Timberland Bancorp Inc. (TSBK, Financial) filed Annual Report for the period ended 2010-09-30.
Timberland Bancorp Inc. has a market cap of $24.2 million; its shares were traded at around $3.44 with and P/S ratio of 0.6. TSBK is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Census Bureau 2009 estimates and a median family income of $55,400 according
to 2010 estimates from the Department of Housing and Urban Development (
HUD"). The economic base in Grays Harbor has been historically dependent on
the timber and fishing industries. Other industries that support the economic
base are tourism, agriculture, shipping, transportation and technology.
According to the Washington State Employment Security Department, the
unemployment rate in Grays Harbor County decreased to 11.4% at September 30,
2010 from 11.9% at September 30, 2009. The median price of a resale home in
Grays Harbor County for the quarter ended September 30, 2010 decreased 3.3% to
$130,000 from $134,500 for the comparable prior year period. The number of
home sales increased 23.1% for the quarter ended September 30, 2010 compared
to the same quarter one year earlier. The Bank has six branches (including
its home office) located throughout the county. The downturn in Grays Harbor
County's economy and the decline in real estate values since 2008 have had a
negative effect on the Bank's profitability in this market area.
At September 30,
-
2010 2009 2008 2007 2006
- - - - -
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
- - - - - - - - - -
(Dollars in thousands)
Mortgage Loans:
One- to four-
family(1)....$121,014 21.65% $110,556 18.58% $112,299 18.35% $102,434 17.40% $ 98,709 20.11%
Multi-family.. 32,267 5.77 25,638 4.31 25,927 4.24 35,157 5.97 17,689 3.60
Commercial.... 208,002 37.21 188,205 31.62 146,223 23.90 127,866 21.72 137,609 28.04
Construction
and land
development.. 69,271 12.39 139,728 23.48 186,344 30.46 186,261 31.64 146,855 29.92
Land.......... 62,999 11.27 65,642 11.03 60,701 9.92 60,706 10.30 29,598 6.03
- - - - - - - - - -
Total
mortgage
loans....... 493,553 88.29 529,769 89.02 531,494 86.87 512,424 87.03 430,460 87.70
Consumer Loans:
Home equity
and second
mortgage..... 38,418 6.87 41,746 7.01 48,690 7.96 47,269 8.02 37,435 7.63
Other......... 9,086 1.62 9,827 1.66 10,635 1.73 10,922 1.86 11,127 2.27
- - - - - - - - - -
Total consumer
loans....... 47,504 8.49 51,573 8.67 59,325 9.69 58,191 9.88 48,562 9.90
Commercial
business
loans......... 17,979 3.22 13,775 2.31 21,018 3.44 18,164 3.09 11,803 2.40
- - - - - - - - - -
Total loans.. 559,036 100.00% 595,117 100.00% 611,837 100.00% 588,779 100.00% 490,825 100.00%
= = = = = = = = = =
The Bank also offers adjustable-rate mortgage ("ARM") loans. All of the
Bank's ARM loans are retained in its loan portfolio and not sold. The Bank
offers several ARM products which adjust annually after an initial period
ranging from one to five years subject to a limitation on the annual increase
of 2% and an overall limitation of 6%. These ARM products generally are
priced utilizing the weekly average yield on one year U.S. Treasury securities
adjusted to a constant maturity of one year plus a margin of 2.88% to 4.00%.
Loans tied to the prime rate or to London Inter-Bank Offered Rate ("LIBOR")
indices typically do not have periodic, or lifetime adjustment limits. Loans
tied to these indices normally have margins ranging up to 3.5%. ARM loans
held in the Bank's portfolio do not permit negative amortization of principal.
Borrower demand for ARM loans versus fixed-rate mortgage loans is a function
of the level of interest
At September 30,
-
2010 2009
- -
Outstanding Percent of Outstanding Percent of
Balance Total Balance Total
- - - -
(In thousands)
Custom and owner/builder
onstruction............... $30,945 44.67% $ 35,414 25.34%
Speculative construction... 4,777 6.90 16,959 12.14
Multi-family (including
condominium).............. 3,587 5.18 18,800 13.46
Land development........... 6,434 9.29 19,158 13.71
Commercial real estate..... 23,528 33.96 49,397 35.35
- - - -
Total.................... $69,271 100.00% $139,728 100.00%
= = = =
Owner/builder construction loans are originated to home owners rather
than home builders and are typically refinanced into permanent loans at the
completion of construction. The construction phase of an owner/builder
construction loan generally lasts up to 12 months with fixed interest rates
currently ranging from 7.00% to 7.88%, and with loan-to-value ratios of 80%
(or up to 95% with PMI) of the appraised estimated value of the completed
property. At the completion of construction, the loan is refinanced into
either a fixed-rate mortgage loan, which conforms to secondary market
standards, or an ARM loan for retention in the Bank's portfolio. At September
30, 2010, custom and owner/builder construction loans totaled $30.9 million,
or 44.7%, of the total construction and land development loan portfolio. At
September 30, 2010, the largest outstanding custom and owner/builder
construction loan had an outstanding balance of $600,000 (including $172,000
of undisbursed loans in process) and was performing according to its repayment
terms.
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Timberland Bancorp Inc. has a market cap of $24.2 million; its shares were traded at around $3.44 with and P/S ratio of 0.6. TSBK is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Grays Harbor County has a population of 72,000 according to the U.S.Census Bureau 2009 estimates and a median family income of $55,400 according
to 2010 estimates from the Department of Housing and Urban Development (
HUD"). The economic base in Grays Harbor has been historically dependent on
the timber and fishing industries. Other industries that support the economic
base are tourism, agriculture, shipping, transportation and technology.
According to the Washington State Employment Security Department, the
unemployment rate in Grays Harbor County decreased to 11.4% at September 30,
2010 from 11.9% at September 30, 2009. The median price of a resale home in
Grays Harbor County for the quarter ended September 30, 2010 decreased 3.3% to
$130,000 from $134,500 for the comparable prior year period. The number of
home sales increased 23.1% for the quarter ended September 30, 2010 compared
to the same quarter one year earlier. The Bank has six branches (including
its home office) located throughout the county. The downturn in Grays Harbor
County's economy and the decline in real estate values since 2008 have had a
negative effect on the Bank's profitability in this market area.
At September 30,
-
2010 2009 2008 2007 2006
- - - - -
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
- - - - - - - - - -
(Dollars in thousands)
Mortgage Loans:
One- to four-
family(1)....$121,014 21.65% $110,556 18.58% $112,299 18.35% $102,434 17.40% $ 98,709 20.11%
Multi-family.. 32,267 5.77 25,638 4.31 25,927 4.24 35,157 5.97 17,689 3.60
Commercial.... 208,002 37.21 188,205 31.62 146,223 23.90 127,866 21.72 137,609 28.04
Construction
and land
development.. 69,271 12.39 139,728 23.48 186,344 30.46 186,261 31.64 146,855 29.92
Land.......... 62,999 11.27 65,642 11.03 60,701 9.92 60,706 10.30 29,598 6.03
- - - - - - - - - -
Total
mortgage
loans....... 493,553 88.29 529,769 89.02 531,494 86.87 512,424 87.03 430,460 87.70
Consumer Loans:
Home equity
and second
mortgage..... 38,418 6.87 41,746 7.01 48,690 7.96 47,269 8.02 37,435 7.63
Other......... 9,086 1.62 9,827 1.66 10,635 1.73 10,922 1.86 11,127 2.27
- - - - - - - - - -
Total consumer
loans....... 47,504 8.49 51,573 8.67 59,325 9.69 58,191 9.88 48,562 9.90
Commercial
business
loans......... 17,979 3.22 13,775 2.31 21,018 3.44 18,164 3.09 11,803 2.40
- - - - - - - - - -
Total loans.. 559,036 100.00% 595,117 100.00% 611,837 100.00% 588,779 100.00% 490,825 100.00%
= = = = = = = = = =
The Bank also offers adjustable-rate mortgage ("ARM") loans. All of the
Bank's ARM loans are retained in its loan portfolio and not sold. The Bank
offers several ARM products which adjust annually after an initial period
ranging from one to five years subject to a limitation on the annual increase
of 2% and an overall limitation of 6%. These ARM products generally are
priced utilizing the weekly average yield on one year U.S. Treasury securities
adjusted to a constant maturity of one year plus a margin of 2.88% to 4.00%.
Loans tied to the prime rate or to London Inter-Bank Offered Rate ("LIBOR")
indices typically do not have periodic, or lifetime adjustment limits. Loans
tied to these indices normally have margins ranging up to 3.5%. ARM loans
held in the Bank's portfolio do not permit negative amortization of principal.
Borrower demand for ARM loans versus fixed-rate mortgage loans is a function
of the level of interest
At September 30,
-
2010 2009
- -
Outstanding Percent of Outstanding Percent of
Balance Total Balance Total
- - - -
(In thousands)
Custom and owner/builder
onstruction............... $30,945 44.67% $ 35,414 25.34%
Speculative construction... 4,777 6.90 16,959 12.14
Multi-family (including
condominium).............. 3,587 5.18 18,800 13.46
Land development........... 6,434 9.29 19,158 13.71
Commercial real estate..... 23,528 33.96 49,397 35.35
- - - -
Total.................... $69,271 100.00% $139,728 100.00%
= = = =
Owner/builder construction loans are originated to home owners rather
than home builders and are typically refinanced into permanent loans at the
completion of construction. The construction phase of an owner/builder
construction loan generally lasts up to 12 months with fixed interest rates
currently ranging from 7.00% to 7.88%, and with loan-to-value ratios of 80%
(or up to 95% with PMI) of the appraised estimated value of the completed
property. At the completion of construction, the loan is refinanced into
either a fixed-rate mortgage loan, which conforms to secondary market
standards, or an ARM loan for retention in the Bank's portfolio. At September
30, 2010, custom and owner/builder construction loans totaled $30.9 million,
or 44.7%, of the total construction and land development loan portfolio. At
September 30, 2010, the largest outstanding custom and owner/builder
construction loan had an outstanding balance of $600,000 (including $172,000
of undisbursed loans in process) and was performing according to its repayment
terms.
Read the The complete Report
