for the preferred stock dividend and the
preferred stock discount accretion was a loss of $(209,000), or $(0.03) per
diluted common share. This compares to net income of $1.35 million, or $0.21
per diluted common share, for the quarter ended September 30, 2008 and net
income available to common shareholders of $769,000, or $0.12 per diluted
common share, for the quarter ended June 30, 2009.
For fiscal 2009, the Company reported net income of $73,000. Income available
to common shareholders after adjusting for the preferred stock dividend and
the preferred stock discount accretion was a loss of $(699,000), or $(0.17)
per diluted common share. This compares to net income of $4.01 million or
$0.61 per diluted common share for fiscal 2008 when no preferred dividends
were due.
The Board of Directors of Timberland also announced that a cash dividend of
$0.03 per common share would be paid on November 29, 2009 to shareholders of
record on November 16, 2009. This payment will be the 47th consecutive
quarterly cash dividend that Timberland has paid on its common stock.
Fiscal Fourth Quarter 2009 Highlights:
* Capital levels remain exceptionally strong: Total Risk Based Capital
at 15.94%; Tier 1 Capital Ratio at 12.29%
* Net interest margin increased to 3.93% from 3.86% for the immediately
prior quarter
* Deposits increased by 4% during the quarter; 83% of the increase was
due to growth in N.O.W. checking account balances
* Core deposits increased 6% year over year and currently account for
84% of total deposits
* Total assets increased by 4% during the quarter
* Construction and land development loans decreased 25% year over year
* Loan loss reserves strengthened to 2.52% of total loans
* Core operating profits (pre-tax, pre-provision and pre-OTTI charges)
increased to $3.6 million; an increase of 39% from the immediately
prior quarter and 5% from the same quarter one year ago
"We continue to generate solid core revenues and core operating profits,"
stated Michael R. Sand, President and CEO. "Net interest income, net interest
margin and core deposits increased moderately compared to the prior quarter.
Deposit inflows added more than $18.2 million to our deposit base with
increases in N.O.W. checking account balances representing 83% of the growth.
"We have diminishing exposure to construction related credits particularly
those in the residential sector possessing a speculative component. While our
total exposure to construction related credits decreased 25% from September
30, 2008 the decrease in residential speculative construction credits
decreased by 45%," Sand stated. "We continue to work through the problem
loans in our portfolio. During the quarter we sold nine OREO properties
representing $2.1 million of the June 30, 2009 OREO balance. Our capital
remains exceptionally strong with total risk based capital of 15.94%." "We
are well positioned to manage through the remainder of the economic downturn
affecting the Northwest," Sand also stated.
Timberland Q4 Earnings
November 6, 2009
Page 2
Capital Ratios and Asset Quality
Timberland Bancorp remains very well capitalized with a total risk-based
capital ratio of 15.94% and a Tier 1 capital ratio of 12.29% at September 30,
2009. The tangible capital to tangible assets ratio was 11.73% on the same
date.
The non-performing assets ("NPAs") to total assets ratio was 5.40% at
September 30, 2009 compared to 4.88% at June 30, 2009. During the quarter
ended September 30, 2009 net charge-offs were $1.47 million compared to
$609,000 during the quarter ended June 30, 2009. Timberland recorded a $3.24
million provision to its allowance for loan losses during the current quarter.
The allowance for loan losses totaled $14.2 million at September 30, 2009, or
2.52% of total loans compared to $12.4 million, or 2.23% of loans receivable
at June 30, 2009 and $8.1 million, or 1.42% of loans receivable one year ago.
Non-performing loans ("NPLs") increased to $29.3 million at September 30, 2009
from $25.1 million at June 30, 2009 and were comprised of 63 loans and 49
credit relationships. Included in the NPLs are:
* 8- Land development loans totaling $8.80 million of which the largest
has a balance of $2.24 million
* 17 - Land loans totaling $5.35 million of which the largest has a
balance of $977,000
* 7 - Commercial real estate loans totaling $5.00 million of which the
largest has a balance of $1.65 million
* 2 - Condominium construction loans totaling $4.37 million of which the
largest has a balance of $3.74 million
* 8 - One-to-four family spec construction loans totaling $3.48 million
of which the largest has a balance of $791,000
* 7 - One-to-four family home loans totaling $1.34 million of which the
largest loan has a balance of $315,000
* 3 - One-to-four family owner / builder construction loans totaling
$628,000 of which the largest has a balance of $270,000
* 6 - Second mortgage loans secured by liens on one-to-four family homes
totaling $205,000 of which the largest loan has a balance of $56,000
* 2 - Commercial business loans totaling $65,000
* 3 - Consumer loans totaling $53,000
Net charge-offs totaled $1.47 million for the quarter ended September 30, 2009
and included the following:
* $481,000 on two land development loans
* $312,000 on five land loans
* $295,000 on a condominium construction loan
* $234,000 on two commercial real estate loans
* $69,000 on two speculative construction loans
* $62,000 on a home equity loan
* $12,000 on three single family home loans
Other real estate owned ("OREO") totaled $8.19 million at September 30, 2009
compared to $7.70 million at June 30, 2009. The balance was comprised of 26
individual properties representing 14 relationships. During the quarter nine
OREO properties were sold. These nine OREO properties represented $2.16
million of the OREO balance reported at June 30, 2009. Six additional OREO
properties have earnest money agreements which, if closed, will result in a
$1.4 million reduction in the OREO balance. The largest OREO property has a
balance of $2.31 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 observed increased
buyer interest in OREO properties.
Balance Sheet Management
Total assets increased by 4% during the quarter to $702.5 million at September
30, 2009 from $675.5 million at June 30, 2009. The $27.1 million increase in
total assets was primarily a result of a $25.7 million increase in cash
equivalents and a $1.4 million increase in net loans receivable. 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 13.5% at September 30, 2009, from 9.9% one year ago.
Timberland Q4 Earnings
November 6, 2009
Page 3
Net loans receivable increased by $1.4 million during the quarter to $547.2
million at September 30, 2009. The increase was primarily due to a $9.3
million increase in commercial real estate loans, which was partially offset
by a $2.3 million decrease in construction and land development loans. "We
continue to improve the mix of loans in our portfolio," said Dean Brydon,
Chief Financial Officer. "We have reduced our exposure to construction and
land development loans by $47 million, year over year." During the current
quarter the one-to-four family speculative construction portfolio decreased by
12% and the land development portfolio decreased by 7%. During the full
fiscal year, the one-to-four family speculative construction portfolio
decreased by 45% and the land development portfolio decreased by 32%.
"Overall, we have reduced our total exposure to construction and land
development loans by 25% from one year ago," Brydon added.
LOAN PORTFOLIO
($ in thousands) Sept. 30, 2009 June 30, 2009 Sept. 30, 2008
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
Mortgage Loans:
One-to-four family $110,556 19% $110,338 19% $112,299 18%
Multi-family 25,638 4 25,702 4 25,927 4
Commercial 188,205 32 178,941 30 146,223 24
Construction and land
development 139,728 23 142,006 24 186,344 31
Land 65,642 11 65,736 11 60,701 10
-------- --- -------- --- -------- ---
Total mortgage loans 529,769 89 522,723 88 531,494 87
Consumer Loans:
Home equity and
second mortgage 41,746 7 41,950 7 48,690 8
Other 9,827 2 10,107 2 10,635 2
-------- --- -------- --- -------- ---
Total consumer loans 51,573 9 52,057 9 59,325 10
Commercial business
loans 13,775 2 15,199 3 21,018 3
-------- --- -------- --- -------- ---
Total loans $595,117 100% $589,979 100% $611,837 100%
Less:
Undisbursed portion
of construction loans
in process (31,298) (29,447) (43,353)
Unearned income (2,439) (2,326) (2,747)
Allowance for loan
losses (14,172) (12,440) (8,050)
-------- -------- --------
Total loans receivable,
net $547,208 $545,766 $557,687
======== ======== ========
CONSTRUCTION LOAN COMPOSITION
($ in thousands) Sept. 30, 2009 June 30, 2009 Sept. 30, 2008
Percent Percent Percent
of Loan of Loan of Loan
Amount Portfolio Amount Portfolio Amount Portfolio
------ --------- ------ --------- ------ ---------
Custom and owner /
builder $ 35,414 6% $ 34,373 6% $ 47,168 8%
Speculative 16,959 3 19,332 3 30,895 5
Commercial real
estate 49,397 8 42,056 7 39,620 6
Multi-family
(including
condominium) 18,800 3 25,631 4 40,509 7
Land development 19,158 3 20,614 4 28,152 5
-------- -------- --------
Total construction
loans $139,728 $142,006 $186,344
Loan originations decreased during the current quarter as the demand to
refinance one-to-four family mortgage loans declined. Loan originations
totaled $49.5 million for the quarter ended September 30, 2009 compared to
$94.8 million for the preceding quarter and $50.0 million for the quarter
ended one year ago. Timberland continues to sell fixed rate one-to-four family
mortgage loans into the secondary market for asset liability management
purposes and to generate non-interest income. During the quarter ended
September 30, 2009, fixed-rate one-to-four family mortgage loan sales totaled
$21.7 million compared to $69.6 million for the preceding quarter and $9.4
million for the quarter ended one year ago.
Timberland Q4 Earnings
November 6, 2009
Page 4
Timberland's investment securities decreased by $2.2 million during the
quarter to $21.9 million at June 30, 2009 from $24.1 million at June 30, 2009,
primarily as a result of regular amortization and prepayments and an $857,000
credit related other-than-temporary-impairment ("OTTI") charge on private
label mortgage-backed securities that were acquired in the in-kind redemption
from the AMF family of mutual funds in June 2008.
DEPOSIT BREAKDOWN
($ in thousands)
Sept. 30, 2009 June 30, 2009 Sept. 30, 2008
Amount Percent Amount Percent Amount Percent
-------- ------- -------- ------- -------- -------
Non-interest bearing $ 50,295 10% $ 50,153 10% $ 51,955 11%
N.O.W. checking 117,357 23 102,186 21 90,468 18
Savings 58,609 12 56,303 11 56,391 11
Money market 62,478 12 61,992 13 70,379 14
Certificates of deposit
under $100 135,242 27 140,924 29 130,313 26
Certificates of deposit
$100 and over 77,926 15 75,861 16 73,107 15
Certificates of
deposit - brokered 3,754 1 -- -- 25,959 5
-------- --- -------- --- -------- ---
Total deposits $505,661 100% $487,419 100% $498,572 100%
======== === ======== === ======== ===
Total deposits increased by 4% to $505.7 million at September 30, 2009, from
$487.4 million at June 30, 2009 primarily as a result of a $15.2 million
increase in N.O.W. checking account balances and a $2.3 million increase in
savings account balances. Timberland had no true brokered funds in its
deposit base at September 30, 2009. The $3.75 million noted as brokered
deposits consisted of reciprocal deposits in the Certificate of Deposits
Account Registry Service ("CDARS") program.
Total shareholders' equity decreased $685,000 to $88.1 million at September
30, 2009, from $88.8 million at June 30, 2009. The decrease was primarily due
to the payment of $630,000 in dividends to common and preferred shareholders
and a $171,000 increase in accumulated other comprehensive loss. These items
were partially offset by net income of $47,000.
Operating Results
Fiscal fourth quarter operating revenue (net interest income before provision
for loan losses, plus non-interest income excluding OTTI charges), increased
by 2% to $9.0 million compared to $8.9 million in the like quarter a year ago.
The increase was primarily a result of increased non-interest income, which
was partially offset by a decrease in net interest income. The increased
non-interest income was primarily due to a $174,000 increase in gains on sale
of loans, a $169,000 valuation recovery on the Bank's mortgage servicing
rights ("MSRs") and $139,000 in income recorded for property easements sold.
In addition, the Bank recorded a $337,000 death claim benefit from its bank
owned life insurance ("BOLI") policies.
For fiscal 2009, operating revenues (excluding OTTI charges and loss on
redemption of mutual funds) increased by 6% to $35.9 million from $33.9
million in fiscal 2008. The increase was primarily a result of increased
non-interest income, which was partially offset by a decrease in net interest
income. The increased non-interest income was primarily due to a $1.8 million
increase in gain on sale of loans, an $819,000 increase in fee income on
deposit accounts and $139,000 in income for property easements sold. In
addition BOLI income was increased due to a $337,000 death claim benefit and a
$134,000 gain from moving a number of the Bank's BOLI insurance policies to a
new insurance carrier.
Net interest income before the provision for loan losses decreased by 9% to
$6.2 million for the quarter ended September 30, 2009, from $6.8 million for
the like quarter one year ago with interest and dividend income decreasing by
11% and interest expense decreasing by 16%. The decrease in net interest
income was primarily due to an increase in loans placed on non-accrual status
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 3.93% for the current quarter; an increase of 7 basis
points from 3.86% for the quarter ended June 30, 2009 and a decrease of 43
basis points from 4.36% for the quarter a year ago. The reversal of interest
income on loans placed on non-accrual status during the quarter ended
September 30, 2009 reduced the net interest margin by approximately 16 basis
points.
Timberland Q4 Earnings
November 6, 2009
Page 5
For fiscal 2009, net interest income before the provision for loan losses
decreased by 6% to $25.3 million from $26.9 million in the like period a year
ago. Net interest margin for the year was 4.01%, down 40 basis points from
one year ago.
In the fourth fiscal quarter Timberland recorded a $3.2 million provision to
its allowance for loan losses, compared to $1.0 million in the preceding
quarter and $1.5 million in the like quarter in the prior fiscal year. For
fiscal 2009, the provision for loan losses totaled $10.7 million, compared to
$3.9 million for fiscal 2008. Net charge-offs for the quarter ended September
30, 2009 totaled $1.47 million compared to $609,000 for the quarter ended June
30, 2009 and $526,000 for the quarter ended September 30, 2008. For fiscal
2009, net charge-offs were $4.4 million compared to $647,000 for fiscal 2008.
Timberland's total operating (non-interest) expenses decreased slightly to
$5.39 million for the fourth fiscal quarter from $5.40 million from the like
quarter one year ago and decreased by 15% from $6.37 million for the
immediately prior quarter. Contributing to the decreased quarterly expense
was a capital gain on the sale of bank owned property, which reduced premises
and equipment expense by $235,000. The Bank sold a portion of its Edgewood
branch office property in lieu of an eminent domain action to facilitate a
road widening project in Edgewood, Washington.
For fiscal 2009, total operating expenses increased by 12% to $22.7 million
from $20.4 million for fiscal 2008. The increased expenses during the current
year were primarily due to increased FDIC insurance expenses (including an
FDIC special assessment of $300,000), increased OREO related expenses,
increased premises and equipment expenses, increase salaries and employee
benefits, and increased loan monitoring and collection related expenses.
In the fourth fiscal quarter Timberland's federal income tax benefit was
increased by approximately $180,000 due to adjustments made to the Company's
deferred tax asset valuation allowance for a previously non-deductible capital
loss carry forward related to the 2008 mutual fund redemption.
About Timberland Bancorp, Inc.
Timberland Bancorp operates 22 branches in the state of Washington in Hoquiam,
Aberdeen, Ocean Shores, Montesano, Elma, Olympia, Lacey, Tumwater, Yelm,
Puyallup, Edgewood, Tacoma, Spanaway (Bethel Station), Gig Harbor, Poulsbo,
Silverdale, Auburn, Chehalis, Winlock, and Toledo. Timberland Bank received a
rating of three and a half stars from Bauer Financial, a widely recognized
independent bank rating agency.
Timberland Q4 Earnings
November 6, 2009
Page 6
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Three Months Ended
($ in thousands, except per share amounts) Sept. 30, June 30, Sept. 30,
(unaudited) 2009 2009 2008
------- ------- -------
Interest and dividend income
Loans receivable $ 9,020 $ 9,240 $ 9,977
Investments and mortgage-backed securities 297 322 439
Dividends from mutual funds and FHLB stock 9 9 33
Federal funds sold 1 8 104
Interest bearing deposits in banks 37 32 14
------- ------- -------
Total interest and dividend income 9,364 9,611 10,567
Interest expense
Deposits 2,150 2,440 2,609
FHLB advances 990 979 1,121
Other borrowings - - -- 2
------- ------- -------
Total interest expense 3,140 3,419 3,732
------- ------- -------
Net interest income 6,224 6,192 6,835
Provision for loan losses 3,243 1,000 1,500
------- ------- -------
Net interest income after provision for
loan losses 2,981 5,192 5,335
Non-interest income
Total OTTI on securities (1,869) (881) --
Less: portion recorded as other
comprehensive loss 1,012 756 --
------- ------- -------
Net OTTI loss recognized (857) (125) --
Service charges on deposits 1,088 1,066 1,201
Gain on sale of loans, net 357 1,170 183
Bank owned life insurance ("BOLI") net
earnings 464 123 126
Servicing income on loans sold 27 20 23
Valuation recovery (allowance) on MSRs 169 (169) --
ATM transaction fees 342 326 321
Other 345 263 165
------- ------- -------
Total non-interest income 1,935 2,674 2,019
Non-interest expense
Salaries and employee benefits 2,983 2,919 2,852
Premises and equipment 496 719 674
Advertising 224 252 218
OREO and other repossessed items expense 91 391 (4)
ATM expenses 164 162 150
FDIC insurance expense 192 400 79
Postage and courier 101 203 138
Amortization of core deposit intangible 54 54 62
State and local taxes 154 152 175
Professional fees 198 199 211
Other 731 922 842
------- ------- -------
Total non-interest expense 5,388 6,373 5,397
Income (loss) before federal and state
income taxes (472) 1,493 1,957
Provision (benefit) for federal and state
income taxes (519) 435 607
------- ------- -------
Net income $ 47 $ 1,058 $ 1,350
======= ======= =======
Timberland Q4 Earnings
November 6, 2009
Page 7
Preferred stock dividends $ 206 $ 210 $ --
Preferred stock discount accretion 50 79 --
------- ------- -------
Net income (loss) avail. to common
shareholders $ (209) $ 769 $ 1,350
======= ======= =======
Earnings (loss) per common share:
Basic $ (0.03) $ 0.12 $ 0.21
Diluted $ (0.03) $ 0.12 $ 0.21
Weighted average common shares outstanding:
Basic 6,655,479 6,645,229 6,475,385
Diluted 6,655,479 6,645,229 6,570,492
Timberland Q4 Earnings
November 6, 2009
Page 8
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Twelve Months Ended
($ in thousands, except per share) Sept. 30, Sept. 30,
(unaudited) 2009 2008
------- -------
Interest and dividend income
Loans receivable $37,249 $40,924
Investments and mortgage-backed securities 1,379 1,064
Dividends from mutual funds and FHLB stock 38 1,123
Federal funds sold 36 191
Interest bearing deposits in banks 99 36
------- -------
Total interest and dividend income 38,801 43,338
Interest expense
Deposits 9,472 11,763
FHLB advances 4,031 4,628
Other borrowings 1 22
------- -------
Total interest expense 13,504 16,413
------- -------
Net interest income 25,297 26,925
Provision for loan losses 10,734 3,900
------- -------
Net interest income after provision for loan
losses 14,563 23,025
Non-interest income
Total OTTI on securities (4,600) --
Less: portion recorded as other comprehensive loss 1,455 --
------- -------
Net OTTI loss recognized (3,145) --
Service charges on deposits 4,312 3,493
Gain on sale of loans, net 2,828 1,011
Loss on redemption of mutual funds -- (2,822)
BOLI net earnings 965 486
Servicing income on loans sold 103 90
ATM transaction fees 1,261 1,251
Other 1,102 669
------- -------
Total non-interest income 7,426 4,178
Non-interest expense
Salaries and employee benefits 11,801 11,569
Premises and equipment 2,574 2,307
Advertising 895 897
OREO and other repossessed items expense 643 (3)
ATM expenses 613 576
FDIC insurance expense 778 130
Postage and courier 549 514
Amortization of core deposit intangible 217 249
State and local taxes 604 622
Professional fees 745 678
Other 3,320 2,835
------- -------
Total non-interest expense 22,739 20,374
Income (loss) before federal and state income taxes (750) 6,829
Provision (benefit) for federal and state income
taxes (823) 2,824
------- -------
Net income $ 73 $ 4,005
======= =======
Timberland Q4 Earnings
November 6, 2009
Page 9
Preferred stock dividends $ 643 $ --
Preferred stock discount accretion 129 --
------- -------
Net income (loss) avail. to common shareholders $ (699) $ 4,005
Earnings (loss) per common share:
Basic $ (0.11) $ 0.62
Diluted $ (0.11) $ 0.61
Weighted average common shares outstanding:
Basic 6,621,399 6,475,385
Diluted 6,621,399 6,570,492
Timberland Q4 Earnings
November 6, 2009
Page 10
TIMBERLAND BANCORP, INC.
CONSOLIDATED BALANCE SHEET
($ in thousands, except per share amounts)
(unaudited) Sept. 30, June 30, Sept. 30,
Assets 2009 2009 2008
-------- -------- --------
Cash equivalents:
Cash and due from financial institutions $ 10,205 $ 12,118 $ 14,013
Interest-bearing deposits in other banks 59,508 31,853 3,431
Federal funds sold - - - - 25,430
-------- -------- --------
69,713 43,971 42,874
Investments and mortgage-backed securities:
Held to maturity 8,421 10,196 14,233
Available for sale 13,471 13,898 17,098
FHLB stock 5,705 5,705 5,705
-------- -------- --------
27,597 29,799 37,036
Loans receivable 560,750 555,961 563,964
Loans held for sale 630 2,245 1,773
Less: Allowance for loan losses (14,172) (12,440) (8,050)
-------- -------- --------
Net loans receivable 547,208 545,766 557,687
Accrued interest receivable 2,805 2,918 2,870
Premises and equipment 18,046 18,174 16,884
OREO and other repossessed items 8,185 7,698 511
BOLI 12,918 13,403 12,902
Goodwill 5,650 5,650 5,650
Core deposit intangible 755 809 972
Mortgage servicing rights 2,618 2,366 1,306
Other assets 7,052 4,938 3,191
-------- -------- --------
Total Assets $702,547 $675,492 $681,883
======== ======== ========
Liabilities and Shareholders' Equity
Non-interest-bearing deposits $ 50,295 $ 50,153 $ 51,955
Interest-bearing deposits 455,366 437,266 446,617
-------- -------- --------
Total deposits 505,661 487,419 498,572
FHLB advances 95,000 95,000 104,628
Federal Reserve Bank advances 10,000 -- --
Other borrowings: repurchase agreements 777 666 758
Other liabilities and accrued expenses 3,039 3,652 3,084
-------- -------- --------
Total Liabilities 614,477 586,737 607,042
-------- -------- --------
Shareholders' Equity
Preferred stock - $.01 par value; 1,000,000
shares authorized; 15,554 15,487 --
Sept. 30, 2009 - 16,641 shares issued and
outstanding
June 30, 2009 - 16,641 shares issued and
outstanding
Common stock - $.01 par value; 50,000,000
shares authorized; 10,315 10,328 8,672
Sept. 30, 2009 - 7,045,036 shares issued
and outstanding
June 30, 2009 - 7,045,036 shares issued
and outstanding
Sept. 30, 2008 - 6,967,579 shares issued
and outstanding
Unearned shares- Employee Stock Ownership
Plan (2,512) (2,578) (2,776)
Retained earnings 66,168 66,802 69,406
Accumulated other comprehensive loss (1,455) (1,284) (461)
-------- -------- --------
Total Shareholders' Equity 88,070 88,755 74,841
-------- -------- --------
Total Liabilities and Shareholders' Equity $702,547 $675,492 $681,883
======== ======== ========
Timberland Q4 Earnings
November 6, 2009
Page 11
KEY FINANCIAL RATIOS AND DATA
($ in thousands, except per share amounts) (unaudited)
Three Months Ended
-------------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
-------- ------- --------
PERFORMANCE RATIOS:
Return on average assets (a) 0.03% 0.61% 0.80%
Return on average equity (a) 0.21% 4.79% 7.22%
Net interest margin (a) 3.93% 3.86% 4.36%
Efficiency ratio 66.04% 71.88% 60.96%
Twelve Months Ended
-------------------------------
Sept. 30, Sept. 30,
2009 2008
-------- --------
Return on average assets (a) 0.01% 0.61%
Return on average equity (a) 0.08% 5.35%
Net interest margin (a) 4.01% 4.41%
Efficiency ratio 69.49% 65.50%
Sept. 30, June 30, Sept. 30,
2009 2009 2008
-------- ------- --------
ASSET QUALITY RATIOS:
Non-performing loans $29,287 $25,113 $11,990
Non-performing investment securities 477 175 --
OREO and other repossessed assets 8,185 7,698 511
-------- ------- --------
Total non-performing assets $37,949 $32,986 $12,501
Non-performing assets to total assets (b) 5.40% 4.88% 1.83%
Allowance for loan losses to non-performing
loans 48% 50% 67%
Troubled debt restructured loans $ -- $ -- $ --
Past due 90 days and still accruing $ 796 $ 830 $ --
CAPITAL RATIOS:
Tier 1 leverage capital 12.29% 12.30% 10.28%
Tier 1 risk based capital 14.68% 14.94% 12.37%
Total risk based capital 15.94% 16.20% 13.62%
Tangible capital to tangible assets (e) 11.73% 12.30% 10.10%
BOOK VALUES:
Book value per common share (c) $ 10.29 $ 10.36 $ 10.74
Book value per common share (d) $ 10.81 $ 10.76 $ 11.34
Tangible book value per common share (c) (e) $ 9.38 $ 9.33 $ 9.79
Tangible book value per common share (d) (e) $ 9.85 $ 9.80 $ 10.34
- ------------------------------------------
(a) Annualized
(b) Non-performing assets include non-accrual loans, non-accrual investment
securities, and other real estate owned and other repossessed assets
(c) Calculation includes ESOP shares not committed to be released
(d) Calculation excludes ESOP shares not committed to be released
(e) Calculation subtracts goodwill and core deposit intangible from the
equity component
Timberland Q4 Earnings
November 6, 2009
Page 12
AVERAGE BALANCE SHEET: Three Months Ended
-------------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
-------- ------- --------
Average total loans $563,159 $562,105 $564,145
Average total interest-earning assets (a) 633,803 641,468 626,574
Average total assets 685,534 688,411 674,354
Average total interest-bearing deposits 444,241 450,974 438,496
Average FHLB advances and other borrowings 95,668 95,612 106,074
Average shareholders' equity 89,164 88,433 74,803
Twelve Months Ended
-------------------------------
Sept. 30, Sept. 30,
2009 2008
-------- --------
Average total loans $564,741 $552,318
Average total interest-earning assets (a) 631,254 611,135
Average total assets 679,005 658,221
Average total interest-bearing deposits 440,143 419,338
Average FHLB advances and other borrowings 97,393 108,858
Average shareholders' equity 86,383 74,875
- ---------------------
(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.