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Timberland Bancorp Reports EPS of $0.16 for Second Fiscal Quarter of 2014(GlobeNewswire Via Acquire Media NewsEdge) HOQUIAM, Wash., April 22, 2014 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (Nasdaq:TSBK) ("Timberland" or "the Company") today reported net income to common shareholders of $1.16 million, or $0.16 per diluted common share for the quarter ended March 31, 2014. This compares to net income to common shareholders of $1.41 million, or $0.20 per diluted common share, for the quarter ended December 31, 2013, and net income to common shareholders of $1.20 million, or $0.17 per diluted common share, for the quarter ended March 31, 2013. In the first six months of fiscal 2014, Timberland earned $2.56 million, or $0.37 per diluted common share, compared to $2.64 million, or $0.39 per diluted common share, in the first six months of fiscal 2013. Timberland's Board of Directors also declared a quarterly cash dividend to common shareholders of $0.04 per common share payable on May 28, 2014 to shareholders of record on May 14, 2014. "During the quarter ended March 31, 2014, we devoted considerable resources to improve the technology footing of the Company," said Michael R. Sand, President and CEO. "During the quarter we transitioned to a new internet banking provider, outsourced our core data processing function, outsourced our item processing function, completed the replacement of all PCs operating on the Windows XP operating system, implemented a new account opening platform, installed new customer relationship management software, installed new imaging software and planned for the transition of our debit card relationship to MasterCard from VISA. We also trained staff to effectively use the new systems and engaged the Ritz-Carlton Leadership Center to provide enhanced customer training to Timberland employees. While these investments in enhanced technology and training increased our operating expenses for the recent quarter, we anticipate that, long term, we will realize significant operational efficiencies and cost savings. "Refinance activity has diminished significantly both nationally and in the Pacific Northwest. As a result, gain on sale income has diminished to more normal levels. During the quarter, we continued our emphasis on the generation of shorter duration assets including custom and owner/builder construction loans and C&I credits, which we anticipate will continue to grow in subsequent quarters," stated Sand. Fiscal Second Quarter 2014 Highlights (at or for the period ended March 31, 2014): Earnings per diluted common share for the current quarter were $0.16; Declared a quarterly cash dividend of $0.04 per common share; Net interest margin for the current quarter increased to 3.85% from 3.78% for the preceding quarter; Total delinquent and non-accrual loans decreased 17% during the quarter and 39% year-over-year; Non-performing assets decreased 6% during the quarter and 29% year-over-year; Charge-offs improved with a net recovery of $4,000 for the current quarter compared to net charge-offs of $391,000 for the preceding quarter and $1.6 million for the comparable quarter one year ago; and Book value per common share increased to $11.36, and tangible book value per common share increased to $10.55 at quarter end.Capital Ratios and Asset Quality Timberland Bancorp remains well capitalized with a total risk-based capital ratio of 14.65% and a Tier 1 leverage capital ratio of 10.40% at March 31, 2014. Reflecting continued improvement in asset quality, no provision for loan losses was required for the quarter ended March 31, 2014, compared to $1.18 million in the comparable quarter one year ago. The Bank had a net recovery of $4,000 during the current quarter, compared to net charge-offs of $391,000 for the preceding quarter and $1.63 million for the comparable quarter one year ago. Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 17% to $14.7 million at March 31, 2014, from $17.8 million at December 31, 2013, and decreased 39% from $24.2 million one year ago. The non-performing assets to total assets ratio improved to 3.69% at March 31, 2014, from 3.97% three months earlier and 5.14% one year ago. Non-accrual loans decreased by 11% to $12.6 million at March 31, 2014, from $14.1 million at December 31, 2013, and decreased 38% from $20.5 million at March 31, 2013. The non-accrual loans at March 31, 2014, were comprised of 51 loans and 41 credit relationships. By dollar amount per category: 44% are secured by residential properties; 42% are secured by land; 13% are secured by commercial properties; and 1% are secured by commercial business assets. Other real estate owned ("OREO") and other repossessed assets increased to $13.2 million at March 31, 2014, from $12.5 million at December 31, 2013, and decreased from $15.0 million at March 31, 2013. At March 31, 2014, the OREO portfolio consisted of 55 individual properties. The properties consisted of 29 land parcels totaling $5.4 million, 19 single family homes totaling $4.1 million, six commercial real estate properties totaling $3.5 million, and one multi-family property of $170,000. During the quarter ended March 31, 2014, six OREO properties totaling $1.2 million were sold for a net gain of $48,000. Balance Sheet Management Total assets increased by $4.5 million to $732.4 million at March 31, 2014, from $727.9 million at December 31, 2013. The increase in total assets was primarily due to a $4.0 million increase in total cash and cash equivalents. Liquidity measured by cash and cash equivalents, CDs held for investment and available for sale investments as a percentage of total liabilities was 16.0% at March 31, 2014, compared to 15.8% at December 31, 2013, and 17.9% one year ago. Net loans receivable decreased $1.2 million to $554.7 million at March 31, 2014, from $555.9 million at December 31, 2013. The decrease was primarily due to a $1.9 million decrease in land loan balances, a $1.8 million decrease in construction and land development loan balances, a $1.0 million decrease in multi-family loan balances and a $430,000 decrease in consumer loan balances. These decreases to net loans receivable were partially offset by a $2.7 million increase in commercial business loan balances and an $890,000 decrease in the undisbursed portion of construction loans in process. LOAN PORTFOLIO March 31, 2014 December 31, 2013 March 31, 2013 ($ in thousands) Amount Percent Amount Percent Amount Percent Mortgage Loans: One-to four-family $100,985 17% $100,870 17% $108,304 19% Multi-family 47,206 8 48,212 8 47,330 8 Commercial 299,791 51 299,644 51 283,307 50 Construction and land development 51,852 9 53,693 9 39,658 7 Land 29,593 5 31,464 5 35,323 6 Total mortgage loans 529,427 90 533,883 90 513,922 90 Consumer Loans: Home equity and second mortgage 32,120 5 32,201 6 32,080 6 Other 5,613 1 5,962 1 5,570 1 Total consumer loans 37,733 6 38,163 7 37,650 7 Commercial business loans 20,460 4 17,733 3 20,388 3 Total loans 587,620 100% 589,779 100% 571,960 100% Less: Undisbursed portion of construction loans in process (20,472) (21,362) (12,161) Deferred loan origination fees (1,707) (1,768) (1,699) Allowance for loan losses (10,749) (10,745) (11,313) Total loans receivable, net $554,692 $555,904 $546,787 CONSTRUCTION LOAN COMPOSITION March 31, 2014 December 31, 2013 March 31, 2013 ($ in thousands) Percent Percent Percent of Loan of Loan of Loan Amount Portfolio Amount Portfolio Amount Portfolio Custom and owner / builder $47,365 8% $46,789 8% $32,515 6% Speculative one- to four-family 2,054 1 2,104 -- 1,718 -- Commercial real estate 1,993 -- 4,467 1 4,521 1 Multi-family (including condominium) 440 -- 143 -- 345 -- Land development -- -- 190 -- 559 -- Total construction loans $51,852 9% $53,693 9% $39,658 7% Timberland originated $31.9 million in loans during the quarter ended March 31, 2014, compared to $52.9 million for the preceding quarter and $58.1 million for the comparable quarter one year ago. Timberland continues to sell fixed rate one-to-four family mortgage loans into the secondary market for asset–liability management purposes and to generate non-interest income. During the quarter ended March 31, 2014, $5.2 million fixed-rate one-to four-family mortgage loans were sold compared to $10.3 million for the preceding quarter and $29.0 million for the comparable quarter ended one year ago. Timberland's mortgage-backed securities ("MBS") and other investments increased by $2.0 million during the quarter to $8.5 million at March 31, 2014, from $6.5 million at December 31, 2013, primarily due to the purchase of additional U.S. government agency securities. Private label MBS totaling $747,000 were sold during the quarter resulting in a net increase to non-interest income of $57,000 [$89,000 recovery to previously recorded other than temporary impairment ("OTTI") and a $32,000 loss on the sale of MBS]. DEPOSIT BREAKDOWN ($ in thousands) March 31, 2014 December 31, 2013 March 31, 2013 Amount Percent Amount Percent Amount Percent Non-interest bearing $95,607 16% $98,585 17% $80,938 14% N.O.W. checking 160,049 26 155,472 26 152,068 25 Savings 92,537 15 91,468 15 91,790 15 Money market 94,543 16 90,181 15 89,489 15 Certificates of deposit under $100 101,413 17 104,400 17 118,752 20 Certificates of deposit $100 and over 59,034 10 60,186 10 68,548 11 Certificates of deposit – brokered 1,191 -- 1,191 -- -- -- Total deposits $604,374 100% $601,483 100% $601,585 100% Total deposits increased $2.9 million to $604.4 million at March 31, 2014, from $601.5 million at December 31, 2013, primarily as a result of a $4.6 million increase in N.O.W. checking account balances, a $4.4 million increase in money market account balances and a $1.1 million increase in savings account balances. These increases were partially offset by a $4.1 million decrease in certificates of deposit account balances and a $3.0 million decrease in non-interest bearing account balances. Total shareholders' equity increased $936,000 to $80.0 million at March 31, 2014, from $79.1 million at December 31, 2013. The increase in shareholders' equity was primarily due to net income of $1.16 million for the quarter, which was partially offset by dividend payments of $282,000 to common shareholders. Book value per common share increased to $11.36 and tangible book value per common share increased to $10.55 at March 31, 2014. Operating Results Fiscal second quarter operating revenue [net interest income before provision for loan losses, plus non-interest income excluding OTTI charges / recoveries, gains or losses on sale of investments, valuation allowances or recoveries on mortgage servicing rights ("MSRs")], decreased 3% to $8.39 million from $8.66 million for the preceding quarter and decreased 7% from the $9.02 million for the comparable quarter one year ago. The decrease in revenue was primarily a result of a decrease in gain on sale of loans as refinance activity on one-to four family home loans slowed. Operating revenue decreased 5% to $17.05 million for the first six months of fiscal 2014 from $17.88 million for the comparable period one year ago. Net interest income decreased slightly to $6.44 million for the quarter ended March 31, 2014, from $6.46 million for the preceding quarter and was level with the comparable quarter one year ago. The net interest margin for the current quarter increased to 3.85% from 3.78% for the preceding quarter and 3.83% for the comparable quarter one year ago. For the first six months of fiscal 2014, net interest income increased 1% to $12.90 million from $12.83 million for the first six months of fiscal 2013. Timberland's net interest margin for the first six months of fiscal 2014 increased to 3.81% from 3.80% for the first six months of 2013. Non-interest income decreased 8% to $2.01 million for the quarter ended March 31, 2014, from $2.20 million in the preceding quarter and 28% from $2.78 million for the comparable quarter one year ago. The decrease in non-interest income compared to the preceding quarter was primarily due to a $130,000 decrease in gain on sale of loans and a $109,000 decrease in service charges on deposits. 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 as refinance activity decreased. The decrease in service charges on deposits was primarily due to a decrease in overdraft related fees. Fiscal year-to-date non-interest income decreased 23% to $4.21 million from $5.49 million for the first six months of fiscal 2013. The decrease was primarily due to a decrease in gain on sale of loans and a decrease in the valuation recovery on MSRs. Total operating (non-interest) expenses increased 8% to $6.75 million for the second fiscal quarter from $6.24 million for the preceding quarter and 9% from $6.18 million for the comparable quarter one year ago. The increased expense for the current quarter compared to the preceding quarter were primarily the result of a $238,000 increase in OREO and other repossessed assets expense and a $132,000 increase in ATM and debit card processing expense. The increase in OREO related expense was primarily due to fair value write-downs on several properties. The increase in ATM and debit card processing expense was primarily due to conversion related expenses from the Company's technology investment to upgrade its electronic funds transfer ("EFT") platform. Fiscal year-to-date operating expenses increased 3% to $13.00 million from $12.56 million for the first six months of fiscal 2013. The provision for income taxes decreased $265,000 to $537,000 for the quarter ended March 31, 2014, from $802,000 for the preceding quarter, primarily due to lower income before income taxes. About Timberland Bancorp, Inc. Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank ("Bank"). The Bank opened for business in 1915 and serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 22 branches (including its main office in Hoquiam). Disclaimer Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could." Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated, including, but not limited to: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets and may lead to increased losses and non-performing assets in our loan portfolio, and may result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our loan loss reserves; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Board of Governors of the Federal Reserve System and our bank subsidiary by the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action or require us to increase our allowance for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions, which could adversely affect our liquidity and earnings; legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules including as a result of Basel III; the impact of the Dodd Frank Wall Street Reform and Consumer Protection Act and the implementation of related rules and regulations; our ability to attract and retain deposits; increases in premiums for deposit insurance; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risk associated with the loans on our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; computer systems on which we depend could fail or experience a security breach; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of war or any terrorist activities; other economic, competitive, governmental, regulatory, and technological factors affecting our operations; pricing, products and services; and other risks detailed in our reports filed with the Securities and Exchange Commission. Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management's beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this report or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. We caution readers not to place undue reliance on any forward-looking statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2014 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us, and could negatively affect the Company's operations and stock price performance. TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Three Months Ended ($ in thousands, except per share amounts) March 31, Dec. 31, March 31, (unaudited) 2014 2013 2013Interest and dividend income Loans receivable $7,255 $7,318 $7,395 MBS and other investments 64 61 70 Dividends from mutual funds and Federal Home Loan Bank ("FHLB") stock 6 8 5 Interest bearing deposits in banks 87 94 82Total interest and dividend income 7,412 7,481 7,552 Interest expense Deposits 514 551 650 FHLB advances 461 471 461Total interest expense 975 1,022 1,111Net interest income 6,437 6,459 6,441 Provision for loan losses -- -- 1,175Net interest income after provision for loan losses 6,437 6,459 5,266 Non-interest income (OTTI) recovery on MBS and other investments, net 89 (2) (25) Loss on sale of MBS and other investments, net (32) -- -- Service charges on deposits 883 992 827 Gain on sale of loans, net 172 302 833 Bank owned life insurance ("BOLI") net earnings 143 115 144 Valuation recovery on MSRs -- -- 221 ATM and debit card interchange transaction fees 573 585 521 Other 185 203 257Total non-interest income, net 2,013 2,195 2,778 Non-interest expense Salaries and employee benefits 3,434 3,380 3,086 Premises and equipment 647 693 725 Advertising 172 178 172 OREO and other repossessed assets expense, net 397 159 506 ATM and debit card processing 358 226 196 Postage and courier 110 96 109 Amortization of core deposit intangible ("CDI") 29 29 32 State and local taxes 121 117 157 Professional fees 211 183 192 FDIC insurance 160 162 128 Other insurance 40 39 43 Loan administration and foreclosure 138 109 49 Data processing and telecommunications 329 330 305 Deposit operations 225 198 161 Other 383 342 323Total non-interest expense 6,754 6,241 6,184 Income before income taxes $1,696 $2,413 $1,860Provision for income taxes 537 802 582Net income 1,159 1,611 1,278 Preferred stock dividends -- (136) (207)Preferred stock discount accretion -- (70) (126)Discount on redemption of preferred stock -- -- 255Net income to common shareholders $1,159 $1,405 $1,200 Net income per common share: Basic $0.17 $0.20 $0.18 Diluted 0.16 0.20 0.17 Weighted average common shares outstanding: Basic 6,856,633 6,853,683 6,815,782 Diluted 7,033,979 6,978,385 6,889,504 TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Six Months Ended ($ in thousands, except per share amounts) March 31, March 31, (unaudited) 2014 2013Interest and dividend income Loans receivable $14,573 $14,809 MBS and other investments 124 147 Dividends from mutual funds and FHLB stock 15 17 Interest bearing deposits in banks 181 168Total interest and dividend income 14,893 15,141 Interest expense Deposits 1,064 1,378 FHLB advances and other borrowings 933 933Total interest expense 1,997 2,311Net interest income 12,896 12,830 Provision for loan losses -- 1,375Net interest income after provision for loan losses 12,896 11,455 Non-interest income (OTTI) recovery on MBS and other investments, net 87 (35) Loss on sale of MBS and other investments, net (32) -- Service charges on deposits 1,874 1,774 Gain on sale of loans, net 474 1,475 BOLI net earnings 258 287 Valuation recovery on MSRs -- 475 ATM and debit card interchange transaction fees 1,158 1,036 Other 389 481Total non-interest income, net 4,208 5,493 Non-interest expense Salaries and employee benefits 6,813 6,200 Premises and equipment 1,340 1,415 Advertising 349 349 OREO and other repossessed assets expense, net 555 794 ATM and debit card processing 585 417 Postage and courier 207 209 Amortization of CDI 58 65 State and local taxes 238 296 Professional fees 394 434 FDIC insurance 321 369 Other insurance 79 95 Loan administration and foreclosure 248 187 Data processing and telecommunications 659 592 Deposit operations 423 338 Other 726 801Total non-interest expense 12,995 12,561 Income before income taxes $4,109 $4,387Provision for income taxes 1,339 1,401Net income 2,770 2,986 Preferred stock dividends (136) (408)Preferred stock discount accretion (70) (189)Discount on redemption of preferred stock -- 255Net income to common shareholders $2,564 $2,644 Net income per common share: Basic $0.37 $0.39 Diluted 0.37 0.39 Weighted average common shares outstanding: Basic 6,855,142 6,815,782 Diluted 7,005,877 6,854,879 TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS ($ in thousands, except per share amounts) (unaudited) March 31, Dec. 31, March 31, 2014 2013 2013Assets Cash and due from financial institutions $11,437 $11,508 $11,250 Interest-bearing deposits in banks 58,804 54,730 74,550 Total cash and cash equivalents 70,241 66,238 85,800 Certificates of deposit ("CDs") held for investment, at cost 31,385 32,428 26,057 MBS and other investments: Held to maturity, at amortized cost 5,511 2,617 3,060 Available for sale, at fair value 2,991 3,930 4,463 FHLB stock 5,351 5,401 5,553 Loans receivable 564,109 565,655 554,313 Loans held for sale 1,332 994 3,787 Less: Allowance for loan losses (10,749) (10,745) (11,313) Net loans receivable 554,692 555,904 546,787 Premises and equipment, net 17,785 17,914 18,126 OREO and other repossessed assets, net 13,208 12,483 15,031 BOLI 17,361 17,217 16,812 Accrued interest receivable 2,003 2,092 2,081 Goodwill 5,650 5,650 5,650 Core deposit intangible 61 90 184 Mortgage servicing rights, net 1,958 2,144 2,412 Prepaid FDIC insurance assessment -- -- 758 Other assets 4,220 3,825 5,347Total assets $732,417 $727,933 $738,121 Liabilities and shareholders' equity Deposits: Non-interest-bearing demand $95,607 $98,585 $80,938 Deposits: Interest-bearing 508,767 502,898 520,647 Total deposits 604,374 601,483 601,585 FHLB advances 45,000 45,000 45,000 Repurchase agreements -- -- 549 Other liabilities and accrued expenses 3,019 2,362 2,456Total liabilities 652,393 648,845 649,590Shareholders' equity Preferred stock, Series A, $.01 par value; 1,000,000 shares authorized; redeemable at $1,000 per share; 12,065 shares issued and outstanding – March 31,2013 -- -- 11,842 Common stock, $.01 par value; 50,000,000 shares authorized; 7,045,036 shares issued and outstanding – March 31, 2013 7,047,636 shares issued and outstanding – December 31, 2013 7,045,936 shares issued and outstanding – March 31, 2014 10,663 10,614 10,524 Unearned shares- Employee Stock Ownership Plan (1,322) (1,388) (1,587) Retained earnings 71,088 70,211 68,198 Accumulated other comprehensive loss (405) (349) (446)Total shareholders' equity 80,024 79,088 88,531Total liabilities and shareholders' equity $732,417 $727,933 $738,121 KEY FINANCIAL RATIOS AND DATA Three Months Ended ($ in thousands, except per share amounts) (unaudited) March 31, Dec. 31, March 31, 2014 2013 2013PERFORMANCE RATIOS: Return on average assets (a) 0.63% 0.87% 0.69% Return on average equity (a) 5.83% 7.28% 5.56% Net interest margin (a) 3.85% 3.78% 3.83% Efficiency ratio 79.93% 72.12% 67.08% Six Months Ended March 31, March 31, 2014 2013PERFORMANCE RATIOS: Return on average assets (a) 0.75% 0.81% Return on average equity (a) 6.59% 6.54% Net interest margin (a) 3.81% 3.80% Efficiency ratio 75.98% 68.55% As of or for Three Months Ended March 31, Dec. 31, March 31, 2014 2013 2013ASSET QUALITY RATIOS AND DATA: Non-accrual loans $12,649 $14,141 $20,450 Loans past due 90 days and still accruing -- 153 158 Non-performing investment securities 1,204 2,092 2,264 OREO and other repossessed assets 13,208 12,483 15,031 Total non-performing assets (b) $27,061 $28,869 $37,903 Non-performing assets to total assets (b) 3.69% 3.97% 5.14% Net charge-offs (recoveries) during quarter $ (4) $391 $1,631 Allowance for loan losses to non-accrual loans 85% 76% 55% Allowance for loan losses to loans receivable (c) 1.90% 1.90% 2.03% Troubled debt restructured loans on accrual status (d) $17,284 $18,260 $13,012 CAPITAL RATIOS: Tier 1 leverage capital 10.40% 10.10% 11.43% Tier 1 risk based capital 13.38% 13.13% 14.95% Total risk based capital 14.65% 14.39% 16.21% Tangible capital to tangible assets (e) 10.23% 10.16% 11.29% BOOK VALUES: Book value per common share $11.36 $11.22 $10.89 Tangible book value per common share (e) 10.55 10.41 10.06 (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 $2,812, $3,176 and $10,832 reported as non-accrual loans at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. (e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets. AVERAGE CONSOLIDATED BALANCE SHEETS: Three Months Ended ($ in thousands) (unaudited) March 31, Dec. 31, March 31, 2014 2013 2013 Average total loans $568,448 $562,697 $557,426 Average total interest-bearing assets (a) 668,628 684,055 673,109 Average total assets 732,513 743,549 738,818 Average total interest-bearing deposits 505,756 513,997 518,834 Average FHLB advances and other borrowings 45,000 45,000 45,599 Average shareholders' equity 79,497 88,528 92,055 Six Months Ended March 31, March 31, 2014 2013 Average total loans $565,541 $555,405 Average total interest-bearing assets (a) 676,422 674,612 Average total assets 738,091 739,332 Average total interest-bearing deposits 509,922 519,073 Average FHLB advances and other borrowings 45,000 45,625 Average shareholders' equity 84,125 91,381 (a) Includes loans and MBS on non-accrual statusCONTACT: Michael R. Sand, President & CEO Dean J. Brydon, CFO (360) 533-4747 www.timberlandbank.com Source: Timberland Bancorp, Inc 2014 GlobeNewswire, Inc. |