News Column

Timberland Bancorp EPS Increases 100% to $0.20 for Third Fiscal Quarter of 2014; Increases Cash Dividend 25% to $0.05 Per Share

July 22, 2014

HOQUIAM, Wash., July 22, 2014 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (Nasdaq:TSBK) ("Timberland" or "the Company") today reported net income to common shareholders of $1.43 million, or $0.20 per diluted common share for the quarter ended June 30, 2014. This compares to net income to common shareholders of $1.16 million, or $0.16 per diluted common share, for the quarter ended March 31, 2014, and net income to common shareholders of $678,000, or $0.10 per diluted common share, for the quarter ended June 30, 2013. In the first nine months of fiscal 2014, Timberland's net income to common shareholders was $4.00 million, or $0.57 per diluted common share, compared to $3.32 million, or $0.48 per diluted common share, for the first nine months of fiscal 2013.

Timberland's Board of Directors also declared an increased quarterly cash dividend to common shareholders of $0.05 per common share payable on August 28, 2014, to shareholders of record on August 14, 2014.

"Although we continue to operate in a difficult interest rate environment we are pleased to report a significant increase in net income year-over-year and to announce a 25% increase in the dividend to our shareholders," stated Michael R. Sand, President and Chief Executive Officer. "During the quarter we continued to see positive trends in our financial metrics as we focused on the generation of variable rate assets in anticipation of a changing interest rate environment. The $9 million increase in loans originated compared to the prior quarter included $5 million in C&I credits which, along with shorter duration construction loans, we are continuing to emphasize."

Fiscal Second Quarter 2014 Highlights (at or for the period ended June 30, 2014):

• Earnings per diluted common share for the current quarter increased 100% to $0.20 from $0.10 for the comparable quarter one year ago and increased 25% from $0.16 for the preceding quarter;• Earnings per diluted common share for the first nine months of fiscal 2014 increased 19% to $0.57 from $0.48 for the first nine months of fiscal 2013;• Declared a quarterly cash dividend of $0.05 per common share;• Net interest margin for the current quarter increased to 3.86% from 3.85% for the preceding quarter;• Non-performing assets decreased 17% year-over-year and 9% from the prior quarter;• OREO and other repossessed assets decreased 27% year-over-year and 15% from the prior quarter;• Net charge-offs decreased 88% to $186,000 for the current quarter from $1.57 million for comparable quarter one year ago; and• Book value and tangible book value per common share increased to $11.54 and $10.74, respectively at quarter end.

Capital Ratios and Asset Quality

Timberland Bancorp remains well capitalized with a total risk-based capital ratio of 14.87% and a Tier 1 leverage capital ratio of 10.62% at June 30, 2014.

Reflecting continued improvement in asset quality, no provision for loan losses was required for the quarter ended June 30, 2014, compared to $1.39 million in the comparable quarter one year ago. The Bank had net charge-offs of $186,000 during the current quarter, compared to a net recovery of $4,000 for the preceding quarter and net charge-offs of $1.57 million for the comparable quarter one year ago.

Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 10% to $13.3 million at June 30, 2014, from $14.7 million at March 31, 2014, and decreased 3% from $13.6 million one year ago. The non-performing assets to total assets ratio improved to 3.38% at June 30, 2014, from 3.69% three months earlier and 4.04% one year ago.

Non-accrual loans decreased 4% to $12.1 million at June 30, 2014, from $12.6 million at March 31, 2014, and increased 2% from $11.8 million at June 30, 2013. The non-accrual loans at June 30, 2014, were comprised of 45 loans and 36 credit relationships. By dollar amount per category: 43% are secured by residential properties; 43% are secured by land; and 14% are secured by commercial properties.

Other real estate owned ("OREO") and other repossessed assets decreased 15% to $11.2 million at June 30, 2014, from $13.2 million at March 31, 2013, and decreased 27% from $15.3 million at June 30, 2013. At June 30, 2014, the OREO portfolio consisted of 50 individual properties. The properties consisted of 26 land parcels totaling $4.2 million, 18 one-to four-family homes totaling $3.6 million, five commercial real estate properties totaling $3.2 million, and one multi-family property of $142,000. During the quarter ended June 30, 2014, eight OREO properties totaling $2.4 million were sold for a net gain of $43,000.

Balance Sheet Management

Total assets decreased by $4.8 million to $727.6 million at June 30, 2014, from $732.4 million at March 31, 2014. The decrease in total assets was primarily due to a $5.7 million decrease in total deposits, which reduced the amount of assets held in overnight liquidity.

Liquidity measured by cash and cash equivalents, CDs held for investment and available for sale investments as a percentage of total liabilities was 15.4% at June 30, 2014, compared to 16.0% at March 31, 2014, and 17.7% one year ago.

Net loans receivable increased $3.0 million to $557.7 million at June 30, 2014, from $554.7 million at March 31, 2014. The increase was primarily due to a $4.9 million increase in commercial business loan balances and a $1.8 million increase in construction and land development loan balances. These increases were partially offset by a $1.2 million decrease in land loan balances, a $900,000 decrease in one-to four-family loan balances, a $672,000 decrease in consumer loan balances and a $991,000 increase in the undisbursed portion of construction loans in process.

LOAN PORTFOLIO
             
 June 30, 2014March 31, 2014June 30, 2013
($ in thousands) Amount Percent Amount Percent Amount Percent
             
Mortgage Loans:            
One-to four-family$100,085 17%$100,985 17%$104,784 18%
Multi-family 47,077 8 47,206 8 48,781 8
Commercial 299,707 51 299,791 51 290,240 51
Construction and land development 53,695 9 51,852 9 38,916 7
Land 28,442 5 29,593 5 31,673 6
Total mortgage loans 529,006 90 529,427 90 514,394 90
             
Consumer Loans:            
Home equity and second mortgage 31,832 5 32,120 5 31,936 6
Other 5,229 1 5,613 1 6,013 1
Total consumer loans 37,061 6 37,733 6 37,949 7
             
Commercial business loans 25,341 4 20,460 4 19,557 3
Total loans 591,408 100% 587,620 100% 571,900 100%
Less:            
Undisbursed portion of construction loans in process (21,463)   (20,472)   (13,816)  
Deferred loan origination fees (1,687)   (1,707)   (1,670)  
Allowance for loan losses (10,563)   (10,749)   (11,126)  
Total loans receivable, net$557,695  $554,692  $545,288  
             
CONSTRUCTION LOAN COMPOSITION
             
 June 30, 2014March 31, 2014June 30, 2013
($ in thousands)    Percent   Percent    Percent
     of Loan   of Loan    of Loan
  Amount Portfolio Amount Portfolio Amount Portfolio
             
Custom and owner / builder$48,212 8%$47,365 8%$33,502 6%
Speculative one- to four-family 2,307  -- 2,054  -- 1,020  --
Commercial real estate 2,736 1 1,993 1 3,589 1
Multi-family (including condominium) 440  -- 440  -- 289  --
Land development --  -- --  -- 516  --
Total construction loans$53,695 9%$51,852 9%$38,916 7%


Timberland originated $40.5 million in loans during the quarter ended June 30, 2014, compared to $31.9 million for the preceding quarter and $54.7 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 June 30, 2014, $7.8 million fixed-rate one-to four-family mortgage loans were sold compared to $5.2 million for the preceding quarter and $21.5 million for the comparable quarter ended one year ago.

Timberland's mortgage-backed securities ("MBS") and other investments decreased by $157,000 during the quarter to $8.3 million at June 30, 2014, from $8.5 million at March 31, 2014, primarily due to prepayments and scheduled amortization.

DEPOSIT BREAKDOWN
($ in thousands)
 June 30, 2014March 31, 2014June 30, 2013
  Amount Percent Amount Percent Amount Percent
Non-interest bearing$92,995 15%$95,607 16%$83,043 14%
N.O.W. checking 157,303 26 160,049 26 152,675 26
Savings 93,728 16 92,537 15 93,161 16
Money market 94,363 16 94,543 16 85,703 14
Certificates of deposit under $100 97,917 16 101,413 17 114,113 19
Certificates of deposit $100 and over 59,134 10 59,034 10 66,179 11
Certificates of deposit – brokered 3,192 1 1,191 -- 1,190 --
 Total deposits$598,632 100%$604,374 100%$596,064 100%


Total deposits decreased $5.7 million to $598.6 million at June 30, 2014, from $604.4 million at March 31, 2014, primarily as a result of a $2.7 million decrease in N.O.W. checking account balances, a $2.6 million decrease in non-interest bearing account balances and a $1.4 million decrease in certificates of deposit account balances. These decreases were partially offset by a $1.2 million increase in savings account balances.

Total shareholders' equity increased $1.31 million to $81.33 million at June 30, 2014, from $80.02 million at March 31, 2014. The increase in shareholders' equity was primarily due to net income of $1.43 million for the quarter, which was partially offset by dividend payments of $282,000 to common shareholders.  Book value per common share increased to $11.54 and tangible book value per common share increased to $10.74 at June 30, 2014.

Operating Results

Fiscal third 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")], increased 2% to $8.56 million from $8.39 million for the preceding quarter and decreased 4% from $8.87 million for the comparable quarter one year ago. The increase in revenue compared to the preceding quarter was primarily a result of an increase in non-interest income. Operating revenue decreased 4% to $25.61 million for the first nine months of fiscal 2014 from $26.76 million for the comparable period one year ago, primarily due to a decrease in gain on sale of loans.

Net interest income decreased slightly to $6.43 million for the quarter ended June 30, 2014, from $6.44 million for the preceding quarter and from $6.50 million for the comparable quarter one year ago. The net interest margin for the current quarter increased to 3.86% from 3.85% for the preceding quarter and decreased from 3.88% for the comparable quarter one year ago. For the first nine months of fiscal 2014, net interest income remained level with the first nine months of fiscal 2013 at $19.33 million. Timberland's net interest margin was 3.83% for the first nine months of fiscal 2014 and 2013.

Non-interest income increased 5% to $2.12 million for the quarter ended June 30, 2014, from $2.01 million in the preceding quarter and decreased 11% from $2.37 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to a $69,000 increase in gain on sale of loans, a $38,000 increase in service charges on deposits and a $38,000 increase in ATM and debit card interchange transaction fees. Fiscal year-to-date non-interest income decreased 4% to $6.32 million from $7.87 million for the first nine 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 decreased 5% to $6.43 million for the third fiscal quarter from $6.75 million for the preceding quarter and increased 3% from $6.24 million for the comparable quarter one year ago. The decreased expenses for the current quarter compared to the preceding quarter were primarily the result of a $157,000 decrease in OREO and other repossessed assets expense and a $151,000 decrease in ATM and debit card processing expense. The decrease in OREO related expense was primarily due to a lower level of fair value write-downs of properties compared to the preceding quarter. The decrease in ATM and debit card processing expense was primarily related to conversion related expenses from the Company's recent technology investment to upgrade its electronic funds transfer ("EFT") platform, which resulted in higher costs for the quarter ended March 31, 2014. Fiscal year-to-date operating expenses increased 3% to $19.43 million from $18.80 million for the first nine months of fiscal 2013.

The provision for income taxes increased $148,000 to $685,000 for the quarter ended June 30, 2014, from $537,000 for the preceding quarter, primarily due to higher 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)June 30,March 31,June 30,
(unaudited) 2014 2014 2013
Interest and dividend income      
Loans receivable$7,238$7,255$7,422
MBS and other investments 66 64 69
Dividends from mutual funds and Federal Home Loan Bank ("FHLB") stock 6 6 5
Interest bearing deposits in banks 87 87 79
Total interest and dividend income 7,397 7,412 7,575
       
Interest expense      
Deposits 498 514 609
FHLB advances 466 461 467
Total interest expense 964 975 1,076
Net interest income 6,433 6,437 6,499
       
Provision for loan losses -- -- 1,385
Net interest income after provision for loan losses 6,433 6,437 5,114
       
Non-interest income      
Recovery (Other than temporary impairment "OTTI") on MBS and other investments, net (9) 89 (3)
Loss on sale of MBS and other investments, net -- (32) --
Service charges on deposits 921 883 882
Gain on sale of loans, net 241 172 579
Bank owned life insurance ("BOLI") net earnings 134 143 144
ATM and debit card interchange transaction fees 611 573 526
Other 218 185 244
Total non-interest income, net 2,116 2,013 2,372
       
Non-interest expense      
Salaries and employee benefits 3,325 3,434 3,176
Premises and equipment 754 647 739
Advertising 187 172 184
OREO and other repossessed assets, net 240 397 313
ATM and debit card processing 207 358 219
Postage and courier 122 110 107
Amortization of core deposit intangible ("CDI") 29 29 33
State and local taxes 123 121 170
Professional fees 196 211 202
FDIC insurance 158 160 157
Other insurance 34 40 39
Loan administration and foreclosure 129 138 91
Data processing and telecommunications 399 329 319
Deposit operations 146 225 157
Other 381 383 331
Total non-interest expense 6,430 6,754 6,237
       
Income before income taxes$2,119$1,696$1,249
Provision for income taxes 685 537 373
Net income 1,434 1,159 876
       
Preferred stock dividends -- -- (151)
Preferred stock discount accretion -- -- (47)
Net income to common shareholders$1,434$1,159$678
       
Net income per common share:      
Basic$0.21$0.17$0.10
Diluted 0.20 0.16 0.10
       
Weighted average common shares outstanding:      
Basic 6,857,149 6,856,633 6,818,782
Diluted 7,033,713 7,033,979 6,902,497
     
TIMBERLAND BANCORP INC. AND SUBSIDIARY    
CONSOLIDATED STATEMENTS OF INCOME Nine Months Ended
($ in thousands, except per share amounts)June 30,June 30,
(unaudited) 2014 2013
Interest and dividend income    
Loans receivable$21,811$22,231
MBS and other investments 190 216
Dividends from mutual funds and FHLB stock 21 22
Interest bearing deposits in banks 268 247
Total interest and dividend income 22,290 22,716
     
Interest expense    
Deposits 1,562 1,987
FHLB advances and other borrowings 1,399 1,399
Total interest expense 2,961 3,386
Net interest income 19,329 19,330
     
Provision for loan losses -- 2,760
Net interest income after provision for loan losses 19,329 16,570
     
Non-interest income    
Recovery (OTTI) on MBS and other investments, net 78 (39)
Loss on sale of MBS and other investments, net (32) --
Service charges on deposits 2,795 2,657
Gain on sale of loans, net 714 2,054
BOLI net earnings 392 431
Valuation recovery on MSRs -- 475
ATM and debit card interchange transaction fees 1,769 1,562
Other 608 725
Total non-interest income, net 6,324 7,865
     
Non-interest expense    
Salaries and employee benefits 10,138 9,376
Premises and equipment 2,094 2,154
Advertising 537 533
OREO and other repossessed assets, net 795 1,107
ATM and debit card processing 791 636
Postage and courier 329 342
Amortization of CDI 87 98
State and local taxes 361 466
Professional fees 590 636
FDIC insurance 479 526
Other insurance 113 133
Loan administration and foreclosure 377 278
Data processing and telecommunications 1,058 911
Deposit operations 569 450
Other 1,107 1,152
Total non-interest expense 19,425 18,798
     
Income before income taxes$6,228$5,637
Provision for income taxes 2,024 1,774
Net income 4,204 3,863
     
Preferred stock dividends (136) (559)
Preferred stock discount accretion (70) (236)
Discount on redemption of preferred stock -- 255
Net income to common shareholders$3,998$3,323
     
Net income per common share:    
Basic$0.58$0.49
Diluted 0.57 0.48
     
Weighted average common shares outstanding:    
Basic 6,855,811 6,816,772
Diluted 7,015,155 6,870,751
       
TIMBERLAND BANCORP INC. AND SUBSIDIARY      
CONSOLIDATED BALANCE SHEETS      
($ in thousands, except per share amounts) (unaudited)June 30,March 31,June 30,
  2014 2014 2013
Assets      
Cash and due from financial institutions$13,500$11,437$10,757
Interest-bearing deposits in banks 50,467 58,804 71,788
Total cash and cash equivalents 63,967 70,241 82,545
       
Certificates of deposit ("CDs") held for investment, at cost 32,336 31,385 26,749
       
MBS and other investments:      
Held to maturity, at amortized cost 5,417 5,511 2,892
Available for sale, at fair value 2,928 2,991 4,370
FHLB stock 5,299 5,351 5,502
       
Loans receivable 566,757 564,109 553,981
Loans held for sale 1,501 1,332 2,433
Less: Allowance for loan losses (10,563) (10,749) (11,126)
Net loans receivable 557,695 554,692 545,288
       
Premises and equipment, net 17,867 17,785 18,043
OREO and other repossessed assets, net 11,172 13,208 15,314
BOLI 17,494 17,361 16,956
Accrued interest receivable 1,922 2,003 2,015
Goodwill 5,650 5,650 5,650
Core deposit intangible 32 61 151
Mortgage servicing rights, net 1,812 1,958 2,333
Other assets 4,040 4,220 4,967
Total assets$727,631$732,417$732,775
       
Liabilities and shareholders' equity      
Deposits: Non-interest-bearing demand$92,995$95,607$83,043
Deposits: Interest-bearing 505,637 508,767 513,021
Total deposits 598,632 604,374 596,064
       
FHLB advances 45,000 45,000 45,000
Other liabilities and accrued expenses 2,669 3,019 2,477
Total liabilities 646,301 652,393 643,541
Shareholders' equity      
Fixed Rate Cumulative Preferred stock, Series A, $.01 par value; 1,000,000 shares authorized; redeemable at $1,000 per share; 12,065 shares issued and outstanding – June 30, 2013  -- -- 11,889
Common stock, $.01 par value; 50,000,000 shares authorized; 7,045,036 shares issued and outstanding – June 30, 2013 7,045,936 shares issued and outstanding – March 31, 2014 and June 30, 2014  10,710 10,663 10,551
Unearned shares- Employee Stock Ownership Plan (1,256) (1,322) (1,521)
Retained earnings 72,240 71,088 68,665
Accumulated other comprehensive loss (364) (405) (350)
Total shareholders' equity 81,330 80,024 89,234
Total liabilities and shareholders' equity$727,631$732,417$732,775
       
KEY FINANCIAL RATIOS AND DATA  Three Months Ended
($ in thousands, except per share amounts) (unaudited)June 30,March 31,June 30,
  2014 2014 2013
PERFORMANCE RATIOS:      
Return on average assets (a) 0.79% 0.63% 0.47%
Return on average equity (a) 7.12% 5.83% 3.94%
Net interest margin (a) 3.86% 3.85% 3.88%
Efficiency ratio 75.21% 79.93% 70.31%
       
  Nine Months Ended
 June 30, June 30,
  2014   2013
PERFORMANCE RATIOS:      
Return on average assets (a) 0.76%   0.70%
Return on average equity (a) 6.76%   5.69%
Net interest margin (a) 3.83%   3.83%
Efficiency ratio 75.72%   69.12%
       
  As of or for Three Months Ended
 June 30,March 31,June 30,
  2014 2014 2013
ASSET QUALITY RATIOS AND DATA:      
Non-accrual loans$12,087$12,649$11,828
Loans past due 90 days and still accruing 150 -- 157
Non-performing investment securities 1,162 1,204 2,327
OREO and other repossessed assets 11,172 13,208 15,314
Total non-performing assets (b)$24,571$27,061$29,626
       
       
Non-performing assets to total assets (b) 3.38% 3.69% 4.04%
Net charge-offs (recoveries) during quarter  $ 186  $ (4)  $ 1,572
Allowance for loan losses to non-accrual loans 87% 85% 94%
Allowance for loan losses to loans receivable (c) 1.86% 1.90% 2.00%
Troubled debt restructured loans on accrual status (d)$16,524$17,284$18,958
       
CAPITAL RATIOS:      
Tier 1 leverage capital 10.62% 10.40% 11.55%
Tier 1 risk based capital 13.61% 13.38% 15.15%
Total risk based capital 14.87% 14.64% 16.41%
Tangible capital to tangible assets (e) 10.48% 10.23% 11.48%
       
       
BOOK VALUES:      
Book value per common share$11.54$11.36$10.98
Tangible book value per common share (e) 10.74 10.55 10.16
__________________________________________________
(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 $2,915, $2,812 and $2,491 reported as non-accrual loans at June 30, 2014, March 31, 2014 and June 30, 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)June 30,March 31,June 30,
  2014 2014 2013
       
Average total loans$566,887$568,448$557,234
Average total interest-bearing assets (a) 666,646 668,628 670,242
Average total assets 729,646 732,513 737,787
Average total interest-bearing deposits 503,834 505,756 516,559
Average FHLB advances and other borrowings 45,000 45,000 45,162
Average shareholders' equity 80,600 79,497 88,935
       
  Nine Months Ended
 June 30,  June 30,
  2014   2013
       
Average total loans$565,990  $556,014
Average total interest-bearing assets (a) 673,163   673,155
Average total assets 735,275   738,817
Average total interest-bearing deposits 507,892   518,235
Average FHLB advances and other borrowings 45,000   45,470
Average shareholders' equity 82,950   90,566
_________________________________
(a) Includes loans and MBS on non-accrual status

CONTACT: Michael R. Sand, President & CEO Dean J. Brydon, CFO (360) 533-4747 www.timberlandbank.com

Source: Timberland Bancorp, Inc


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Source: GlobeNewswire


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