Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the
Company”), the holding company for Timberland Bank (the “Bank”),
today reported net income of $7.05 million, or $0.85 per diluted
common share, for the quarter ended September 30, 2022. This
compares to net income of $5.74 million, or $0.69 per diluted
common share, for the preceding quarter and $6.02 million, or $0.71
per diluted common share, for the comparable quarter one year ago.
Timberland also reported net income of $23.60 million, or $2.82
per diluted common share, for the fiscal year ended September 30,
2022 compared to net income of $27.58 million, or $3.27 per diluted
common share, for the fiscal year ended September 30, 2021.
Timberland’s Board of Directors declared a quarterly cash
dividend to shareholders of $0.22 per share and a special cash
dividend of $0.10 per share. Both dividends are payable on November
25, 2022, to shareholders of record on November 10, 2022.
“We are pleased to report strong fiscal fourth quarter results,”
stated Michael Sand, CEO. “Continued growth in the loan and
investment portfolios and a Fed orchestrated higher rate
environment combined to significantly increase Company revenue and
profitability relative to the prior quarter. “Our decision to build
liquidity during the mid and post pandemic periods while patiently
awaiting higher interest rates is now proving beneficial to the
Company’s earnings profile. As noted throughout this release, key
financial metrics moved sharply higher this quarter and tangible
book value per share continued its upward trajectory.”
“Asset quality continues to be strong with no charge-offs
recorded during the quarter and non-performing assets reported at
12 basis points of total assets at quarter end,” added Sand. “The
tangible common equity to tangible assets ratio, a non-GAAP ratio,
reached 10.98% this
quarter.”
“The 53 basis point expansion in the net interest margin helped
increase net income and earnings per share by 23% compared to the
preceding quarter, said Dean Brydon, President and CFO. “There was
a slight outflow of deposits during the current quarter, and we are
beginning to see more pressure to increase rates to retain
rate-sensitive deposits. However, we remain well positioned to
benefit from additional Federal Reserve actions to increase
interest rates, and we anticipate additional opportunities to
deploy excess liquidity during the next several
quarters.”
“In addition to the regular quarterly cash dividend,
Timberland’s Board of Directors also declared a one-time special
cash dividend of $0.10 per share. Timberland’s continued solid
financial performance has allowed us to pay a special cash dividend
to our shareholders while continuing to maintain a strong capital
position,” added Brydon.
Earnings and Balance Sheet Highlights (at or
for the periods ended September 30, 2022, compared to September 30,
2021, or June 30, 2022):
Earnings Highlights:
- Earnings per diluted common share (“EPS”) increased 23% to
$0.85 for the current quarter from $0.69 for the preceding quarter
and increased 20% from $0.71 for the comparable quarter one year
ago;
- Net income increased 23% to $7.05 million for the current
quarter from $5.74 million for the preceding quarter and increased
17% from $6.02 million for the comparable quarter one year
ago;
- Return on average equity (“ROE”) and return on average assets
(“ROA”) for the current quarter were 13.06% and 1.51%,
respectively; ROE and ROA for the 2022 fiscal year were 11.14% and
1.27%, respectively;
- Net interest margin (“NIM”) for the current quarter improved to
3.64% from 3.11% for the preceding quarter and 3.13% for the
comparable quarter one year ago; and
- The efficiency ratio for the current quarter improved to 52.72%
from 57.80% for the preceding quarter and 54.45% for the comparable
quarter one year ago.
Balance Sheet Highlights:
- Total assets increased 4% year-over-year and decreased 1% from
the prior quarter;
- Total deposits increased 4% year-over-year and decreased 2%
from the prior quarter;
- Net loans receivable (excluding SBA PPP loans) increased 22%
year-over-year and 4% from the prior quarter;
- Net loans receivable (including SBA PPP loans) increased 17%
year-over-year and 4% from the prior quarter;
- Non-performing assets to total assets ratio improved to 0.12%
from 0.18% one year ago;
- Total shareholders’ equity increased 6% to $218.57 million,
from $206.90 million at September 30, 2021; and
- Book and tangible book (non-GAAP) values per common share
increased to $26.58 and $24.63, respectively, at September 30,
2022.
Operating Results
Operating revenue (net interest income before the
provision for loan losses plus non-interest income) for the current
quarter increased 16% to $19.26 million from $16.56 million for the
comparable quarter one year ago and increased 13% from $17.08
million for the preceding quarter. The increase in operating
revenue compared to the preceding quarter was primarily due to
increased interest income from overnight funds, investment
securities, and loans. 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. Operating revenue for the
2022 fiscal year decreased 1% to $68.46 million from $69.02 million
for the 2021 fiscal year. The year-over-year revenue decrease was
primarily due to a decrease in gain on sales of loans, which was
partially offset by increased net interest income.
Net interest income increased $2.28 million, or
16%, to $16.26 million for the current quarter from $13.98 million
for the preceding quarter and increased $3.15 million, or 24%, from
$13.11 million for the comparable quarter one year ago. The
increase in net interest income was primarily due to increased
market interest rates and higher average balances in loans and
investment securities, which more than offset the decreased SBA PPP
loan income and increased deposit costs. Timberland’s NIM for the
current quarter improved to 3.64% compared to 3.11% for the
preceding quarter and 3.13% 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 $28,000 of the fair value discount on loans acquired
in the South Sound Acquisition and the collection of $91,000 in
pre-payment penalties, non-accrual interest, and late fees. The NIM
for the preceding quarter was increased by approximately five basis
points due to the accretion of $63,000 of the fair value discount
on loans acquired in the South Sound Acquisition and the collection
of $147,000 in pre-payment penalties, non-accrual interest and late
fees. The NIM for the comparable quarter one year ago was increased
by approximately five basis points due to the accretion of $50,000
of the fair value discount on loans acquired in the South Sound
Acquisition and the collection of $174,000 in pre-payment
penalties, non-accrual interest and late fees.
Net interest income for the 2022 fiscal year
increased $3.98 million, or 8% to $55.83 million from $51.86
million for the 2021 fiscal year. The year-over-year increase was
primarily due to a $173.46 million increase in the average balance
of interest-earning assets, which was partially offset by a 14
basis point decrease in the average yield on interest-earning
assets. Timberland’s NIM for the 2022 fiscal year decreased to
3.16% from 3.25% for the 2021 fiscal year.
U.S. Small Business Administration (“SBA”) PPP
loans contributed 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 September 30, 2022, Timberland had SBA
PPP deferred loan origination fees of $42,000 remaining to be
accreted into interest income over the remaining life of the loans.
The following table details the interest income recognized from SBA
PPP loans:
|
SBA PPP Loan Income($ in thousands) Three Months
Ended |
|
|
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
|
Interest income |
$ |
3 |
|
$ |
9 |
|
$ |
167 |
|
Loan origination fee accretion |
|
10 |
|
|
146 |
|
|
1,488 |
|
Total SBA PPP loan income |
$ |
13 |
|
$ |
155 |
|
$ |
1,655 |
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
Sept. 30, 2022 |
|
|
|
Sept. 30, 2021 |
|
Interest income |
$ |
114 |
|
|
|
$ |
1,060 |
|
Loan origination fee accretion |
|
1,792 |
|
|
|
|
5,071 |
|
Total SBA PPP loan income |
$ |
1,906 |
|
|
|
$ |
6,131 |
|
|
|
|
|
|
|
A $270,000 provision for loan losses was recorded
for the quarter ended September 30, 2022. The provision was made
primarily due to loan portfolio growth. No provision for loan
losses was made during the quarters ended June 30, 2022 and
September 30, 2021.
Non-interest income decreased $106,000, or 3%, to
$3.00 million for the current quarter from $3.10 million for the
preceding quarter and decreased $454,000, or 13%, from $3.45
million for the comparable quarter one year ago. The decrease in
non-interest income compared to the preceding quarter was primarily
due to an $85,000 decrease in gain on sales of loans and a $67,000
decrease in service charges on deposits. The quarter’s
year-over-year decrease in non-interest income was primarily due to
a $364,000 decrease in gain on sales of loans and an $87,000
reduction in the valuation recovery on loan servicing
rights. Non-interest income for the 2022
fiscal year decreased $4.54 million, or 26%, to $12.62 million from
$17.16 million for the 2021 fiscal year. The decrease was primarily
due to a $4.39 million decrease in gain on sale of loans. The
decreases in gain on sales of loans were primarily due to decreases
in the dollar amount of fixed-rate one- to four-family loans
originated and sold (as refinance demand slowed) and decreases in
the average pricing margin compared to the same periods last
year.
Total operating (non-interest) expenses for the
current quarter increased $280,000, or 3%, to $10.15 million from
$9.87 million for the preceding quarter and increased $1.14
million, or 13%, from $9.02 million for the comparable quarter one
year ago. The increase in operating expenses
compared to the preceding quarter was primarily due to increases in
data processing expense, deposit operations expenses, and smaller
increases in several other expense
categories. The efficiency ratio for the
current quarter improved to 52.72% from 57.80% for the preceding
quarter and 54.45% for the comparable quarter one year ago. For the
2022 fiscal year, total operating expenses increased $4.04 million,
or 12%, to $38.63 million from $34.59 million for the 2021 fiscal
year. The increase was primarily due to a $2.07 million increase in
salaries and employee benefits expense, a $741,000 increase in
professional fees expense, a $209,000 increase in data processing
and telecommunications expense, a $144,000 increase in deposit
operations expense and smaller increases in several other expense
categories. The increase in salaries and employee benefits expense
was primarily due to annual salary adjustments and the hiring of
additional lending personnel. The increase in professional fees
expense was primarily due to higher legal and consulting fees. The
efficiency ratio for the 2022 fiscal year was 56.42% compared to
50.12% for the 2021 fiscal year.
The provision for income taxes for the current
quarter increased $314,000 to $1.79 million from $1.47 million for
the preceding quarter, primarily due to higher taxable
income. Timberland’s effective income tax
rate was 20.2% for the quarter ended September 30, 2022 compared to
20.4% for the quarter ended June 30, 2022 and 20.2% for the quarter
ended September 30, 2021. The provision for
income taxes for the 2022 fiscal year decreased $883,000 to $5.96
million from $6.85 million for the 2021 fiscal year, primarily due
to lower taxable income. The effective tax rate was 20.2% for the
2022 fiscal year and 19.9% for the 2021 fiscal year.
Balance Sheet Management
Total assets increased $68.33 million, or 4%, during the fiscal
year to $1.86 billion at September 30, 2022 from $1.79 billion at
September 30, 2021. The year over-year increase was primarily due
to a $170.04 million increase in investment securities and CDs held
for investment and a $163.97 million increase in net loans
receivable, partially offset by a $263.44 million decrease in total
cash and cash equivalents. The year-over-year increase in total
assets was funded primarily by an increase in total deposits.
Total assets decreased by $27.29 million, or 1%, during the
quarter to $1.86 billion at September 30, 2022 from $1.89 billion
at June 30, 2022. The quarter’s decrease was primarily due to a
$105.40 million decrease in total cash and cash equivalents, which
was partially offset by a $44.46 million increase in net loans
receivable and a $33.66 million increase in investment securities
and CDs held for investment.
Loans
Net loans receivable increased $163.97 million, or 17%, during
the fiscal year to $1.13 billion at September 30, 2022 from $968.45
million at September 30, 2021. This increase was primarily due to a
$66.00 million increase in commercial real estate loans, a $56.18
million increase in one- to four-family loans, a $50.46 million
increase in commercial business loans (excluding SBA PPP loans), a
$22.41 million increase in construction loans and smaller increases
in several other loan categories. These increases to net loans
receivable were partially offset by a $39.92 million decrease in
SBA PPP loans and smaller decreases in several other loan
categories.
Net loans receivable increased $44.46 million, or 4%, during the
quarter to $1.13 billion at September 30, 2022 from $1.09 billion
at June 30, 2022. This increase was primarily due to a $31.43
million increase in one- to four-family loans, a $7.79 million
increase in construction loans and smaller increases in several
other loan categories.
Loan Portfolio($ in
thousands)
| |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
| |
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
| Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family (a) |
$ |
176,116 |
|
|
14 |
% |
|
$ |
144,682 |
|
|
12 |
% |
|
$ |
119,935 |
|
|
11 |
% |
|
Multi-family |
|
95,025 |
|
|
8 |
|
|
|
98,718 |
|
|
8 |
|
|
|
87,563 |
|
|
8 |
|
|
Commercial |
|
536,650 |
|
|
43 |
|
|
|
532,167 |
|
|
44 |
|
|
|
470,650 |
|
|
43 |
|
|
Construction - custom and owner/builder |
|
119,240 |
|
|
9 |
|
|
|
117,724 |
|
|
|
10 |
|
|
|
109,152 |
|
|
10 |
|
|
Construction - speculative one-to four-family |
|
12,254 |
|
|
1 |
|
|
|
13,954 |
|
|
1 |
|
|
|
17,813 |
|
|
2 |
|
|
Construction - commercial |
|
40,364 |
|
|
3 |
|
|
|
40,108 |
|
|
3 |
|
|
|
43,365 |
|
|
4 |
|
|
Construction - multi-family |
|
64,480 |
|
|
5 |
|
|
|
54,804 |
|
|
5 |
|
|
|
52,071 |
|
|
5 |
|
|
Construction - land |
|
|
|
|
|
|
|
|
|
|
|
|
development |
|
19,280 |
|
|
2 |
|
|
|
21,240 |
|
|
2 |
|
|
|
10,804 |
|
|
1 |
|
|
Land |
|
26,854 |
|
|
2 |
|
|
|
24,490 |
|
|
2 |
|
|
|
19,936 |
|
|
2 |
|
|
Total mortgage loans |
|
1,090,263 |
|
|
87 |
|
|
|
1,047,887 |
|
|
87 |
|
|
|
931,289 |
|
|
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Home equity and second mortgage |
|
35,187 |
|
|
3 |
|
|
|
32,821 |
|
|
3 |
|
|
|
32,988 |
|
|
3 |
|
|
Other |
|
2,128 |
|
|
-- |
|
|
|
2,545 |
|
|
-- |
|
|
|
2,512 |
|
|
-- |
|
|
Total consumer loans |
|
37,315 |
|
|
3 |
|
|
|
35,366 |
|
|
3 |
|
|
|
35,500 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business loans |
|
125,039 |
|
|
10 |
|
|
|
122,822 |
|
|
10 |
|
|
|
74,579 |
|
|
7 |
|
|
SBA PPP loans |
|
1,001 |
|
|
-- |
|
|
|
1,320 |
|
|
-- |
|
|
|
40,922 |
|
|
4 |
|
|
Total commercial loans |
|
126,040 |
|
|
10 |
|
|
|
124,142 |
|
|
10 |
|
|
|
115,501 |
|
|
11 |
|
| Total loans |
|
1,253,618 |
|
|
100 |
% |
|
|
1,207,395 |
|
|
100 |
% |
|
|
1,082,290 |
|
|
100 |
% |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Undisbursed portion of construction loans in process |
|
(103,168 |
) |
|
|
|
|
(102,044 |
) |
|
|
|
|
(95,224 |
) |
|
|
|
Deferred loan origination fees |
|
(4,321 |
) |
|
|
|
|
(3,951 |
) |
|
|
|
|
(5,143 |
) |
|
|
|
Allowance for loan losses |
|
(13,703 |
) |
|
|
|
|
(13,433 |
) |
|
|
|
|
(13,469 |
) |
|
|
|
Total loans receivable, net |
$ |
1,132,426 |
|
|
|
|
$ |
1,087,967 |
|
|
|
|
$ |
968,454 |
|
|
|
_______________________(a) Does not include one- to four-family
loans held for sale totaling $748, $700, and $3,217 at September
30, 2022, June 30, 2022, and September 30, 2021,
respectively.
The following table provides a breakdown of commercial real
estate (“CRE”) mortgage loans by collateral type as of September
30, 2022:
CRE Loan Portfolio Breakdown by
Collateral($ in thousands)
|
Collateral Type |
|
Amount |
|
Percent of CRE Portfolio |
|
Percent of Total Loan Portfolio |
|
Industrial warehouse |
|
$ |
104,005 |
|
19 |
% |
|
8 |
% |
| Medical/dental offices |
|
|
76,706 |
|
14 |
|
|
6 |
|
| Office buildings |
|
|
69,805 |
|
13 |
|
|
6 |
|
| Other retail buildings |
|
|
46,516 |
|
9 |
|
|
4 |
|
| Restaurants |
|
|
29,394 |
|
6 |
|
|
2 |
|
| Hotel/motel |
|
|
25,676 |
|
5 |
|
|
2 |
|
| Mini-storage |
|
|
24,697 |
|
5 |
|
|
2 |
|
| Convenience stores |
|
|
22,850 |
|
4 |
|
|
2 |
|
| Nursing homes |
|
|
18,415 |
|
3 |
|
|
1 |
|
| Shopping centers |
|
|
10,537 |
|
2 |
|
|
1 |
|
| Mobile home parks |
|
|
10,454 |
|
2 |
|
|
1 |
|
| Churches |
|
|
8,006 |
|
1 |
|
|
1 |
|
| Additional CRE |
|
|
89,589 |
|
17 |
|
|
7 |
|
|
Total CRE |
|
$ |
536,650 |
|
100 |
% |
|
43 |
% |
Timberland originated $136.55 million in loans during the
quarter ended September 30, 2022, compared to $128.90 million for
the preceding quarter and $132.91 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. Timberland also periodically sells the guaranteed portion
of SBA loans. During the current quarter, fixed-rate one- to
four-family mortgage loans totaling $8.06 million were sold
compared to $11.61 million for the preceding quarter and $14.01
million for the comparable quarter one year ago. During the past
two quarters a larger percentage of single-family loan originations
were retained in the portfolio rather than being sold as the yield
available on such loans increased.
Timberland’s investment securities and CDs held for investment
increased $170.03 million, or 105%, during the fiscal year to
$331.75 million at September 30, 2022, from $161.72 million at
September 30, 2021. During the quarter, total investments and CDs
held for investment increased $33.66 million, or 11%, to $331.75
million at September 30, 2022, from $298.10 million at June 30,
2022. These increases were primarily due to the purchase of
additional U.S. Treasury securities and mortgage-backed investment
securities.
Timberland’s liquidity continues to remain strong. Liquidity, as
measured by the sum of cash and cash equivalents, CDs held for
investment, and available for sale investment securities, was 23.2%
of total liabilities at September 30, 2022, compared to 29.4% at
June 30, 2022, and 42.4% one year ago.
Deposits
Total deposits increased $61.62 million, or 4%, during the
fiscal year to $1.63 billion at September 30, 2022, from $1.57
billion at September 30, 2021. The increase consisted of a $38.11
million increase in money market account balances, a $22.53 million
increase in savings account balances, and a $17.68 million increase
in NOW checking account balances. These increases were partially
offset by an $11.55 million decrease in certificates of deposit
account balances and a $5.15 million decrease in non-interest
checking account balances.
Total deposits decreased $31.94 million, or 2%, during the
quarter to $1.63 billion at September 30, 2022, from $1.66 billion
at June 30, 2022. The quarter’s decrease consisted of a $26.44
million decrease in NOW checking account balances, an $8.45 million
decrease in money market account balances, and a $2.86 million
decrease in certificates of deposit account balances. These
decreases were partially offset by a $3.63 million increase in
savings account balances and a $2.18 million increase in
non-interest-bearing account balances.
|
Deposit Breakdown($ in thousands) |
| |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
| |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Non-interest-bearing demand |
|
$ |
530,058 |
|
33 |
% |
|
$ |
527,876 |
|
32 |
% |
$ |
535,212 |
|
34 |
% |
| NOW checking |
|
|
447,779 |
|
28 |
|
|
|
474,217 |
|
29 |
|
|
430,097 |
|
27 |
|
| Savings |
|
|
283,219 |
|
17 |
|
|
|
279,592 |
|
17 |
|
|
260,689 |
|
17 |
|
| Money market |
|
|
243,919 |
|
15 |
|
|
|
251,451 |
|
15 |
|
|
199,045 |
|
13 |
|
| Money market – reciprocal |
|
|
4,617 |
|
-- |
|
|
|
5,533 |
|
-- |
|
|
11,383 |
|
1 |
|
| Certificates of deposit under
$250 |
|
|
100,754 |
|
6 |
|
|
|
102,752 |
|
6 |
|
|
112,348 |
|
7 |
|
| Certificates of deposit $250 and
over |
|
|
21,830 |
|
1 |
|
|
|
22,693 |
|
1 |
|
|
21,781 |
|
1 |
|
|
Total deposits |
|
$ |
1,632,176 |
|
|
100 |
% |
$ |
1,664,114 |
|
100 |
% |
$ |
1,570,555 |
|
100 |
% |
Shareholders’ Equity and Capital
Ratios
Total shareholders’ equity increased $4.25 million, or 2%, to
$218.57 million at September 30, 2022, from $214.32 million at June
30, 2022. The increase in shareholders’ equity was primarily due to
net income of $7.05 million for the quarter, which was partially
offset by the payment of $1.81 million in dividends to
shareholders, the repurchase of 34,446 shares of common stock for
$932,000 (an average price of $27.04 per share), and a $152,000
increase in the Company’s accumulated other comprehensive loss.
Timberland had 229,045 shares available to be repurchased in
accordance with the terms of its existing stock repurchase plan at
September 30, 2022.
Timberland remains well capitalized with a total
risk-based capital ratio of 19.45%, a Tier 1 leverage capital ratio
of 11.03%, and a tangible common equity to tangible assets ratio
(non-GAAP) of 10.98% at September 30, 2022.
Asset Quality
Timberland’s non-performing assets to total assets
ratio improved to 0.12% at September 30, 2022, from 0.13% at June
30, 2022 and 0.18% one year ago. There were
no net charge-offs for the current quarter, the proceeding quarter
or for the comparable quarter one year ago. Due primarily to loan
portfolio growth, a $270,000 provision for loan losses was made for
the quarter ended September 30, 2022. No provisions for loan losses
were made during the quarters ended June 30, 2022, and September
30, 2021.
The allowance for loan losses (“ALL”) as a
percentage of loans receivable was 1.20% at September 30, 2022,
compared to 1.22% at June 30, 2022 and 1.37% 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 $267,000 at
September 30, 2022. 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 1.22% (non-GAAP) at September 30, 2022.
The following table details the ALL as a percentage
of loans receivable:
| |
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
| ALL to loans receivable |
|
1.20 |
% |
|
1.22 |
% |
|
1.37 |
% |
| ALL to loans receivable
(excluding SBA PPP loans) (non-GAAP) |
|
1.20 |
% |
|
1.22 |
% |
|
1.43 |
% |
| ALL to loans receivable
(excluding SBA PPP loans and South Sound Acquisition loans)
(non-GAAP) |
|
1.22 |
% |
|
1.25 |
% |
|
1.49 |
% |
Total delinquent loans (past due 30 days or more)
and non-accrual loans decreased $426,000, or 17%, to $2.11 million
at September 30, 2022, from $2.53 million at June 30, 2022, and
decreased $943,000, or 31%, from $3.04 million one year
ago. Non-accrual loans decreased $232,000, or
10%, to $2.06 million at September 30, 2022, from $2.29 million at
June 30, 2022 and decreased $795,000, or 28%, from $2.85 million
one year ago.
Non-Accrual Loans($ in
thousands)
| |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
| |
Amount |
|
Quantity |
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
| Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family |
$ |
388 |
|
2 |
|
$ |
393 |
|
2 |
|
$ |
406 |
|
2 |
|
Commercial |
|
657 |
|
2 |
|
|
671 |
|
2 |
|
|
773 |
|
2 |
|
Land |
|
450 |
|
2 |
|
|
651 |
|
3 |
|
|
683 |
|
3 |
|
Total mortgage loans |
|
1,495 |
|
6 |
|
|
1,715 |
|
7 |
|
|
1,862 |
|
7 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
|
Home equity and second mortgage |
|
252 |
|
2 |
|
|
260 |
|
2 |
|
|
516 |
|
5 |
|
Other |
|
3 |
|
1 |
|
|
4 |
|
1 |
|
|
17 |
|
2 |
|
Total consumer loans |
|
255 |
|
3 |
|
|
264 |
|
3 |
|
|
533 |
|
7 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Commercial business loans |
|
309 |
|
6 |
|
|
312 |
|
6 |
|
|
459 |
|
6 |
| Total loans |
$ |
2,059 |
|
15 |
|
$ |
2,291 |
|
16 |
|
$ |
2,854 |
|
20 |
At September 30, 2022 and June 30, 2022, the OREO
and other repossessed asset portfolio consisted of two individual
land parcels that have been written down to a book value of $0.
OREO and other repossessed assets were $157,000 at September 30,
2021.
OREO and Other Repossessed
Assets($ in thousands)
| |
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
| |
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).
DisclaimerCertain 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, plan, 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: the
effect of the novel coronavirus of 2019 (“COVID-19”) pandemic,
including the Company’s credit quality and business operations, as
well as its impact on general economic and financial market
conditions and other uncertainties resulting from the COVID-19
pandemic, such as the extent and duration of the impact on public
health, the U.S. and global economies, and consumer and corporate
customers, including economic activity, employment levels and
market liquidity; 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 which 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; uncertainty regarding the future of the London
Interbank Offered Rate (“LIBOR”), and the potential 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 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 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 implementing regulations;
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 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 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 and stock; 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
(“FASB”), 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 including the Coronavirus Aid, Relief, and
Economic Security Act of 2020 (“CARES Act”), the Consolidated
Appropriations Act, 2021 (“CAA”), and the American Rescue Plan Act
of 2021; 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
do not undertake and specifically disclaim any obligation to
publicly update or revise any forward-looking statements included
in this report 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) |
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
| |
|
|
2022 |
|
|
2022 |
|
|
|
2021 |
| |
Interest and dividend
income |
|
|
|
|
|
|
|
|
Loans receivable |
|
$ |
13,454 |
|
$ |
12,628 |
|
|
$ |
13,132 |
| |
Investment securities |
|
|
1,476 |
|
|
1,016 |
|
|
|
318 |
| |
Dividends from mutual funds, FHLB
stock and other investments |
|
|
40 |
|
|
25 |
|
|
|
28 |
| |
Interest bearing deposits in
banks |
|
|
2,048 |
|
|
958 |
|
|
|
301 |
| |
Total interest and dividend income |
|
|
17,018 |
|
|
14,627 |
|
|
|
13,779 |
| |
|
|
|
|
|
|
|
| |
Interest
expense |
|
|
|
|
|
|
| |
Deposits |
|
|
755 |
|
|
645 |
|
|
|
654 |
| |
Borrowings |
|
|
-- |
|
|
-- |
|
|
|
15 |
| |
Total interest expense |
|
|
755 |
|
|
645 |
|
|
|
669 |
| |
Net interest income |
|
|
16,263 |
|
|
13,982 |
|
|
|
13,110 |
| |
Provision for loan
losses |
|
|
270 |
|
|
-- |
|
|
|
-- |
| |
Net interest income after provision for loan
losses |
|
|
15,993 |
|
|
13,982 |
|
|
|
13,110 |
| |
|
|
|
|
|
|
|
| |
Non-interest
income |
|
|
|
|
|
|
| |
Service charges on deposits |
|
|
985 |
|
|
1,052 |
|
|
|
967 |
| |
ATM and debit card interchange
transaction fees |
|
|
1,341 |
|
|
1,345 |
|
|
|
1,329 |
| |
Gain on sales of loans, net |
|
|
173 |
|
|
258 |
|
|
|
537 |
| |
Bank owned life insurance
(“BOLI”) net earnings |
|
|
157 |
|
|
151 |
|
|
|
152 |
| |
Valuation recovery on loan
servicing rights, net |
|
|
-- |
|
|
-- |
|
|
|
87 |
| |
Recoveries on investment
securities, net |
|
|
6 |
|
|
5 |
|
|
|
5 |
| |
Other |
|
|
334 |
|
|
291 |
|
|
|
373 |
| |
Total non-interest income, net |
|
|
2,996 |
|
|
3,102 |
|
|
|
3,450 |
| |
|
|
|
|
|
|
|
| |
Non-interest
expense |
|
|
|
|
|
|
| |
Salaries and employee
benefits |
|
|
5,210 |
|
|
5,243 |
|
|
|
4,805 |
| |
Premises and equipment |
|
|
934 |
|
|
898 |
|
|
|
993 |
| |
Advertising |
|
|
182 |
|
|
187 |
|
|
|
153 |
| |
OREO and other repossessed
assets, net |
|
|
1 |
|
|
(2 |
) |
|
|
2 |
| |
ATM and debit card
processing |
|
|
514 |
|
|
515 |
|
|
|
489 |
| |
Postage and courier |
|
|
137 |
|
|
140 |
|
|
|
159 |
| |
State and local taxes |
|
|
308 |
|
|
265 |
|
|
|
267 |
| |
Professional fees |
|
|
574 |
|
|
580 |
|
|
|
331 |
| |
FDIC insurance expense |
|
|
129 |
|
|
123 |
|
|
|
113 |
| |
Loan administration and
foreclosure |
|
|
128 |
|
|
180 |
|
|
|
153 |
| |
Data processing and
telecommunications |
|
|
739 |
|
|
698 |
|
|
|
642 |
| |
Deposit operations |
|
|
358 |
|
|
316 |
|
|
|
273 |
| |
Amortization of core deposit
intangible (“CDI”) |
|
|
79 |
|
|
79 |
|
|
|
90 |
| |
Other, net |
|
|
861 |
|
|
652 |
|
|
|
547 |
| |
Total non-interest expense, net |
|
|
10,154 |
|
|
9,874 |
|
|
|
9,017 |
| |
|
|
|
|
|
|
|
| |
Income before income
taxes |
|
|
8,835 |
|
|
7,210 |
|
|
|
7,543 |
| |
Provision for income
taxes |
|
|
1,786 |
|
|
1,472 |
|
|
|
1,525 |
| |
Net income |
|
$ |
7,049 |
|
$ |
5,738 |
|
|
$ |
6,018 |
| |
|
|
|
|
|
|
|
| |
Net income per common
share: |
|
|
|
|
|
|
| |
Basic |
|
$ |
0.86 |
|
$ |
0.69 |
|
|
$ |
0.72 |
| |
Diluted |
|
|
0.85 |
|
|
0.69 |
|
|
|
0.71 |
| |
|
|
|
|
|
|
|
| |
Weighted average common
shares outstanding: |
|
|
|
|
|
|
| |
Basic |
|
|
8,243,557 |
|
|
8,279,436 |
|
|
|
8,354,018 |
| |
Diluted |
|
|
8,313,178 |
|
|
8,349,859 |
|
|
|
8,454,636 |
| TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS
OF INCOME |
|
Year Ended |
| ($ in thousands,
except per share amounts) (unaudited) |
|
Sept. 30, |
|
|
|
Sept. 30, |
| |
|
|
2022 |
|
|
|
|
|
2021 |
|
| |
Interest and dividend
income |
|
|
|
|
|
|
|
|
Loans receivable |
|
$ |
51,324 |
|
|
|
|
$ |
52,539 |
|
| |
Investment securities |
|
|
3,488 |
|
|
|
|
|
1,195 |
|
| |
Dividends from mutual funds, FHLB
stock and other investments |
|
|
120 |
|
|
|
|
|
111 |
|
| |
Interest bearing deposits in
banks |
|
|
3,576 |
|
|
|
|
|
1,117 |
|
| |
Total interest and dividend income |
|
|
58,508 |
|
|
|
|
|
54,962 |
|
| |
|
|
|
|
|
|
|
| |
Interest
expense |
|
|
|
|
|
|
| |
Deposits |
|
|
2,657 |
|
|
|
|
|
3,013 |
|
| |
Borrowings |
|
|
17 |
|
|
|
|
|
91 |
|
| |
Total interest expense |
|
|
2,674 |
|
|
|
|
|
3,104 |
|
| |
Net interest income |
|
|
55,834 |
|
|
|
|
|
51,858 |
|
| |
Provision for loan
losses |
|
|
270 |
|
|
|
|
|
-- |
|
| |
Net interest income after provision for loan
losses |
|
|
55,564 |
|
|
|
|
|
51,858 |
|
| |
|
|
|
|
|
|
|
| |
Non-interest
income |
|
|
|
|
|
|
| |
Service charges on deposits |
|
|
3,964 |
|
|
|
|
|
3,911 |
|
| |
ATM and debit card interchange
transaction fees |
|
|
5,210 |
|
|
|
|
|
5,084 |
|
| |
Gain on sales of loans, net |
|
|
1,510 |
|
|
|
|
|
5,904 |
|
| |
BOLI net earnings |
|
|
613 |
|
|
|
|
|
597 |
|
| |
Valuation recovery on loan
servicing rights, net |
|
|
119 |
|
|
|
|
|
110 |
|
| |
Recoveries on investment
securities, net |
|
|
22 |
|
|
|
|
|
20 |
|
| |
Other |
|
|
1,186 |
|
|
|
|
|
1,535 |
|
| |
Total non-interest income, net |
|
|
12,624 |
|
|
|
|
|
17,161 |
|
| |
|
|
|
|
|
|
|
| |
Non-interest
expense |
|
|
|
|
|
|
| |
Salaries and employee
benefits |
|
|
20,816 |
|
|
|
|
|
18,750 |
|
| |
Premises and equipment |
|
|
3,749 |
|
|
|
|
|
3,942 |
|
| |
Advertising |
|
|
695 |
|
|
|
|
|
625 |
|
| |
OREO and other repossessed
assets, net |
|
|
(17 |
) |
|
|
|
|
(87 |
) |
| |
ATM and debit card
processing |
|
|
1,943 |
|
|
|
|
|
1,831 |
|
| |
Postage and courier |
|
|
577 |
|
|
|
|
|
587 |
|
| |
State and local taxes |
|
|
1,062 |
|
|
|
|
|
1,088 |
|
| |
Professional fees |
|
|
1,747 |
|
|
|
|
|
1,006 |
|
| |
FDIC insurance expense |
|
|
506 |
|
|
|
|
|
415 |
|
| |
Loan administration and
foreclosure |
|
|
508 |
|
|
|
|
|
471 |
|
| |
Data processing and
telecommunications |
|
|
2,719 |
|
|
|
|
|
2,510 |
|
| |
Deposit operations |
|
|
1,235 |
|
|
|
|
|
1,091 |
|
| |
Amortization of CDI |
|
|
316 |
|
|
|
|
|
361 |
|
| |
Other, net |
|
|
2,770 |
|
|
|
|
|
2,001 |
|
| |
Total non-interest expense, net |
|
|
38,626 |
|
|
|
|
|
34,591 |
|
| |
|
|
|
|
|
|
|
| |
Income before income
taxes |
|
|
29,562 |
|
|
|
|
|
34,428 |
|
| |
Provision for income
taxes |
|
|
5,962 |
|
|
|
|
|
6,845 |
|
| |
Net income |
|
$ |
23,600 |
|
|
|
|
$ |
27,583 |
|
| |
|
|
|
|
|
|
|
| |
Net income per common
share: |
|
|
|
|
|
|
| |
Basic |
|
$ |
2.84 |
|
|
|
|
$ |
3.31 |
|
| |
Diluted |
|
|
2.82 |
|
|
|
|
|
3.27 |
|
| |
|
|
|
|
|
|
|
| |
Weighted average common
shares outstanding: |
|
|
|
|
|
|
| |
Basic |
|
|
8,304,002 |
|
|
|
|
|
8,340,983 |
|
| |
Diluted |
|
|
8,383,335 |
|
|
|
|
|
8,444,333 |
|
| TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED BALANCE
SHEETS |
|
| ($ in thousands,
except per share amounts) (unaudited) |
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
| |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Assets |
|
|
|
|
|
|
| Cash and due from
financial institutions |
|
$ |
24,808 |
|
|
$ |
23,610 |
|
|
$ |
26,316 |
|
| Interest-bearing
deposits in banks |
|
|
291,947 |
|
|
|
398,541 |
|
|
|
553,880 |
|
|
|
Total cash and cash equivalents |
|
|
316,755 |
|
|
|
422,151 |
|
|
|
580,196 |
|
| |
|
|
|
|
|
|
|
| Certificates of
deposit (“CDs”) held for investment, at cost |
|
|
22,894 |
|
|
|
23,888 |
|
|
|
28,482 |
|
| Investment
securities: |
|
|
|
|
|
|
| |
Held to maturity, at amortized
cost |
|
|
266,608 |
|
|
|
228,196 |
|
|
|
69,102 |
|
| |
Available for sale, at fair
value |
|
|
41,415 |
|
|
|
45,141 |
|
|
|
63,176 |
|
| Investments in equity
securities, at fair value |
|
|
835 |
|
|
|
872 |
|
|
|
955 |
|
| FHLB stock |
|
|
2,194 |
|
|
|
2,194 |
|
|
|
2,103 |
|
| Other investments, at
cost |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
| Loans held for
sale |
|
|
748 |
|
|
|
700 |
|
|
|
3,217 |
|
| |
|
|
|
|
|
|
| Loans receivable |
|
|
1,146,129 |
|
|
|
1,101,400 |
|
|
|
981,923 |
|
| Less: Allowance for
loan losses |
|
|
(13,703 |
) |
|
|
(13,433 |
) |
|
|
(13,469 |
) |
| |
Net loans receivable |
|
|
1,132,426 |
|
|
|
1,087,967 |
|
|
|
968,454 |
|
| |
|
|
|
|
|
|
|
| Premises and
equipment, net |
|
|
21,898 |
|
|
|
22,154 |
|
|
|
22,367 |
|
| OREO and other
repossessed assets, net |
|
|
-- |
|
|
|
-- |
|
|
|
157 |
|
| BOLI |
|
|
22,806 |
|
|
|
22,649 |
|
|
|
22,193 |
|
| Accrued interest
receivable |
|
|
4,483 |
|
|
|
4,319 |
|
|
|
3,745 |
|
| Goodwill |
|
|
15,131 |
|
|
|
15,131 |
|
|
|
15,131 |
|
| CDI |
|
|
948 |
|
|
|
1,027 |
|
|
|
1,264 |
|
| Loan servicing
rights, net |
|
|
3,023 |
|
|
|
3,220 |
|
|
|
3,482 |
|
| Operating lease
right-of-use assets |
|
|
1,980 |
|
|
|
2,051 |
|
|
|
2,283 |
|
| Other assets |
|
|
3,364 |
|
|
|
3,135 |
|
|
|
2,873 |
|
| |
Total
assets |
|
$ |
1,860,508 |
|
|
$ |
1,887,795 |
|
|
$ |
1,792,180 |
|
| |
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
| Deposits:
Non-interest-bearing demand |
|
$ |
530,058 |
|
|
$ |
527,876 |
|
|
$ |
535,212 |
|
| Deposits:
Interest-bearing |
|
|
1,102,118 |
|
|
|
1,136,238 |
|
|
|
1,035,343 |
|
| |
Total deposits |
|
|
1,632,176 |
|
|
|
1,664,114 |
|
|
|
1,570,555 |
|
| |
|
|
|
|
|
|
|
| Operating lease
liabilities |
|
|
2,066 |
|
|
|
2,135 |
|
|
|
2,359 |
|
| FHLB borrowings |
|
|
-- |
|
|
|
-- |
|
|
|
5,000 |
|
| Other liabilities and
accrued expenses |
|
|
7,697 |
|
|
|
7,227 |
|
|
|
7,367 |
|
| |
Total
liabilities |
|
|
1,641,939 |
|
|
|
1,673,476 |
|
|
|
1,585,281 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
|
Common stock, $.01 par value; 50,000,000 shares authorized;
8,221,952 shares issued and outstanding – September 30, 2022
8,249,448 shares issued and outstanding – June 30, 2022
8,355,469 shares issued and outstanding – September 30, 2021 |
|
|
38,751 |
|
|
|
39,585 |
|
|
|
42,673 |
|
| Retained
earnings |
|
|
180,535 |
|
|
|
175,299 |
|
|
|
164,167 |
|
| Accumulated other
comprehensive income (loss) |
|
|
(717 |
) |
|
|
(565 |
) |
|
|
59 |
|
| |
Total shareholders’
equity |
|
|
218,569 |
|
|
|
214,319 |
|
|
|
206,899 |
|
| |
Total liabilities and
shareholders’ equity |
|
$ |
1,860,508 |
|
|
$ |
1,887,795 |
|
|
$ |
1,792,180 |
|
| KEY FINANCIAL RATIOS AND
DATA |
Three Months Ended |
| ($ in thousands, except per share
amounts) (unaudited) |
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
| PERFORMANCE
RATIOS: |
|
|
|
|
|
|
| Return on average assets (a) |
|
|
1.51 |
% |
|
|
1.22 |
% |
|
|
1.36 |
% |
| Return on average equity (a) |
|
|
13.06 |
% |
|
|
10.80 |
% |
|
|
11.77 |
% |
| Net interest margin (a) |
|
|
3.64 |
% |
|
|
3.11 |
% |
|
|
3.13 |
% |
| Efficiency ratio |
|
|
52.72 |
% |
|
|
57.80 |
% |
|
|
54.45 |
% |
| |
|
|
|
|
|
|
| |
Year Ended |
| |
|
Sept. 30, |
|
|
|
Sept. 30, |
| |
|
|
2022 |
|
|
|
|
|
2021 |
|
| PERFORMANCE
RATIOS: |
|
|
|
|
|
|
| Return on average assets |
|
|
1.27 |
% |
|
|
|
|
1.64 |
% |
| Return on average equity |
|
|
11.14 |
% |
|
|
|
|
13.98 |
% |
| Net interest margin |
|
|
3.16 |
% |
|
|
|
|
3.25 |
% |
| Efficiency ratio |
|
|
56.42 |
% |
|
|
|
|
50.12 |
% |
| |
Three Months Ended |
| |
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
| ASSET QUALITY RATIOS AND
DATA: |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
| Non-accrual loans |
|
$ |
2,059 |
|
|
$ |
2,291 |
|
|
$ |
2,854 |
|
| Loans past due 90 days and still
accruing |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
| Non-performing investment
securities |
|
|
106 |
|
|
|
114 |
|
|
|
159 |
|
| OREO and other repossessed
assets |
|
|
-- |
|
|
|
-- |
|
|
|
157 |
|
| Total non-performing assets
(b) |
|
$ |
2,165 |
|
|
$ |
2,405 |
|
|
$ |
3,170 |
|
| |
|
|
|
|
|
|
| Non-performing assets to total
assets (b) |
|
|
0.12 |
% |
|
|
0.13 |
% |
|
|
0.18 |
% |
| Net charge-offs (recoveries)
during quarter |
|
$ |
-- |
|
|
$ |
-- |
|
|
$ |
-- |
|
| ALL to non-accrual loans, |
|
|
665.52 |
% |
|
|
586.34 |
% |
|
|
471.93 |
% |
| ALL to loans receivable (c) |
|
|
1.20 |
% |
|
|
1.22 |
% |
|
|
1.37 |
% |
| ALL to loans receivable
(excluding SBA PPP loans) (d) (non-GAAP) |
|
|
1.20 |
% |
|
|
1.22 |
% |
|
|
1.43 |
% |
| ALL to loans receivable
(excluding SBA PPP loans and South Sound Acquisition loans) (d) (e)
(non-GAAP) |
|
|
1.22 |
% |
|
|
1.25 |
% |
|
|
1.49 |
% |
| Troubled debt restructured loans
on accrual status (f) |
|
$ |
2,472 |
|
|
$ |
2,484 |
|
|
$ |
2,371 |
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS: |
|
|
|
|
|
|
| Tier 1 leverage capital |
|
|
11.03 |
% |
|
|
10.72 |
% |
|
|
10.97 |
% |
| Tier 1 risk-based capital |
|
|
18.02 |
% |
|
|
18.57 |
% |
|
|
20.92 |
% |
| Common equity Tier 1 risk-based
capital |
|
|
18.02 |
% |
|
|
18.57 |
% |
|
|
20.92 |
% |
|
Total risk-based capital |
|
|
19.45 |
% |
|
|
19.82 |
% |
|
|
22.17 |
% |
| Tangible common equity to
tangible assets (non-GAAP) |
|
|
10.98 |
% |
|
|
10.59 |
% |
|
|
10.73 |
% |
| |
|
|
|
|
|
|
|
BOOK VALUES: |
|
|
|
|
|
|
| Book value per common share |
|
$ |
26.58 |
|
|
$ |
25.98 |
|
|
$ |
24.76 |
|
| Tangible book value per common
share (g) |
|
|
24.63 |
|
|
|
24.02 |
|
|
|
22.80 |
|
________________________________________________
(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 $1,001, $1,320 and $40,922 at September 30, 2022, June 30,
2022 and September 30, 2021, respectively.(e) Does not include
loans acquired in the South Sound Acquisition totaling $19,042,
$21,431 and $36,491 at September 30, 2022, June 30, 2022 and
September 30, 2021, respectively.(f) Does not include troubled debt
restructured loans totaling $142, $158 and $182 reported as
non-accrual loans at September 30, 2022, June 30, 2022 and
September 30, 2021, respectively. (g) Tangible common equity
divided by common shares outstanding (non-GAAP).AVERAGE
BALANCES, YIELDS, AND RATES - QUARTERLY ($ in
thousands)(unaudited)
| |
For the Three Months Ended |
| |
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
| |
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
| |
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and loans held for sale |
$ |
1,122,290 |
|
|
4.80 |
% |
|
$ |
1,072,933 |
|
|
4.71 |
% |
|
$ |
1,000,063 |
|
|
5.25 |
% |
| Investment securities and FHLB
stock (1) |
|
287,841 |
|
|
2.11 |
|
|
|
263,595 |
|
|
1.58 |
|
|
|
125,627 |
|
|
1.10 |
|
| Interest-earning deposits in
banks and CDs |
|
376,220 |
|
|
2.18 |
|
|
|
460,657 |
|
|
0.83 |
|
|
|
551,918 |
|
|
0.22 |
|
|
Total interest-earning assets |
|
1,786,351 |
|
|
3.81 |
|
|
|
1,797,185 |
|
|
3.26 |
|
|
|
1,677,608 |
|
|
3.29 |
|
| Other assets |
|
83,922 |
|
|
|
|
|
85,470 |
|
|
|
|
|
86,838 |
|
|
|
|
Total assets |
$ |
1,870,273 |
|
|
|
|
$ |
1,882,655 |
|
|
|
|
$ |
1,764,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| NOW checking accounts |
$ |
454,161 |
|
|
0.18 |
% |
|
$ |
462,085 |
|
|
0.14 |
% |
|
$ |
421,095 |
|
|
0.13 |
% |
| Money market accounts |
|
252,699 |
|
|
0.37 |
|
|
|
258,240 |
|
|
0.30 |
|
|
|
202,435 |
|
|
0.29 |
|
| Savings accounts |
|
284,974 |
|
|
0.08 |
|
|
|
284,659 |
|
|
0.08 |
|
|
|
257,856 |
|
|
0.08 |
|
| Certificates of deposit
accounts |
|
122,803 |
|
|
0.80 |
|
|
|
125,132 |
|
|
0.75 |
|
|
|
137,518 |
|
|
0.91 |
|
|
Total interest-bearing deposits |
|
1,114,637 |
|
|
0.27 |
|
|
|
1,130,116 |
|
|
0.23 |
|
|
|
1,018,904 |
|
|
0.26 |
|
| Borrowings |
|
-- |
|
|
-- |
|
|
|
-- |
|
|
-- |
|
|
|
5,000 |
|
|
1.19 |
|
|
Total interest-bearing liabilities |
|
1,114,637 |
|
|
0.27 |
|
|
|
1,130,116 |
|
|
0.23 |
|
|
|
1,023,904 |
|
|
0.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing demand
deposits |
|
528,706 |
|
|
|
|
|
529,770 |
|
|
|
|
|
525,047 |
|
|
|
| Other liabilities |
|
11,078 |
|
|
|
|
|
10,170 |
|
|
|
|
|
10,991 |
|
|
|
| Shareholders’ equity |
|
215,852 |
|
|
|
|
|
212,599 |
|
|
|
|
|
204,504 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,870,273 |
|
|
|
|
$ |
1,882,655 |
|
|
|
|
$ |
1,764,446 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
3.54 |
% |
|
|
|
3.03 |
% |
|
|
|
3.03 |
% |
|
Net interest margin (2) |
|
|
3.64 |
% |
|
|
|
3.11 |
% |
|
|
|
3.13 |
% |
|
Average interest-earning assets to average interest-bearing
liabilities |
|
160.26 |
% |
|
|
|
|
159.03 |
% |
|
|
|
|
163.84 |
% |
|
|
_____________________________________(1) Includes other
investments(2) Net interest margin = annualized net interest income
/ average interest-earning
assets
AVERAGE BALANCES, YIELDS, AND
RATES ($ in thousands)(unaudited)
| |
For the Year Ended |
| |
September 30, 2022 |
|
September 30, 2021 |
| |
Amount |
|
Rate |
|
Amount |
|
Rate |
| |
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
Loans receivable and loans held for sale |
$ |
1,055,635 |
|
|
4.86 |
% |
|
$ |
1,026,742 |
|
|
5.12 |
% |
| Investment securities and FHLB
stock (1) |
|
230,871 |
|
|
1.56 |
|
|
|
109,317 |
|
|
1.19 |
|
| Interest-earning deposits in
banks and CDs |
|
482,162 |
|
|
0.74 |
|
|
|
459,145 |
|
|
0.25 |
|
|
Total interest-earning assets |
|
1,768,668 |
|
|
3.31 |
|
|
|
1,595,204 |
|
|
3.45 |
|
| Other assets |
|
83,895 |
|
|
|
|
|
85,939 |
|
|
|
|
Total assets |
$ |
1,852,563 |
|
|
|
|
$ |
1,681,143 |
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
| NOW checking accounts |
$ |
449,574 |
|
|
0.14 |
% |
|
$ |
402,430 |
|
|
0.15 |
% |
| Money market accounts |
|
244,498 |
|
|
0.31 |
|
|
|
186,489 |
|
|
0.30 |
|
| Savings accounts |
|
278,025 |
|
|
0.08 |
|
|
|
242,598 |
|
|
0.08 |
|
| Certificates of deposit
accounts |
|
127,277 |
|
|
0.79 |
|
|
|
145,006 |
|
|
1.14 |
|
|
Total interest-bearing deposits |
|
1,099.374 |
|
|
0.24 |
|
|
|
976,523 |
|
|
0.31 |
|
| Borrowings |
|
1,430 |
|
|
1.19 |
|
|
|
7,686 |
|
|
1.18 |
|
|
Total interest-bearing liabilities |
|
1,100,804 |
|
|
0.24 |
|
|
|
984,209 |
|
|
0.32 |
|
| |
|
|
|
|
|
|
|
| Non-interest-bearing demand
deposits |
|
529,702 |
|
|
|
|
|
488,833 |
|
|
|
| Other liabilities |
|
10,224 |
|
|
|
|
|
10,816 |
|
|
|
| Shareholders’ equity |
|
211,833 |
|
|
|
|
|
197,285 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,852,563 |
|
|
|
|
$ |
1,681,143 |
|
|
|
| |
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
3.07 |
% |
|
|
|
3.13 |
% |
|
Net interest margin (2) |
|
|
3.16 |
% |
|
|
|
3.25 |
% |
|
Average interest-earning assets to average interest-bearing
liabilities |
|
160.67 |
% |
|
|
|
|
162.08 |
% |
|
|
_____________________________________(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) |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
| |
|
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
218,569 |
|
|
$ |
214,319 |
|
|
$ |
206,899 |
|
| Less goodwill and CDI |
|
|
(16,079 |
) |
|
|
(16,158 |
) |
|
|
(16,395 |
) |
| Tangible common equity |
|
$ |
202,490 |
|
|
$ |
198,161 |
|
|
$ |
190,504 |
|
| |
|
|
|
|
|
|
| Total assets |
|
$ |
1,860,508 |
|
|
$ |
1,887,795 |
|
|
$ |
1,792,180 |
|
| Less goodwill and CDI |
|
|
(16,079 |
) |
|
|
(16,158 |
) |
|
|
(16,395 |
) |
| Tangible assets |
|
$ |
1,844,429 |
|
|
$ |
1,871,637 |
|
|
$ |
1,775,785 |
|
|
Contact: |
Michael R. Sand, CEO |
| |
Dean J. Brydon, President & CFO |
| |
(360) 533-4747 |
| |
www.timberlandbank.com |
Grafico Azioni Timberland Bancorp (NASDAQ:TSBK)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Timberland Bancorp (NASDAQ:TSBK)
Storico
Da Nov 2023 a Nov 2024
