Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the
Company”), the holding company for Timberland Bank (the “Bank”),
today reported net income of $6.66 million, or $0.80 per diluted
common share, for the quarter ended March 31, 2023. This compares
to net income of $5.33 million, or $0.63 per diluted common share
for the comparable quarter one year ago and $7.51 million, or $0.90
per diluted common share, for the preceding quarter.
For the first six months of fiscal 2023, Timberland’s net income
increased 31% to $14.17 million, or $1.70 per diluted common share,
compared to $10.81 million, or $1.28 per diluted common share for
the first six months of fiscal 2022.
“We are pleased to report strong financial results for our
second fiscal quarter, with net income and EPS increasing 25% and
27%, respectively, compared to the year ago quarter,” stated Dean
Brydon, Chief Executive Officer. “Our results benefited from
continued strong loan portfolio growth in conjunction with a higher
interest rate environment compared to a year ago. As a result of
the Company’s strong earnings and capital position, Timberland’s
Board of Directors announced a quarterly cash dividend of $0.23 per
share, payable on May 26, 2023, to shareholders of record on May
12, 2023. This represents the 42nd consecutive quarter that
Timberland will have paid a cash dividend.”
“Asset quality remains strong with quarter end non-performing
assets at 12 basis points of total assets,” Brydon continued.
“Although loan origination volumes have moderated, loan prepayments
have declined considerably resulting in a $38 million increase in
net loans receivable for the quarter. As a result of this loan
growth, we recorded a provision for loan losses of $475,000 for the
quarter. Additionally, liquidity, both on-balance sheet and
off-balance sheet, remained strong with no borrowings at March 31,
2023 and secured borrowing line capacity of $647 million available
through the Federal Home Loan Bank (“FHLB”) and the Federal
Reserve. While recent developments in the banking markets have been
unsettling in the short term, we believe that with our strong
capital position, excellent credit quality and ample sources of
liquidity, we are well positioned to continue to deliver strong
financial results.”
“The current quarter’s net interest margin remained strong at
3.99% and was 104 basis points higher compared to the year ago
quarter. The year-over-year increase was primarily due to Federal
Reserve rate increases and the continued deployment of overnight
funds into higher yielding loans and investment securities,” said
Jonathan Fischer, President and Chief Operating Officer. “Deposit
retention and acquisition remains competitive, and as a result we
saw a 3% outflow of deposits during the quarter. As expected,
funding costs increased during the quarter as we continue to
increase short-term deposit rates to retain rate sensitive customer
deposits. We have a strong and diversified deposit base of consumer
and commercial customers and only 12% of our deposits were
uninsured (or uncollateralized) at quarter end.”
Earnings and Balance Sheet Highlights (at or
for the periods ended March 31, 2023, compared to March 31, 2022,
or December 31, 2022): Earnings
Highlights:
- Earnings per diluted common share (“EPS”) increased 27% to
$0.80 for the current quarter from $0.63 for the comparable quarter
one year ago and decreased 11% from $0.90 for the preceding
quarter; EPS for the first six months of fiscal 2023 increased 33%
to $1.70 from $1.28 for the first six months of fiscal 2022;
- Net income increased 25% to $6.66 million for the current
quarter from $5.33 million for the comparable quarter one year ago
and decreased 11% from $7.51 million for the preceding quarter; Net
income increased 31% to $14.17 million for the first six months of
fiscal 2023 compared to $10.81 million for the first six months of
fiscal 2022;
- Return on average equity (“ROE”) and return on average assets
(“ROA”) for the current quarter were 11.86% and 1.48%,
respectively;
- Net interest margin (“NIM”) for the current quarter expanded to
3.99% from 2.95% for the comparable quarter one year ago and
compressed slightly from 4.03% for the preceding quarter; and
- The efficiency ratio for the current quarter was 55.31%
compared to 58.42% for the comparable quarter one year ago and
51.52% for the preceding quarter.
Balance Sheet Highlights:
- Total assets decreased 5% year-over-year and 3% from the prior
quarter;
- Net loans receivable (excluding SBA PPP loans) increased 18%
year-over-year and 3% from the prior quarter;
- Net loans receivable (including SBA PPP loans) increased 17%
year-over-year and 3% from the prior quarter;
- Total deposits decreased 6% year-over-year and 3% from the
prior quarter;
- Non-performing assets to total assets ratio improved to 0.12%
from 0.16% one year ago;
- Total shareholders’ equity increased 7% year-over-year and 2%
from prior quarter; and
- Book and tangible book (non-GAAP) values per common share
increased to $27.75 and $25.81, respectively, at March 31,
2023
- Liquidity (both on-balance sheet and off-balance sheet)
remained strong with no borrowings at March 31, 2023 and secured
borrowing line capacity of $647 million available through the
Federal Home Loan Bank (“FHLB”) and the Federal Reserve.
Operating Results
Operating revenue (net interest income before the
provision for loan losses plus non-interest income) for the current
quarter increased 24% to $19.79 million from $15.98 million for the
comparable quarter one year ago and decreased 3% from $20.45
million for the preceding quarter. The decrease in operating
revenue compared to the preceding quarter was primarily due to a
decrease in net interest income as funding costs increased at a
greater pace than interest income increased. Operating revenue
increased by 25% to $40.24 million for the first six months of
fiscal 2023 from $32.11 million for the first six months of fiscal
2022, primarily due to increased interest income from loans,
overnight funds, and investment securities, which were partially
offset by an increase in total interest expense. The increased
interest income in these categories was primarily a result of
increased short-term market interest rates and the continued
deployment of liquidity into higher-yielding loans and investment
securities.
Net interest income increased $4.26 million, or
33%, to $17.15 million for the current quarter from $12.89 million
for the comparable quarter one year ago and decreased $592,000, or
3%, from $17.74 million for the preceding quarter. The decrease in
net interest income compared to the preceding quarter was primarily
due to increased funding costs and a decrease in average
interest-earning assets. The weighted average cost of total
interest-bearing liabilities increased to 0.84% for the current
quarter from 0.50% for the preceding quarter as market interest
rates increased. Partially offsetting the increase in interest
expense was an increase in the weighted average yield on total
interest-earning assets to 4.51% for the current quarter from 4.34%
for the preceding quarter. Total average interest-earning assets
decreased by $41.27 million, or 2%, to $1.72 billion for the
current quarter from $1.76 billion for the preceding
quarter. Timberland’s NIM for the current
quarter decreased to 3.99% from 4.03% for the preceding quarter and
improved from 2.95% for the comparable quarter one year
ago. The NIM for the current quarter
was increased by approximately three basis points due to the
accretion of $15,000 of the fair value discount on loans acquired
in the South Sound Acquisition and the collection of $99,000 in
pre-payment penalties, non-accrual interest, and late fees. The NIM
for the preceding quarter was increased by approximately three
basis points due to the accretion of $28,000 of the fair value
discount on loans acquired in the South Sound Acquisition and the
collection of $120,000 in pre-payment penalties, non-accrual
interest and late fees. The NIM for the comparable quarter one year
ago was increased by approximately six basis points due to the
accretion of $34,000 of the fair value discount on loans acquired
in the South Sound Acquisition and the collection of $246,000 in
pre-payment penalties, non-accrual interest and late fees. Net
interest income for the first six months of fiscal 2023 increased
$9.31 million, or 36%, to $34.89 million from $25.29 million for
the first six months of fiscal 2022. Timberland’s net interest
margin for the first six months of fiscal 2023 expanded to 4.02%
from 2.93% for the first six months of fiscal 2022.
U.S. Small Business Administration (“SBA”) PPP
loans contribute to interest income through the 1.00% interest rate
earned on outstanding loan balances and also through the accretion
of loan origination fees into interest income over the life of each
PPP loan. At March 31, 2023, Timberland had SBA PPP deferred loan
origination fees of $21,000 remaining to be accreted into interest
income over the remaining life of the loans. The following table
details the interest income recognized from SBA PPP loans:
|
SBA PPP Loan Income($ in thousands) |
|
|
Three Months Ended |
|
|
March 31, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2022 |
|
Interest income |
$ |
1 |
|
$ |
2 |
|
$ |
31 |
|
Loan origination fee accretion |
|
4 |
|
|
17 |
|
|
708 |
|
Total SBA PPP loan income |
$ |
5 |
|
$ |
19 |
|
$ |
739 |
|
|
|
|
|
|
|
A $475,000 provision for loan losses was recorded
for the quarter ended March 31, 2023.
The provision was made primarily due to loan portfolio growth. A
$525,000 provision for loans losses was recorded for the quarter
ended December 31, 2022. No provision
for loan losses was made during the quarter ended March 31,
2022.
Non-interest income decreased $69,000 or 3%, to
$2.64 million for the current quarter from $2.71 million for the
preceding quarter and decreased $447,000, or 14%, from $3.08
million for the comparable quarter one year ago. The decrease in
non-interest income compared to the preceding quarter was primarily
due to a $54,000 decrease in service charges on deposits and
smaller decreases in several other
categories. Fiscal year-to-date
non-interest income decreased 18% to $5.34 million from $6.53
million for the first six months of fiscal 2022, primarily due to a
$1.01 million decrease in gain on sales of loans as the dollar
amount of fixed-rate one-to four-family loans originated and sold
decreased as demand slowed and a larger portion of single family
loan originations were retained in the portfolio rather than being
sold.
Total operating (non-interest) expenses for the
current quarter increased $409,000, or 4%, to $10.94 million from
$10.54 million for the preceding quarter and increased $1.61
million, or 17%, from $9.33 million for the comparable quarter one
year ago. The increase in operating
expenses compared to the preceding quarter was primarily due to a
$146,000 increase in salaries and employee benefits, a $91,000
increase in data processing and telecommunications expense and
smaller increases in several other expense categories. These
increases were partially offset by a $100,000 decrease in deposit
operations expense and smaller decreases in several other expense
categories. The increase in salaries and employee benefits was
primarily due to hiring additional personnel (which included
filling a number of positions which had been open in prior
quarters). The increase in data processing and telecommunications
expense was primarily due to expenses associated with several new
technology products and initiatives.
The efficiency ratio for the current quarter was 55.31% compared to
51.52% for the preceding quarter and 58.42% for the comparable
quarter one year ago. Fiscal year-to-date operating expenses
increased 15% to $21.48 million from $18.60 million for the first
six months of fiscal 2022. The year-to-date increase in operating
expenses was primarily due to a $1.58 million increase in salaries
and employee benefits, a $386,000 increase in data processing and
telecommunications expense, a $309,000 increase in professional
fees expense and smaller increases in several other expense
categories. The efficiency ratio for the first six months of fiscal
2023 was 53.58% compared to 57.91% for the first six months of
fiscal 2022.
The provision for income taxes for the current
quarter decreased $176,000, or 9%, to $1.71 million from $1.88
million for the preceding quarter, primarily due to lower taxable
income. Timberland’s effective income
tax rate was 20.4% for the quarter ended March 31, 2023 compared to
20.0% for the quarter ended December 31, 2022 and 19.8% for the
quarter ended March 31, 2022.
Timberland’s effective income tax rate was 20.2% for the first six
months of fiscal 2023 compared to 20.0% for the first six months of
fiscal 2022.
Balance Sheet Management
Total assets decreased by $48.93 million, or 3%, during the
quarter to $1.79 billion at March 31, 2023 from $1.84 billion at
December 31, 2022 and decreased by $90.85 million, or 5%, from
$1.88 billion one year ago. The quarter’s decrease was primarily
due to an $82.41 million decrease in total cash and cash
equivalents, which was partially offset by a $37.63 million
increase in net loans receivable.
Liquidity
Timberland has continued to maintain a strong liquidity position
(both on-balance sheet and off-balance sheet) while deploying
overnight funds into loans and investment securities during the
past year. Liquidity, as measured by the sum of cash and cash
equivalents, CDs held for investment, and available for sale
investment securities, was 14.0% of total liabilities at March 31,
2023, compared to 18.9% at December 31, 2022, and 34.3% one year
ago. Timberland had no borrowings at March 31, 2023 and
had secured borrowing line capacity of $647 million available
through the Federal Home Loan Bank and the Federal Reserve. With a
strong and diversified deposit base, only 12% of Timberland’s
deposits were uninsured at March 31, 2023. (Note: The uninsured
deposit calculation excludes public deposits that are fully
collateralized.)
Loans
Net loans receivable increased $37.63 million, or 3%, during the
quarter to $1.21 billion at March 31, 2023 from $1.17 billion at
December 31, 2022. This increase was primarily due to a $16.35
million increase in one- to four-family loans, a $12.84 million
decrease in the undisbursed portion of construction loans in
process, a $7.04 million increase in multi-family loans, a $5.31
million increase in commercial real estate loans, and smaller
increases in several other loan categories. These increases to net
loans receivable were partially offset by a $4.75 million decrease
in construction and land development loans, and smaller decreases
in several other loan categories.
Loan Portfolio($ in
thousands)
| |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
| |
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
| Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
| One- to four-family (a) |
$216,639 |
|
|
16% |
|
$200,285 |
|
|
15% |
|
$133,925 |
|
|
12% |
| Multi-family |
|
103,870 |
|
|
8 |
|
|
96,831 |
|
|
7 |
|
|
82,526 |
|
|
7 |
| Commercial |
|
547,876 |
|
|
41 |
|
|
542,571 |
|
|
42 |
|
|
523,479 |
|
|
45 |
| Construction - custom and |
|
|
|
|
|
|
|
|
|
|
|
|
owner/builder |
|
124,071 |
|
|
9 |
|
|
117,592 |
|
|
9 |
|
114,394 |
|
10 |
|
| Construction -
speculative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
one-to four-family |
|
11,343 |
|
|
1 |
|
|
11,220 |
|
|
1 |
|
|
15,438 |
|
|
1 |
| Construction - commercial |
|
31,458 |
|
|
3 |
|
|
36,825 |
|
|
3 |
|
|
35,416 |
|
|
3 |
| Construction -
multi-family |
|
83,051 |
|
|
6 |
|
|
89,040 |
|
|
7 |
|
|
64,141 |
|
|
6 |
| Construction - land |
|
|
|
|
|
|
|
|
|
|
|
| development |
|
17,018 |
|
|
1 |
|
|
17,015 |
|
|
1 |
|
|
10,687 |
|
|
1 |
| Land |
|
24,520 |
|
|
2 |
|
|
25,872 |
|
|
2 |
|
|
22,192 |
|
|
2 |
|
Total mortgage loans |
|
1,159,846 |
|
|
87 |
|
|
1,137,251 |
|
|
87 |
|
|
1,002,198 |
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
| Home equity and second |
|
|
|
|
|
|
|
|
|
|
|
|
mortgage |
|
36,896 |
|
|
3 |
|
|
35,967 |
|
|
3 |
|
|
32,980 |
|
|
3 |
| Other |
|
2,283 |
|
|
-- |
|
|
2,482 |
|
|
-- |
|
|
2,277 |
|
|
-- |
|
Total consumer loans |
|
39,179 |
|
|
3 |
|
|
38,449 |
|
|
3 |
|
|
35,257 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
| Commercial business loans |
|
129,306 |
|
|
10 |
|
|
127,085 |
|
|
10 |
|
|
108,644 |
|
|
9 |
| SBA PPP loans |
|
572 |
|
|
-- |
|
|
631 |
|
|
-- |
|
|
5,934 |
|
|
1 |
| Total commercial loans |
|
129,878 |
|
|
10 |
|
|
127,716 |
|
|
10 |
|
|
114,578 |
|
|
10 |
| Total loans |
|
1,328,903 |
|
|
100% |
|
|
1,303,416 |
|
|
100% |
|
|
1,152,033 |
|
|
100% |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Undisbursed portion of |
|
|
|
|
|
|
|
|
|
|
|
|
construction loans in |
|
|
|
|
|
|
|
|
|
|
|
| process |
|
(99,253 |
) |
|
|
|
|
(112,096 |
) |
|
|
|
|
(100,719 |
) |
|
|
|
Deferred loan origination |
|
|
|
|
|
|
|
|
|
|
|
|
fees |
|
(4,759 |
) |
|
|
|
|
(4,532 |
) |
|
|
|
|
(3,801 |
) |
|
|
|
Allowance for loan losses |
|
(14,698 |
) |
|
|
|
|
(14,229 |
) |
|
|
|
|
(13,433 |
) |
|
|
|
Total loans receivable, net |
$1,210,193 |
|
|
|
|
$1,172,559 |
|
|
|
|
$1,034,080 |
|
|
|
_______________________(a) Does not include
one- to four-family loans held for sale totaling $200, $0, and
$2,772 at March 31, 2023, December 31, 2022, and March 31, 2022,
respectively.
The following table provides a breakdown of commercial real
estate (“CRE”) mortgage loans by collateral type as of March 31,
2023:
CRE Loan Portfolio Breakdown by
Collateral($ in thousands)
|
Collateral Type |
|
Amount |
|
Percentof CREPortfolio |
|
Percent ofTotal LoanPortfolio |
|
|
|
|
|
Industrial warehouse |
|
$ |
107,514 |
|
20% |
|
8% |
|
|
|
|
| Medical/dental offices |
|
|
78,266 |
|
14 |
|
6 |
|
|
|
|
| Office buildings |
|
|
67,797 |
|
12 |
|
5 |
|
|
|
|
| Other retail buildings |
|
|
48,993 |
|
9 |
|
4 |
|
|
|
|
| Hotel/motel |
|
|
29,430 |
|
6 |
|
2 |
|
|
|
|
| Restaurants |
|
|
28,793 |
|
5 |
|
2 |
|
|
|
|
| Mini-storage |
|
|
28,188 |
|
5 |
|
2 |
|
|
|
|
| Convenience stores |
|
|
20,104 |
|
4 |
|
1 |
|
|
|
|
| Nursing homes |
|
|
18,227 |
|
3 |
|
1 |
|
|
|
|
| Shopping centers |
|
|
10,416 |
|
2 |
|
1 |
|
|
|
|
| Mobile home parks |
|
|
10,263 |
|
2 |
|
1 |
|
|
|
|
| Churches |
|
|
7,589 |
|
1 |
|
1 |
|
|
|
|
| Additional CRE |
|
|
92,296 |
|
17 |
|
7 |
|
|
|
|
|
Total CRE |
|
$ |
547,876 |
|
100% |
|
41% |
|
|
|
|
Timberland originated $77.15 million in loans during the quarter
ended March 31, 2023, compared to $101.67 million for the preceding
quarter and $130.41 million for the comparable quarter one year
ago. Timberland continues to originate fixed-rate one- to
four-family mortgage loans, a portion of which are sold into the
secondary market for asset-liability management purposes and to
generate non-interest income. During the past twelve months a
larger percentage of single-family loan originations were retained
in the portfolio rather than being sold due to the increased yield
available on such loans. During the current quarter,
fixed-rate one- to four-family mortgage loans totaling $2.39
million were sold compared to $1.16 million for the preceding
quarter and $16.88 million for the comparable quarter one year ago.
Timberland’s
investment securities and CDs held for investment decreased $4.89
million, or 1%, to $353.77 million at March 31, 2023, from $358.66
million at December 31, 2022. The decrease was primarily due to
maturities and scheduled amortization.
Deposits
Total deposits decreased $52.32 million, or 3%, during the
quarter to $1.55 billion at March 31, 2023, from $1.60 billion at
December 31, 2022. The quarter’s decrease consisted of a $41.28
million decrease in NOW checking account balances, a $19.25 million
decrease in money market account balances, a $15.09 million
decrease in non-interest-bearing account balances, and a $9.99
million decrease in savings account balances. These decreases were
partially offset by a $33.29 million increase in certificates of
deposit account balances. The net decrease in deposits was
primarily due to competitive pricing pressure and customers moving
excess funds to alternative higher yielding investments as well as
general declines in individual customer balances.
|
Deposit Breakdown($ in thousands) |
| |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
$479,283 |
|
31% |
|
$494,370 |
|
31% |
|
$525,488 |
|
32% |
| NOW
checking |
|
403,463 |
|
26 |
|
444,742 |
|
28 |
|
457,874 |
|
28 |
|
Savings |
|
269,522 |
|
17 |
|
279,514 |
|
17 |
|
288,361 |
|
18 |
| Money
market |
|
210,390 |
|
14 |
|
229,643 |
|
14 |
|
258,057 |
|
15 |
|
Certificates of deposit under $250 |
|
129,331 |
|
8 |
|
110,897 |
|
7 |
|
106,208 |
|
6 |
|
Certificates of deposit $250 and over |
|
56,778 |
|
4 |
|
41,924 |
|
3 |
|
20,438 |
|
1 |
|
Total deposits |
|
$1,548,767 |
|
100% |
|
$1,601,090 |
|
100% |
|
$1,656,426 |
|
100% |
Shareholders’ Equity and Capital
Ratios
Total shareholders’ equity increased $4.11 million, or 2%, to
$227.66 million at March 31, 2023, from $223.55 million at December
31, 2022. The increase in shareholders’ equity was primarily due to
net income of $6.66 million for the quarter and $122,000 from the
exercise of stock options, which was partially offset by the
payment of $1.89 million in dividends to shareholders and the
repurchase of 34,263 shares of common stock for $1.10 million (an
average price of $32.04 per share). Timberland had
184,212 shares available to be repurchased in accordance with the
terms of its existing stock repurchase plan at March 31, 2023.
Timberland remains well capitalized with a total
risk-based capital ratio of 19.41%, a Tier 1 leverage capital ratio
of 11.95%, a tangible common equity to tangible assets ratio
(non-GAAP) of 11.96%, and a shareholders’ equity to total assets
ratio of 12.74% at March 31, 2023. Timberland’s held to maturity
investment securities were $277.91 million at March 31, 2023, with
a net unrealized loss of $12.83 million (pre-tax). Although not
permitted by U.S. Generally Accepted Accounting Principles,
including these unrealized losses in accumulated other
comprehensive income (loss) (“AOCI”) would result in a ratio of
shareholders’ equity to total assets of 12.18%, compared to 12.74%,
as reported.
Asset Quality
Timberland’s non-performing assets to total assets
ratio was 0.12% at March 31, 2023 and December 31, 2022, an
improvement from 0.16% at March 31, 2022. There were net
charge-offs of $6,000 for the current quarter, compared to net
recoveries of $1,000 for the preceding quarter and net charge-offs
of $35,000 for the comparable quarter one year ago. Due primarily
to loan portfolio growth, a $475,000 provision for loan losses was
made for the quarter ended March 31, 2023 and a $525,000 provision
for loan losses was made for the quarter ended December 31, 2022.
No provision for loan losses was made during the quarter ended
March 31, 2022.
The allowance for loan losses (“ALL”) as a
percentage of loans receivable was 1.20% at March 31, 2023,
compared to 1.20% at December 31, 2022 and 1.28% one year ago.
The ALL as a percentage of loans receivable is also
impacted by the loans acquired in the South Sound Acquisition.
Included in the recorded value of loans acquired in acquisitions
are net discounts which may reduce the need for an allowance for
loan losses on such loans because they are carried at an amount
below their outstanding principal balance. The initial recorded
value of loans acquired in the South Sound Acquisition was $123.62
million and the related fair value discount was $2.08 million, or
1.68% of the loans acquired. The remaining fair value discount on
loans acquired in the South Sound Acquisition was $225,000 at March
31, 2023. The allowance for loan losses to loans receivable
(excluding SBA PPP loan balances and the remaining aggregate
balance of the loans acquired in the South Sound Acquisition) was
1.21% (non-GAAP) at March 31, 2023.
The following table details the ALL as a percentage
of loans receivable:
|
|
|
March 31, |
|
Dec. 31, |
|
March 31, |
|
|
|
2023 |
|
2022 |
|
2022 |
| ALL to
loans receivable |
|
1.20 |
% |
|
1.20 |
% |
|
1.28 |
% |
| ALL to
loans receivable (excluding SBA PPP loans) (non-GAAP) |
|
1.20 |
% |
|
1.20 |
% |
|
1.29 |
% |
| ALL to
loans receivable (excluding SBA PPP loans and South Sound
Acquisition loans) (non-GAAP) |
|
1.21 |
% |
|
1.22 |
% |
|
1.33 |
% |
Total delinquent loans (past due 30 days or more)
and non-accrual loans decreased $755,000 or 26%, to $2.19 million
at March 31, 2023, from $2.95 million one year ago, and decreased
$62,000, or 3%, from $2.25 million at December 31, 2022.
Non-accrual loans decreased $682,000, or 26%, to $1.97 million at
March 31, 2023, from $2.65 million one year ago, and decreased
$66,000, or 3%, from $2.04 million at December 31, 2022.
Non-Accrual Loans($ in
thousands)
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
| Mortgage
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family |
$378 |
|
2 |
|
$383 |
|
2 |
|
$578 |
|
3 |
|
Commercial |
|
694 |
|
2 |
|
|
658 |
|
2 |
|
|
671 |
|
3 |
|
Land |
|
362 |
|
1 |
|
|
425 |
|
2 |
|
|
723 |
|
4 |
|
Total mortgage loans |
|
1,434 |
|
5 |
|
|
1,466 |
|
6 |
|
|
1,972 |
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Home equity and second |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage |
|
241 |
|
2 |
|
|
263 |
|
3 |
|
|
269 |
|
2 |
|
Other |
|
1 |
|
1 |
|
|
2 |
|
1 |
|
|
5 |
|
1 |
|
Total consumer loans |
|
242 |
|
3 |
|
|
265 |
|
4 |
|
|
274 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business loans |
|
293 |
|
4 |
|
|
304 |
|
6 |
|
|
405 |
|
6 |
| Total
loans |
$1,969 |
|
12 |
|
$2,035 |
|
16 |
|
$2,651 |
|
19 |
At March 31, 2023 and December 31, 2022, the OREO
and other repossessed assets portfolio consisted of two individual
land parcels that have been written down to a book value of $0.
OREO and other repossessed assets were $157,000 at March 31,
2022.
OREO and Other Repossessed
Assets($ in thousands)
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
|
Land |
$ |
-- |
|
2 |
|
$ |
-- |
|
2 |
|
$ |
157 |
|
3 |
|
Total |
$ |
-- |
|
2 |
|
$ |
-- |
|
2 |
|
$ |
157 |
|
3 |
Acquisition
of South Sound BankOn October 1, 2018, the Company
completed the acquisition of South Sound Bank, a Washington-state
chartered bank, headquartered in Olympia, Washington (“South Sound
Acquisition”). The Company acquired 100% of the outstanding common
stock of South Sound Bank, and South Sound Bank was merged into
Timberland Bank and the Company. Pursuant to the terms of the
merger agreement, South Sound Bank shareholders received 0.746 of a
share of the Company’s common stock and $5.68825 in cash per share
of South Sound Bank common stock. The Company issued 904,826 shares
of its common stock (valued at $28,267,000 based on the Company’s
closing stock price on September 30, 2018 of $31.24 per share) and
paid $6,903,000 in cash in the transaction for total consideration
paid of $35,170,000.
About Timberland Bancorp, Inc. Timberland
Bancorp, Inc., a Washington corporation, is the holding company for
Timberland Bank. The Bank opened for business in 1915 and primarily
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 23 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. These statements relate
to our financial condition, results of operations, plans,
objectives, future performance or business. Forward-looking
statements are not statements of historical fact, are based on
certain assumptions 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 economic 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 or implied by our
forward-looking statements, including, but not limited to:
potential adverse impacts to economic conditions in our local
market areas, other markets where the Company has lending
relationships, or other aspects of the Company's business
operations or financial markets, including, without limitation, as
a result of employment levels, labor shortages and the effects of
inflation, a potential recession or slowed economic growth caused
by increasing political instability from acts of war including
Russia's invasion of Ukraine, as well as increasing oil prices and
supply chain disruptions, and any governmental or societal
responses to novel coronavirus disease 2019 ("COVID-19") pandemic,
including the possibility of new COVID-19 variants; 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
which may lead to increased losses and non-performing loans in our
loan portfolio 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; uncertainty regarding
the future of the London Interbank Offered Rate ("LIBOR"), and the
transition away from LIBOR toward new interest rate benchmarks;
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 Federal Reserve and of 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 against us or our
bank subsidiary which could 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
on us, any of which could adversely affect our liquidity and
earnings; legislative or regulatory changes that adversely affect
our business including changes in banking, securities and tax law,
in regulatory policies and principles, or the interpretation of
regulatory capital or other rules and including changes as a result
of COVID-19; our ability to attract and retain deposits; 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 risks associated
with the loans in our consolidated balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect our work force and potential
associated charges; disruptions, security breaches, or other
adverse events, failures or interruptions in, or attacks on, our
information technology systems or on the third-party vendors who
perform several of our critical processing functions; our ability
to retain key members of our senior management team; costs and
effects of litigation, including settlements and judgments; our
ability to implement our business strategies; 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; our ability to pay dividends on our common
stock; the quality and composition of our securities portfolio and
the impact if any adverse changes in the securities markets,
including on market liquidity; 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 ("FASB"), including additional guidance and
interpretation on accounting issues and details of the
implementation of new accounting methods; the economic impact of
climate change, severe weather events, natural disasters,
pandemics, epidemics and other public health crises, acts of war or
terrorism, and other external events on our business; other
economic, competitive, governmental, regulatory, and technological
factors affecting our operations, pricing, products and services
and other risks described in our reports filed with or furnished to
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
do not undertake and specifically disclaim any obligation to
publicly update or revise any forward-looking statements included
in this press release to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
statements 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. In light of these risks,
uncertainties and assumptions, the forward-looking statements
discussed in this document might not occur and we caution readers
not to place undue reliance on any forward-looking statements.
These risks could cause our actual results for fiscal 2023 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 consolidated financial condition
and results of operations as well as its stock price
performance.
| TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS
OF INCOME |
|
Three Months Ended |
| ($ in thousands,
except per share amounts) (unaudited) |
|
March 31, |
|
Dec. 31, |
|
March 31, |
| |
|
2023 |
|
2022 |
|
2022 |
|
|
Interest and dividend income |
|
|
|
|
|
|
|
|
Loans receivable |
|
$ |
14,950 |
|
$ |
14,457 |
|
$ |
12,620 |
|
|
Investment securities |
|
|
2,460 |
|
|
2,214 |
|
|
590 |
|
|
Dividends from mutual funds, FHLB stock and other investments |
|
|
64 |
|
|
51 |
|
|
27 |
|
|
Interest
bearing deposits in banks |
|
|
1,913 |
|
|
2,390 |
|
|
283 |
|
|
Total interest and dividend income |
|
|
19,387 |
|
|
19,112 |
|
|
13,520 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
Deposits |
|
|
2,236 |
|
|
1,369 |
|
|
625 |
|
|
Borrowings |
|
|
-- |
|
|
-- |
|
|
2 |
|
|
Total interest expense |
|
|
2,236 |
|
|
1,369 |
|
|
627 |
|
|
Net interest income |
|
|
17,151 |
|
|
17,743 |
|
|
12,893 |
|
|
Provision for loan losses |
|
|
475 |
|
|
525 |
|
|
-- |
|
|
Net interest income after provision for loan
losses |
|
|
16,676 |
|
|
17,218 |
|
|
12,893 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
Service
charges on deposits |
|
|
893 |
|
|
947 |
|
|
1,014 |
|
|
ATM and
debit card interchange transaction fees |
|
|
1,275 |
|
|
1,251 |
|
|
1,247 |
|
|
Gain on
sales of loans, net |
|
|
46 |
|
|
21 |
|
|
416 |
|
|
Bank
owned life insurance (“BOLI”) net earnings |
|
|
157 |
|
|
156 |
|
|
152 |
|
|
Recoveries on investment securities, net |
|
|
2 |
|
|
3 |
|
|
3 |
|
|
Other |
|
|
263 |
|
|
327 |
|
|
251 |
|
|
Total non-interest income, net |
|
|
2,636 |
|
|
2,705 |
|
|
3,083 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
6,046 |
|
|
5,900 |
|
|
5,192 |
|
|
Premises
and equipment |
|
|
1,001 |
|
|
924 |
|
|
988 |
|
|
Advertising |
|
|
178 |
|
|
195 |
|
|
161 |
|
|
OREO and
other repossessed assets, net |
|
|
-- |
|
|
-- |
|
|
2 |
|
|
ATM and
debit card processing |
|
|
489 |
|
|
483 |
|
|
450 |
|
|
Postage
and courier |
|
|
147 |
|
|
121 |
|
|
164 |
|
|
State
and local taxes |
|
|
298 |
|
|
299 |
|
|
235 |
|
|
Professional fees |
|
|
473 |
|
|
429 |
|
|
322 |
|
|
FDIC
insurance expense |
|
|
202 |
|
|
124 |
|
|
126 |
|
|
Loan
administration and foreclosure |
|
|
138 |
|
|
120 |
|
|
96 |
|
|
Data
processing and telecommunications |
|
|
880 |
|
|
789 |
|
|
669 |
|
|
Deposit
operations |
|
|
246 |
|
|
346 |
|
|
262 |
|
|
Amortization of core deposit intangible (“CDI”) |
|
|
67 |
|
|
68 |
|
|
79 |
|
|
Other,
net |
|
|
779 |
|
|
737 |
|
|
587 |
|
|
Total non-interest expense, net |
|
|
10,944 |
|
|
10,535 |
|
|
9,333 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
8,368 |
|
|
9,388 |
|
|
6,643 |
|
|
Provision for income taxes |
|
|
1,705 |
|
|
1,881 |
|
|
1,316 |
|
|
Net income |
|
$ |
6,663 |
|
$ |
7,507 |
|
$ |
5,327 |
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
$ |
0.91 |
|
$ |
0.64 |
|
|
Diluted |
|
|
0.80 |
|
|
0.90 |
|
|
0.63 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
8,220,532 |
|
|
8,232,273 |
|
|
8,337,407 |
|
|
Diluted |
|
|
8,304,370 |
|
|
8,318,733 |
|
|
8,421,875 |
| TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS
OF INCOME |
|
Six Months Ended |
| ($ in thousands,
except per share amounts) (unaudited) |
|
March 31, |
|
|
|
March 31, |
| |
|
2023 |
|
|
|
|
2022 |
|
|
|
Interest and dividend income |
|
|
|
|
|
|
|
|
Loans receivable |
|
$ |
29,407 |
|
|
|
$ |
25,242 |
|
|
|
Investment securities |
|
|
4,674 |
|
|
|
|
996 |
|
|
|
Dividends from mutual funds, FHLB stock and other investments |
|
|
115 |
|
|
|
|
54 |
|
|
|
Interest
bearing deposits in banks |
|
|
4,304 |
|
|
|
|
571 |
|
|
|
Total interest and dividend income |
|
|
38,500 |
|
|
|
|
26,863 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
Deposits |
|
|
3,606 |
|
|
|
|
1,257 |
|
|
|
Borrowings |
|
|
-- |
|
|
|
|
17 |
|
|
|
Total interest expense |
|
|
3,606 |
|
|
|
|
1,274 |
|
|
|
Net interest income |
|
|
34,894 |
|
|
|
|
25,589 |
|
|
|
Provision for loan losses |
|
|
1,000 |
|
|
|
|
-- |
|
|
|
Net interest income after provision for loan
losses |
|
|
33,894 |
|
|
|
|
25,589 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
Service
charges on deposits |
|
|
1,840 |
|
|
|
|
1,927 |
|
|
|
ATM and
debit card interchange transaction fees |
|
|
2,526 |
|
|
|
|
2,523 |
|
|
|
Gain on
sales of loans, net |
|
|
67 |
|
|
|
|
1,079 |
|
|
|
Bank
owned life insurance (“BOLI”) net earnings |
|
|
312 |
|
|
|
|
305 |
|
|
|
Valuation recovery on loan servicing rights, net |
|
|
-- |
|
|
|
|
119 |
|
|
|
Recoveries on investment securities, net |
|
|
5 |
|
|
|
|
11 |
|
|
|
Other |
|
|
591 |
|
|
|
|
561 |
|
|
|
Total non-interest income, net |
|
|
5,341 |
|
|
|
|
6,525 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
11,946 |
|
|
|
|
10,363 |
|
|
|
Premises
and equipment |
|
|
1,925 |
|
|
|
|
1,916 |
|
|
|
Advertising |
|
|
372 |
|
|
|
|
327 |
|
|
|
OREO and
other repossessed assets, net |
|
|
-- |
|
|
|
|
(16 |
) |
|
|
ATM and
debit card processing |
|
|
972 |
|
|
|
|
914 |
|
|
|
Postage
and courier |
|
|
268 |
|
|
|
|
300 |
|
|
|
State
and local taxes |
|
|
597 |
|
|
|
|
489 |
|
|
|
Professional fees |
|
|
902 |
|
|
|
|
593 |
|
|
|
FDIC
insurance expense |
|
|
326 |
|
|
|
|
254 |
|
|
|
Loan
administration and foreclosure |
|
|
259 |
|
|
|
|
200 |
|
|
|
Data
processing and telecommunications |
|
|
1,668 |
|
|
|
|
1,282 |
|
|
|
Deposit
operations |
|
|
592 |
|
|
|
|
561 |
|
|
|
Amortization of CDI |
|
|
135 |
|
|
|
|
158 |
|
|
|
Other,
net |
|
|
1,517 |
|
|
|
|
1,256 |
|
|
|
Total non-interest expense, net |
|
|
21,479 |
|
|
|
|
18,597 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
17,756 |
|
|
|
|
13,517 |
|
|
|
Provision for income taxes |
|
|
3,587 |
|
|
|
|
2,705 |
|
|
|
Net income |
|
$ |
14,169 |
|
|
|
$ |
10,812 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.72 |
|
|
|
$ |
1.30 |
|
|
|
Diluted |
|
|
1.70 |
|
|
|
|
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
8,226,467 |
|
|
|
|
8,346,839 |
|
|
|
Diluted |
|
|
8,311,630 |
|
|
|
|
8,435,536 |
|
| TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED BALANCE
SHEETS |
|
| ($ in thousands,
except per share amounts) (unaudited) |
|
March 31, |
|
Dec. 31, |
|
March 31, |
| |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
Assets |
|
|
|
|
|
|
| Cash and due from
financial institutions |
|
$ |
26,015 |
|
|
$ |
31,237 |
|
|
$ |
26,500 |
|
| Interest-bearing
deposits in banks |
|
|
116,468 |
|
|
|
193,659 |
|
|
|
465,802 |
|
|
|
Total cash and cash equivalents |
|
|
142,483 |
|
|
|
224,896 |
|
|
|
492,302 |
|
|
|
|
|
|
|
|
|
|
| Certificates of
deposit (“CDs”) held for investment, at cost |
|
|
20,168 |
|
|
|
23,392 |
|
|
|
28,619 |
|
| Investment
securities: |
|
|
|
|
|
|
|
|
Held to
maturity, at amortized cost |
|
|
277,911 |
|
|
|
278,585 |
|
|
|
189,405 |
|
|
|
Available for sale, at fair value |
|
|
54,838 |
|
|
|
55,841 |
|
|
|
50,624 |
|
| Investments in
equity securities, at fair value |
|
|
850 |
|
|
|
837 |
|
|
|
902 |
|
| FHLB stock |
|
|
2,202 |
|
|
|
2,194 |
|
|
|
2,194 |
|
| Other investments,
at cost |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
| Loans held for
sale |
|
|
200 |
|
|
|
-- |
|
|
|
2,772 |
|
| |
|
|
|
|
|
|
| Loans
receivable |
|
|
1,224,891 |
|
|
|
1,186,788 |
|
|
|
1,047,513 |
|
| Less: Allowance
for loan losses |
|
|
(14,698 |
) |
|
|
(14,229 |
) |
|
|
(13,433 |
) |
|
|
Net
loans receivable |
|
|
1,210,193 |
|
|
|
1,172,559 |
|
|
|
1,034,080 |
|
|
|
|
|
|
|
|
|
|
| Premises and
equipment, net |
|
|
21,744 |
|
|
|
21,703 |
|
|
|
21,878 |
|
| OREO and other
repossessed assets, net |
|
|
-- |
|
|
|
-- |
|
|
|
157 |
|
| BOLI |
|
|
23,119 |
|
|
|
22,962 |
|
|
|
22,498 |
|
| Accrued interest
receivable |
|
|
5,295 |
|
|
|
5,508 |
|
|
|
3,927 |
|
| Goodwill |
|
|
15,131 |
|
|
|
15,131 |
|
|
|
15,131 |
|
| CDI |
|
|
813 |
|
|
|
880 |
|
|
|
1,106 |
|
| Loan servicing
rights, net |
|
|
2,535 |
|
|
|
2,770 |
|
|
|
3,390 |
|
| Operating lease
right-of-use assets |
|
|
1,844 |
|
|
|
1,912 |
|
|
|
2,129 |
|
| Other assets |
|
|
4,292 |
|
|
|
3,374 |
|
|
|
3,356 |
|
|
|
Total assets |
|
$ |
1,786,618 |
|
|
$ |
1,835,544 |
|
|
$ |
1,877,470 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
| Deposits:
Non-interest-bearing demand |
|
$ |
479,283 |
|
|
$ |
494,370 |
|
|
$ |
525,488 |
|
| Deposits:
Interest-bearing |
|
|
1,069,484 |
|
|
|
1,106,720 |
|
|
|
1,130,938 |
|
|
|
Total
deposits |
|
|
1,548,767 |
|
|
|
1,601,090 |
|
|
|
1,656,426 |
|
|
|
|
|
|
|
|
|
|
| Operating lease
liabilities |
|
|
1,935 |
|
|
|
2,001 |
|
|
|
2,210 |
|
| FHLB
borrowings |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
| Other liabilities
and accrued expenses |
|
|
8,255 |
|
|
|
8,904 |
|
|
|
6,565 |
|
|
|
Total liabilities |
|
|
1,558,957 |
|
|
|
1,611,995 |
|
|
|
1,665,201 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
|
Common stock, $.01 par value; 50,000,000 shares
authorized;
8,203,174 shares issued and outstanding – March 31,
2023
8,231,197 shares issued and outstanding – December 31,
2022
8,305, 826 shares issued and outstanding – March 31, 2022
|
|
|
37,979 |
|
|
|
38,878 |
|
|
|
40,988 |
|
| Retained
earnings |
|
|
190,177 |
|
|
|
185,406 |
|
|
|
171,388 |
|
| Accumulated other
comprehensive loss |
|
|
(495 |
) |
|
|
(735 |
) |
|
|
(107 |
) |
|
|
Total shareholders’ equity |
|
|
227,661 |
|
|
|
223,549 |
|
|
|
212,269 |
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,786,618 |
|
|
$ |
1,835,544 |
|
|
$ |
1,877,470 |
|
|
KEY FINANCIAL RATIOS AND DATA |
Three Months Ended |
| ($ in
thousands, except per share amounts) (unaudited) |
|
March 31, |
|
Dec. 31, |
|
March 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
PERFORMANCE RATIOS: |
|
|
|
|
|
|
| Return
on average assets (a) |
|
|
1.48% |
|
|
|
1.63% |
|
|
|
1.16% |
|
| Return
on average equity (a) |
|
|
11.86% |
|
|
|
13.63% |
|
|
|
10.10% |
|
| Net
interest margin (a) |
|
|
3.99% |
|
|
|
4.03% |
|
|
|
2.95% |
|
|
Efficiency ratio |
|
|
55.31% |
|
|
|
51.52% |
|
|
|
58.42% |
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
March 31, |
|
|
|
March 31, |
|
|
|
|
2023 |
|
|
|
|
|
2022 |
|
|
PERFORMANCE RATIOS: |
|
|
|
|
|
|
| Return
on average assets (a) |
|
|
1.55% |
|
|
|
|
|
1.18% |
|
| Return
on average equity (a) |
|
|
12.74% |
|
|
|
|
|
10.33% |
|
| Net
interest margin (a) |
|
|
4.02% |
|
|
|
|
|
2.93% |
|
|
Efficiency ratio |
|
|
53.38% |
|
|
|
|
|
57.91% |
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS AND DATA: |
|
|
|
|
|
|
|
Non-accrual loans |
|
$1,969 |
|
|
$2,035 |
|
|
$2,651 |
|
| Loans
past due 90 days and still accruing |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
Non-performing investment securities |
|
|
93 |
|
|
|
98 |
|
|
|
127 |
|
| OREO and
other repossessed assets |
|
|
-- |
|
|
|
-- |
|
|
|
157 |
|
| Total
non-performing assets (b) |
|
$2,062 |
|
|
$2,133 |
|
|
$2,935 |
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets (b) |
|
|
0.12% |
|
|
|
0.12% |
|
|
|
0.16% |
|
| Net
charge-offs (recoveries) during quarter |
|
$6 |
|
|
$(1) |
|
|
$35 |
|
| ALL to
non-accrual loans, |
|
|
746.47% |
|
|
|
699.21% |
|
|
|
506.71% |
|
| ALL to
loans receivable (c) |
|
|
1.20% |
|
|
|
1.20% |
|
|
|
1.28% |
|
| ALL to
loans receivable (excluding SBA PPP loans) (d) (non-GAAP) |
|
|
1.20% |
|
|
|
1.20% |
|
|
|
1.29% |
|
| ALL to
loans receivable (excluding SBA PPP loans and South Sound
Acquisition loans) (d) (e) (non-GAAP) |
|
|
1.21% |
|
|
|
1.22% |
|
|
|
1.33% |
|
| Troubled
debt restructured loans on accrual status (f) |
|
$2,550 |
|
|
$2,464 |
|
|
$2,496 |
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS: |
|
|
|
|
|
|
| Tier 1
leverage capital |
|
|
11.95% |
|
|
|
11.46% |
|
|
|
10.86% |
|
| Tier 1
risk-based capital |
|
|
18.16% |
|
|
|
18.07% |
|
|
|
19.50% |
|
| Common
equity Tier 1 risk-based capital |
|
|
18.16% |
|
|
|
18.07% |
|
|
|
19.50% |
|
|
Total risk-based capital |
|
|
19.41% |
|
|
|
19.32% |
|
|
|
20.75% |
|
| Tangible
common equity to tangible assets (non-GAAP) |
|
|
11.96% |
|
|
|
11.41% |
|
|
|
10.53% |
|
|
|
|
|
|
|
|
|
|
BOOK VALUES: |
|
|
|
|
|
|
| Book
value per common share |
|
$27.75 |
|
|
$27.16 |
|
|
$25.56 |
|
| Tangible
book value per common share (g) |
|
|
25.81 |
|
|
|
25.21 |
|
|
|
23.60 |
|
________________________________________________
(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) Does not include loans held for sale and is before
the allowance for loan losses.(d) Does not include PPP loans
totaling $572, $631 and $5,934 at March 31, 2023, December 31, 2022
and March 31, 2022, respectively.(e) Does not include loans
acquired in the South Sound Acquisition totaling $13,917, $16,794
and $28,549 at March 31, 2023, December 31, 2022 and March 31,
2022, respectively.(f) Does not include troubled debt restructured
loans totaling $50, $116 and $172 reported as non-accrual loans at
March 31, 2023, December 31, 2022 and March 31, 2022, respectively.
(g) Tangible common equity divided by common shares outstanding
(non-GAAP). AVERAGE
BALANCES, YIELDS, AND RATES - QUARTERLY ($ in
thousands)(unaudited)
| |
For the Three Months Ended |
|
| |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
| |
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
| |
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable and loans
held for sale |
$ |
1,200,872 |
|
|
4.98 |
% |
|
$ |
1,164,369 |
|
|
4.97 |
% |
|
$ |
1,029,582 |
|
|
4.90 |
% |
| Investment securities and FHLB
stock (1) |
|
340,317 |
|
|
2.97 |
|
|
|
329,396 |
|
|
2.75 |
|
|
|
209,868 |
|
|
1.18 |
|
| Interest-earning deposits in
banks and CDs |
|
177,748 |
|
|
4.30 |
|
|
|
266,439 |
|
|
3.59 |
|
|
|
510,211 |
|
|
0.22 |
|
|
Total interest-earning assets |
|
1,718,937 |
|
|
4.51 |
|
|
|
1,760,204 |
|
|
4.34 |
|
|
|
1,749,661 |
|
|
3.09 |
|
| Other assets |
|
84,072 |
|
|
|
|
|
84,806 |
|
|
|
|
|
84,252 |
|
|
|
|
Total assets |
$ |
1,803,009 |
|
|
|
|
$ |
1,845,010 |
|
|
|
|
$ |
1,833,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| NOW checking accounts |
$ |
412,642 |
|
|
0.83 |
% |
|
$ |
439,750 |
|
|
0.45 |
% |
|
$ |
441,259 |
|
|
0.13 |
% |
| Money market accounts |
|
218,718 |
|
|
0.68 |
|
|
|
239,424 |
|
|
0.53 |
|
|
|
244,250 |
|
|
0.29 |
|
| Savings accounts |
|
274,877 |
|
|
0.14 |
|
|
|
279,832 |
|
|
0.12 |
|
|
|
277,888 |
|
|
0.08 |
|
| Certificates of deposit
accounts |
|
170,547 |
|
|
2.22 |
|
|
|
135,467 |
|
|
1.39 |
|
|
|
128,588 |
|
|
0.80 |
|
|
Total interest-bearing deposits |
|
1,076,784 |
|
|
0.84 |
|
|
|
1,094,473 |
|
|
0.50 |
|
|
|
1,091,985 |
|
|
0.23 |
|
| Borrowings |
|
6 |
|
|
5.43 |
|
|
|
-- |
|
|
-- |
|
|
|
677 |
|
|
1.18 |
|
|
Total interest-bearing liabilities |
|
1,076,790 |
|
|
0.84 |
|
|
|
1,094,473 |
|
|
0.50 |
|
|
|
1,092,662 |
|
|
0.23 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing demand
deposits |
|
492,294 |
|
|
|
|
|
519,307 |
|
|
|
|
|
521,284 |
|
|
|
| Other liabilities |
|
9,136 |
|
|
|
|
|
11,002 |
|
|
|
|
|
9,072 |
|
|
|
| Shareholders’ equity |
|
224,789 |
|
|
|
|
|
220,228 |
|
|
|
|
|
210,895 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,803,009 |
|
|
|
|
$ |
1,845,010 |
|
|
|
|
$ |
1,833,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
3.67 |
% |
|
|
|
3.84 |
% |
|
|
|
2.86 |
% |
|
Net interest margin (2) |
|
|
3.99 |
% |
|
|
|
4.03 |
% |
|
|
|
2.95 |
% |
|
Average interest-earning assets to |
|
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing liabilities |
|
159.64 |
% |
|
|
|
|
160.83 |
% |
|
|
|
|
160.13 |
% |
|
|
_____________________________________(1) Includes other
investments(2) Net interest margin = annualized net interest income
/ average interest-earning
assets
| |
For the Six Months Ended |
|
| |
March 31, 2023 |
|
|
March 31, 2022 |
| |
Amount |
|
Rate |
|
|
|
|
|
Amount |
|
Rate |
| |
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and loans held for sale |
$ |
1,182,420 |
|
|
4.97 |
% |
|
|
|
|
|
$ |
1,013,293 |
|
|
4.98 |
% |
| Investment securities and FHLB
stock (1) |
|
332,815 |
|
|
2.88 |
|
|
|
|
|
|
|
185,710 |
|
|
1.13 |
|
| Interest-earning deposits in
banks and CDs |
|
222,569 |
|
|
3.87 |
|
|
|
|
|
|
|
545,651 |
|
|
0.21 |
|
|
Total interest-earning assets |
|
1,737,804 |
|
|
4.43 |
|
|
|
|
|
|
|
1,744,654 |
|
|
3.08 |
|
| Other assets |
|
86,171 |
|
|
|
|
|
|
|
|
|
83,908 |
|
|
|
|
Total assets |
$ |
1,823,975 |
|
|
|
|
|
|
|
|
$ |
1,828,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| NOW checking accounts |
$ |
426,345 |
|
|
0.63 |
% |
|
|
|
|
|
$ |
440,999 |
|
|
0.13 |
% |
| Money market accounts |
|
229,185 |
|
|
0.60 |
|
|
|
|
|
|
|
233,480 |
|
|
0.29 |
|
| Savings accounts |
|
277,382 |
|
|
0.13 |
|
|
|
|
|
|
|
271,197 |
|
|
0.08 |
|
| Certificates of deposit
accounts |
|
152,814 |
|
|
1.84 |
|
|
|
|
|
|
|
130,611 |
|
|
0.81 |
|
|
Total interest-bearing deposits |
|
1,085,726 |
|
|
0.67 |
|
|
|
|
|
|
|
1,076,287 |
|
|
0.23 |
|
| Borrowings |
|
3 |
|
|
5.43 |
|
|
|
|
|
|
|
2,862 |
|
|
1.19 |
|
|
Total interest-bearing liabilities |
|
1,085,729 |
|
|
0.67 |
|
|
|
|
|
|
|
1,079,149 |
|
|
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing demand
deposits |
|
505,949 |
|
|
|
|
|
|
|
|
|
530,171 |
|
|
|
| Other liabilities |
|
9,813 |
|
|
|
|
|
|
|
|
|
9,824 |
|
|
|
| Shareholders’ equity |
|
222,484 |
|
|
|
|
|
|
|
|
|
209,418 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,823,975 |
|
|
|
|
|
|
|
|
$ |
1,828,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
3.76 |
% |
|
|
|
|
|
|
|
2.84 |
% |
|
Net interest margin (2) |
|
|
4.02 |
% |
|
|
|
|
|
|
|
2.93 |
% |
|
Average interest-earning assets to |
|
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing liabilities |
|
160.06 |
% |
|
|
|
|
|
|
|
|
161.67 |
% |
|
|
_____________________________________(1) Includes other
investments(2) Net interest margin = annualized net interest income
/ average interest-earning
assets
Non-GAAP Financial MeasuresIn addition to
results presented in accordance with generally accepted accounting
principles (“GAAP”), this press release contains certain non-GAAP
financial measures. Timberland believes that certain non-GAAP
financial measures provide investors with information useful in
understanding the Company’s financial performance; however, readers
of this report are urged to review these non-GAAP financial
measures in conjunction with GAAP results as reported.
Financial measures that exclude intangible assets are non-GAAP
measures. To provide investors with a broader understanding of
capital adequacy, Timberland provides non-GAAP financial measures
for tangible common equity, along with the GAAP measure. Tangible
common equity is calculated as shareholders’ equity less goodwill
and CDI. In addition, tangible assets equal total assets less
goodwill and CDI.
The following table provides a reconciliation of ending
shareholders’ equity (GAAP) to ending tangible shareholders’ equity
(non-GAAP) and ending total assets (GAAP) to ending tangible assets
(non-GAAP).
|
($ in thousands) |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
227,661 |
|
|
$ |
223,549 |
|
|
$ |
212,269 |
|
|
|
Less goodwill and CDI |
|
|
(15,944 |
) |
|
|
(16,011 |
) |
|
|
(16,237 |
) |
|
|
Tangible common equity |
|
$ |
211,717 |
|
|
$ |
207,538 |
|
|
$ |
196,032 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,786,618 |
|
|
$ |
1,835,544 |
|
|
$ |
1,877,470 |
|
|
|
Less goodwill and CDI |
|
|
(15,944 |
) |
|
|
(16,011 |
) |
|
|
(16,237 |
) |
|
|
Tangible assets |
|
$ |
1,770,674 |
|
|
$ |
1,819,533 |
|
|
$ |
1,861,233 |
|
|
Contact:Dean J. Brydon, CEOJonathan A.
Fischer, President & COOMarci A. Basich,
CFO(360)
533-4747www.timberlandbank.com
Timberland Bancorp (NASDAQ:TSBK)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Timberland Bancorp (NASDAQ:TSBK)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024
